The effects of industrial policymaking on the economics of low-emission technologies: the TRANSid model

T. Gerres, J.P. Chaves, P. Linares

Energy Storage and Saving Vol. 2, nº. 3, pp. 513 - 521

Summary:

Basic materials such as steel, cement, aluminium, and (petro)chemicals are the building blocks of industrialised societies. However, their production is extremely energy and emission intensive. Hence, these industries need to decarbonise over the next decades to keep global warming at least below 2°C. However, low-emission industrial-scale production processes are not commercially available for any of these basic materials and require policy support to ensure their large-scale diffusion over the upcoming decades. Hence, the novel TRANSid (Transition to industry decarbonisation) model analyses the framework conditions that enable large-scale investment decisions in climate-friendly basic material options. We present a simplified case study of the cement sector to demonstrate the process by which the model optimises investment and operational costs in carbon capture technology by 2050. Furthermore, we demonstrate that extending the model to other sectors allows for the analysis of industry- and sector-specific policy options.

Spanish layman's summary:

El modelo TRANSid (Transición a la industria descarbonizada) analiza las decisiones de inversión en materiales básicos amigables con el clima. Un caso de estudio del sector cementero muestra cómo el modelo optimiza la inversión y el funcionamiento de la tecnología de captura de carbono.

 

 

 

 

English layman's summary:

The TRANSid (Transition to industry decarbonisation) model analyses the framework conditions for large-scale investment decisions in climate-friendly basic material options. A case study of the cement sector shows how the model optimises investment and operation of carbon capture technology.

Keywords: Deep decarbonisation; Industrial policy; Basic material sector; Industry transition; Emission pricing; Carbon capture

DOI reference: https://doi.org/10.1016/j.enss.2023.03.003

Published on paper: September 2023.

Published on-line: April 2023.

Citation:
T. Gerres, J.P. Chaves, P. Linares, The effects of industrial policymaking on the economics of low-emission technologies: the TRANSid model. Energy Storage and Saving. Vol. 2, nº. 3, pp. 513 - 521, September 2023. [Online: April 2023]