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The electrolysis of CO2 converts CO2 into value-added products and has the potential to reduce the use of fossil feedstocks by serving as a circular alternative in chemical processes. However, existing literature lacks comprehensive and quantitative analyses of economic, environmental, and governmental factors that can hinder or support its deployment. This study addresses this gap by exploring the potential of CO2 electrolysis for the production of synthesis gas, syngas, through a supply chain design that integrates long-term decisions on location and infrastructure and medium-term decisions on capacity expansion and aggregate production planning. We identify and quantify time-dependent and uncertain parameters using the Delphi method and employ multi-period planning and robust optimization approaches to consider them, respectively. Moreover, since the environmental impact of syngas is highly dependent on electricity consumption, renewable electricity is utilized with battery support alongside grid electricity. Accordingly, we propose a mixed integer linear programming model to design a supply chain that can serve as a benchmark to make CO2 electrolysis financially and environmentally viable for syngas production. We conduct a case study on the Benelux region, analyzing different scenarios to derive managerial and design insights. The results show that a design that takes uncertainty into account can reduce syngas production costs by up to 22%. Additionally, although renewable electricity supply variability and different grid characteristics across countries can lead to different strategic decisions with higher costs, increased battery installations and higher government financial support for renewable electricity can help eliminate differences in designs.
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The electrolysis of CO2 converts CO2 into value-added products and has the potential to reduce the use of fossil feedstocks by serving as a circular alternative in chemical processes. However, existing literature lacks comprehensive and quantitative analyses of economic, environmental, and governmental factors that can hinder or support its deployment. This study addresses this gap by exploring the potential of CO2 electrolysis for the production of synthesis gas, syngas, through a supply chain design that integrates long-term decisions on location and infrastructure and medium-term decisions on capacity expansion and aggregate production planning. We identify and quantify time-dependent and uncertain parameters using the Delphi method and employ multi-period planning and robust optimization approaches to consider them, respectively. Moreover, since the environmental impact of syngas is highly dependent on electricity consumption, renewable electricity is utilized with battery support alongside grid electricity. Accordingly, we propose a mixed integer linear programming model to design a supply chain that can serve as a benchmark to make CO2 electrolysis financially and environmentally viable for syngas production. We conduct a case study on the Benelux region, analyzing different scenarios to derive managerial and design insights. The results show that a design that takes uncertainty into account can reduce syngas production costs by up to 22%. Additionally, although renewable electricity supply variability and different grid characteristics across countries can lead to different strategic decisions with higher costs, increased battery installations and higher government financial support for renewable electricity can help eliminate differences in designs.
The storage of renewable electricity in chemical bonds is a compelling technological option that combines flexibility with the synthesis of high energy-dense fuels and chemicals and may use CO2 as raw material. The electrochemical conversion of CO2 is not yet a mature technology. Both fields, electrochemical conversion and carbon dioxide utilisation (CDU), have their own trade-offs; CO2 electrochemical reduction (CO2ER) environmental and economic performance is highly context-dependent. The successful deployment of CO2 electrochemical conversion will depend not only on the further development and scaling of the technology but also on finding appropriate combinations of technologies, business models, and socioeconomic strategies. The current project aims to create critical knowledge on the sustainable implementation of CO2 electrochemical devices for a variety of contexts. The research approach presented in the current work will develop a multidisciplinary framework to assess the contributions and trade-offs of CO2 electrochemical systems, including centralised and decentralised configurations, which are evaluated under realistic conditions. This is a crucial step in understanding the role and contribution of CO2ER within the different CO2 mitigation options in place in the upcoming years. To achieve the project’s goal, we propose a multidisciplinary methodology that includes process systems engineering (PSE) and operations research (OR) tools, and humanistic and social sciences methodologies. Modelling and optimisation techniques, value-sensitive design, and identification of government and market-based governance interventions will help identifying potential areas of improvement and bottlenecks to successfully bring CO2ER to the market. The assessment will be performed at several levels: unit (reaction pathways), process (scheduling and operation, plant layout optimisation), supply chain (optimisation under deterministic and stochastic conditions), and system (social, governance and markets perspectives) of CO2ER. The project results will (i) propose optimal CO2ER-based plants and (ii) supply chains under different contexts; (iii) translate stakeholders’ sustainability value into design requirements for CO2ER; (iv) propose a list of government interventions and market mechanisms that will allow CO2ER market penetration, and (v) identify, quantify and mitigate the influence of the most relevant sources of uncertainty.
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The storage of renewable electricity in chemical bonds is a compelling technological option that combines flexibility with the synthesis of high energy-dense fuels and chemicals and may use CO2 as raw material. The electrochemical conversion of CO2 is not yet a mature technology. Both fields, electrochemical conversion and carbon dioxide utilisation (CDU), have their own trade-offs; CO2 electrochemical reduction (CO2ER) environmental and economic performance is highly context-dependent. The successful deployment of CO2 electrochemical conversion will depend not only on the further development and scaling of the technology but also on finding appropriate combinations of technologies, business models, and socioeconomic strategies. The current project aims to create critical knowledge on the sustainable implementation of CO2 electrochemical devices for a variety of contexts. The research approach presented in the current work will develop a multidisciplinary framework to assess the contributions and trade-offs of CO2 electrochemical systems, including centralised and decentralised configurations, which are evaluated under realistic conditions. This is a crucial step in understanding the role and contribution of CO2ER within the different CO2 mitigation options in place in the upcoming years. To achieve the project’s goal, we propose a multidisciplinary methodology that includes process systems engineering (PSE) and operations research (OR) tools, and humanistic and social sciences methodologies. Modelling and optimisation techniques, value-sensitive design, and identification of government and market-based governance interventions will help identifying potential areas of improvement and bottlenecks to successfully bring CO2ER to the market. The assessment will be performed at several levels: unit (reaction pathways), process (scheduling and operation, plant layout optimisation), supply chain (optimisation under deterministic and stochastic conditions), and system (social, governance and markets perspectives) of CO2ER. The project results will (i) propose optimal CO2ER-based plants and (ii) supply chains under different contexts; (iii) translate stakeholders’ sustainability value into design requirements for CO2ER; (iv) propose a list of government interventions and market mechanisms that will allow CO2ER market penetration, and (v) identify, quantify and mitigate the influence of the most relevant sources of uncertainty.
