Shipping Australian sunshine: Liquid renewable green fuel export

Renewable green fuels (RGF) such as hydrogen are the global energy future. Air pollution is compounded with climate change as the emissions driving both development problems come largely from the same source of fossil fuel burning. As an energy exporter, Australian energy export dominates the total energy production and the RGF has become central to the current proposal of Australian government to reach net zero emission. The hydrogen production from solar panels only on 3% of Australia's land area could compensate 10 times of Germany's non-electricity energy consumption. In the unique geographic position, Australia's RGF export attracts significant costs for long distance onboard storage and shipping. While the cost reduction of RGF production relies on technological advancement which needs a long time, the storage and shipping costs must be minimised for Australia to remain competitive in the global energy market. The present review concentrates on Australian export pathways of lifecycles of liquid renewable green fuels including renewable liquified hydrogen (LH₂), liquified methane (LCH₄), ammonia (NH₃) and methanol (CH₃OH) as liquid RGF have the advantages of adopting the existing infrastructure. This review compares the advantages and disadvantages of discussed renewable energy carriers. It is found that the cost of LH₂ pathway can be acceptable for shipping distance of up to 7000 km (Asian countries such as Japan) but ammonia (NH₃) or methanol (CH₃OH) pathways may be more cost effective for shipping distance above 7000 km for European counties such as Germany. These observations suggest the proper fuel forms to fulfill the requirements to different customers, and hence will highlight Australia's position as one of major exporters of renewable energy in the future. Detailed techno-economic analysis is worth to be done for supplying more quantitative results.     

Sustainable hydrogen roadmap: A holistic review and decision-making methodology for production,utilisation and exportation using Qatar as a case study

Hydrogen is seen as a promising and inevitable energy carrier in the transition towards a carbon-free energy era. This study reviews the potential for carbon-free hydrogen production, utilisation and exportation from the State of Qatar. The study aims to introduce a roadmap for current and future exploration of carbon-free hydrogen production and exportation from Qatar, for which an assessment of several available alternatives for the production of hydrogen in Qatar is performed. These alternatives include the use of natural gas as a feedstock for hydrogen production through steam methane reforming (SMR), solar integrated steam methane reforming with carbon capture, as well as the possibilities for hydrogen production from electrolysis using renewables and ammonia as another intermediate. The potential of each alternative is reviewed based on selected technical, economic and environmental criteria. The findings of this review study indicate that the production and exportation of blue ammonia currently present the best pathway for Qatar, while green hydrogen is expected to become as competitive as blue ammonia in the mid-future. It is widely accepted that as the technologies associated with clean hydrogen production improve, and the cost of renewable energy falls, green hydrogen will become quite competitive in the region.     

Estimating global production and supply costs for green hydrogen and hydrogen-based green energy commodities

Green energy commodities are expected to be central in decarbonising the global energy system. Such green energy commodities could be hydrogen or other hydrogen-based energy commodities produced from renewable energy sources (RES) such as solar or wind energy. We quantify the production cost and potentials of hydrogen and hydrogen-based energy commodities ammonia, methane, methanol, gasoline, diesel and kerosene in 113 countries. Moreover, we evaluate total supply costs to Germany, considering both pipeline-based and maritime transport. We determine production costs by optimising the investment and operation of commodity production from dedicated RES based on country-level RES potentials and country-specific weighted average costs of capital. Analysing the geographic distribution of production and supply costs, we find that production costs dominate the supply cost composition for liquid or easily liquefiable commodities, while transport costs dominate for gaseous commodities. In the case of Germany, importing green ammonia could be more cost-efficient than domestic production from locally produced or imported hydrogen. Green ammonia could be supplied to Germany from many regions worldwide at below the cost of domestic production, with costs ranging from 624 to 874 $/t NH₃ and Norway being the cheapest supplier. Ammonia production using imported hydrogen from Spain could be cost-effective if a pan-European hydrogen pipeline grid based on repurposed natural gas pipelines exists.     

