The Role of CO2-EOR for the Development of a CCTS Infrastructure in the North Sea Region: A Techno-Economic Model and Application
Scenarios 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.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: Mohrenstraße 58, D-10117 Berlin|
Web page: http://www.diw.de/en
More information through EDIRC
References listed on IDEAS
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.:
- Daniel Huppmann, 2012.
"Endogenous Investment Decisions in Natural Gas Equilibrium Models with Logarithmic Cost Functions,"
Discussion Papers of DIW Berlin
1253, DIW Berlin, German Institute for Economic Research.
- Huppmann, Daniel, 2013. "Endogenous production capacity investment in natural gas market equilibrium models," European Journal of Operational Research, Elsevier, vol. 231(2), pages 503-506.
- Ibrahim Abada & Vincent Briat & Steve A. Gabriel & Olivier Massol, 2011.
"A Generalized Nash-Cournot Model for the North-Western European Natural Gas Markets with a Fuel SubstitutionDemand Function: The GaMMES Model,"
EconomiX Working Papers
2011-8, University of Paris West - Nanterre la Défense, EconomiX.
- Ibrahim Abada & Steven Gabriel & Vincent Briat & Olivier Massol, 2013. "A Generalized Nash–Cournot Model for the Northwestern European Natural Gas Markets with a Fuel Substitution Demand Function: The GaMMES Model," Networks and Spatial Economics, Springer, vol. 13(1), pages 1-42, March.
- Hackett Steven C., 1995. "Pollution-Controlling Innovation in Oligopolistic Industries: Some Comparisons between Patent Races and Research Joint Ventures," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 339-356, November.
- Roman Mendelevitch & Johannes Herold & Pao-Yu Oei & Andreas Tissen, 2010. "CO2 Highways for Europe: Modeling a Carbon Capture, Transport and Storage Infrastructure for Europe," Discussion Papers of DIW Berlin 1052, DIW Berlin, German Institute for Economic Research.
When requesting a correction, please mention this item's handle: RePEc:diw:diwwpp:dp1308. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bibliothek)
If references are entirely missing, you can add them using this form.