Optimization-based planning of carbon-neutral strategy: Economic priority between CCU vs CCS

This study aims to develop an optimization-based approach to design the carbon capture, utilization, and storage (CCUS) supply chain and analyze the optimal configuration and investment strategies. To achieve this goal, we develop an optimization model that determines the logistic decision-making to maximize the net present value (NPV) and minimize the net CO2 emissions (NCE) of the strategies of the CCUS supply chain under logical and practical constraints. We estimate the technical (production scale and energy consumption), economic (capital and operating expenditure), and carbon-related (CO2 emissions) parameters based on the literature. By adjusting major cost drivers and economic bottlenecks, we determined major decision-making problems in the CCUS framework, such as sequestration vs. utilization. As a real case study, the future CCUS system of South Korea was evaluated, which includes three major CO2 emitting industries in South Korea (power plants, steel, and chemicals), as well as transportation modes and sequestration sites. As a result, we analyzed different design and operation strategies based on various objectives. We provided a strategic solution for national-level planning of the CCUS supply chain. The major finding of this study can support industry stakeholders and government policymakers by providing a practical guideline for investing in the deployment of CCUS.