Designing Pipeline Networks for Carbon Capture and Storage of CO$_2$-Sources in Germany: An Industry Perspective

Abstract

In order to reach the two-degree target set by the Paris Agreement and to avoid rising costs due to $\mathrm {CO_2}$ allowances and taxes, $\mathrm {CO_2}$ intensive industry sectors like cement, steel and chemicals may opt for Carbon Capture and Storage (CCS) solutions. CCS involves capturing $\mathrm {CO_2}$ emissions at the source points, transporting it to geological storage sites and storing it their permanently. In this context, our study investigates how to design CCS-pipeline networks that connect German cement, steel and organic chemical industries to the geological storage formations provided by the Longship project, Norway. We propose a mixed-integer programming model for the design of a corresponding on- and offshore pipeline network, where seaports serve as intermediate compressor stations for the offshore pipelines. Our results show that the supply chain costs vary significantly across industries due to differences in capture costs, $\mathrm {CO_2}$ volumes and the spatial distribution of the point sources. The supply chain costs range from 49.3 Euro per tonne for the organic chemical industry to 83.0 Euro for the steel industry and 108.7 Euro for the cement industry, respectively. With the anticipated increase in the carbon prices in the coming years, CCS might soon become economically desirable for all these industry sectors.