CO2 capture in oil refineries: Assessment of the capture avoidance costs associated with different heat supply options in a future energy market

The application of post-combustion CO2 capture represents an alternative strategy to reduce significantly CO2 emissions from the oil refining industry. Previous studies have shown that the highest costs are related to the provision and use of energy and that these costs could be reduced by utilising excess heat. In the present study, we investigated whether this principle could be applied to the oil refining industry. Four heat supply alternatives were evaluated: Natural Gas Combined Cycle; Natural Gas Boiler; Biomass Boiler; and Excess Heat. These alternatives were evaluated using future energy market scenarios and two levels of heat demand. The Natural Gas Combined Cycle alternative generated high levels of electricity (with CO2 capture), thereby producing the greatest reduction in global CO2 emissions. However, the avoided CO2 emissions from onsite the refinery were highest when excess heat or a biomass boiler was used. In the present study, the capture avoidance cost ranged from 40 to 263 €/tCO2 avoided (excluding transportation and storage costs), depending on the heat supply alternative used and the heat demand. Moreover, with a high cost for CO2, CO2 capture using excess heat could be a cost-effective alternative to reduce CO2 emissions for oil refineries.

► This study analyses different heat supply options for post-combustion CO2 capture.
► The heat supply options are: NGCC, boilers and excess heat from refineries.
► Excess heat is the option least sensible to changes in running and investment costs.
► At high CO2 prices, the excess heat alternative shows potential profitability.
► Largest global CO2 emissions reduction are obtained if an NGCC is used.