Emerging market opportunities of Carbon dioxide

Basically, there are five identified key categories of CO₂-derived production processes and services that are attracting global interest. The analysis Can give the technical aspect of all of these applications that could be scaled up but facing commercial and regulatory barriers.

1. CO₂ - derived fuels

The carbon in CO₂ can produce fuels that are in use today, including methane, methanol, gasoline, and aviation fuels. The process involves hydrogen; the combination of hydrogen is highly energy-intensive to produce and gives a carbon-containing fuel that is easier to handle. Low-carbon hydrogen can be made from fossil fuels when combined with CCS or through electrolysis of water using low carbon electricity (IEA, 2019b). CO₂ -derived fuels are particularly interesting for applications where the use of other low-carbon energy carriers, such as electricity or hydrogen, is exceptionally challenging, such as in aviation. There are already few firms that have built demonstration and pilot plants producing methane and methanol from CO₂ and hydrogen, together with using hundreds to thousands of tonnes of CO₂ per year. Other chemical and biological conversion pathways to make CO₂ -derived fuels are in the early research or demonstration stages.

From carbon dioxide, Estimated production costs of methanol and methane in most world regions are currently more than 2 to 7 times higher as compared to the fossil counterparts. The main cost factor is typically electricity, accounting for between 40-70% of the production costs. Hence, small average grid electricity prices are required for CO₂ -derived methane and methanol to be competitive. Direct use of low carbon hydrogen and electricity as fuel will be a more cost-effective option in most cases under these conditions. Commercial production of CO₂ -derived methane and methanol could be possible in the global market where there is both low-cost renewable energy and CO₂ are available.

For example, the George Olah facility in Iceland Converting around 5,600 tonnes of CO₂ / year into methanol with hydrogen produced from renewable electricity.

2.     CO₂ -derived chemicals

The carbon present (and oxygen) in CO₂ can be used as an alternative to fossil fuels in producing chemicals, including plastics, fibers, and synthetic rubber. As with CO₂ -derived fuels, converting CO₂ to methanol and methane is the most technologically mature pathway. The methanol can be converted into other carbon-containing high-value chemical intermediates like olefins, which are generally used for manufacturing plastics and aromatics, and are used in various sectors, including health and hygiene products and processing.

A particular group of chemicals, polymers, are used to produce plastics, foams, and resins. The carbon contained in CO₂ can be used in polymer production part replacement of the fossil fuel-based raw material in the manufacturing process. Unlike the conversion of Carbon dioxide to fuels and chemical intermediates, this polymer processing with CO₂ requires little energy input Due to the conversion of CO₂ into a molecule with an even lower energy state (carbonate). Several companies are currently operating polymer plants using CO₂ as a raw material.

Polymer processing with CO₂ is going to be competitive in the market due to the relatively low energy required for their production and high market value. Some claim that specific polymers can be made at 15% to 30% lower cost as compared to fossil counterparts provided the CO₂ used is cheaper than the fossil fuels-based raw material it replaces (von der Assen, 2015). Like CO₂ CO₂ -derived fuels and chemicals, further compliance testing is needed before polymers with high mass percentages of CO₂ can enter the market.

3.     Building materials from minerals and CO₂

Building materials from minerals and CO₂ Carbon dioxide can produce building materials to replace the water in concrete, known as CO₂ curing, or raw material like cement and construction aggregates. These applications involve the reaction of CO₂ with calcium or magnesium to form low-energy carbonate molecules, the structure of carbon that makes up concrete. The most mature and Effective application of CO₂ is the use of CO₂-cured concrete, while in the earlier stage of development, the integration of CO₂ in the production of cement itself. CO₂ -cured concrete can have superior performance, lower manufacturing costs, and a lower CO₂ footprint than conventionally produced concrete.

4.     Building materials from waste and CO₂

CO₂ -cured concrete can have superior performance, lower manufacturing costs, and a lower CO₂ footprint than conventionally produced concrete. Although the CO₂ footprint of concrete can be reduced by around 80%, these claims have not been verified independently (CarbonCure, 2019). A highly perspective opportunity for early application of these technologies is the market for pre-cast concrete products and ready-mixed concrete cured with CO₂ and water at the plant before being transported for use in construction. A shift from prescriptive to performance-based progress could facilitate the uptake of novel CO₂ -derived building materials.

5.     Crop yield boosting with CO₂

CO₂ can enhance yields of crop production, like algae production and crop cultivation under greenhouses. Low-temperature heat in industrial greenhouses with the application of CO₂ can increase yield by 25% to 30% and mature yield - boosting application today. The clear leader in using CO2 in greenhouses is the Netherlands, with an estimated annual consumption of between 5 and 6.3 Mt CO₂. Of this amount, approximately 500 kt CO₂ per year comes from external sources, mainly industrial plants. The replacement of these on-site systems (balance taken from on-site gas-fired boilers or co-generation systems) with other industrial CO₂ sources or CO₂ captured directly from the atmosphere could deliver climate benefits.