Abstract for: Low Carbon Futures with Carbon Capture and Storage: Interactions between Technology-Push Policies and Market Mechanisms
A dynamic framework of the market for CO2 as a commodity, that is supplied by coal- and natural gas-fired carbon capture and storage (CCS) applications in the power sector and is used as an injectant for enhanced oil recovery (EOR) operations, has been developed. The market structure is prototyped from the U.S. experience of CCS and EOR and placed in a feedback-rich energy-economy context that captures some key aspects of the U.S. energy-economy context. The context considers potential constraints of integrating high shares of variable renewable generation (VRE), which is solar and wind, into power system, CCS commercialization constraints, technological uncertainties in power system, assumptions about tight oil resource and the reasonable trajectories of energy and fuel demand over the long run. The resulting model is used to generate a wide array of internally consistent simulations of carbon-constrained and carbon-unconstrained futures that can add value to the literature on low carbon futures with CCS.