Multi-period stochastic optimization of integrating carbon capture and storage/utilization (CCS/CCU) for cement industry

Abstract

This work introduces a comprehensive network to model various CCS/CCU supply chains for the Austrian cement industry. Our framework considers carbon capture, various transportation options, and multiple storage and utilization possibilities, including depleted oil and gas reservoir in Austria and offshore storage sites in the North Sea, as well as utilization in synthetic fuels. An optimization framework is employed to strategically design CCS/CCU systems, accounting for both inherent and external uncertainties including production costs, carbon pricing, storage capabilities, and product pricing within a dynamic temporal framework. The future projections of energy supply from REMIND model are integrated into the prospective life cycle assessment for the overall systems. The optimal design problem is formulated as a multi-period stochastic programming model that finds the trade-off between environmental impacts evaluated by prospective life cycle assessment and total annual profit of the superstructure paths for different emissions reduction pathways over a deployment time horizon of 30 years. The results suggest that the Levelized Cost of Avoided Carbon can be lower than €150 per ton CO2 stored for Austrian emissions at a baseline scenario. Furthermore, while the adoption of CO2 utilization could potentially enhance system profitability that depends on the competitiveness of synthetic fuel production costs, it also results in diminished CO2 reduction efficiency due to the increased carbon footprint of the utilization processes.