Post-combustion capture of CO₂ at an integrated steel mill: Part II: Economic feasibility

In this paper the economics of the technical possibilities presented in Part I (Arasto et al., 2013) for applying post-combustion CO₂ capture at an integrated steel mill were studied. Implications of different CO₂ amounts captured, solvents and process integration levels to the greenhouse gas balances and economics of operation are compared to the reference case without CCS trough several case studies using variable market prices of electricity and CO₂ emission allowances. The break-even price (BEP) of CO₂ emissions (e.g. CO₂ emission allowances), where CCS becomes more profitable than the reference case, is about 72€/t CO₂ with an electricity price of 100€/MWh in the most favourable studied case using a MEA solvent. For the more advanced solvents considered, the BEP level is about 64€/t CO₂. With higher prices of electricity, the costs for CCS increase rapidly. The costs for globally avoided emissions, based on a streamlined life-cycle analysis, are generally higher than the BEP's, depending on the fuels that are assumed to eventually compensate the decreased electricity production in the energy system. The amounts of captured CO₂ corresponding to the above presented prices in the most favourable cases are typically in the range of 2-3Mt CO₂/a, which accounts for 50-75% of the site emissions.