Decarbonization - evaluating opportunity costs

Carbon Capture and Sequestration (CCS) and Direct Air Capture (DAC) are part of a larger decarbonization strategy to reduce carbon dioxide emissions associated with industrial and economic activities. Decarbonization includes a portfolio of approaches:

Increasing the amount and proportion of Renewable Energy (RE), specifically solar and wind.
Adding carbon capture (CCS) to coal and natural gas, i.e. retrofitting natural gas NGCC-CCS
Capturing CO₂ from industrial processes, especially hard to abate, e.g., ethanol fermentation and ammonia production
Electrification of transportation, including light vehicles, small commercial trucks, and electric busses and trains
Direct Air Capture (DAC) removing CO₂ from the atmosphere and permanently storing underground - Carbon Dioxide Removal (CDR)

The economic, material, and energy costs of each of these approaches can be estimated, and used to make strategic investments, including a portfolio of choices. For instance, investing in Renewable Energy (RE) and natural gas retrofitting with CCS, while also electrifying transportation.

A key concept in planning investments is understanding the cost of removing or "preventing" one ton (1,000 kg) of carbon dioxide, and where that carbon dioxide (CO₂ molecule) comes from. This unit and the presentation below evaluates the energy and climate benefit of investing $1,000 in solar energy (LCOE of $33/MWh), CCS natural gas capture (est $66/ton CO₂) and investing in electrification of light transportation (CapEx and OpEx of light duty transportation). As a final comparison, we look at a theoretical comparison of $1,000 abatement of CO₂ through CSS, and $1,000 investment in Direct Air Capture (DAC) as both a fixed cost and total project Life Cycle Analysis (LCA). From these calculations, a cost-benefit analysis is suggested for comparing single project investments with a portfolio approach. A new concept is presented, the cost of reducing radiative forcing (W/m^2), which may be useful in future analysis and of Solar Radiation Management (SRM).

Decarbonization - evaluating opportunity costs