Read story

Elísabet Vilborg Ragnheiðardóttir defended her MS thesis 21 January 2010

22.1.2010

 Elísabet Vilborg Ragnheiðardóttir, MS student in the REYST program, Reykjavik Energy Graduate School of Sustainable Systems, defended her thesis 21 January at the Business Department of the University of Iceland. The title of the thesis: Costs, Profitability and Potential Gains of the CarbFix Program. Her supervisors: Helga Krisjansdottir, University of Iceland, William Harvey, Reykjavik University and Holmfridur Sigurdardottir Reykjavik Energy. Her MS project is a part of the CarbFix Project. 

 

Abstract: This paper aims to review the costs associated with the CarbFix injection program and determine its possible revenues. The CarbFix costs are reviewed both in its current pilot project state, as well as two larger scenarios involving the Hellisheidi geothermal power plant in southwest Iceland and a pulverized coal plant. The Simple Multi-attribute Technique (SMART) combined with a PESTLE analysis provides a detailed portfolio of positive markets that CarbFix could enter with its knowledge to provide a service. While costs of storage of CO2 in other types of reservoirs have been widely studied, there are limited data on storage through mineralization. The largest cost contributors for both the CarbFix pilot program and the Hellisheidi plant are the capital and monitoring costs, but water and electricity costs become more predominant in the pulverized coal case. This paper, specifically through its cost analysis, adds much needed information on the economics of this emerging form of CCS. The cost analysis shows that the cost per tonne of CO2 emitted would need to be 77!/tCO2 for the Hellisheidi scenario to be profitable while the pulverized coal scenario would be profitable at 50!/tCO2 emitted. The market analysis shows that the most efficient markets, in terms of low barriers to entry and adequate purchasing power, are Russia, the United States, Canada, Italy and Germany. 

 

Keywords: carbon capture and storage; mineral carbonation; CarbFix; carbon dioxide; Hellisheidi; Iceland