IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v189y2017icp725-738.html
   My bibliography  Save this article

Design under uncertainty of carbon capture and storage infrastructure considering cost, environmental impact, and preference on risk

Author

Listed:
  • Lee, Suh-Young
  • Lee, Jae-Uk
  • Lee, In-Beum
  • Han, Jeehoon

Abstract

We present a stochastic decision-making algorithm for the design and operation of a carbon capture and storage (CCS) network; the algorithm incorporates the decision-maker’s tolerance of risk caused by uncertainties. Given a set of available resources to capture, store, and transport CO2, the algorithm provides an optimal plan of the CCS infrastructure and a CCS assessment method, while minimizing annual cost, environmental impact, and risk under uncertainties. The model uses the concept of downside risk to explicitly incorporate the trade-off between risk and either economic or environmental objectives at the decision-making level. A two-phase-two-stage stochastic multi-objective optimization problem (2P2SSMOOP) solving approach is implemented to consider uncertainty, and the ε-constraint method is used to evaluate the interaction between total annual cost with financial risk and an Eco-indicator 99 score with environmental risk. The environmental impact is measured by Life Cycle Assessment (LCA) considering all contributions made by operation and installation of a CCS infrastructure. A case study of power-plant CO2 emission in Korea is presented to illustrate the application of the proposed modeling and solution method.

