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Putting CO2 to Use: Creating Value from Emissions Technical analysis Box 2. Exploiting synergies between CO2 use and CCS CO2 use is often considered together and in comparison with CCS in the context of climate change mitigation. Analysis by the IEA has consistently highlighted the critical role of CCS in achieving deep emissions reductions across the energy system, including as a source of “negative emissions” (IEA, 2017). CO2 use is not expected to fulfil the same function as geological CO2 storage or to deliver emissions reductions at the same scale (IEA, 2019b). However, CO2 use can support the development of products and services with a lower CO2 footprint and contribute to emissions reductions as part of a portfolio of clean energy technologies. CO2 use and CCS should be considered complementary technologies within this portfolio, with the potential to enable and reinforce each other’s deployment. These synergies include: Source of revenue: Demand for CO2 for productive use can provide an important revenue stream for CCS projects. The demand for CO2-EOR has supported investment in 14 of the 19 large-scale CCUS projects currently in operation (see Box 1). Other emerging CO2 use opportunities are unlikely to create demand at the same scale, but could provide a partial revenue stream for CCS projects in some circumstances. Technology refinement: Smaller-scale CO2 use opportunities are supporting the demonstration of novel CO2 capture routes, such as membranes and DAC. These early demonstrations can contribute to technology refinement and cost reductions for CCS and CO2 use and support the future deployment of both technologies. Economies of scale: Near-term opportunities for CO2 use typically involve smaller streams of CO2 demand than CCS, and can benefit from economies of scale in CO2 capture when co-located with large-scale CCS projects. Shared infrastructure: CO2 use could benefit from the development of large-scale capture and transport infrastructure for CO2, especially as part of future CO2 hubs and clusters in areas with emission-intensive industries. Such hubs and clusters can safeguard existing emission-intensive industry, such as chemical and iron and steel factories, while boosting novel industries pursuing CO2 use activities, thus aligning new business opportunities with deep emissions reductions. The port of Rotterdam is an example of an industrial area where efforts are being made to develop infrastructure that can facilitate both geological storage and CO2 use in greenhouses to stimulate crop growth. Stepping stone to CO2 storage: in limited cases, CO2 use can complement CCS in places where geological storage for CCS is not accessible, ready on time or too expensive to develop for small sources of CO2. PAGE | 24 IEA. All rights reserved.PDF Image | Putting CO2 to Use Creating value from emissions
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