The role of CO₂-EOR for the development of a CCTS infrastructure in the North Sea region: A techno-economic model and application

Scenarios of future energy systems attribute an important role to Carbon Capture, Transport, and Storage (CCTS) in achieving emission reductions. Using captured CO₂ for enhanced oil recovery (CO₂-EOR) can improve the economics of the technology. This paper examines the potential for CO₂-EOR in the North Sea region. UK oil fields are found to account for 47% of the estimated total additional recovery potential of 3739 Mbbl (1234 MtCO₂ of storage potential). Danish and Norwegian fields add 28% and 25%, respectively. Based on a comprehensive dataset, the paper develops a unique techno-economic market equilibrium model of CO₂ supply from emission sources and CO₂ demand from CO₂-EOR to assess implications for a future CCTS infrastructure. The demand for fresh CO₂ for CO₂-EOR operation is represented by an exponential storage cost function. In all scenarios of varying CO₂ and crude oil price paths the assumed CO₂-EOR potential is fully exploited. CO₂-EOR does add value to CCTS operations but the potential is very limited and does not automatically induce long term CCTS activity. If CO₂ prices stay low, little further use of CCTS can be expected after 2035.