Techno-Economic Carbon Management at Danish Biogas Plants: The Business Case of Utilising the Biogenic Carbon

Munck, Mathias Terp

4. Term

Urban, Energy and Environmental Planning, Master

2024

2024-06-06

68 pages

Fulfilment of the climate goals in the Danish climate law partly relies on Power-to-X and Carbon Capture and Storage. Biogas upgrading poses an extremely cost-effective way of acquiring biogenic CO2 that can be utilised by these technologies. Therefore, this thesis examines the business case for biogas plants to utilise the biogenic CO2. Three scenarios are simulated using an Excel model that has been developed as part of this thesis. The CO2 can be (1) sold as liquid CO2, (2) utilised for production of e-methane, or (3) utilised for production of e-methanol. In all three scenarios, 20,000 ton CO2 is available annually and all must be utilised. The analysis shows that the liquefaction scenario has a Net Present Value (NPV) of 6.9 million € and a Real Rate of Return (RRoR) of 74%. The e-methane scenario and the e-methanol scenario have NPVs of respectively 29 million € and 17.1 million €, and RRoRs of respectively 9% and 8%. The liquefaction scenario is evidently the safest investment due to the low costs and the high RRoR. However, the e-methane scenario and the e-methanol scenario have prospects of benefiting from technological development and a more fluctuating future electricity price. In this way, the thesis have examined the preliminary techno-economic feasibility of utilising the CO2 from biogas plants, and thus it forms a basis for further research.

Biogas ; e-methanol ; e-methane ; Liquid CO2 ; Sustainable Development ; Power-to-X ; Carbon Capture ; Economic Evaluation ; Energy System Modelling ; Simulation Model ; Scenario Development ; Market Conditions ; Levelized Cost of Production ; Net Present Value ; Carbon Management ; Economic Feasibility ; Excel Model

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