On the Effect of Renewable Energy Mix and Intermittency on the Production Cost of Electrochemical CO2 Reduction to Formic Acid

Abstract

This study investigates how renewable energy mix and intermittency affect the production cost of electrochemical CO₂ reduction to formic acid. Using a techno-economic analysis, we calculate the Levelized Cost of Formic Acid (LCOFA) and Net Present Value (NPV) for various renewable energy configurations, storage durations, and carbon taxing scenarios across the 2024, 2035 and 2050 time frames. The findings show that, while present production costs exceed market standards, advances in renewable energy technology and the imposition of carbon taxes greatly enhance cost competitiveness.

Carbon efficiency rises with storage length, however there is a trade-off with economic feasibility. By 2050, favorable legislative frameworks and lower electrolyser costs will increase the feasibility of renewable formic acid production. This study focuses on the interplay of renewable energy integration, regulatory incentives, and technology improvements as essential drivers of sustainable and cost-effective formic acid production.

Keywords: Power-to-X, Electrochemical reduction of CO2, Formic Acid, Renewable energy, Carbon Capture and Utilization