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Putting CO2 to Use: Creating Value from Emissions Technical analysis What are the regulatory requirements? Fuel quality standards specifying technical requirements for transport fuels may currently limit the use of CO2-derived fuel. For example, most fuel quality standards worldwide restrict methanol blends with fossil gasoline for use in conventional car engines to several per cent by volume (Alberici et al., 2017). Fuel testing and warranties from engine manufacturers are needed before novel fuels can be earmarked as suitable and can be compatible with the existing infrastructure of road or aviation transport. Table 3. Scaling up to a 10 MtCO2 market for CO2-derived fuels Technology No major technological breakthroughs needed. Scalability The fuel market is large enough to absorb well in excess of 7.3 Mt of methanol or 3.6 Mt of methane, which would each correspond to the conversion of 10 Mt CO2/yr. Significant amounts of low-carbon energy are required. Production capacity for fuels and low-carbon hydrogen is needed. Competitiveness CO2-derived fuels are currently not competitive with fossil fuels in most regions of the world, nor with many other alternative energy carriers, such as the direct use of electricity and hydrogen. Low-cost renewable energy and CO2 are prerequisites. Climate benefits Low-carbon hydrogen is essential to achieve climate benefits. Emissions reductions of up to 90% relative to convention fuels have been reported, but verification is needed. Regulation and other issues Fuel quality standards restrict methanol blends with gasoline. Extensive fuel testing and warranties from engine manufacturers are needed. Some emission standards are based on tailpipe emissions rather than on life-cycle emissions. CO2-derived chemicals What are CO2-derived chemicals? CO2-derived chemicals include a wide range of carbon-containing substances, including plastics, fibres, solvents and synthetic rubber. CO2 is used as a raw material to produce a number of intermediate chemicals, which can then be processed into an array of more complex chemicals. These intermediate chemicals – e.g. ethylene, propylene and methanol – are produced in large volumes and can also be finished products in themselves. Of the intermediate chemicals that can be created from CO2, the production process of methanol and methane is most technologically mature and can serve as a source for various other intermediate chemicals. The two most important intermediate chemicals that can be derived from methanol are olefins (e.g. ethylene, propylene), which are widely used in the production of polymers to manufacture plastics, and aromatics (e.g. benzene, toluene, xylene), which are used for the production of plastic, but are also used in health and hygiene, food production and processing, information technology and other sectors. Methanol-to-olefins technology is currently deployed at commercial scale in China, accounting for 9 million tonnes per year (Mt/yr) or 18% of domestic high value chemicals production in 2018 (IEA, 2019a). Methanol- to-aromatics, which is used to produce more complex HVC molecules, is currently still in the PAGE | 48 IEA. All rights reserved.PDF Image | Putting CO2 to Use Creating value from emissions
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