A Futuristic Least-Cost Optimisation Model of Co2 Transportation and Storage in the UK/UK Continental Shelf

Posted: 8 Apr 2011

See all articles by Sola Kasim

Sola Kasim

University of Aberdeen - Business School

Date Written: April 6, 2011

Abstract

The owners of 8 power plants in the UK have announced interest in capturing and sequestering CO2. Using various criteria from the literature twenty fields in the UK Continental Shelf were selected as possible sinks for the captured CO2. Using a linear programming model, the study determined the least-cost transportation network under various constraints on the volumes of CO2 captured from the sources and the injection rates at the sinks. Four scenarios were developed to gauge the sensitivity of the results to these and to the availability of fields for EOR and Permanent Storage. Depending on the scenario, the optimal transportation CAPEX was found to range between £3.5 and £5.2 billion in real terms. With higher minimum injection rates at the fields, accelerating CO2-EOR investments was found to reduce unit transportation CAPEX compared to waiting for their cessation of production dates. On the other hand a combination of the later availability of the CO2-EOR fields plus a lower minimum injection rate yielded the minimum transportation network CAPEX. The modeling also unveiled the problem of CO2 supply overflows in the longer term. The modeling approach has wide applicability beyond the UK.

Keywords: CO2 transportation, Injection rates, Supply-overflows

JEL Classification: Q50, Q59

Suggested Citation

Kasim, Sola, A Futuristic Least-Cost Optimisation Model of Co2 Transportation and Storage in the UK/UK Continental Shelf (April 6, 2011). Available at SSRN: https://ssrn.com/abstract=1804345

Sola Kasim (Contact Author)

University of Aberdeen - Business School ( email )

Aberdeen Centre for Research in Energy Economics
Edward Wright Building
Aberdeen, Scotland AB24 3QY
United Kingdom

HOME PAGE: http://www.abdn.ac.uk/business/disciplines/economics/profiles/sola.kasim

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