Economic feasibility studies for Carbon Capture and Utilization technologies: a tutorial review

Carbon Capture and Utilization (CCU) involves the capture and use of CO2 as a resource to create valuable products. The competitiveness of various CCU technologies has been investigated frequently resulting in a variety of economic feasibility studies and economic indicators. This study performs a tutorial review, in which practical guidance is given on the implementation of Techno-Economic Assessments (TEAs) for chemical CCU technologies. The tutorial review maps the differences in the methods and assumptions of economic feasibility studies for CCU technologies and advises how these studies can be improved in the future. A TEA framework, drafted by the CCU research community, is used as a benchmark in this review, to allow for objective comparisons between various economic feasibility studies. The four phases of an exhaustive TEA are (I) goal and scope, (II) data inventory, (III) calculation of indicators and (IV) interpretation. The tutorial review reveals that economic feasibility studies for chemical CCU technologies can and should be improved in various manners. Phases I and II are often skipped or incomplete. In Phase III, a very diverse indicator set is observed, which hampers comparability across CCU technologies. Phase IV, the interpretation of results, is often missing in the literature set or lacks thorough uncertainty and sensitivity analyses. The comparison with the TEA framework revealed the diversity in assumptions and methodological choices in the literature set. These findings suggest that future economic feasibility studies should be made in a more standardized way to improve both the quality and comparability of economic feasibility studies. Four improvements to the TEA framework are suggested: (i) focussing more on the impact of technical parameters in sensitivity analyses, (ii) adapting the assessment to the TRL of the technology, (iii) implementing ROA in the TEA and (iv) integrating an environmental assessment or LCA with the TEA. Further research is needed to investigate how Real Options Theory can be integrated into conventional TEA frameworks to analyse the investment decision in CCU technologies in a dynamic setting.