A supply chain optimization framework for CO2 emission reduction: Case of the Netherlands

A major challenge for the industrial deployment of a CO2 emission reduction methodology is to reduce the overall cost and the integration of all the nodes in the supply chain for CO2 emission reduction. In this work, we develop a mixed integer linear optimization model that selects appropriate sources, capture process, transportation network and CO2 storage sites and optimize for a minimum overall cost. Initially, we screen the sources and storage options available in the Netherlands at different levels of detail (locations and industrial activities) and present the network of major sources and storage sites at the more detailed level. Results for a case study estimate the overall optimized cost to be €47.8 billion for 25 years of operation and 54 Mtpa reduction of CO2 emissions (30% of the 2013 levels). This work also identifies the preferred technologies for the CO2 capture and we discuss the reasons behind it. The foremost outcome of this case study is that capture and compression consumes the majority of the costs and that further optimization or introduction of new efficient technologies for capture can cause a major reduction in the overall costs.