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Economic Analysis of Methanating CO 2 and Hydrogen-Rich Industrial Waste Gas in Depleted Natural Gas Reservoirs

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  • Zhengmeng Hou

    (Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China
    Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
    Research Centre of Energy Storage Technologies, Clausthal University of Technology, 38640 Goslar, Germany)

  • Liangchao Huang

    (Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China
    Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
    Research Centre of Energy Storage Technologies, Clausthal University of Technology, 38640 Goslar, Germany)

  • Yachen Xie

    (Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
    Research Centre of Energy Storage Technologies, Clausthal University of Technology, 38640 Goslar, Germany
    State Key Laboratory of Geomechanics and Geotechnical Engineering, Institute of Rock and Soil Mechanics, Chinese Academy of Sciences, Wuhan 430071, China)

  • Lin Wu

    (Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
    Research Centre of Energy Storage Technologies, Clausthal University of Technology, 38640 Goslar, Germany)

  • Yanli Fang

    (Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
    Research Centre of Energy Storage Technologies, Clausthal University of Technology, 38640 Goslar, Germany
    Sino-German Energy Research Center, Sichuan University, Chengdu 610065, China)

  • Qichen Wang

    (Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China
    Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
    Research Centre of Energy Storage Technologies, Clausthal University of Technology, 38640 Goslar, Germany)

  • Yilin Guo

    (Sino-German Research Institute of Carbon Neutralization and Green Development, Zhengzhou University, Zhengzhou 450001, China
    Institute of Subsurface Energy Systems, Clausthal University of Technology, 38678 Clausthal Zellerfeld, Germany
    Research Centre of Energy Storage Technologies, Clausthal University of Technology, 38640 Goslar, Germany)

Abstract

This study explored underground biomethanation as a means to achieve carbon neutrality and promote carbon circular utilization by methanating CO 2 and hydrogen-rich industrial waste gas in depleted natural gas reservoirs (MECHIG). This approach not only aids the development of carbon capture, utilization, and storage (CCUS) technologies, but also effectively processes industrial waste gas, thereby reducing pollutant emissions. In order to verify the feasibility of the MECHIG concept, this study builds upon the analysis of the MECHIG process overview and employs the net present value (NPV) analysis method to investigate its economic viability. Additionally, the study conducts a sensitivity analysis on six factors, namely methanation efficiency, facility site investment, hydrogen content in waste gas, natural gas prices, operation and maintenance (O&M) investment, and CO 2 capture and injection prices. The results indicate the following: (1) Under the baseline scenario, the NPV of the MECHIG concept is approximately CNY 5,035,100, which suggests that the concept may be economically viable. (2) The fluctuation in natural gas prices has the most significant impact on NPV, followed by facility site investment and methanation efficiency. In contrast, the variations in hydrogen content in waste gas, O&M investment, and CO 2 capture and injection prices have relatively smaller effects on NPV. (3) To ensure the economic feasibility of the concept, the acceptable fluctuation ranges for the factors of methanation efficiency, facility site investment, hydrogen content in waste gas, natural gas prices, O&M investment, and CO 2 capture and injection prices are −16.78%, 5.44%, −32.14%, −4.70%, 14.86%, and 18.56%, respectively.

Suggested Citation

  • Zhengmeng Hou & Liangchao Huang & Yachen Xie & Lin Wu & Yanli Fang & Qichen Wang & Yilin Guo, 2023. "Economic Analysis of Methanating CO 2 and Hydrogen-Rich Industrial Waste Gas in Depleted Natural Gas Reservoirs," Energies, MDPI, vol. 16(9), pages 1-12, April.
    • Handle: RePEc:gam:jeners:v:16:y:2023:i:9:p:3633-:d:1130960
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    References listed on IDEAS

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    1. Liangchao Huang & Zhengmeng Hou & Yanli Fang & Jianhua Liu & Tianle Shi, 2023. "Evolution of CCUS Technologies Using LDA Topic Model and Derwent Patent Data," Energies, MDPI, vol. 16(6), pages 1-14, March.
    2. Zbysław Dobrowolski & Grzegorz Drozdowski, 2022. "Does the Net Present Value as a Financial Metric Fit Investment in Green Energy Security?," Energies, MDPI, vol. 15(1), pages 1-16, January.
    3. Hidalgo, D. & Martín-Marroquín, J.M., 2020. "Power-to-methane, coupling CO2 capture with fuel production: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 132(C).
    4. Li, Zhuoran & Ma, Linwei & Li, Zheng & Ni, Weidou, 2019. "Multi-energy cooperative utilization business models: A case study of the solar-heat pump water heater," Renewable and Sustainable Energy Reviews, Elsevier, vol. 108(C), pages 392-397.
    5. Jalili, Mohammad & Ghazanfari Holagh, Shahriyar & Chitsaz, Ata & Song, Jian & Markides, Christos N., 2023. "Electrolyzer cell-methanation/Sabatier reactors integration for power-to-gas energy storage: Thermo-economic analysis and multi-objective optimization," Applied Energy, Elsevier, vol. 329(C).
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    Cited by:

    1. Wu, Lin & Hou, Zhengmeng & Luo, Zhifeng & Huang, Liangchao & Xiong, Ying & Mehmood, Faisal & Liu, Jianhua & Sun, Wei & Xie, Yachen, 2023. "Efficiency assessment of underground biomethanation with hydrogen and carbon dioxide in depleted gas reservoirs: A biogeochemical simulation," Energy, Elsevier, vol. 283(C).
    2. Wu, Lin & Hou, Zhengmeng & Luo, Zhifeng & Fang, Yanli & Mao, Jinhua & Qin, Nan & Guo, Yilin & Zhang, Tian & Cai, Nan, 2024. "Site selection for underground bio-methanation of hydrogen and carbon dioxide using an integrated multi-criteria decision-making (MCDM) approach," Energy, Elsevier, vol. 306(C).

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