IDEAS home Printed from https://ideas.repec.org/a/gam/jresou/v14y2025i6p85-d1662183.html
   My bibliography  Save this article

Floating Offshore Wind and Carbon Credits in Brazil: A Case Study on Floating Production, Storage and Offloading Unit Decarbonization

Author

Listed:
  • Annelys Machado Schetinger

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • Hugo Barros Bozelli

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • João Marcelo Teixeira do Amaral

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • Carolina Coutinho Mendonça de Souza

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • Amaro Olimpio Pereira

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • André Guilherme Peixoto Alves

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • Emanuel Leonardus van Emmerik

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • Giulia de Jesusda Silva

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • Pedro Henrique Busin Cambruzzi

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

  • Robson Francisco da Silva Dias

    (Laboratory of Alternative Energy Sources (LAFAE), Electrical Engineering Program, Alberto Luiz Coimbra Institute for Graduate Studies and Research in Engineering (COPPE), Polytechnic School, Federal University of Rio de Janeiro (UFRJ), Technology Center, Block I, Ilha do Fundão, Rio de Janeiro 21945970, Brazil)

Abstract

This study analyzes the economic impacts of integrating floating offshore wind farms with a Floating Production, Storage and Offloading (FPSO) unit to reduce carbon dioxide emissions. The idea is to replace the use of natural gas for power supply with an offshore wind farm, considering the effects of carbon pricing. Results show that wind integration reduces emissions by 23% to 76%, depending on the installed capacity. However, higher wind capacity increases total system costs, initial investment, electricity and operational expenses. The Brazilian carbon credit market adversely impacts existing FPSO units as a result of the compulsory carbon trading costs necessary to mitigate their emissions. In contrast, wind-integrated scenarios benefited from carbon pricing, improving financial indicators such as payback period and Return on Investment. Wind shares of 30% and 70% yielded the best financial results for carbon prices between 10 and 50 United States Dollars per ton, with higher penalties further improving viability. These findings elucidate the significance of carbon pricing in mitigating emissions and enhancing the economic feasibility of offshore wind farms within the context of the Brazilian national FPSO decarbonization strategy.

