Carbon Dioxide Utilization Markets and Infrastructure Status and Opportunities: A First Report (2023) / Chapter Skim
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Pages 81-122
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From page 81... ...
Given that no single purity specification would be appropriate for all processes, infrastructure decisions for CO2 transport likely will be based on purity needed for transport, with any further purification performed at the utilization facility if necessary.
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2 Ongoing work, such as the National Energy Technology Laboratory's Carbon Storage Program (NETL 2022) , performs monitoring and verification to ensure long-term CO2 storage.
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, it may be GPI's Carbon and Hydrogen Hubs beneficial to divert some of the CO2 stream for utilization facilities as opposed to transporting it all to long-term geological storage, due to economics, public acceptance, or for learning through piloting and increasing scale of Identified potential carbon and hydrogen hubs GPI has identified 14 hubs across eight regions of the United States. These are by no means exclusive, as industrial emissions occur throughout the country, and carbon removal or direct air capture will need to be deployed wherever beneficial.
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From page 84... ...
Anthony, 2021, "A Review of Large-Scale CO2 Shipping and Marine Emissions Management for Carbon Capture, Utilisation and Storage," Applied Energy 287(April) :116510, https:// doi.org/10.1016/j.apenergy.2021.116510.
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From page 85... ...
Such multipurpose vessels could improve business cases; however, they increase the complexity of the supply chain (e.g., vessel cleaning will be required before the ship is loaded with a different type of product) (Zahid et al.
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An intriguing option to consider is repurposing current liquefied natural gas (LNG) facilities for CO2 liquefaction, given the existing and increasing capacity of natural gas liquefaction capacity in the United States.
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From page 87... ...
It is therefore essential for the transport system designers to understand and formulate how the synergies between the different modes of transportation of CO2 can be used to drive down costs, while taking into account safety and minimizing carbon footprint, in order to accelerate the rollout of CO2 utilization through the development of its supply chain. Low-carbon multimodal transportation path optimization methodologies developed for cargo transport (see, e.g., Zhang et al.
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From page 88... ...
Furthermore, the density of gaseous CO2 is much lower than that of dense phase CO2, which significantly reduces the transport capacity. 4.3.4 Repurposing Natural Gas Pipelines for Transporting CO2: Opportunities and Challenges In addition to the potential construction of new CO2 pipelines, repurposing existing hydrocarbon pipelines to transport CO2 is being considered as a possible means of reducing surface impacts and capital expenditure costs (Nickel et al.
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From page 89... ...
CO2 has an unusually high saturation pressure; consequently, CO2 pipelines are more prone to propagating ductile fractures than natural gas pipelines (Mahgerefteh et al.
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From page 90... ...
; or (3) formed from natural gas (sourced via pipeline)
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From page 91... ...
For solid and liquid products that can leverage existing infrastructure through either co-generation or retrofit, siting at current facilities could be economically advantageous. Synthetic natural gas can be produced at natural gas processing facilities to make use of widespread natural gas pipelines for product transfer.
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From page 92... ...
This section discusses considerations for developing the extensive infrastructure that would be needed for clean electricity, hydrogen, water, natural gas, and energy storage required to support future CO2 utilization projects. Land-use constraints that might impact infrastructure decisions also are described, with particular emphasis on tradeoffs between areal land use and energy and hydrogen requirements for different methods of hydrocarbon production.
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From page 93... ...
hydrogen production. Centralized production takes advantage of economies of scale but will likely require transportation to move hydrogen from the point of production to the point of consumption.
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These factors also provide a large incentive to co-locate CCU projects with CO2 storage sites and their connecting pipeline infrastructure. However, hydrogen generation from SMR with CCS could result in additional local air pollution depending on the carbon capture technology used, as discussed in Section 4.1.
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From page 95... ...
When the carbon footprint of natural gas is low and the capture rates are greater than 90 percent, the carbon footprint of methane-derived hydrogen approaches that of electrolytic hydrogen. The global carbon footprint of methane, however, results in a carbon footprint of hydrogen much larger than electrolytic hydrogen even at high capture rates.
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From page 96... ...
reported that over 85 percent of the green hydrogen capacity in 2040, based on projects planned worldwide as of mid-2021, may need to source water via desalination, which would add to the cost of hydrogen and impose additional demand for clean electricity to keep a low carbon footprint for hydrogen. Increasing deployment of desalination facilities could, on the other hand, decrease local water stress indices by providing communities with water not only for hydrogen production but also for other uses.
