Could China meet its emission reduction goal by CO2-EOR

Abstract

This paper aims to discuss opportunities for pairing the carbon dioxide (CO2) points of supply from stationary sources such as power plants, steel and cement production, coal to liquid plants and refineries, with potential oil reservoirs in China.,This study builds a linear optimization model to analyze the tradeoffs in developing CO2-enhance oil recovery (EOR) projects in China for a range of policy options to match points of supply with the points of demand (oil fields). The model works on optimizing CO2 application costs by meeting four principal components; CO2 storage, CO2 capture, transport costs and additional oil recovery.,This study reveals new opportunities and economic sources to feed CO2-EOR applications and offers reasonable options to supply CO2 for potential points of demand. Furthermore, power plants and coal to liquid industries had the most significant and economic contributions to potential CO2-EOR projects in China. Total annual emission reduction is expected to be 10% (based on 10 Gton annual emissions). The emission reductions and potential CO2 storage from the different industries as follow; 94% from power plants, 4% from biofuel and 2% from coal to liquid plants.,Carbon capture and storage (CCS) is one practice aiming to reduce the amounts of anthropogenic emissions of carbon dioxide emitted into the atmosphere and reduce the related social costs. However, given the relatively high cost associated with this practice, coupling it with EOR could offer a significant financial incentive to facilitate the development of CCS projects and meet climate change objectives.,The model used in this study can be straightforwardly adapted to any geographic location where industry and policymakers are looking to simultaneously reduce CO2 emissions while increasing hydrocarbon recovery. The model is highly adaptable to local values in the parameters considered and to include additional local considerations such as geographic variation in capture costs, taxes and premiums to be placed on CO2 capture in so-called “non-attainment zones” where pollution capture make could make a project politically and economically viable. Regardless of how and where this model is applied, it is apparent that CO2 from industrial sources has substantial potential value as a coproduct that offsets its sequestration costs using existing, commercially available CO2-EOR technology, once sources and sinks are optimally paired.