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Promoting the Carbon Removal in Coal Utilization-A Benefit-Risk Analysis among Full-Chain Carbon Capture and Utilization Project

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  • Lei Zhu
  • Xin Liu

Abstract

The full-chain development of CCUS (Carbon Capture, Utilization, and Storage) requires the cooperation of different stakeholders. Focusing on full-chain CCS-EOR (enhanced oil recovery) projects, this study presents a benefit-risk analysis for two kinds of stakeholder (power plant owner and oil field owner). Their interaction (in CO 2 capture and utilization) will be reflected in the contract design, in terms of several items referring to price setting and cost sharing. Taking account of uncertainty factors and operational flexibility, benefits and risks for a power plant and an oil field cooperating on a CCS-EOR project can be separately evaluated. The simulation results show that the oil field occupies the dominant position in cooperative CO 2 utilization, and that contract design needs to improve the position of power plants, especially in terms of the pricing power of captured CO 2 . The present approach can help different stakeholders in the CCS value chain to better identify their level of benefit and risk, and to support the negotiation of cost and risk sharing among different stakeholders in full-chain CCS deployment.

Suggested Citation

  • Lei Zhu & Xin Liu, 2015. "Promoting the Carbon Removal in Coal Utilization-A Benefit-Risk Analysis among Full-Chain Carbon Capture and Utilization Project," Energy & Environment, , vol. 26(6-7), pages 1035-1053, November.
    • Handle: RePEc:sae:engenv:v:26:y:2015:i:6-7:p:1035-1053
    DOI: 10.1260/0958-305X.26.6-7.1035
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    References listed on IDEAS

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    Cited by:

    1. Yao, Xing & Zhong, Ping & Zhang, Xian & Zhu, Lei, 2018. "Business model design for the carbon capture utilization and storage (CCUS) project in China," Energy Policy, Elsevier, vol. 121(C), pages 519-533.
    2. Lei Zhu & Xing Yao & Xian Zhang, 2020. "Evaluation of cooperative mitigation: captured carbon dioxide for enhanced oil recovery," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 25(7), pages 1261-1285, October.

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