How to incentive carbon capture and storage technology application in waste-to-energy industry: A facility-level integrated assessment of China

Abstract

Carbon capture and storage (CCS) technology is crucial for the waste-to-energy (WtE) industry to achieve deep decarbonization goals, especially in China. However, there is a lack of understanding of the potential and costs of CCS technology in the WtE industry, particularly from the perspective of facility. Given with this situation, a facility-level integrated assessment model including CCS source-sink matching optimization model and tech-economic assessment model was developed in this study to reveal the application potential and costs of CCS technology in China's WtE industry, and to quantify the impacts of different incentive policies on CCS technology deployment. The results showed that matching WtE facilities with nearby carbon sinks enables significant CO₂ reductions, ranging from 0.3 Gt annually to a cumulative 6.9 Gt over the facilities’ operational lifetimes. The emission reduction costs for all WtE facilities range from -612.9 to 506.5 CNY/t CO₂, with an average profit of 412.5 CNY/t CO₂ when considering enhanced oil recovery (EOR). However, saline aquifer storage demands robust policy incentives due to limited direct economic benefits. Facilities with larger capacities and longer remaining lifespans are most cost-effective for CCS retrofitting. Spatial analysis underscores geographical disparities in CCS potential, with eastern coastal regions displaying greater feasibility due to higher WtE density and proximity to carbon sinks. Among incentive measures, waste disposal fee subsidies and feed-in tariffs exhibit varying efficiency, while carbon market mechanisms show potential for long-term sustainability. To promote the application of CCS technology and exert its emission reduction effect, a collaborative strategy combining market-driven carbon pricing and government subsidies should be adopted in the future, and priority should be given to the retrofitting of high-capacity and long-life facilities.