Emissions Reduction Visual Presentation R05: Optimisation of CCS hub and its business model using novel COSMIC software

Abstract

Emissions Reduction Visual Presentation R05

The concept of clusters and hubs for carbon capture and storage (CCS) is gaining momentum due to its benefits of lower cost, lower liability, quick scalability and operational flexibility. Moreover, a hub can accelerate the decarbonisation efforts of various industries, including power, oil and gas, chemicals and hard-to-abate sectors. A CCS hub takes carbon dioxide from several emitters in an industrial cluster or distributed industrial sources and then transports and stores the CO₂ using shared infrastructure. The concept of a CCS hub may be more complex at initial stages than a normal CCS chain due to the involvement of multiple emitters with different amounts and concentrations of CO₂ emissions. A CCS hub requires long-term investment and commitment from multiple stakeholders, which requires a long-term but flexible business model. Developing such a business model requires costing different CCS hub value chain components for multiple scenarios. An up-front knowledge of the cost (capital expenditure and operational expenditure) will help the stakeholders assess profitability and risks. CO2CRC has developed a novel and comprehensive cost model, COSMIC (Costing Method for Integrated CCS chain), based on its extensive cost data, including data from various vendors, published literature and real CCS projects. COSMIC has the ability to optimise the cost of the CCS hub with regards to the emissions from the various emitters, location of capture, transport and storage hub involving multiple modes of CO₂ transport. The present paper discusses how COSMIC can be used to optimise the development of the CCS hub and its business model.

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