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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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Overall, this study reflects a favourable evaluation of the CDU plant, thus, an upper limit for CO2 used and CO2 not-emitted. Also market penetration pathways may have been overestimated. Different simplifications were taken into account:  The study is a gate-to-gate study. For a holistic and accurate view, an LCA has to be taken into account, to consider upstream (for instance, environmental impact allocation to the captured CO2, becoming feedstock CO2), and downstream echelons (as the CO2 retention time, and the specific circular approach for FA as an hydrogen carrier) [158], [159]. Note that different CDU products, will have different environmental impact [160].  The emissions allocated to renewable or zero CO2 emissions sources are zero, even if this is only true for direct CO2 emissions in the electricity generation echelon. These are different from zero when taking into account a life cycle approach.  The indirect emissions for the MeOH and FA conventional plants, do take into account European averages so, mixtures of fossil fuel, nuclear and renewable power plants.  Renewable sources business model. This report forecasts a synergy between CDU processes and availability of low-priced and zero-emissions electricity and steam; that is the "chemical storage" of electricity from intermittent renewable sources (the so-called Power-to-Gas or Power-to-Liquid). However, as pointed out in Sternberg and Bardow [158] other Power-to-X options exist, and the authors evaluate them through a LCA. The analysis concludes that processes that use CO2 involve a net contribution to greenhouse gas emissions reduction if the feedstock CO2 avoids emissions. Moreover, if other Power-to-X options exist, the competition for renewable energy could reduce full load hours and could increase the price of the kWh. These other alternatives for electricity storage should be taken into account to know the best business model for the renewable power plant, under each specific context [39] (thus, CO2 utilisation processes are not the only available option).  Market simplification. The CO2-based products will have to compete in the market with already existing products, synthesised from fossil fuel at lower production cost. The introduction of CO2-based products, assuming that these would be completely equivalent to the ones that are synthesised through the conventional process, could saturate the market. This could decrease the price of the product itself due to a larger offer. This could also increase the price of feedstock CO2, up to year 2030, due to a higher demand. Besides, feedstock CO2 for CO2 utilisation processes does not have a distinct price. In this report we have considered a CO2 avoidance cost of EUR 38/t [161]. However, the price of the tonne of CO2 in the Emissions Trading System (ETS) (19), about EUR 6/t may be otherwise taken into account, and/or the price of merchant CO2 (liquid CO2), which may be above EUR 100/t [162]. Moreover, for the calculation of CO2 not-emitted, only one process has been considered, the benchmark process for conventional synthesis. As MeOH and H2 demand increases, also alternative processes to synthesise them will proliferate (for example, from biomass) and would have to be also compared with the CDU process. These points will be addressed in future works. Also other products will be analysed, for instance, methane. Overall, depending on the specific conditions of each case: source of feedstock CO2, source of H2 and/or source of electricity, amount of electricity needed and price of electricity, price of the product; the CDU plant may be directly profitable and may contribute in more or less extend to decrease CO2 emissions. The size of the CDU plant depends on the available renewable electricity that is used to power it, rather than on the demand of the product. Under specific conditions, the business model becomes feasible. 19 https://www.eex.com/en/market-data/emission-allowances/spot-market/european-emission-allowances#!/2016/05/19 64

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