While there are many novel methods being developed to use captured carbon, the most promising is in enhanced oil recovery, according to a draft white paper released Friday by the National Coal Council. “Carbon dioxide enhanced oil recovery (CO2-EOR) represents the most immediate, highest value opportunity to utilize the greatest volumes of anthropogenic CO2, thereby incentivizing CCUS,” says the report, which the NCC will consider for finalization during a public webcast meeting Tuesday.
The report was commissioned by the Department of Energy and will be sent to Secretary of Energy Ernest Moniz after its approval by the NCC.
EOR offers a significant economic opportunity for captured carbon, the report says: “Assuming a price for CO2 of $33/metric ton ($1.75/Mcf) delivered to the oil field at pressure and a $70 per barrel oil price, and using 0.45 metric tons of purchased (net) CO2 per barrel of recovered oil, utilization of CO2 for EOR results in a transfer of $14.90 of the $70 per barrel price to firms involved with capture and transport of CO2. The economic value is sensitive to the price of oil, of course, and will vary in response to oil market conditions.” The current WTI price for a barrel of oil is less than $50, according to the NASDAQ.
However, other potential uses of CO2 should not be ignored, according to the National Coal Council. “Some non-geologic CO2 utilization pathways nonetheless hold promise as niche opportunities, and research into them should be encouraged. Polymers with the potential to make use of the entire intact CO2 molecule are an example,” the report says.