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From page 97... ...
Land-use requirements for renewable energy are also much greater than for fossil Biomass Wind + Sorbent DAC Solar PV + Oil Solvent DAC DAC only Solar PV + Wind + Solvent DAC Sorbent DAC Natural Gas FIGURE 4-7 Estimates of land-use requirements for different methods of hydrocarbon production. Land-use requirements for producing hydrocarbons from CO2 are larger than those for traditional production methods using oil and gas, but smaller than those for fuel production from biomass (based on median power densities for electricity generation from these sources)
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From page 98... ...
For larger-scale manufacturing, seasonal energy storage in the form of hydrogen stored in salt domes could enable economical hydrocarbon production, but the manufacturing facilities would need to be located at or within a transportable distance from the salt dome, which imposes geographic limitations. An example of this approach is the HyDeal project, which plans to connect green hydrogen production in the Los Angeles basin with salt dome storage in Utah via a dedicated hydrogen pipeline (Green Hydrogen Coalition n.d.)
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From page 99... ...
Ultimately, this question is a function of grid optimization and utilization facility electricity procurement terms. 4.6 FINDINGS AND RECOMMENDATIONS ON INFRASTRUCTURE CONSIDERATIONS FOR CO2 UTILIZATION FINDING 4.1 CO2 Capture.
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From page 100... ...
Department of Energy, the Pipeline and Hazardous Materials Safety Administration, and industry should co fund research to develop rigorous fluid-structure models validated by large-scale field tests to better understand the complex processes leading to propagating brittle fractures in CO2 pipelines, including its typical stream impurities, and provide practical solutions for avoiding them. FINDING 4.8 Repurposing Natural Gas Pipelines for CO2.
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From page 101... ...
In the near term, CO2 utilization processes requiring water include electrolytic hydrogen production for reaction with CO2, biological CO2 conversion, and process cooling. In the longer term, (photo)
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From page 102... ...
2019. "Flue Gas Aerosol Pretreatment Technologies to Minimize Post-Combustion CO2 Capture (PCC)
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2022. "Flue Gas Aerosol Pretreatment Technologies to Minimize PCC Solvent Losses." In 2022 Compendium of Carbon Capture Technologies.
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2021. "Global Warming Consequences of Replacing Natural Gas with Hydrogen in the Domestic Energy Sectors of Future Low-Carbon Economies in the United Kingdom and the United States of America." International Journal of Hydrogen Energy 46(58)
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2020. Energy Technology Perspectives 2020 – Special Report on Carbon Capture Utilisation and Storage: CCUS in Clean Energy Transitions.
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2020. 2020 Carbon Capture Program R&D: Compendium of Carbon Capture Technology.
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2016. "Hybrid Fluid–Structure Interaction Modelling of Dynamic Brittle Fracture in Steel Pipelines Transporting CO2 Streams." International Journal of Greenhouse Gas Control 54(Novem ber)
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2017. "A Life Cycle Assessment Case Study of Coal-Fired Electricity Generation with Humidity Swing Direct Air Capture of CO2 Versus MEA-Based Post combustion Capture." Environmental Science & Technology 51(2)
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From page 109... ...
The chapter starts by providing broad policy considerations and continues with a presentation of the current regulatory framework for CO2 utilization, storage, and transportation, highlighting challenges and proposing solutions. Policies meant to expand the CO2 utilization economy could have societal impacts that negatively affect already disadvantaged communities.
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Knowledge spillovers are an example of positive externalities. Similar problems arise when investment in new technologies generates cost reductions due to learning effects.
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From page 111... ...
Subsidies -- including grants for research, tax credits, and direct government purchases -- can be used to stimulate R&D and adoption of CO2 utilization technologies with positive knowledge externalities. To a large extent, the two externalities can be treated separately, and R&D support in carbon utilization technologies can be given equal weight to R&D support in other sectors of the economy (Nordhaus 2011)
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From page 112... ...
. 5.1.1.2 Further Regulatory Needs Although the major impediments to investment in CO2 utilization technologies are the lack of regulation of CO2 emissions and the lack of support for positive knowledge spillovers, other policy interventions are warranted for the following reasons.
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From page 113... ...
