Modeling a Carbon Capture,Transport, and Storage Infrastructure for Europe

In this paper, we develop a model to analyze the economics of carbon capture, transport, and storage (CCTS) in the wake of expected rising CO₂ prices. We present a scalable mixed integer, multiperiod, welfare-optimizing network model for Europe, called CCTS-Mod. The model incorporates endogenous decisions on carbon capture, pipeline and storage investments, as well as capture, flow and injection quantities based on given costs, CO₂ prices, storage capacities, and point source emissions. Given full information about future costs of CCTS-technology, and CO₂ prices, the model determines a cost minimizing strategy on whether to purchase CO₂ certificates, or to abate the CO₂ through investments into a CCTS-chain on a site by site basis. We apply the model to analyze different scenarios for the deployment of CCTS in Europe, e.g., under high and low CO₂ prices, respectively. We find that beyond CO₂ prices of €50 per t, CCTS can contribute to the decarbonization of Europe’s industry sectors, as long as one assumes sufficient storage capacities (onshore and/or offshore). We find that CCTS is only viable for the power sector if the CO₂ certificate price exceeds €75 per t.