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Putting CO2 to Use Creating value from emissions

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Putting CO2 to Use Creating value from emissions ( putting-co2-use-creating-value-from-emissions )

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Putting CO2 to Use: Creating Value from Emissions Findings and recommendations Figure 4. The market for CO2-derived products and services is expected to remain small in the short term. Individual markets are either small in nature (polymers, greenhouses), limited to locations with favourable conditions (methane, methanol) or face other barriers for fast deployment, such as building standards and codes (building materials). Theoretical potential and climate benefits of CO2-derived products and services Fuels show the greatest potential for CO2 use by volume, while building materials have the greatest potential to deliver climate benefits per tonne of CO2 used. Where are the emerging market opportunities? The IEA has identified five key categories of CO2-derived products and services that are attracting significant global interest and considered the near-term requirements to increase the market for these applications to at least 10 MtCO2 use per year. This is almost as much as the current CO2 demand for food and beverages. The analysis finds that technologically all of these applications could be scaled up but would face commercial and regulatory barriers. 1. CO2-derived fuels The carbon in CO2 can be used to produce fuels that are in use today, including methane, methanol, gasoline and aviation fuels. The process involves using the CO2 in combination with hydrogen, which is highly energy-intensive to produce, and results in a carbon-containing fuel that is easier to handle and use than pure hydrogen (Figure 5). Low-carbon hydrogen can be produced from fossil fuels when combined with CCS, or through electrolysis of water using low- carbon electricity (IEA, 2019b). CO2-derived fuels are particularly interesting for applications where the use of other low-carbon energy carriers, such as electricity or hydrogen, is extremely challenging, such as in aviation. Several firms have already built demonstration and pilot plants producing methane and methanol from CO2 and hydrogen, together using hundreds to thousands of tonnes of CO2 per year. Other chemical and biological conversion pathways to produce CO2-derived fuels are in the early research or demonstration stages. IEA 2019. All rights reserved. PAGE | 9 IEA. All rights reserved.

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