Recent research led by Xi Liang from the Guangdong Southern Carbon Capture and Storage Industry Centre has shed light on the potential benefits and economic feasibility of various carbon dioxide (CO2) utilization technologies. Published in the journal “Southern Energy Construction,” the study emphasizes the promising role these technologies could play in mitigating climate change while also presenting commercial opportunities for the energy sector.
Carbon utilization technologies convert CO2 into valuable products like fuels, chemicals, and building materials. This innovative approach not only helps reduce greenhouse gas emissions but also promotes resource recycling, making it an attractive solution for industries looking to improve their sustainability profiles. However, understanding the climate benefits and economic viability of these technologies remains a significant challenge.
Liang’s team developed a methodology to assess the emission reduction benefits and economic aspects of four typical CO2 utilization technologies. The results reveal a range of effectiveness and financial implications. For example, CO2 enhanced oil recovery (CO2-EOR) can achieve an emission abatement of 1.62 to 5.85 tons of CO2 per ton of oil produced, translating to varying financial benefits depending on oil prices and production ratios. When oil prices hover around 390 yuan per barrel, the abatement benefits from CO2-EOR can range from 2 to 1,152 yuan per ton of CO2.
On the other hand, the production of methanol from CO2 and green hydrogen shows a different picture. This process achieves an emission abatement of 4.89 tons of CO2 per ton of methanol but requires subsidies or a carbon pricing mechanism of 18 to 833 yuan per ton of CO2 to remain economically viable. This highlights a critical area for investment and policy support in the energy sector, particularly for technologies that may not be immediately profitable but have significant long-term climate benefits.
The study also explored the utilization of steel slag in building materials, which yielded a unit emission abatement of 0.94 tons of CO2 per ton of steel slag powder, generating an abatement benefit of 36 to 164 yuan per ton of CO2. Additionally, cultivating microalgae for biodiesel production demonstrated a unit emission abatement of 0.36 tons of CO2 per ton of algae powder, with potential benefits reaching a staggering 30,000 to 90,000 yuan per ton of CO2.
Liang emphasizes that while these indicators are vital, “actual project decisions must also consider the impact of technological stability, market environment, and resource conditions on economic feasibility.” This insight is crucial for stakeholders in the energy sector who are weighing the implementation of carbon utilization technologies.
As industries increasingly seek to align with climate goals, the findings from this research signal a significant opportunity for investment in carbon capture and utilization technologies. By improving institutional frameworks and integrating these technologies into carbon markets, the energy sector can enhance its contribution to emission abatement while tapping into new commercial avenues. The research underscores the need for a concerted effort to support technologies that provide genuine climate benefits, ensuring a sustainable future for the industry.
