LAPSE:2023.35572
Published Article
LAPSE:2023.35572
Economic Analysis of Methanating CO2 and Hydrogen-Rich Industrial Waste Gas in Depleted Natural Gas Reservoirs
May 23, 2023
Abstract
This study explored underground biomethanation as a means to achieve carbon neutrality and promote carbon circular utilization by methanating CO2 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 CO2 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 CO2 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 CO2 capture and injection prices are −16.78%, 5.44%, −32.14%, −4.70%, 14.86%, and 18.56%, respectively.
This study explored underground biomethanation as a means to achieve carbon neutrality and promote carbon circular utilization by methanating CO2 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 CO2 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 CO2 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 CO2 capture and injection prices are −16.78%, 5.44%, −32.14%, −4.70%, 14.86%, and 18.56%, respectively.
Record ID
Keywords
carbon circular utilization, carbon neutrality, economic analysis, NPV, underground biomethanation
Subject
Suggested Citation
Hou Z, Huang L, Xie Y, Wu L, Fang Y, Wang Q, Guo Y. Economic Analysis of Methanating CO2 and Hydrogen-Rich Industrial Waste Gas in Depleted Natural Gas Reservoirs. (2023). LAPSE:2023.35572
Author Affiliations
Hou Z: 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 [ORCID]
Huang L: 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 [ORCID]
Xie Y: 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 Geomechanic
Wu L: 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 [ORCID]
Fang Y: 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, [ORCID]
Wang Q: 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
Guo Y: 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
Huang L: 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 [ORCID]
Xie Y: 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 Geomechanic
Wu L: 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 [ORCID]
Fang Y: 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, [ORCID]
Wang Q: 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
Guo Y: 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
Journal Name
Energies
Volume
16
Issue
9
First Page
3633
Year
2023
Publication Date
2023-04-23
ISSN
1996-1073
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PII: en16093633, Publication Type: Journal Article
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LAPSE:2023.35572
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https://doi.org/10.3390/en16093633
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[v1] (Original Submission)
May 23, 2023
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Calvin Tsay
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