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Using real options to determine optimal funding strategies for CO2 capture, transport and storage projects in the European Union

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  • Eckhause, Jeremy
  • Herold, Johannes

Abstract

Several projects in the European Union (EU) are currently under development to implement the carbon capture, transport and storage (CCS) technology on a large scale and may be subject to public funding under EU support initiatives. These CCS projects may develop any combination of three types of operating levels: pilot, demonstration and full-scale, representing progressing levels of electric power generation capability. Several projects have commenced at the demonstration level, with full-scale commercial levels planned for approximately 2020.

Suggested Citation

  • Eckhause, Jeremy & Herold, Johannes, 2014. "Using real options to determine optimal funding strategies for CO2 capture, transport and storage projects in the European Union," Energy Policy, Elsevier, vol. 66(C), pages 115-134.
    • Handle: RePEc:eee:enepol:v:66:y:2014:i:c:p:115-134
    DOI: 10.1016/j.enpol.2013.11.030
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    References listed on IDEAS

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    2. Massol, Olivier & Tchung-Ming, Stéphane & Banal-Estañol, Albert, 2018. "Capturing industrial CO2 emissions in Spain: Infrastructures, costs and break-even prices," Energy Policy, Elsevier, vol. 115(C), pages 545-560.
    3. Massol, Olivier & Tchung-Ming, Stéphane & Banal-Estañol, Albert, 2015. "Joining the CCS club! The economics of CO2 pipeline projects," European Journal of Operational Research, Elsevier, vol. 247(1), pages 259-275.
    4. Turner, Karen & Race, Julia & Alabi, Oluwafisayo & Katris, Antonios & Swales, J. Kim, 2021. "Policy options for funding carbon capture in regional industrial clusters: What are the impacts and trade-offs involved in compensating industry competitiveness loss?," Ecological Economics, Elsevier, vol. 184(C).
    5. Artur Jaworski & Maksymilian Mądziel & Hubert Kuszewski, 2022. "Sustainable Public Transport Strategies—Decomposition of the Bus Fleet and Its Influence on the Decrease in Greenhouse Gas Emissions," Energies, MDPI, vol. 15(6), pages 1-14, March.
    6. Andreas Welling, 2017. "Green Finance: Recent developments, characteristics and important actors," FEMM Working Papers 170002, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    7. Herui Cui & Tian Zhao & Ruirui Wu, 2018. "An Investment Feasibility Analysis of CCS Retrofit Based on a Two-Stage Compound Real Options Model," Energies, MDPI, vol. 11(7), pages 1-19, July.
    8. Adrian Gepp & Geoff Harris & Bruce Vanstone, 2020. "Financial applications of semidefinite programming: a review and call for interdisciplinary research," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(4), pages 3527-3555, December.
    9. Maria-Teresa Bosch-Badia & Joan Montllor-Serrats & Maria-Antonia Tarrazon-Rodon, 2015. "Corporate Social Responsibility: A Real Options Approach to the Challenge of Financial Sustainability," PLOS ONE, Public Library of Science, vol. 10(5), pages 1-37, May.
    10. Y. Li & C.J.M. Kool & P.J. Engelen, 2016. "Hydrogen-Fuel Infrastructure Investment with Endogenous Demand: A Real Options Approach," Working Papers 16-12, Utrecht School of Economics.
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