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A Comparative Study of the Carbon Capture Alternatives in the Production of Natural Gas-based Transportation Fuels

Ofira Ayalon, Miriam Lev-On, Daniel Madar, Perry Lev-On, Naama Shapira
Report /
September 2018

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Ayalon, O., Lev-On, M., Madar, D., Lev-On, P., & Shapira, N. (2018). A Comparative Study of the Carbon Capture Alternatives in the Production of Natural Gas-based Transportation Fuels. Samuel Neaman Institute.
https://www.neaman.org.il/en/a-comparative-study-of-the-carbon-capture-alternatives-in-the-production-of-natural-gas-based-transportation-fuels/

Carbon capture and storage (CCS) is a process in which carbon dioxide (CO2) is captured from emissions of industrial and energy production processes, and is stored without returning to the atmosphere. The goal of the process is to reduce the impact of anthropogenic greenhouse gases (GHGs) on climate change. CCS is composed of 3 main stages: Capture– separation of CO2 from other gases in the industrialenergy production process; Transportation– transporting CO2 from its capture site to its storage site; and Storage– Injecting CO2 into underground rock formations aquifers for long term confinement. Alternately, it can be used in industrial processes for goods productions (carbon capture and utilization– CCU). There is a whole array of CCS technologies. Some are already in successful use for decades, while others are under development or in transition to an industrial scale. Globally, there are about 35 active CCS projects and about 20 more in different development stages today. The existing projects are capturing together more than 30 million tons of CO2 annually (only 0.1% of anthropogenic GHGs emissions), and they operate in power plants and in industrial processes.

Research goals: to review the global CCS sector: technologies, facilities, applications and policy. To compare the maturity, efficiency and cost of CCS technologies. To perform a preliminary comparison of CCS solutions in the natural gas-based fuel substitution sector that might be realized in Israel, according to the fuel substitutes’ national plan for 2030.

Main findings: * Natural gas processing and compressed natural gas (CNG) production- Israel’s natural gas reservoirs hardly contain CO2. Therefore, there is no need for CCS in these processes. * Methanol production- 50% of CO2 emissions can be prevented by applying CCU, without a net cost to the facility or even with profit. However, this amount would be only 0.25% of Israel’s annual anthropogenic GHGs emissions. * Gas-to-liquid (GTL) production- 1.5-3% of Israel’s annual anthropogenic GHGs emissions can be captured cheaply, with only 3.5% increase in the GTL production cost. * Electricity generation in natural gas- powered power plants (NGCC)- pp to 30% of Israel’s annual anthropogenic GHGs emissions can be captured. However, this is the most expensive solution per captured ton of CO2, which will increase electricity production cost by 30-60%.

* Minor implementation of CCS in natural gas-based fuel substitutes facilities will capture, transport and store 3 million tons of CO2 annually, at a cost of 450-900 million ILS (New Israeli Shekel) (3% of Israel’s GHGs emissions). * Medium implementation of CCS in natural gas-based fuel substitutes facilities will capture, transport and store 6 million tons of CO2 annually, at a cost of 750-1,650 million ILS (6% of Israel’s GHGs emissions). * Wide implementation of CCS in natural gas-based fuel substitutes facilities will capture, transport and store 25-30 million tons of CO2 annually, at a cost of 7,600-19,200 million ILS (25-30% of Israel’s GHGs emissions). Only implementing this option (or a part of it), can substantially reduce Israel’s annual GHGs emissions, in-line with CCS’s role as perceived by the IPCC (Intergovernmental Panel on Climate Change).

Policy recommendations: Promotion of policy tools is essential for initiating andor accelerating CCS development. These include governmental tracking and adherence to economy-wide GHGs emission reduction goals, in-accord with the Paris agreement goals (2015); policy consolidation, including economic incentives (energy efficiency, renewable energy, CCS facilities, carbon pricingtax) to promote medium-term emissions reduction according to the long-term goals; explicitly include CCS in national programs for climate change mitigation or in flagship policy statements, and to stress CCS’s role alongside low-carbon technologies; to secure long-term governmental CCS policy, in order to assure the relevant industrial and economic sectors; to establish public/ private engagement for risk and uncertainty reduction; accelerating storage planning and investment, in view of the long time needed for storage locations development.

Link to an article on the subject: Marine Air Pollution in Israel: Extent, Proposed Mitigation Targets, Benefits and Feasibility

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