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Carbon storage: the economic efficiency of storing CO2 in leaky reservoirs

  • Minh Ha-Duong

    ()

    (Department of Engineering and Public Policy, Carnegie Mellon University - Aucune, CIRED - Centre International de Recherche sur l'Environnement et le Développement - ENGREF - Ecole Nationale du Génie Rural, des Eaux et des Forêts - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - École des Ponts ParisTech (ENPC) - CNRS - Centre National de la Recherche Scientifique)

  • David Keith

    (Department of Engineering and Public Policy, Carnegie Mellon University - Aucune, Department of Chemical and Petroleum Engineering [Calgary] - University of Calgary)

Fossil fuels can be used with minimal atmospheric emissions of carbon dioxide by capturing and storing the CO2 away in geologic structures. However, stored CO2 can leak back to the atmosphere reducing the utility of this technology. To explore the trade-offs between discounting, leakage, the cost of sequestration and the energy penalty (the energy necessary to capture, transport and inject carbon underground), we derive analytic expressions for the value of leaky CO2 storage compared to perfect storage when storage is a marginal component of the energy system. If the annual leak rate is 1% and the discount rate is 4%, for example, then CO2 mitigation using leaky storage is worth 80% of mitigation with perfect storage. Using an integrated assessment numerical model (DIAM) to explore the role of leakage when CO2 storage is non-marginal, we find that a leakage rate of 0.1% is nearly the same as perfect storage while a leakage rate of 0.5% renders storage unattractive. The possibility of capturing CO2 from the air, not only from flue gases, makes storage with higher leakage rates interesting. Finally, we speculate about the role of imperfect carbon storage in carbon accounting and trading.

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Paper provided by HAL in its series Post-Print with number halshs-00003927.

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Date of creation: 2003
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Publication status: Published in Clean Technology and Environmental Policy, Springer, 2003, 5 (2/3), pp.181-189. <10.1007/s10098-003-0213-z>
Handle: RePEc:hal:journl:halshs-00003927
DOI: 10.1007/s10098-003-0213-z
Note: View the original document on HAL open archive server: https://halshs.archives-ouvertes.fr/halshs-00003927
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