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How CO 2 -to-Diesel Technology Could Help Reach Net-Zero Emissions Targets: A Canadian Case Study

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  • Andrew William Ruttinger

    (National Research Council Canada, Ottawa, ON K1A 0R6, Canada
    Robert F. Smith School of Chemical and Biomolecular Engineering, Cornell University, Ithaca, NY 14853, USA)

  • Miyuru Kannangara

    (National Research Council Canada, Ottawa, ON K1A 0R6, Canada)

  • Jalil Shadbahr

    (National Research Council Canada, Ottawa, ON K1A 0R6, Canada)

  • Phil De Luna

    (National Research Council Canada, Ottawa, ON K1A 0R6, Canada)

  • Farid Bensebaa

    (National Research Council Canada, Ottawa, ON K1A 0R6, Canada)

Abstract

Carbon capture, utilization, and storage (CCUS) is an attractive technology for the decarbonization of global energy systems. However, its early development stage makes impact assessment difficult. Moreover, rising popularity in carbon pricing necessitates the development of a methodology for deriving carbon abatement costs that are harmonized with the price of carbon. We develop, using a combined bottom-up analysis and top-down learning curve approach, a levelized cost of carbon abatement (LCCA) model for assessing the true cost of emissions mitigation in CCUS technology under carbon pricing mechanisms. We demonstrate our methodology by adapting three policy scenarios in Canada to explore how the implementation of CO 2 -to-diesel technologies could economically decarbonize Canada’s transportation sector. With continued policy development, Canada can avoid 932 MtCO 2 eq by 2075 at an LCCA of CA$209/tCO 2 eq. Technological learning, low emission hydroelectricity generation, and cost-effective electricity prices make Quebec and Manitoba uniquely positioned to support CO 2 -to-diesel technology. The additional policy supports beyond 2030, including an escalating carbon price, CO 2 -derived fuel blending requirements, or investment in low-cost renewable electricity, which can accelerate market diffusion of CO 2 -to-diesel technology in Canada. This methodology is applicable to different jurisdictions and disruptive technologies, providing ample foci for future work to leverage this combined technology learning + LCCA approach.

Suggested Citation

  • Andrew William Ruttinger & Miyuru Kannangara & Jalil Shadbahr & Phil De Luna & Farid Bensebaa, 2021. "How CO 2 -to-Diesel Technology Could Help Reach Net-Zero Emissions Targets: A Canadian Case Study," Energies, MDPI, vol. 14(21), pages 1-21, October.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:21:p:6957-:d:662628
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    References listed on IDEAS

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    1. Jonathan Asante & William Ampomah & Dylan Rose-Coss & Martha Cather & Robert Balch, 2021. "Probabilistic Assessment and Uncertainty Analysis of CO 2 Storage Capacity of the Morrow B Sandstone—Farnsworth Field Unit," Energies, MDPI, vol. 14(22), pages 1-19, November.
    2. Skribbe, Soukaina & Liu, Mufeng & Patel, Shrey & Rix, Michael J. & Bensebaa, Farid & Mak, Lawrence & Wu, Xiao-Yu, 2024. "The levelized cost of carbon abatement (LCCA) in substituting conventional ammonia production with power-to-ammonia for fertilizer, hydrogen and export," Applied Energy, Elsevier, vol. 373(C).
    3. Liu, Jiangfeng & Zhang, Qi & Li, Hailong & Chen, Siyuan & Teng, Fei, 2022. "Investment decision on carbon capture and utilization (CCU) technologies—A real option model based on technology learning effect," Applied Energy, Elsevier, vol. 322(C).

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