Optimal Retrofit of Carbon Capture and Electrification Technologies in Oil Refineries for Reducing Direct CO2 Emissions

Abstract

The chemical industry is making significant investments in clean energy technologies, such as green hydrogen, carbon capture and storage, electric heating, and electrochemical processes to reduce carbon emissions. However, uncertainties regarding investments in recent technologies, fluctuating electricity and carbon prices, and the need to balance existing infrastructure with new ones complicate the transition. In this study, we develop a mixed-integer linear programming formulation to determine the most cost-effective transition for the decarbonization of oil refineries, incorporating electrification for steam generation, green hydrogen production, or carbon capture for blue hydrogen production and other emission sources. Two case studies that consider different refinery configurations are presented. Overall, the results of our simulations indicate that (i) natural gas with carbon capture is more economically favorable than electricity-based options, unless there are significant reductions in electricity prices or stricter emission regulations are imposed; (ii) carbon taxes or credits drive earlier adoption of capture technologies but do not promote electrification.