Suggested Citation

  • Lee, Suh-Young & Lee, Jae-Uk & Lee, In-Beum & Han, Jeehoon, 2017. "Design under uncertainty of carbon capture and storage infrastructure considering cost, environmental impact, and preference on risk," Applied Energy, Elsevier, vol. 189(C), pages 725-738.
    • Handle: RePEc:eee:appene:v:189:y:2017:i:c:p:725-738
    DOI: 10.1016/j.apenergy.2016.12.066
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030626191631827X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2016.12.066?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Cristóbal, Jorge & Guillén-Gosálbez, Gonzalo & Jiménez, Laureano & Irabien, Angel, 2012. "Multi-objective optimization of coal-fired electricity production with CO2 capture," Applied Energy, Elsevier, vol. 98(C), pages 266-272.
    2. Zhang, Xian & Wang, Xingwei & Chen, Jiajun & Xie, Xi & Wang, Ke & Wei, Yiming, 2014. "A novel modeling based real option approach for CCS investment evaluation under multiple uncertainties," Applied Energy, Elsevier, vol. 113(C), pages 1059-1067.
    3. Hansson, Anders & Bryngelsson, Mårten, 2009. "Expert opinions on carbon dioxide capture and storage--A framing of uncertainties and possibilities," Energy Policy, Elsevier, vol. 37(6), pages 2273-2282, June.
    4. Chen, W.T. & Li, Y.P. & Huang, G.H. & Chen, X. & Li, Y.F., 2010. "A two-stage inexact-stochastic programming model for planning carbon dioxide emission trading under uncertainty," Applied Energy, Elsevier, vol. 87(3), pages 1033-1047, March.
    5. Zhou, Wenji & Zhu, Bing & Fuss, Sabine & Szolgayová, Jana & Obersteiner, Michael & Fei, Weiyang, 2010. "Uncertainty modeling of CCS investment strategy in China's power sector," Applied Energy, Elsevier, vol. 87(7), pages 2392-2400, July.
    6. Fuss, Sabine & Szolgayova, Jana & Obersteiner, Michael & Gusti, Mykola, 2008. "Investment under market and climate policy uncertainty," Applied Energy, Elsevier, vol. 85(8), pages 708-721, August.
    7. Viebahn, Peter & Daniel, Vallentin & Samuel, Höller, 2012. "Integrated assessment of carbon capture and storage (CCS) in the German power sector and comparison with the deployment of renewable energies," Applied Energy, Elsevier, vol. 97(C), pages 238-248.
    8. Rubin, Edward S. & Chen, Chao & Rao, Anand B., 2007. "Cost and performance of fossil fuel power plants with CO2 capture and storage," Energy Policy, Elsevier, vol. 35(9), pages 4444-4454, September.
    9. Zhu, Lei & Fan, Ying, 2011. "A real options–based CCS investment evaluation model: Case study of China’s power generation sector," Applied Energy, Elsevier, vol. 88(12), pages 4320-4333.
    10. Mark P. Sharfman & Chitru S. Fernando, 2008. "Environmental risk management and the cost of capital," Strategic Management Journal, Wiley Blackwell, vol. 29(6), pages 569-592, June.
    11. Viebahn, Peter & Vallentin, Daniel & Höller, Samuel, 2014. "Prospects of carbon capture and storage (CCS) in India’s power sector – An integrated assessment," Applied Energy, Elsevier, vol. 117(C), pages 62-75.
    12. Sun, Liang & Chen, Wenying, 2013. "The improved ChinaCCS decision support system: A case study for Beijing–Tianjin–Hebei Region of China," Applied Energy, Elsevier, vol. 112(C), pages 793-799.
    13. Han, Jee-Hoon & Ahn, Yu-Chan & Lee, In-Beum, 2012. "A multi-objective optimization model for sustainable electricity generation and CO2 mitigation (EGCM) infrastructure design considering economic profit and financial risk," Applied Energy, Elsevier, vol. 95(C), pages 186-195.
    14. Zhang, Xiaodong & Duncan, Ian J. & Huang, Gordon & Li, Gongchen, 2014. "Identification of management strategies for CO2 capture and sequestration under uncertainty through inexact modeling," Applied Energy, Elsevier, vol. 113(C), pages 310-317.
    15. Herzog, Howard J., 2011. "Scaling up carbon dioxide capture and storage: From megatons to gigatons," Energy Economics, Elsevier, vol. 33(4), pages 597-604, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Peter Viebahn & Emile J. L. Chappin, 2018. "Scrutinising the Gap between the Expected and Actual Deployment of Carbon Capture and Storage—A Bibliometric Analysis," Energies, MDPI, vol. 11(9), pages 1-45, September.
    2. Zhang, Shuai & Liu, Linlin & Zhang, Lei & Zhuang, Yu & Du, Jian, 2018. "An optimization model for carbon capture utilization and storage supply chain: A case study in Northeastern China," Applied Energy, Elsevier, vol. 231(C), pages 194-206.
    3. Zhang, Shuai & Zhuang, Yu & Liu, Linlin & Zhang, Lei & Du, Jian, 2019. "Risk management optimization framework for the optimal deployment of carbon capture and storage system under uncertainty," Renewable and Sustainable Energy Reviews, Elsevier, vol. 113(C), pages 1-1.
    4. Golden Odey & Bashir Adelodun & Sang-Hyun Kim & Kyung-Sook Choi, 2021. "Status of Environmental Life Cycle Assessment (LCA): A Case Study of South Korea," Sustainability, MDPI, vol. 13(11), pages 1-30, June.
    5. Zhao, Zhitong & Chong, Katie & Jiang, Jingyang & Wilson, Karen & Zhang, Xiaochen & Wang, Feng, 2018. "Low-carbon roadmap of chemical production: A case study of ethylene in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 580-591.
    6. Lee, Suh-Young & Lee, In-Beum & Han, Jeehoon, 2019. "Design under uncertainty of carbon capture, utilization and storage infrastructure considering profit, environmental impact, and risk preference," Applied Energy, Elsevier, vol. 238(C), pages 34-44.
    7. Francesco Conte & Antonio Tripodi & Ilenia Rossetti & Gianguido Ramis, 2021. "Feasibility Study of the Solar-Promoted Photoreduction of CO 2 to Liquid Fuels with Direct or Indirect Use of Renewable Energy Sources," Energies, MDPI, vol. 14(10), pages 1-14, May.
