The Cost of CO2 Transport and Storage in Global Integrated Assessment Modeling

18 Pages Posted: 31 Mar 2021

See all articles by Erin Smith

Erin Smith

Massachusetts Institute of Technology (MIT)

Jennifer Morris

Massachusetts Institute of Technology (MIT)

Haroon Kheshgi

University of Illinois at Urbana-Champaign - Department of Atmospheric Sciences

Gary Teletzke

ExxonMobil Upstream Research Company

Howard Herzog

Massachusetts Institute of Technology (MIT)

Sergey Paltsev

Massachusetts Institute of Technology (MIT)

Date Written: March 18, 2021

Abstract

This paper assesses the range of CO2 transport and storage costs and evaluates their impact on economy-wide modelling results of decarbonization pathways. Much analytic work has been dedicated to evaluating the cost and performance of various CO2 capture technologies, but less attention has been paid to evaluating the cost of CO2 transport and storage. Many integrated assessment modeling studies assume a combined cost for CO2 transport and storage that is uniform in all regions, commonly estimated at $10/tCO2. Realistically, the cost of CO2 transport and storage is not fixed at $10/tCO2 and varies across geographic, geologic, and institutional settings. We surveyed the literature to identify key sources of variability in transport and storage costs and developed a method to quantify and incorporate these elements into a cost range. We find that onshore pipeline transport and storage costs vary from $4 to 45/tCO2 depending on key sources of variability including transport distance, scale (i.e. quantity of CO2 transported and stored), monitoring assumptions, reservoir geology, and transport cost variability such as pipeline capital costs. Using the MIT Economic Projection and Policy Analysis (EPPA) model, we examined the impact of variability in transport and storage costs by applying a range of uniform costs in all regions in a future where global temperature rise is limited to 2°C. We then developed three modeling cases where transport and storage costs vary regionally. In these latter cases, global cumulative CO2 captured and stored through 2100 ranges from 290 to 377 Gt CO2, compared to 425 Gt CO2 when costs are assumed to be uniformly $10/t CO2 in all regions. We conclude that the widely used assumption of $10/tCO2 for the transport and storage of CO2 is reasonable in some regions, but not in others. Moreover, CCS deployment is more sensitive to transport and storage costs in some regions than others, particularly China. More analysis is needed to further quantify CO2 transport and storage costs at a regional level.

Keywords: CCS, CO2 transport, CO2 storage, Integrated assessment model

Suggested Citation

Smith, Erin and Morris, Jennifer and Kheshgi, Haroon and Teletzke, Gary and Herzog, Howard and Paltsev, Sergey, The Cost of CO2 Transport and Storage in Global Integrated Assessment Modeling (March 18, 2021). Proceedings of the 15th Greenhouse Gas Control Technologies Conference 15-18 March 2021, Available at SSRN: https://ssrn.com/abstract=3816593 or http://dx.doi.org/10.2139/ssrn.3816593

Erin Smith (Contact Author)

Massachusetts Institute of Technology (MIT) ( email )

Jennifer Morris

Massachusetts Institute of Technology (MIT)

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Haroon Kheshgi

University of Illinois at Urbana-Champaign - Department of Atmospheric Sciences ( email )

Urbana, IL 61801-3070
United States

Gary Teletzke

ExxonMobil Upstream Research Company ( email )

22777 Springwoods Village Parkway
Spring, TX 77389
United States

Howard Herzog

Massachusetts Institute of Technology (MIT)

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

Sergey Paltsev

Massachusetts Institute of Technology (MIT) ( email )

77 Massachusetts Avenue
50 Memorial Drive
Cambridge, MA 02139-4307
United States

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