The Role of CO2-EOR for the Development of a CCTS Infrastructure in the North Sea Region: A Techno-Economic Model and Application
AbstractScenarios of future energy systems attribute an important role to Carbon Capture, Transport, and Storage (CCTS) in achieving emission reductions. Using captured CO2 for enhanced oil recovery (CO2-EOR) can improve the economics of the technology. This paper examines the potential for CO2-EOR in the North Sea region. UK oil fields are found to account for 47% of the estimated total additional recovery potential of 3739 Mbbl (1234 MtCO2 of storage potential). Danish and Norwegian fields add 28% and 25%, respectively. Based on a comprehensive dataset, the paper develops a unique techno-economic market equilibrium model of CO2 supply from emission sources and CO2 demand from CO2-EOR to assess implications for a future CCTS infrastructure. The demand for "fresh" CO2 for CO2-EOR operation is represented by an exponential storage cost function. In all scenarios of varying CO2 and crude oil price paths the assumed CO2-EOR potential is fully exploited. CO2-EOR does add value to CCTS operations but the potential is very limited and does not automatically induce long term CCTS activity. If CO2 prices stay low, little further use of CCTS can be expected after 2035.
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Bibliographic InfoPaper provided by DIW Berlin, German Institute for Economic Research in its series Discussion Papers of DIW Berlin with number 1308.
Length: 49 p.
Date of creation: 2013
Date of revision:
Publication status: Published in: International Journal of Greenhouse Gas Control 20 (2014) 132-159
CO2-EOR; CCTS; complementarity modeling; CO2 transport;
Find related papers by JEL classification:
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- L71 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Hydrocarbon Fuels
- O33 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-07-15 (All new papers)
- NEP-ENE-2013-07-15 (Energy Economics)
- NEP-ENV-2013-07-15 (Environmental Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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Networks and Spatial Economics,
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