Hydrogen as an export commodity – Capital expenditure and energy evaluation of hydrogen carriers

In this paper, we describe a case-study exploring the use of 600 MW of power from New Zealand's Manapouri Power Station to produce hydrogen for export via water electrolysis. Three H₂ carriers were considered: liquid H₂, ammonia, and toluene hydrogenation/methylcyclohexane dehydrogenation. Processes were simulated in Aspen's HYSYS for each of the carriers to determine their associated energy and annualised capital expenditure costs. We found that the total capital investment for all carriers was surprisingly consistent, but with quite different splits between the electrolysis and carrier formation plants. Based on our analysis the energy availability for liquid H₂ ranged from 53.9 to 60.7% depending on the energy cost associated with cryogenic H₂ liquefaction. The energy availability for liquid ammonia was 37.5% after conversion back to H₂, or 53.6% if the ammonia can be used directly as a fuel. For toluene/methylcyclohexane the energy availability was 41.2%. The total of the electricity and annualised capital costs per kg of H₂ ranged from NZ$5.63 to NZ$6.43 for liquid H₂, NZ$6.24 to NZ$8.91 for ammonia and was NZ$7.86 for toluene/methylcyclohexane, using a net electricity cost of NZ$70/MWh. The cost of hydrogen (or energy in the case of direct use ammonia) was more strongly influenced by the efficiency of energy retention than on capital investment, as the electricity costs contributed approximately two thirds of total costs. In the long-term, liquid hydrogen looks to be the most versatile H₂ carrier, but significant infrastructure investment is required.     

Techno-enviro-economic analyses of hydrogen supply chains with an ASEAN case study

Hydrogen is a promising low carbon fuel option with geographically distributed production and consumption. Hence, its regional and global hydrogen supply chains (HSCs) are vital for the potential future energy markets. We present a holistic study of various options for transporting (not producing) hydrogen from both techno-economic and environmental perspectives. The infrastructure and energy requirements of four options for transporting hydrogen between export and import terminals, namely methyl cyclohexane, liquid hydrogen, compressed hydrogen, and liquid ammonia, are analyzed in detail. These are compared for HSC energy penalty, carbon avoidance and landed cost of hydrogen under different scenarios. A case study is also presented to capture the perspectives of an importer. The preferred transport mode depends on export location and end use. For Singapore's power sector, compressed hydrogen from the neighbors via pipelines is most favorable with a carbon avoidance of 54–59% at 0.3 $/kg CO₂ avoided.     

Shipping the sunshine: An open-source model for costing renewable hydrogen transport from Australia

Green hydrogen (H₂) is emerging as a future clean energy carrier. While there exists significant analysis on global renewable (and non-renewable) hydrogen generation costs, analysis of its transportation costs, irrespective of production method, is still limited. Complexities include the different forms in which hydrogen can be transported, the limited experience to date in shipping some of these carrier forms, the trade routes potentially involved and the possible use of different shipping fuels. Herein, we present an open-source model developed to assist stakeholders in assessing the costs of shipping various forms of hydrogen over different routes. It includes hydrogen transport in the forms of liquid hydrogen (LH₂), ammonia, liquified natural gas (LNG), methanol and liquid organic hydrogen carriers (LOHCs). It considers both fixed and variable costs including port fees, possible canal usage charges, fuel costs, ship capital and operating costs, boil-off losses and possible environmental taxes, among many others. The model is applied to the Rotterdam-Australia route as a case study, revealing ammonia ($0.56/kg_H2) and methanol ($0.68/kg_H2) as the least expensive hydrogen derivatives to transport, followed by liquified natural gas ($1.07/kg_H2), liquid organic hydrogen carriers ($1.37/kg_H2) and liquid hydrogen ($2.09/kg_H2). While reducing the transportation distance led to lower shipping costs, we note that the merit order of assumed underlying shipping costs remain unchanged. We also explore the impact of using hydrogen (or the hydrogen carrier) as a low/zero carbon emission fuel for the ships, which led to lowering of costs for liquified natural gas ($0.88/kg_H2), a similar cost for liquid hydrogen ($2.19/kg_H2) and significant increases for the remainder. Given our model is open-sourced, it can be adapted globally and updated to match the changing cost dynamics of the emerging green hydrogen market.     

