Saint-Petersburg Mining University, Saint-Petersburg, Russia:

A. E. Cherepovitsyn, Professor, Doctor of Economic Sciences, alekseicherepov@inbox.ru
K. I. Sidorova, Candidate of Economic Sciences

The article reviews the technologies of sequestration as an efficient mechanism of the future reduction in carbon dioxide emission from industrial sources and the potential contribution to combating global warming problem. In terms of an actual coal-based power plant and a producing oil field spaced at a relevantly short distance from each other, the integrated estimation of costs of carbon dioxide sequestration project has been performed, inclusive of stages of СО₂ capture, transport and injection in a geological storage. Using the data of foreign experimental researches and the domestic statistics, the capital and operational costs as well as specific cost per 1 tone of CO₂ have been calculated for every stage of CO₂ sequestration. It is found that industrial СО₂ capture is the most expensive stage of the sequestration technology and makes up to 70% of the overall investment in such projects. The CO₂ capture cost includes the cost of an installation as well as the cost of reequipment of the power-generating station systems such as boiler house, steam-turbine plant, water supply, etc. The cost of captured СО₂ transport depends on the distance between a production object and a deposit. An important parameter in calculus of the required capital and operational costs is the pipeline diameter; furthermore, it is necessary to account for such parameters as suction and discharge pressure, and capacity and number of compression stations. It is found that injection of CO₂ in oil reservoirs produces both environmental and economic effects, which makes the sequestration projects more commercially attractable. The scope of the analysis of CO₂ injection in oil reservoirs embraced evaluation of the increase in oil recovery and extra income. The research has been implemented in terms of a specific reservoir in the Perm Krai. The important geological and reservoir parameters such as the reservoir depletion rate, productive stratum depth, reservoir pressure and dynamic viscosity of oil, which are required for the cost analysis of CO₂ injection, have been determined. Based on the calculations, it is concluded on economic efficiency of the project under discussion. The analysis of the relation between the breakeven price of CO₂ and the market price of oil shows the degree of stability of sequestration projects. The minimum level of oil price at which the sequestration projects preserve economic efficiency is USD 55 per oil barrel.
The study has been supported by the grant of the President of the Russian Federation for the young Russian scientists, Project MD-3181.2013.5.

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