Effects of tax credits on carbon capture and sequestration in a multi-phased model

Abstract

Studies have consistently shown that the increase of CO 2 in the atmosphere is correlated to rising temperatures. In order to stop the rise in global temperatures, climate change mitigation strategies will need to be deployed at scale. All of the plans that meet the goal of staying below 2 °C include CO 2 capture and storage (CCS) as one of those strategies. CCS is a climate change mitigation strategy aimed at reducing the amount of CO 2 vented into the atmosphere by capturing CO 2 emissions from industrial sources, transporting the CO 2 via a dedicated pipeline network, and injecting it into geologic reservoirs. Designing CCS infrastructure is a complex problem requiring concurrent optimization of source selection, reservoir selection, and pipeline routing decisions. Current CCS infrastructure design methods assume that project parameters including costs, capacities, and availability, remain constant throughout the project's lifespan. In this research, we introduce a novel, multi-phased, CCS infrastructure design model that allows for analysis of more complex scenarios that allow for variations in project parameters across distinct phases. We also apply this new model to a study exploring the impacts of modifying CCS tax credits on the economic viability of CCS projects.