Decarbonisation Technology - August 2023 Issue

An obvious solution is to use the compressed CO₂ as a chemical feedstock (CCU). Several existing and emerging technologies could fit this purpose, as illustrated in Figure 4 . KBC has modelled nine of the most promising technologies and continues to explore more pathways. To date, no single solution has been implemented on a large scale, largely due to the high cost related to the hydrogen consumed, as the proposed routes often use large amounts of low-carbon intensity hydrogen. This hydrogen is estimated to be at least four times more expensive than SMR hydrogen. It is also projected to remain more expensive unless subsidised by regulatory initiatives such as the US Inflation Reduction Act (IRA) of 2022. The most attractive economic destinations are those that require less hydrogen due to the high cost of green hydrogen, and some of these, such as polycarbonates, have limited global demand. Therefore, introducing market incentives, either through government mandates or commercial branding, will be required to achieve large-scale deployment of these e-fuels and e-chemicals. Note that such mechanisms are already in place to produce sustainable aviation fuels from CO2 pathways in the EU and the US. Carbon capture and storage initiatives Carbon sequestration (CCS) and enhanced oil recovery (EOR) involve capturing and storing CO 2 in a place where it cannot be released back into the air. The compressed emissions are piped to an injection point and stored in underground spaces, such as depleted oil and

gas fields. To encourage adoption, the US IRA offers attractive incentives reaching USD 80 for every tonne of CO2 removed this way. Access to the pipelines that transport CO2 to the injection point is key. Shipping CO2 to injection points is another option, but those solutions pose more challenges, given the costs. According to KBC, CCS and EOR projects serve as cost-effective solutions to reduce emissions, particularly if regulators continue incentivising their development. Electrification only makes sense from an emissions reduction standpoint if the source of the electrons is low- or zero-carbon Electrification Another viable energy source is electrification. Electrification only makes sense from an emissions reduction standpoint if the source of the electrons is low- or zero-carbon. Solar, wind, hydro, tidal, and nuclear power all meet these criteria and are under consideration. The variable nature of some non-nuclear sources is a challenging match with an operating facility’s critical and constant electricity demand. Technologies to use electric heating to replace fired heaters and boilers are being improved for safety, reliability, and scale. Electric olefin crackers are being built, and KBC expects the use of electrical heat to expand throughout the refinery and petrochemical industries.

Non CO feeds

CO Utilisation operating margins

# Name 1 2 3 4 5 6 7 8 Urea Polyols Xylenes

Main product

Methanation Methane

H / CO cost: 4000/50 $/t

Methanol H Fischer-Tropsch Syncrude / SAF H Oxo synthesis Butanal Methanol Propylene, H Carbonation Building material Steel slag

Oxo (butanal)

Xylenes

Polyols

MeOH

Mixed xylenes

Urea

PPC

Carbon- ation

Urea

Ammonia (NH) Propylene oxide (PO) Propylene oxide

Polyether carbonate polyol Polypropylene carbonate (PPC)

Polymeric carbonates

Feed/product value addition

H cost

CO revenue

Electricity/fuel/steam

Fixed opex

Figure 4 Nine promising technologies to compress CO₂ and CCU operating margins