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evaluation of CO2 utilisation for fuel production

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evaluation of CO2 utilisation for fuel production ( evaluation-co2-utilisation-fuel-production )

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7 DISCUSSION Methanol is currently a chemical that may play an important role as fuel for the transport sector, used as it is or further transformed into its derivatives, like formaldehyde or dimethyl ether (DME). The process modelled considers a catalytic reactor that combines H2 and CO2, and the downstream product separation steps (in flash vessels and in a distillation column). It is validated and optimised to decrease as much as possible external energy needs. Currently, MeOH synthesis from captured CO2 is at TRL 6-7. The selected scale for modelling is 450 kt MeOH/yr. The electrolyser is the major electricity consumer, and it has to be powered by renewables (or zero CO2 emissions) sources in order to have a positive value for the CO2 used, required as a design condition in this work. The process is highly efficient in terms of CO2 and H2 conversion. The MeOH CDU plant, if used instead of the benchmark conventional plant (i.e. the weighted-average plant in western Europe – a share of plants that use natural gas or residual fuel oil as feedstock), shows a CO2 change (reduction) of 77 %, mainly due to the difference in direct CO2 emissions. Operating costs are higher than benefits, with electricity cost being the main contributor. In order to be economically competitive in the market (NPV at least zero), different univariate and bivariate sensitivity analyses have shown that the most important variables are electricity and MeOH prices. Prices of electricity lower than EUR 9/MWh, prices of MeOH higher than EUR 1 378/t (reference market price, EUR 350/t), or an income from feedstock CO2 higher than EUR 665/t, would allow a positive NPV for the MeOH CDU plant. The bivariate analysis demonstrates that with low prices for electricity, for instance, EUR 14/MWh, the plant is able to pay for the tonne of CO2 used, and with "free" electricity, MeOH can be even sold at a price which is lower than the MeOH market price (EUR 240/t). The market penetration pathways take into account MeOH yearly demand increase, the coverage of imports, its possible use in the shipping sector, its use in fuel cells and residential cooking (as stationary applications) and its use in passenger and light commercial vehicles, according to the hypotheses made based on the Fuel Quality Directive. The current MeOH production is 58 Mt/yr worldwide (2012). In 2030, meeting the European yearly demand would require 41-76 MtCO2/yr, meaning that 16-31 MtCO2/yr of CO2 will not be emitted, because of the use of the CDU technology, instead of the conventional technology, to provide the required 28-52 Mt MeOH/yr. Natural gas consumption would decrease by 17-31 Mt/yr. As a matter of comparison, the report from the European Parliamentary Research Service [1] points out values of 42-71 Mt MeOH/yr needed, requiring 69-104 Mt/yr of CO2 by year 2050. It can be said that the different values are in the same range, and that our report assumes a faster MeOH penetration. Formic acid is a candidate to be used as a hydrogen carrier, thus H2 demand could lead to a remarkable increase in the demand for FA. The process modelled is composed by a catalytic reactor that combines H2 and CO2, and the following product separation steps; liquid-liquid separation and two distillation columns. The technology is at TRL 3-5. The assumed plant scale used is 12 kt FA/yr. The electrolyser and the steam generator have to be powered by renewable (or zero CO2 emissions) sources to have a net amount of CO2 used, as a design condition in this work. The simulated process is highly efficient in terms of CO2 conversion, and less efficient for H2 conversion. It entails less CO2 emissions when compared to the benchmark conventional process considered (i.e. methyl formate hydrolysis with CO synthesis using heavy fuel oil): about 92 % of CO2 change (reduction), where the use of renewables has an important role. Operating costs are higher than benefits, with the variable costs of consumables (mainly catalysts) and electricity, followed by steam, as main contributors. In order to have a positive NPV, the sensitivity of the NPV to variations of the prices of FA, O2, CO2, electricity, steam, consumables and to the variation of the ISBL have been evaluated. The most important variables are consumables (particularly, the specialised catalysts), FA and electricity prices. Prices of FA higher than EUR 1 700/t (reference price, EUR 650/t), or an income from CO2 higher than EUR 1 100/t, would allow positive NPVs. The bivariate analysis demonstrates that the 61

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