Techno-Economic Assessment of CO2-Based Power to Heat to Power Systems for Industrial Applications

Abstract The industrial sector is a major source of wealth, producing about one-quarter of the global gross product. However, industry is also a major emitter of CO2 and it represents a key challenge toward achieving the worldwide CO2 emission reduction targets. Nowadays, about 22% of the overall energy demand is heating for the industrial sector, generating about 40% of the global CO2 emissions. Additionally, 30% of the final energy demand of the industrial sector is electricity. Solutions to decarbonize the industrial sector are needed. This work presents the techno-economic assessment of four different molten salts-based power-to-heat-to-heat and power solutions aiming at decarbonizing the industrial sector, requiring medium temperature heat. The systems are studied under different electric markets. Dispatch strategies and system sizing are identified to ensure optimal techno-economic performance. The main performance indicators investigated are the levelized cost of heat and electricity (LCoH and LCoE), the operational expenditure, and the attainable savings with respect to alternative business as usual solutions. The results highlight that the proposed system can be cost-competitive, particularly in markets characterized by low electricity prices and high daily price fluctuations, such as Finland. In these locations, LCoE as low as 100 €/MWh and LCoH lower than 55 €/MWh can be attained by the base system configuration. The introduction of high temperature heat pumps can provide further LCoH reduction of about 50%. This study sets the ground for further power-to-heat-to-heat and power techno-economic investigations addressing different industrial sectors and identifies main system design strategies.