Exploring supply chain design and expansion planning of China's green ammonia production with an optimization-based simulation approach

Green ammonia production as an important application for propelling the upcoming hydrogen economy has not been paid much attention by China, the world's largest ammonia producer. As a result, related studies are limited. This paper explores potential supply chain design and planning strategies of green ammonia production in the next decade of China with a case study in Inner Mongolia. A hybrid optimization-based simulation approach is applied, considering traditional optimization approaches are insufficient to address uncertainties and dynamics in a long-term energy transition. Results show that the production cost of green ammonia will be at least twice that of the current level due to higher costs of hydrogen supply. Production accounts for the largest share of the total expense of green hydrogen (~80 %). The decline of electricity and electrolyser prices are key in driving down the overall costs. In addition, by-product oxygen is also considered in the model to assess its economic benefits. We found that by-product oxygen sales could partly reduce the total expense of green hydrogen (~12 % at a price of USD 85/t), but it also should be noted that the volatile price of oxygen may pose uncertainties and risks to the effectiveness of the offset. Since the case study may represent the favourable conditions in China due to the abundant renewable energy resources and large-scale ammonia industry in this region, we propose to take a moderate step towards green ammonia production, and policies should be focused on reducing the electricity price and capital investments in green hydrogen production. We assume the findings and implications are informative to planning future green ammonia production in China.     

Large-scale production and transport of hydrogen from Norway to Europe and Japan: Value chain analysis and comparison of liquid hydrogen and ammonia as energy carriers

Low-carbon hydrogen is considered as one of the key measures to decarbonise continental Europe and Japan. Northern Norway has abundant renewable energy and natural gas resources which can be converted to low-carbon hydrogen. However, Norway is located relatively far away from these markets and finding efficient ways to transport this hydrogen to the end-user is critical. In this study, liquefied hydrogen (LH₂) and ammonia (NH₃), as H₂-based energy carriers, are analysed and compared with respect to energy efficiency, CO₂ footprint and cost. It is shown that the LH₂ chain is more energy efficient and has a smaller CO₂ footprint (20 and 23 kg-CO₂/MWh_th for Europe and Japan, respectively) than the NH₃ chain (76 and 122 kg-CO₂/MWh_th). Furthermore, the study finds the levelized cost of hydrogen delivered to Rotterdam to be lower for LH₂ (5.0 EUR/kg-H₂) compared to NH₃ (5.9 EUR/kg-H₂), while the hydrogen costs of the two chains for transport to Japan are in a similar range (about 7 EUR/kg-H₂). It is also shown that under optimistic assumptions, the costs associated with the LH₂ chain (3.2 EUR/kg-H₂) are close to meeting the 2030 hydrogen cost target of Japan (2.5 EUR/kg-H₂).     

Techno-economic assessment of green hydrogen and ammonia production from wind and solar energy in Iran

This paper presents a comprehensive technical and economic assessment of potential green hydrogen and ammonia production plants in different locations in Iran with strong wind and solar resources. The study was organized in five steps. First, regarding the wind density and solar PV potential data, three locations in Iran were chosen with the highest wind power, solar radiation, and a combination of both wind/solar energy. All these locations are inland spots, but since the produced ammonia is planned to be exported, it must be transported to the export harbor in the South of Iran. For comparison, a base case was also considered next to the export harbor with normal solar and wind potential, but no distance from the export harbor. In the second step, a similar large-scale hydrogen production facility with proton exchange membrane electrolyzers was modeled for all these locations using the HOMER Pro simulation platform. In the next step, the produced hydrogen and the nitrogen obtained from an air separation unit are supplied to a Haber-Bosch process to synthesize ammonia as a hydrogen carrier. Since water electrolysis requires a considerable amount of water with specific quality and because Iran suffers from water scarcity, this paper, unlike many similar research studies, addresses the challenges associated with the water supply system in the hydrogen production process. In this regard, in the fourth step of this study, it is assumed that seawater from the nearest sea is treated in a desalination plant and sent to the site locations. Finally, since this study intends to evaluate the possibility of green hydrogen export from Iran, a detailed piping model for the transportation of water, hydrogen, and ammonia from/to the production site and the export harbor is created in the last step, which considers the real routs using satellite images, and takes into account all pump/compression stations required to transport these media. This study provides a realistic cost of green hydrogen/ammonia production in Iran, which is ready to be exported, considering all related processes involved in the hydrogen supply chain.     

