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Carbon Utilization

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Carbon Utilization ( carbon-utilization )

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are used in multiple industrial processes. Production of methanol from CO2 has been tested at pilot scale, and a five million-liter-per-year CO2-to-methanol plant is cur- rently operating in Iceland (which enjoys the benefit of inexpensive hydroelectric power generation and geother- mal heat that can be used for hydrogen production and process heating—see below). However, costs associated with direct hydrogenation of CO2 to methanol and other products are too high without some form of policy support to be competitive with the production of chemicals starting with fossil fuel- based feedstocks. The two components of the process needed for conversion—catalytically activated CO2 and hydrogen—both have extremely high costs associated with them. Research to create better catalysts and more efficient separation processes is essential to drive down costs for the CO2 activation step. Availability of inexpensive, low-carbon hydrogen is another challenging piece of the puzzle. Many advocates for the utilization of CO2 for fuels assume that avail- ability of excess renewable energy will drive down the costs of electrochemical hydrogen production. Currently, electricity costs make electrochemical splitting of water to generate hydrogen uneconomic. The argument has been made that with excess renewable energy available at certain times on the grid, the cost of electricity for hydro- gen production can be driven to nearly zero, making the process more economic. However, that argument does not account for the intermittent nature of excess renewable electricity availability. If an electrochemical hydrogen production facility is only available for operation for a limited amount of time each day, the economics of the argument tend to fall apart due to the lower capacity factor and corresponding increase in capital costs per unit of production. The capital investment made for the facility would be based on continuous operation, which could not be delivered. One of the significant needs to help advance CO2 utilization for fuels is a mechanism to deliver low-cost, low-carbon hydrogen that does not depend on the assumption of nearly-free electricity. Direct electrochemical processes that convert CO2 to fuels and chemicals have been demonstrated at laboratory-scale to generate a variety of products, including formic acid, methanol, methane, and ethylene. Challenges associated with direct electrochemical conversion processes include low selectivity in transferring charge (faradic efficiency); low current density that limits production rates; and poor stability of the electrodes. R&D is needed to develop improved electrode materials and structures and improved process designs for practical applications. One other promising area of active research is “hybrid” microbial electrolysis cells, in which microbial communities living in the electrochemical cell convert CO2 to chemicals. Indirect Production Pathway The indirect fuels and chemicals production pathway involving conversion of CO2 to CO prior to processing is similar to direct conversion but with a defined CO intermediate product. It is attractive because CO is much more chemically active than CO2. The process of converting CO and hydrogen (i.e., syngas) into methanol and into hydrocarbons via Fischer-Tropsch (F-T) synthesis is very well-known, although it does require hydrogen. The principal challenge for this approach is the CO2- to-CO conversion step. Options include catalytically- driven processes such as reverse water gas shift (RWGS) to generate CO from CO2, various forms of reforming, which use methane (or other light hydrocarbons) to convert CO2 to CO, and electrochemical approaches such as polymer electrolyte membranes or solid oxide eclectrochemical cells. Fundamental advances such as catalysts that operate at lower temperatures and advanced gas separations techniques are required to commercialize these processes. A near-term opportunity to advance CO2 conversion technology that can potentially overcome the hydrogen cost/availability issue noted above is dry reforming of methane and CO2 to produce methanol in natural gas producing regions. Natural gas producers in the Permian Basin, Bakken Formation, and the Marcellus/ Utica Formation are under regulatory pressure to reduce flaring. One mechanism to reduce flaring would be to pro- duce methanol using the methane and CO2 present in the natural gas. Traditional, low-pressure dry reforming is technically viable but is currently uneconomic for a variety of reasons, including issues surrounding coking. There are, however, technologies under development/ commercialization that appear promising. An R&D initiative to support development of lower-cost technolo- gies could provide an opportunity for a public/private partnership that advances CO2 conversion technologies broadly, lowers CO2 emissions associated with flaring, CARBON UTILIZATION—A VITAL AND EFFECTIVE PATHWAY FOR DECARBONIZATION 13

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