Suggested Citation

  • Annelys Machado Schetinger & Hugo Barros Bozelli & João Marcelo Teixeira do Amaral & Carolina Coutinho Mendonça de Souza & Amaro Olimpio Pereira & André Guilherme Peixoto Alves & Emanuel Leonardus van, 2025. "Floating Offshore Wind and Carbon Credits in Brazil: A Case Study on Floating Production, Storage and Offloading Unit Decarbonization," Resources, MDPI, vol. 14(6), pages 1-25, May.
    • Handle: RePEc:gam:jresou:v:14:y:2025:i:6:p:85-:d:1662183
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2079-9276/14/6/85/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2079-9276/14/6/85/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Qiao, Sen & Guo, Zi Xin & Tao, Zhang & Ren, Zheng Yu, 2023. "Analyzing the network structure of risk transmission among renewable, non-renewable energy and carbon markets," Renewable Energy, Elsevier, vol. 209(C), pages 206-217.
    2. Wu, Xiaoni & Hu, Yu & Li, Ye & Yang, Jian & Duan, Lei & Wang, Tongguang & Adcock, Thomas & Jiang, Zhiyu & Gao, Zhen & Lin, Zhiliang & Borthwick, Alistair & Liao, Shijun, 2019. "Foundations of offshore wind turbines: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 379-393.
    3. Daniel R. Drew & Dirk J. Cannon & David J. Brayshaw & Janet F. Barlow & Phil J. Coker, 2015. "The Impact of Future Offshore Wind Farms on Wind Power Generation in Great Britain," Resources, MDPI, vol. 4(1), pages 1-17, March.
    4. Bird, Lori & Chapman, Caroline & Logan, Jeff & Sumner, Jenny & Short, Walter, 2011. "Evaluating renewable portfolio standards and carbon cap scenarios in the U.S. electric sector," Energy Policy, Elsevier, vol. 39(5), pages 2573-2585, May.
    5. Erika Carvalho Nogueira & Rafael Cancella Morais & Amaro Olimpio Pereira, 2023. "Offshore Wind Power Potential in Brazil: Complementarity and Synergies," Energies, MDPI, vol. 16(16), pages 1-18, August.
    6. Jun Rentschler & Florian Flachenecker & Martin Kornejew, 2020. "Assessing carbon emission savings from corporate resource efficiency investments: an estimation indicator in theory and practice," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(2), pages 835-861, February.
    7. Andreza Moura Dos Santos & Márcio Sampaio Pimentel, 2022. "Clean development mechanism projects in the Brazilian wind sector and the carbon market: accounting aspects and relationships between its peculiarities," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 21(2/3/4), pages 113-129.
    8. Ioan Cristian Hoarcă & Nicu Bizon & Ioan Sorin Șorlei & Phatiphat Thounthong, 2023. "Sizing Design for a Hybrid Renewable Power System Using HOMER and iHOGA Simulators," Energies, MDPI, vol. 16(4), pages 1-25, February.
    9. Holttinen, Hannele & Tuhkanen, Sami, 2004. "The effect of wind power on CO2 abatement in the Nordic Countries," Energy Policy, Elsevier, vol. 32(14), pages 1639-1652, September.
    10. World Bank, "undated". "State and Trends of Carbon Pricing 2024," World Bank Publications - Reports 41544, The World Bank Group.
    11. Cruz, Matheus de Andrade & Brigagão, George Victor & de Medeiros, José Luiz & Musse, Ana Paula Santana & Kami, Eduardo & Freire, Ronaldo Lucas Alkmin & Araújo, Ofélia de Queiroz Fernandes, 2023. "Decarbonization of energy supply to offshore oil & gas production with post-combustion capture: A simulation-based techno-economic analysis," Energy, Elsevier, vol. 274(C).
    12. World Bank, "undated". "State and Trends of Carbon Pricing: International Carbon Markets 2024," World Bank Publications - Reports 42094, The World Bank Group.
    13. Avri Eitan, 2023. "The Impact of Renewable Energy Targets on Natural Gas Export Policy: Lessons from the Israeli Case," Resources, MDPI, vol. 12(2), pages 1-15, February.
    14. Maria Panagiotidou & George Xydis & Christopher Koroneos, 2016. "Environmental Siting Framework for Wind Farms: A Case Study in the Dodecanese Islands," Resources, MDPI, vol. 5(3), pages 1-25, July.
    15. Lazar Gitelman & Mikhail Kozhevnikov & Yana Visotskaya, 2023. "Diversification as a Method of Ensuring the Sustainability of Energy Supply within the Energy Transition," Resources, MDPI, vol. 12(2), pages 1-19, February.
    16. Bowen Zhou & Zhibo Zhang & Guangdi Li & Dongsheng Yang & Matilde Santos, 2023. "Review of Key Technologies for Offshore Floating Wind Power Generation," Energies, MDPI, vol. 16(2), pages 1-26, January.
    17. Rubio-Domingo, G. & Linares, P., 2021. "The future investment costs of offshore wind: An estimation based on auction results," Renewable and Sustainable Energy Reviews, Elsevier, vol. 148(C).
    18. Luan Santos & Rafael Garaffa & André F. P. Lucena & Alexandre Szklo, 2018. "Impacts of Carbon Pricing on Brazilian Industry: Domestic Vulnerability and International Trade Exposure," Sustainability, MDPI, vol. 10(7), pages 1-19, July.
    19. Zhang, Lijun & Li, Ye & Xu, Wenhao & Gao, Zhiteng & Fang, Long & Li, Rongfu & Ding, Boyin & Zhao, Bin & Leng, Jun & He, Fenglan, 2022. "Systematic analysis of performance and cost of two floating offshore wind turbines with significant interactions," Applied Energy, Elsevier, vol. 321(C).
    Full references (including those not matched with items on IDEAS)

