Biogenic CO2 as a renewable resource: Drivers, barriers, and pathways for a sustainable circular economy

Abstract

With the increased pace of transition to a low-carbon and circular economy, biogenic CO₂ (bio-CO₂) has become a promising source of renewable carbon produced by biomass-based industrial processes. Through bio-CO₂ use in the production of fuels, chemicals, and materials, bio-CO₂ can be used to help achieve greenhouse gas emission reductions and contribute to the development of circular carbon systems. Nevertheless, the bio-CO₂ utilisation is an immature industry that is fraught with several challenges associated with regulatory systems, technological preparedness, market establishment and investment environment. This paper explores the forces and obstacles that affect the formation of the bio-CO₂ market using a multi-actor approach. Sweden is taken as an example because of its relatively high biogenic sources of CO₂ and active search for strategies of carbon management. Empirical knowledge is based on semi-structured interviews with the stakeholders of the bio-CO₂ value chain, such as the producers, users, supporting actors, industry associations, and government institutions. The results have provided some of the key barriers to the market development that are high capture and processing costs, regulatory uncertainty and lack of infrastructure to transport and use bio-CO₂. The producers stressed the risks in investments and the long payback time, whereas users pointed out the reliability of the supply chain and the quality of the products demanded. Simultaneously, some drivers were distinguished, such as the growing demand for low-carbon products, new opportunities in the production of e-fuel, and the implementation of the bio-CO₂ usage into the current bioenergy systems. The findings emphasise the need to have consistent regulatory frameworks, more transparent carbon accounting regulations, and specific policy tools to minimise investment risks and encourage the development of infrastructure. The synthesis of stakeholder views introduces the study to the insight into the systemic circumstances determining the emergence of bio-CO₂ markets in the early stages and the contribution to the current discourse of the strategy of carbon use to the overall low-carbon transition.