Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study
Carbon capture, utilization, and storage (CCUS) is a combination of technologies capable of achieving large-scale reductions in carbon dioxide emissions across a variety of industries. Its application to date has however been mostly limited to the power sector, despite emissions from other industria...
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doaj-51c4ac107153492db49ed4e949377de42020-11-25T03:29:39ZengMDPI AGProcesses2227-97172020-05-01857657610.3390/pr8050576Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method StudyHasan Muslemani0Xi Liang1Katharina Kaesehage2Jeffrey Wilson3University of Edinburgh Business School, 29 Buccleuch Place, Edinburgh EH8 9JS, UKUniversity of Edinburgh Business School, 29 Buccleuch Place, Edinburgh EH8 9JS, UKUniversity of Edinburgh Business School, 29 Buccleuch Place, Edinburgh EH8 9JS, UKSchool of Environment, Enterprise and Development, University of Waterloo, Waterloo, ON N2L 3G1, CanadaCarbon capture, utilization, and storage (CCUS) is a combination of technologies capable of achieving large-scale reductions in carbon dioxide emissions across a variety of industries. Its application to date has however been mostly limited to the power sector, despite emissions from other industrial sectors accounting for around 30% of global anthropogenic CO<sub>2</sub> emissions. This paper explores the challenges of and requirements for implementing CCUS in non-power industrial sectors in general, and in the steel sector in particular, to identify drivers for the technology’s commercialization. To do so we first conducted a comprehensive literature review of business models of existing large-scale CCUS projects. We then collected primary qualitative data through a survey questionnaire and semi-structured interviews with global CCUS experts from industry, academia, government, and consultancies. Our results reveal that the revenue model is the most critical element to building successful CCUS business models, around which the following elements are structured: funding sources, capital & ownership structure, and risk management/allocation. One promising mechanism to subsidize the additional costs associated with the introduction of CCUS to industry is the creation of a ‘low-carbon product market’, while the creation of clear risk-allocation systems along the full CCUS chain is particularly highlighted. The application of CCUS as an enabling emission reduction technology is further shown to be a factor of consumer and shareholder pressures, pressing environmental standards, ethical resourcing, resource efficiency, and first-mover advantages in an emerging market. This paper addresses the knowledge gap which exists in identifying viable CCUS business models in the industrial sector which, with the exception of a few industry reports, remains poorly explored in the academic literature.https://www.mdpi.com/2227-9717/8/5/576carbon captureutilization and storagebusiness modelsteel sectordecarbonization |
collection |
DOAJ |
language |
English |
format |
Article |
sources |
DOAJ |
author |
Hasan Muslemani Xi Liang Katharina Kaesehage Jeffrey Wilson |
spellingShingle |
Hasan Muslemani Xi Liang Katharina Kaesehage Jeffrey Wilson Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study Processes carbon capture utilization and storage business model steel sector decarbonization |
author_facet |
Hasan Muslemani Xi Liang Katharina Kaesehage Jeffrey Wilson |
author_sort |
Hasan Muslemani |
title |
Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study |
title_short |
Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study |
title_full |
Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study |
title_fullStr |
Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study |
title_full_unstemmed |
Business Models for Carbon Capture, Utilization and Storage Technologies in the Steel Sector: A Qualitative Multi-Method Study |
title_sort |
business models for carbon capture, utilization and storage technologies in the steel sector: a qualitative multi-method study |
publisher |
MDPI AG |
series |
Processes |
issn |
2227-9717 |
publishDate |
2020-05-01 |
description |
Carbon capture, utilization, and storage (CCUS) is a combination of technologies capable of achieving large-scale reductions in carbon dioxide emissions across a variety of industries. Its application to date has however been mostly limited to the power sector, despite emissions from other industrial sectors accounting for around 30% of global anthropogenic CO<sub>2</sub> emissions. This paper explores the challenges of and requirements for implementing CCUS in non-power industrial sectors in general, and in the steel sector in particular, to identify drivers for the technology’s commercialization. To do so we first conducted a comprehensive literature review of business models of existing large-scale CCUS projects. We then collected primary qualitative data through a survey questionnaire and semi-structured interviews with global CCUS experts from industry, academia, government, and consultancies. Our results reveal that the revenue model is the most critical element to building successful CCUS business models, around which the following elements are structured: funding sources, capital & ownership structure, and risk management/allocation. One promising mechanism to subsidize the additional costs associated with the introduction of CCUS to industry is the creation of a ‘low-carbon product market’, while the creation of clear risk-allocation systems along the full CCUS chain is particularly highlighted. The application of CCUS as an enabling emission reduction technology is further shown to be a factor of consumer and shareholder pressures, pressing environmental standards, ethical resourcing, resource efficiency, and first-mover advantages in an emerging market. This paper addresses the knowledge gap which exists in identifying viable CCUS business models in the industrial sector which, with the exception of a few industry reports, remains poorly explored in the academic literature. |
topic |
carbon capture utilization and storage business model steel sector decarbonization |
url |
https://www.mdpi.com/2227-9717/8/5/576 |
work_keys_str_mv |
AT hasanmuslemani businessmodelsforcarboncaptureutilizationandstoragetechnologiesinthesteelsectoraqualitativemultimethodstudy AT xiliang businessmodelsforcarboncaptureutilizationandstoragetechnologiesinthesteelsectoraqualitativemultimethodstudy AT katharinakaesehage businessmodelsforcarboncaptureutilizationandstoragetechnologiesinthesteelsectoraqualitativemultimethodstudy AT jeffreywilson businessmodelsforcarboncaptureutilizationandstoragetechnologiesinthesteelsectoraqualitativemultimethodstudy |
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