Evaluating the competitiveness and uncertainty of offshore wind-to-hydrogen production: A case study of Poland

Offshore wind is currently the most rapidly growing renewable energy source on a global scale. The increasing deployment and high economic potential of offshore wind have prompted considerable interest in its use for hydrogen production. In this context, this study develops a Monte Carlo-based framework for assessing the competitiveness of offshore wind-to-hydrogen production. The framework is designed to evaluate the location-based variability of the levelised cost of hydrogen (LCOH) and explore the uncertainty that exists in the long-term planning of hydrogen production installations. The case study of Poland is presented to demonstrate the application of the framework. This work provides a detailed analysis of the LCOH considering the geographical coordinates of 23 planned offshore wind farms in the Baltic Sea. Moreover, it presents a comparative analysis of hydrogen production costs from offshore and onshore wind parks in 2030 and 2050. The results show that hydrogen from offshore wind could range between €3.60 to €3.71/kg H₂ in 2030, whereas in 2050, it may range from €2.05 to €2.15/kg H₂.     

Implicit CO2 prices of fossil fuel use in Switzerland

This study aims to assess the efficiency of the fossil fuel taxation scheme currently in effect in Switzerland. To this end, the concept of implicit CO₂ prices is introduced, based on which prices for different fossil fuel uses are derived. Implicit CO₂ prices are defined as the difference between actual prices paid by consumers and efficient domestic fuel prices. Efficient domestic fuel prices, in turn, consist of private production costs, a uniform value added tax and only local external costs, not including external costs due to CO₂ emissions and global climate change.The resulting prices differ substantially, which suggests that there is considerable cost-saving potential in reducing CO₂ emissions in Switzerland. For passenger cars and air traffic, the implicit prices are negative. For these uses, higher fuel charges would therefore be beneficial from a purely domestic perspective, i.e., without considering the negative repercussions of global warming.     

Synergistic roles of off-peak electrolysis and thermochemical production of hydrogen from nuclear energy in Canada

Hydrogen as a clean energy carrier is frequently identified as a major solution to the environmental problem of greenhouse gases, resulting from worldwide dependence on fossil fuels. However, most of the world's hydrogen (about 96%) is currently produced from fossil fuels, which does not address the issue of greenhouse gases. Although there is a large motivation of the “hydrogen economy”, for improvement of urban air quality, energy security, and integration of intermittent renewable energy sources, CO₂ free energy sources are critical to hydrogen becoming a significant energy carrier. Two technologies, applied in tandem, have a promising potential to generate hydrogen without leading to greenhouse gas emissions: 1) electrolysis and 2) thermochemical decomposition of water. This paper will investigate their unique complementary roles to reduce costs of hydrogen production. Together they have a unique potential to serve both de-centralized hydrogen needs in periods of low-demand electricity, and centralized base-load production from a nuclear station. Thermochemical methods have a significantly higher thermal efficiency, but electrolysis can take advantage of low electricity prices during off-peak hours, as well as intermittent and de-centralized supplies like wind, solar or tidal power. By effectively linking these systems, water-based production of hydrogen can become more competitive against the predominant existing technology, SMR (steam-methane reforming).     

Large-scale long-distance land-based hydrogen transportation systems: A comparative techno-economic and greenhouse gas emission assessment

Interest in hydrogen as an energy carrier is growing as countries look to reduce greenhouse gas (GHG) emissions in hard-to-abate sectors. Previous works have focused on hydrogen production, well-to-wheel analysis of fuel cell vehicles, and vehicle refuelling costs and emissions. These studies use high-level estimates for the hydrogen transportation systems that lack sufficient granularity for techno-economic and GHG emissions analysis. In this work, we assess and compare the unit costs and emission footprints (direct and indirect) of 32 systems for hydrogen transportation. Process-based models were used to examine the transportation of pure hydrogen (hydrogen pipeline and truck transport of gaseous and liquified hydrogen), hydrogen-natural gas blends (pipeline), ammonia (pipeline), and liquid organic hydrogen carriers (pipeline and rail). We used sensitivity and uncertainty analyses to determine the parameters impacting the cost and emission estimates. At 1000 km, the pure hydrogen pipelines have a levelized cost of $0.66/kg H₂ and a GHG footprint of 595 gCO₂eq/kg H₂. At 1000 km, ammonia, liquid organic hydrogen carrier, and truck transport scenarios are more than twice as expensive as pure hydrogen pipeline and hythane, and more than 1.5 times as expensive at 3000 km. The GHG emission footprints of pure hydrogen pipeline transport and ammonia transport are comparable, whereas all other transport systems are more than twice as high. These results may be informative for government agencies developing policies around clean hydrogen internationally.     