    8. d'Amore, Federico & Mocellin, Paolo & Vianello, Chiara & Maschio, Giuseppe & Bezzo, Fabrizio, 2018. "Economic optimisation of European supply chains for CO2 capture, transport and sequestration, including societal risk analysis and risk mitigation measures," Applied Energy, Elsevier, vol. 223(C), pages 401-415.
    9. Karjunen, Hannu & Tynjälä, Tero & Hyppänen, Timo, 2017. "A method for assessing infrastructure for CO2 utilization: A case study of Finland," Applied Energy, Elsevier, vol. 205(C), pages 33-43.
    10. Ahn, Yuchan & Han, Jeehoon, 2018. "Economic optimization of integrated network for utility supply and carbon dioxide mitigation with multi-site and multi-period demand uncertainties," Applied Energy, Elsevier, vol. 220(C), pages 723-734.
    11. 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.
    12. Fu, Yue & Wang, Liyuan & Liu, Ming & Wang, Jinshi & Yan, Junjie, 2023. "Performance analysis of coal-fired power plants integrated with carbon capture system under load-cycling operation conditions," Energy, Elsevier, vol. 276(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Viebahn, Peter & Vallentin, Daniel & Höller, Samuel, 2015. "Prospects of carbon capture and storage (CCS) in China’s power sector – An integrated assessment," Applied Energy, Elsevier, vol. 157(C), pages 229-244.
    2. Lee, Jui-Yuan & Tan, Raymond R. & Chen, Cheng-Liang, 2014. "A unified model for the deployment of carbon capture and storage," Applied Energy, Elsevier, vol. 121(C), pages 140-148.
    3. Fan, Jing-Li & Xu, Mao & Li, Fengyu & Yang, Lin & Zhang, Xian, 2018. "Carbon capture and storage (CCS) retrofit potential of coal-fired power plants in China: The technology lock-in and cost optimization perspective," Applied Energy, Elsevier, vol. 229(C), pages 326-334.
    4. Lee, Suh-Young & Lee, In-Beum & Han, Jeehoon, 2019. "Design under uncertainty of carbon capture, utilization and storage infrastructure considering profit, environmental impact, and risk preference," Applied Energy, Elsevier, vol. 238(C), pages 34-44.
    5. Knoope, M.M.J. & Ramírez, A. & Faaij, A.P.C., 2015. "The influence of uncertainty in the development of a CO2 infrastructure network," Applied Energy, Elsevier, vol. 158(C), pages 332-347.
    6. Mo, Jian-Lei & Schleich, Joachim & Zhu, Lei & Fan, Ying, 2015. "Delaying the introduction of emissions trading systems—Implications for power plant investment and operation from a multi-stage decision model," Energy Economics, Elsevier, vol. 52(PB), pages 255-264.
    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. Thomas Aspinall & Adrian Gepp & Geoff Harris & Simone Kelly & Colette Southam & Bruce Vanstone, 2021. "Estimation of a term structure model of carbon prices through state space methods: The European Union emissions trading scheme," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 61(2), pages 3797-3819, June.
    9. Wang, Xingwei & Cai, Yanpeng & Dai, Chao, 2014. "Evaluating China's biomass power production investment based on a policy benefit real options model," Energy, Elsevier, vol. 73(C), pages 751-761.
    10. Zhang, Xian & Wang, Xingwei & Chen, Jiajun & Xie, Xi & Wang, Ke & Wei, Yiming, 2014. "A novel modeling based real option approach for CCS investment evaluation under multiple uncertainties," Applied Energy, Elsevier, vol. 113(C), pages 1059-1067.
    11. ShahNazari, Mahdi & McHugh, Adam & Maybee, Bryan & Whale, Jonathan, 2014. "The effect of political cycles on power investment decisions: Expectations over the repeal and reinstatement of carbon policy mechanisms in Australia," Applied Energy, Elsevier, vol. 130(C), pages 157-165.
    12. Fan, Jing-Li & Xu, Mao & Yang, Lin & Zhang, Xian, 2019. "Benefit evaluation of investment in CCS retrofitting of coal-fired power plants and PV power plants in China based on real options," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    13. Chen, Siyuan & Liu, Jiangfeng & Zhang, Qi & Teng, Fei & McLellan, Benjamin C., 2022. "A critical review on deployment planning and risk analysis of carbon capture, utilization, and storage (CCUS) toward carbon neutrality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    14. Shahnazari, Mahdi & McHugh, Adam & Maybee, Bryan & Whale, Jonathan, 2014. "Evaluation of power investment decisions under uncertain carbon policy: A case study for converting coal fired steam turbine to combined cycle gas turbine plants in Australia," Applied Energy, Elsevier, vol. 118(C), pages 271-279.
    15. Zhang, Minkai & Guo, Yincheng, 2013. "Rate based modeling of absorption and regeneration for CO2 capture by aqueous ammonia solution," Applied Energy, Elsevier, vol. 111(C), pages 142-152.
    16. Rochedo, Pedro R.R. & Szklo, Alexandre, 2013. "Designing learning curves for carbon capture based on chemical absorption according to the minimum work of separation," Applied Energy, Elsevier, vol. 108(C), pages 383-391.
    17. Mo, Jian-Lei & Agnolucci, Paolo & Jiang, Mao-Rong & Fan, Ying, 2016. "The impact of Chinese carbon emission trading scheme (ETS) on low carbon energy (LCE) investment," Energy Policy, Elsevier, vol. 89(C), pages 271-283.
    18. Zhang, M.M. & Wang, Qunwei & Zhou, Dequn & Ding, H., 2019. "Evaluating uncertain investment decisions in low-carbon transition toward renewable energy," Applied Energy, Elsevier, vol. 240(C), pages 1049-1060.
    19. Walsh, D.M. & O'Sullivan, K. & Lee, W.T. & Devine, M.T., 2014. "When to invest in carbon capture and storage technology: A mathematical model," Energy Economics, Elsevier, vol. 42(C), pages 219-225.
    20. Zhang, Dongjie & Liu, Pei & Ma, Linwei & LI, Zheng, 2013. "A multi-period optimization model for planning of China's power sector with consideration of carbon dioxide mitigation—The importance of continuous and stable carbon mitigation policy," Energy Policy, Elsevier, vol. 58(C), pages 319-328.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:189:y:2017:i:c:p:725-738. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.