5.2 CURRENT REGULATORY FRAMEWORK FOR CARBON CAPTURE, UTILIZATION, AND STORAGE 5.2.1 Facilities Permitting Permits are typically necessary for building and operating industrial facilities, for example, permits for construction or to discharge waste; permitting requirements for such facilities are generally well established. This is already true for carbon capture and hydrogen production facilities, both of which are envisioned to be used extensively as part of a carbon management strategy that includes CO2 utilization.
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From page 114... ...
State-issued State-specific A state-issued Incidental Take Permit authorizes the "take" State entity CC, WE, Incidental Take of an endangered, threatened, or candidate species if the SMR + CCS Permit take is incidental to otherwise lawful activity, the impact of the authorized take is mitigated, and adequate funding is available to do so. Take, as defined by the ESA, refers to the harassment, harm, pursuit, hunting, shooting, wounding, killing, trapping, capture, or collection of the aforementioned species.
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From page 115... ...
In this case, no criteria pollutants are produced, and therefore there is no requirement to obtain air permits. SOURCE: Adapted from Council on Environmental Quality, 2021, Report to Congress on Carbon Capture, Utilization, and Sequestration, Washington, DC, https://www.whitehouse.gov/wp-content/uploads/2021/06/CEQ-CCUS-Permitting-Report.pdf; and Energy Futures Initiative, 2020, "An Action Plan for Carbon Capture and Storage in California: Opportunities, Challenges, and Solutions," https://energyfuturesinitiative.
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From page 116... ...
In 2022, CEQ recognized the permitting complexities surrounding the end-to-end carbon capture value chain, especially given the relative nascence of CCUS as a commercial endeavor. CEQ produced guidance to facilitate reviews associated with the deployment of CCUS and to promote the efficient, orderly, and responsible development and permitting of CCUS projects at an increased scale in line with the Biden administration's climate, economic, and public health goals (CEQ 2022)
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From page 117... ...
§ resources 470; 36 CFR Part 80 State and local authorizations Department of Environmental Quality, Issues National Pollution Discharge Elimination System State environmental quality statute Water Quality Division permit for discharges; approves Stormwater pollution prevention plan 401 Water Quality Certification Section 401 of the Clean Water Act Highway department Issues permits for oversize and overweight loads State transportation department Issues encroachment permits for state highways State transportation department State land board Issues easements to cross state lands State land board statute State engineer's office Grants permit to appropriate water for hydrostatic testing, State engineer statute dust control, and other uses State historic preservation office Reviews compliance activities related to cultural resources Section 106 of the National Historic Preservation Act, 16 U.S.C. § 470; 36 CFR Part 80 County commissioners Issues road crossing permits, land-use permits, and licenses County zoning regulations County health departments Permits temporary sanitation facilities County sanitation regulations 117
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From page 118... ...
While some may have preferred a narrower definition of commercial markets for CO2, it is important to recognize the interaction that carbon capture, utilization, and storage incentives such as 45Q and the California Low Carbon Fuel Standard have with traditional markets for CO2, such as food and beverage, the third largest market for CO2 in the United States today. Allowing CO2 emitters that demonstrate a net reduction in CO2e, such as ethanol plants, to qualify for 45Q enables those lower CO2e sources to be used by existing markets, like food and beverage companies.
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From page 119... ...
As an aside, FERC may have jurisdiction to regulate hydrogen introduced into interstate natural gas pipelines to supplement or displace natural gas. Until this question is resolved, perhaps through an amendment to the NGA, then project sponsors will be hesitant to plan for such pipelines, which could work against the cost competitiveness of products attempting to use hydrogen as an input to CO2 utilization processes unless hydrogen production can occur on demand on-site.
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From page 120... ...
Carbon capture and fuel production may have local pollution impacts. Using the fleet of internal combustion engine vehicles with synthetic fuel will produce health-harming criteria pollutants from vehicle tailpipes, while electric vehicle fleets will not emit pollution at the tailpipe.
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From page 121... ...
• Safeguards are needed to ensure that adverse impacts are not borne by disadvantaged communities. • The socioeconomic consequences and distributional impacts of carbon removal solutions need to be evaluated alongside their technological and economic attributes.
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From page 122... ...
. • Environmental justice ° The fair treatment and meaningful involvement of all people regardless of race, color, national origin, or income with respect to the development, implementation, and enforcement of en vironmental laws, regulations, and policies.
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