Decarbonisation Technology May 2022 Issue

Fuel or off-gas conditioning represents a winning combination of carbon abatement and improved financial returns Fuel gas hydrocarbon recovery as carbon abatement strategy

Justin Stark Chevron Corporation

MACC framework and process improvement According to the International Energy Agency (IEA), direct industrial process emissions comprised 8.7 Gt CO 2 in 2020, and this is expected to increase due to a recovering global economy (IEA, 2021). However, these emissions must fall by roughly 1.2% annually to align with the IEA’s Sustainable Development Scenario (IEA, 2021). Emissions from energy-intensive industries are generally considered some of the most arduous to decarbonise due to their need for high-grade process heat, long project

development cycles, and the lack of viable commercial-scale lower-carbon replacement process technologies. That said, there are opportunities for operational and process improvement in industrial process facilities that are profitable endeavours while cutting significant carbon emissions. The Marginal Abatement Cost Curve (MACC) framework is often employed to track and prioritise such projects, as shown in Figure 1 in a study by McKinsey (McKinsey & Co, 2007). Initiatives are tracked by cost of abatement,

Commercial buildings – HVAC equipment eciency Aorestation of cropland

Residential buildings – HVAC equipment eciency

Abatement cost <$50/ton

Commercial buildings – Control systems

Industrial process improvements

90

Fuel economy packages – Light trucks

Residential buildings – Shell retrots

Coal power plants – CCS rebuilds with EOR

Coal mining – methane management

Solar CSP

60

Residential electronics

Commercial buildings – Combined heat and power

Distibuted solar CSP

Active forest management

Nuclear new-build

Residential water heaters

30

Commercial buildings – Lighting

Potential Gigatons/year

0

0 0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

2.2

2.4

2.6

2.8

3.0

3.2

Car hybrid- isation

Onshore wind – Low penetration

Industry – combined heat and power

-30

Onshore wind – High penetration Biomass power – Coring

Industry- CCS new builds on carbon- intensive processes

Coal-to-gas shift – Dispatch of existing plants

-60

Conservation tillage

Cellulosic biofuels

Coal power plants – CCS new builds with EOR

Manufacturing – HFCs mgmt

Coal power plants – CCS rebuilds

Residential buildings – New shell improvements

Existing power plant conversion eciency improvements

-90

Commercial electronics

Onshore wind – Medium penetration

Natural gas and petroleum systems management

-120

Commercial buildings – CFL lighting

Commercial buildings – LED lighting

Winter cover crops

Coal power plants – CCS new builds

Reforestation Aorestation of pastureland

-230

Fuel economy packages – Cars

Figure 1 Depiction of MACC from McKinsey study entitled Reducing U.S. Greenhouse Gas Emissions: How Much at What Cost?

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