Cost Analysis for CCS in Selected Carbon-Intensive Industries

Abstract

The cost of CCS is a crucial factor for the deployment of the technologies in industry. In order to analyze the potential of the options the levelized cost of electricity (LCOE) approach has been modified to be suitable for industrial processes. In order to allow for a cross-sector comparison, the CO₂ avoidance costs (CAC) are assessed as well. Based on a case-specific model plant, the costs for CCS in two carbon-intensive industries, cement production and refineries, are investigated.

For the cement works, the levelized production costs (LPC) are calculated for the reference plant without CCS, and for two CCS options (post-combustion, oxyfuel). For refineries, LPC are calculated for the reference plant without CCS and for a retrofit with oxyfuel technology.

The results show a major increase in LPC for the cement sector from € 84 per tonne cement in the baseline case to € 170/t for the post-combustion option (+102 %) and to € 112/t for the oxyfuel variant (+32 %) respectively. The LPC in the refinery case rise from € 70 per tonne crude oil in the baseline case to € 81/t for the oxyfuel option (+15 %). The CO₂ avoidance costs add up to € 143/tCO₂ for the cement works with post-combustion capture, € 55/tCO₂ for the oxyfuel option and € 62/tCO₂ for the oxyfuel refinery.