Economic and Environmental Benefits of the Integration between Carbon Sequestration and Underground Gas Storage

It is critical for China to aggressively promote coal substitution to achieve the "carbon neutral" goal. Promoting natural gas (NG) is an effective way to reduce coal consumption. Meanwhile, developing carbon sequestration (CS) technology will accelerate the process of carbon neutrality. Hence, underground gas storage (UGS) employing CS technology is an important choice suitable for NG development in large scale and carbon neutral goal requirements. However, China's UGS has not yet adopted CS technology. This paper focuses on the operation optimization scheme of UGS with CCS technology as well as the economic benefits and carbon emission reduction effects of this technology. Firstly, the study presented and demonstrated an improved way of UGS operation that took into account CS. Secondly, the paper constructed a proxy model to improve the operation mode of UGS while accounting for CS, and optimized the operation mode parameters concerning the dual objective function of maximizing revenue and CS volume. Based on Chinese geological data, the result shows that UGS's CS potential in China by 2050 is 2.7×107 ~5.4×107t, accounting for 1.13%~5.4% of the country's total carbon emissions at the time, and increasing UGS' overall operating revenue by 2.4%~13.8%