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A tool for creating energy market scenarios for evaluation of investments in energy intensive industry

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  • Axelsson, E.
  • Harvey, S.
  • Berntsson, T.

Abstract

The energy intensive industry can be a major contributor to CO2 emissions reduction, provided that appropriate investments are made. To assess profitability and net CO2 emissions reduction potential of such investments, predictions about future energy market conditions are needed. Energy market scenarios can be used to reflect different possible future energy market conditions. This paper presents a tool for creating consistent energy market scenarios adapted for evaluation of energy related investments in energy intensive industrial processes. Required user inputs include fossil fuel prices and costs associated with policy instruments, and the outputs are energy market prices and CO2 consequences of import/export of different energy streams (e.g. electric power and biomass fuel) from an industrial process site. The paper also presents four energy market scenarios for the medium-term future (i.e. around 2020) created using the tool.

Suggested Citation

  • Axelsson, E. & Harvey, S. & Berntsson, T., 2009. "A tool for creating energy market scenarios for evaluation of investments in energy intensive industry," Energy, Elsevier, vol. 34(12), pages 2069-2074.
    • Handle: RePEc:eee:energy:v:34:y:2009:i:12:p:2069-2074
    DOI: 10.1016/j.energy.2008.08.017
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    10. Joelsson, Jonas M. & Gustavsson, Leif, 2012. "Reductions in greenhouse gas emissions and oil use by DME (di-methyl ether) and FT (Fischer-Tropsch) diesel production in chemical pulp mills," Energy, Elsevier, vol. 39(1), pages 363-374.
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    14. Wetterlund, Elisabeth & Söderström, Mats, 2010. "Biomass gasification in district heating systems - The effect of economic energy policies," Applied Energy, Elsevier, vol. 87(9), pages 2914-2922, September.
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    18. José María Flores-Arias & Lucio Ciabattoni & Andrea Monteriù & Francisco José Bellido-Outeiriño & Antonio Escribano & Emilio José Palacios-Garcia, 2018. "First Approach to a Holistic Tool for Assessing RES Investment Feasibility," Sustainability, MDPI, vol. 10(4), pages 1-34, April.
    19. Jafri, Yawer & Wetterlund, Elisabeth & Anheden, Marie & Kulander, Ida & Håkansson, Åsa & Furusjö, Erik, 2019. "Multi-aspect evaluation of integrated forest-based biofuel production pathways: Part 2. economics, GHG emissions, technology maturity and production potentials," Energy, Elsevier, vol. 172(C), pages 1312-1328.
    20. Svensson, Elin & Strömberg, Ann-Brith & Patriksson, Michael, 2011. "A model for optimization of process integration investments under uncertainty," Energy, Elsevier, vol. 36(5), pages 2733-2746.
    21. Holmgren, Kristina M. & Berntsson, Thore & Lönnqvist, Tomas, 2018. "Profitability and greenhouse gas emissions of gasification-based biofuel production - Analysis of sector specific policy instruments and comparison to conventional biomass conversion technologies," Energy, Elsevier, vol. 165(PA), pages 997-1007.
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    23. Broberg Viklund, Sarah & Karlsson, Magnus, 2015. "Industrial excess heat use: Systems analysis and CO2 emissions reduction," Applied Energy, Elsevier, vol. 152(C), pages 189-197.
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    25. Marco Castellani & Linda Alengoz & Niccolò Casnici & Flaminio Squazzoni, 2022. "A role-game laboratory experiment on the influence of country prospects reports on investment decisions in two artificial organizational settings," Mind & Society: Cognitive Studies in Economics and Social Sciences, Springer;Fondazione Rosselli, vol. 21(1), pages 121-149, June.

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