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Putting CO2 to Use: Creating Value from Emissions Technical analysis In the longer term, if global CO2 emissions are to reach net zero, only non-fossil CO2 sources could be used in applications that ultimately release the CO2. CO2 used for fuels and chemicals production would have to be sourced from sustainably produced biomass, such as anaerobic digestion and fermentation for the production of biogas or bioethanol, or directly from the air. Figure 19. System’s perspective of emissions reductions from CO2-derived fuels and chemicals IEA 2019. All rights reserved. The use of CO2 from fossil or industrial sources can at best mitigate 50% of the system’s emissions; higher emissions reductions require the use of biogenic or atmospheric CO2. Displaced product or service (reference system) The type of product or service displaced by the CO2-derived counterpart in the marketplace is often difficult to determine, but has a large impact on the climate benefits. The counterfactual product or service can vary depending on the market and CO2 use pathway. For example, in the case of methanol, the counterfactual product could be produced by reforming of natural gas (European market), or coal gasification (Chinese market), the former having a significantly lower carbon intensity than the latter. Also, the counterfactual product or service can change over time as a result of economy-wide decarbonisation efforts. For example, the transport fuel mix will gradually become less dominated by fossil fuels with progressively higher penetration of electric vehicles. To determine the climate benefits, an informed choice needs to be made in LCAs regarding the reference system.10 10 The final product is not the only possible basis for comparison in life-cycle assessment of CO2 use. Two other options can be identified along the value chain: (1) the product from the CO2 source plant (e.g. electricity from coal), or (2) the captured CO2 itself. Possible corresponding comparator products are renewable electricity (1) and geological storage of the CO2 (2). The choice for the basis for comparison and comparator product is critical and will give very different results in terms of potential climate benefits. Given this report’s focus on CO2-derived products, the final product is considered the best basis for comparison. PAGE | 35 IEA. All rights reserved.PDF Image | Putting CO2 to Use Creating value from emissions
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