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Putting CO2 to Use: Creating Value from Emissions Technical analysis Scaling up the market This section identifies the requirements for five key categories of CO2-derived products and services to grow to an initial market size of 10 MtCO2 used per year, which is almost as much as the current CO2 demand for food and beverages. The five CO2-derived products and services are those described in the scene-setter: fuels, chemicals, building materials from minerals, building materials from waste, and the use of CO2 to enhance the yield of biological processes. The evaluation is based on the factors and framework conditions as described in the previous section. The key regulatory requirements for each are also discussed. CO2-derived fuels What are CO2-derived fuels? CO2-derived synthetic fuels encompass an array of products that can be manufactured using CO2 as a feedstock. They consist of commercially established products such as methane, methanol and syngas (a gas mixture of carbon monoxide and hydrogen), which can be used directly as a fuel, or as an intermediate to produce a suite of other fuels that are compatible with existing infrastructure, such as diesel, gasoline and aviation fuels. The use of existing infrastructure is typically easier and cheaper than transporting and storing electricity and hydrogen. Most CO2-derived fuels have their application in the transport sector (e.g. methanol as a blend with gasoline), while others (e.g. methane) can be used across multiple sectors, including industry, heating and power generation. CO2-derived fuels may notably be used in sectors in which carbon-containing fuels will continue to play an important role, because the use of carbon-free energy carriers, such as electricity or hydrogen, is extremely challenging. An important example is the aviation sector. These fuels can be manufactured through a large number of chemical and biological processes. The most technologically mature conversion routes are the direct conversion of CO2 (hydrogenation) into methanol and methane, and indirect conversion whereby the CO2 is first transformed into carbon monoxide (CO), followed by a synthesis step (Fischer-Tropsch) which then produces a range of other fuels (Figure 21). The CO2 use rates are high, with methanol requiring 1.37 tCO2 per tonne of product, and methane requiring 2.74 tCO2 per tonne of product, assuming 100% conversion efficiency. Unlike the chemical compounds making up fossil fuels, CO2 is a very stable, non-reactive molecule with a low energy state, meaning that large amounts of external energy must be supplied to convert it into an energy- rich fuel. The most mature conversion pathways use energy in the form of hydrogen. The overall conversion efficiency is around 50%, but differs per type of fuel (Figure 22). Methane is more energy-intensive to produce than methanol. The fundamental conversion processes are well understood. The conversion of CO2 to CO has been successfully demonstrated on a small scale, while hydrogenation, and FT and methanol synthesis are technologically mature. Demonstration plants producing methanol and methane have been built in various locations (mainly in Europe); currently, they use hundreds to thousands of tonnes of CO2 per year. The majority of projects have been aimed at PAGE | 41 IEA. All rights reserved.PDF Image | Putting CO2 to Use Creating value from emissions
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