Analysis of carbon capture in an industrial park—A case study

Abstract Great concern has been expressed about the rapid increases in anthropogenic carbon-dioxide (CO2) emissions. Taxation of CO2 emissions and carbon capture are two ways of reducing the emissions. We analyse these two measures in the context of a case study of an extension of a small industrial park in Norway. Natural gas is the major input factor for the production in the park and the CO2 emissions are therefore a concern. A decision support model for investment analysis of industrial parks is established. In this paper we will have a particular focus on the carbon capture facility, which handles flexible and dynamic operation in terms of varying volume and concentration of CO2. The carbon capture plant may capture CO2 emissions from all, some or none of the other plants in the park. The results from the case study indicate that if emissions from the power plant are the only emission taxed, it is not profitable to build a carbon capture plant. This changes however if all plants are subject to CO2 taxes. We also find that emissions from the power plant are the least cost efficient plant to capture CO2 from in the industrial park. This is due to the high volume of exhaust gas and low concentration of CO2.

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