Economic Evaluation of Eight Regional Scenarios for the Deployment of Carbon Capture, Use and Storage in Southern and Eastern Europe to 2050

Abstract

During the three-year EU-funded STRATEGY CCUS project [1] [3] (2019-2022), Carbon Capture, Use and Storage (CCUS) scenarios formulated for eight regions in Southern and Eastern Europe were developed and economically evaluated up to 2050. These regional CCUS scenarios are based on both the performances of local industries in operation and for which CCUS is a relevant mitigation alternative, as well as the regional storage capacities known to date. The eight CCUS regional scenarios are in: 1) Paris basin and 2) Rhône Valley in France, 3) Ebro basin in Spain, 4) Lusitanian basin in Portugal, 5) Northern Croatia, 6) Upper Silesia in Poland, 7) West Macedonian area in Greece and 8) Galati area in Romania. They cover an extensive and original portfolio of possible CCUS business models.

While some scenarios assume that the captured CO2 is used for synthetic methane or chemical production, in most cases the captured CO2 is sent to CO2 storage facilities. The biogenic CO2 captured is monitored and its storage time in new uses watched. The economic evaluation considers the negative CO2 emissions resulting from the long-term storage or use of captured biogenic CO2.

This paper compares the economic Key Performance Indicators (KPIs) of these eight CCUS business cases with the carbon penalties that would have been charged to the same industries to remain in compliance with the European Union - Emissions Trading System (EU ETS). The calculated KPIs mainly reflect the costs and revenues expressed in euros per ton of CO2 avoided or removed for the whole regional scenario until 2050

Keywords: CCUS; cluster; hub; techno-economic evaluation; CO2 value chain; biogenic CO2 ; EU ETS; business model; Europe; scenario;negative emissions

JEL Classification: C51; C53; C54; C63; E37; E47; E61; F36; O14; O21