    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. Piero Basaglia & Clara Berestycki & Stefano Carattini & Antoine Dechezleprêtre & Tobias Kruse, 2025. "Climate Policy Uncertainty and Firms' and Investors' Behavior," CESifo Working Paper Series 11782, CESifo.
    2. Hagen Kruse & Franziska Lieselotte Ohnsorge & Gabriel Zenon Tourek & Zoe Leiyu Xie, 2025. "Bridging the Gap : Revenue Mobilization in South Asia," Policy Research Working Paper Series 11104, The World Bank.
    3. Saleh Alotaibi & Hani Alogaili & Khaled Alawwad & Sulaiman Aljarallah, 2025. "The Environmental and Business Benefits of Implementing the ISO 50001 Energy Management System in Government Buildings: A Case Study of the Saudi Standards, Metrology and Quality Organization (SASO)," Sustainability, MDPI, vol. 17(11), pages 1-26, June.
    4. Rafaty, Ryan & Dolphin, Geoffroy & Pretis, Felix, 2025. "Carbon pricing and the elasticity of CO2 emissions," Energy Economics, Elsevier, vol. 144(C).
    5. Stefan Karamanski & Gareth Erfort, 2023. "Wind Energy Supply Profiling and Offshore Potential in South Africa," Energies, MDPI, vol. 16(9), pages 1-24, April.
    6. Christoph Boehringer & Carsten Helm, 2025. "The impact of sector coupling on climate policy regulations," Working Papers V-453-25, University of Oldenburg, Department of Economics, revised Jun 2025.
    7. Bauer, Adam Michael & Hallegatte, Stephane & McIsaac, Florent, 2024. "The Timing versus Allocation Trade-off in Politically Constrained Climate Policies," Policy Research Working Paper Series 10971, The World Bank.
    8. XueRong Bai & Yan Chen & Fan Yang, 2025. "Research on the risk spillover effect between China’s national carbon emissions trading market and crude oil futures market," PLOS ONE, Public Library of Science, vol. 20(1), pages 1-20, January.
    9. Zeng, Xinmeng & Shao, Yanlin & Feng, Xingya & Xu, Kun & Jin, Ruijia & Li, Huajun, 2024. "Nonlinear hydrodynamics of floating offshore wind turbines: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(C).
    10. Szczygielski, Jan Jakub & Charteris, Ailie & Obojska, Lidia & Brzeszczyński, Janusz, 2025. "Energy in turmoil: Industry resilience to uncertainty during the global energy crisis," Applied Energy, Elsevier, vol. 389(C).
    11. Zhang, Lijun & Li, Ye & Xu, Wenhao & Gao, Zhiteng & Fang, Long & Li, Rongfu & Ding, Boyin & Zhao, Bin & Leng, Jun & He, Fenglan, 2022. "Systematic analysis of performance and cost of two floating offshore wind turbines with significant interactions," Applied Energy, Elsevier, vol. 321(C).
    12. Huang, Anzhong & Dai, Luote & Ali, Sajid & Adebayo, Tomiwa Sunday, 2024. "From funds to footprints: Unravelling the asymmetric association between nuclear energy technology and environmental quality," Energy, Elsevier, vol. 309(C).
    13. Styliani Karamountzou & Dimitra G. Vagiona, 2023. "Suitability and Sustainability Assessment of Existing Onshore Wind Farms in Greece," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    14. Tiwari, Sunil & Mentel, Grzegorz & Si Mohammed, Kamel & Rehman, Mohd Ziaur & Lewandowska, Anna, 2024. "Unveiling the role of natural resources, energy transition and environmental policy stringency for sustainable environmental development: Evidence from BRIC +1," Resources Policy, Elsevier, vol. 96(C).
    15. Soimakallio, Sampo & Kiviluoma, Juha & Saikku, Laura, 2011. "The complexity and challenges of determining GHG (greenhouse gas) emissions from grid electricity consumption and conservation in LCA (life cycle assessment) – A methodological review," Energy, Elsevier, vol. 36(12), pages 6705-6713.
    16. Yan, Wan-Lin & Cheung, Adrian (Wai Kong), 2025. "Quantile connectedness among climate policy uncertainty, news sentiment, oil and renewables in China," Research in International Business and Finance, Elsevier, vol. 76(C).
    17. Yu, Hui & Li, Huiru, 2025. "Interactions among correlations: How does the volatility of the carbon-energy price correlations transmit across different time scales?," Energy, Elsevier, vol. 320(C).
    18. Sun, Luxi & Wang, Zhili & Kong, Shuning & Xia, Xiaohua, 2024. "Correlation and spillover effects between the carbon market and China's stock market: Evidence from wavelet and quantile coherency network analysis," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1175-1196.
    19. Liang, Chao & Goodell, John W. & Li, Xiafei, 2024. "Impacts of carbon market and climate policy uncertainties on financial and economic stability: Evidence from connectedness network analysis," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 92(C).
    20. Arabgolarcheh, Alireza & Rouhollahi, Amirhossein & Benini, Ernesto, 2023. "Analysis of middle-to-far wake behind floating offshore wind turbines in the presence of multiple platform motions," Renewable Energy, Elsevier, vol. 208(C), pages 546-560.

    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:gam:jresou:v:14:y:2025:i:6:p:85-:d:1662183. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.