Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Biomass and CCS: The influence of the learning effect

Abstract : The combination of bioenergy production and Carbon Capture and Storage technologies (BECCS) provides an opportunity to create negative emissions in biofuel production. However, high capture costs reduce profitability. This article investigates carbon price uncertainty and technological uncertainty through a real option approach. We compare the cases of early and delayed CCS deployments. An early technological progress may arise from aggressive R&D and pilot project programs, but the expected cost reduction remains uncertain. We show that this approach results in lower emissions and more rapid investment returns, although these returns will not fully materialise until after 2030. In a second set of experiments, we apply an incentive that prioritises sequestered emissions rather than avoided emissions. In other words, thiseconomic instrument does not account for CO2 emissions from the CCS implementation itself but rewards all the sequestered emissions. In contrast with technological innovations, this grant is certain for the investor. The resulting investment level is higher, and the project may become profitable before 2030. However, BECCS in bioethanol production does not seem to be a short term solution in our framework, whatever the carbon price drift.
Document type :
Preprints, Working Papers, ...
Complete list of metadata

Cited literature [40 references]  Display  Hide  Download

https://halshs.archives-ouvertes.fr/halshs-00829779
Contributor : Colette Gedoux Connect in order to contact the contributor
Submitted on : Monday, June 3, 2013 - 5:03:28 PM
Last modification on : Tuesday, April 26, 2022 - 10:04:03 AM
Long-term archiving on: : Wednesday, September 4, 2013 - 4:14:37 AM

File

dr201114.pdf
Files produced by the author(s)

Identifiers

  • HAL Id : halshs-00829779, version 1

Collections

Citation

Audrey Laude, Christian Jonen. Biomass and CCS: The influence of the learning effect. 2011. ⟨halshs-00829779⟩

Share

Metrics

Record views

106

Files downloads

206