A review of four case studies assessing the potential for hydrogen penetration of the future energy system

Hydrogen as an energy carrier allows the decarbonization of transport, industry, and space heating as well as storage for intermittent renewable energy. The objective of this paper is to assess the future engineering potential for hydrogen and provide insight to areas of research to help lower economic barriers for hydrogen adoption. This assessment was accomplished by creating top-level system models based on energy requirements for end-use services. Those models were used to investigate four case studies that provide a global view augmented with specific national examples. The first case study assesses the potential penetration of hydrogen using a global energy system model. The second applies the dynamic integrated climate–ecosystem–economics model to derive an estimate of the impact of the diffusion of hydrogen as an energy carrier. The third determines the required growth in renewable power and water usage to power transportation in the United States (US) with hydrogen. The fourth assesses the use of hydrogen for heating in the United Kingdom (UK). In all cases, there appeared to be significant potential for hydrogen adoption and net energetic benefit. Globally, hydrogen has the potential to account for approximately 3% of energy consumption by 2050. In the US, using hydrogen for on-road transportation could enable a reduction in rejected energy of nearly 10%. Also, hydrogen might provide the least cost alternative to decarbonizing space heating in the UK. The research highlights a challenge raised by widespread abandonment of nuclear power. It is currently unclear what the removal of nuclear would do to the cost of energy as nations attempt to limit global greenhouse gas emissions. Nuclear power has also been proposed as a source for large scale production of hydrogen. Finally, this analysis shows that with today's technological maturity making the transition to a hydrogen economy would incur significant costs.     

Environmental impact categories of hydrogen and ammonia driven transoceanic maritime vehicles: A comparative evaluation

In this study, carbon-free fuels -ammonia and hydrogen-are proposed to replace heavy fuel oils in the engines of maritime transportation vehicles. Also, it is proposed to use hydrogen and ammonia as dual fuels to quantify the reduction potential of greenhouse gas emissions. An environmental impact assessment of transoceanic tanker and transoceanic freight ship is implemented to explore the impacts of fuel substituting on the environment. In the life cycle analyses, the complete transport life cycle is taken into account from manufacture of transoceanic freight ship and tanker to production, transportation and utilization of hydrogen and ammonia in the maritime vehicles. Several hydrogen and ammonia production routes ranging from municipal waste to geothermal options are considered to comparatively evaluate environmentally benign methods. Besides global warming potential, environmental impact categories of marine sediment ecotoxicity and marine aquatic ecotoxicity are also selected in order to examine the diverse effects on marine environment. Being carbon-neutral fuels, ammonia and hydrogen, yield significantly minor global warming impacts during operation. The ecotoxicity impacts on maritime environment vary based on the production route of hydrogen and ammonia. The results imply that even hydrogen and ammonia are utilized as dual fuels in the engines, the global warming potential is quite lower in comparison with heavy fuel oil driven transoceanic tankers. Geothermal energy sourced hydrogen and ammonia fuelled transoceanic tankers release about 0.98 g and 1.65 g CO₂ eq. per tonne-kilometer, respectively whereas current conventional heavy fuel oil tanker releases about 5.33 g/tonne-kilometer CO₂ eq. greenhouse gas emissions.     

A quantitative risk assessment of a domestic property connected to a hydrogen distribution network

The increased reliance on natural gas for heating worldwide makes the search for carbon-free alternatives imperative, especially if international decarbonisation targets are to be met. Hydrogen does not release carbon dioxide (CO₂) at the point of use which makes it an appealing candidate to decarbonise domestic heating. Hydrogen can be produced from either 1) the electrolysis of water with no associated carbon emissions, or 2) from methane reformation (using steam) which produces CO₂, but which is easily captured and storable during production. Hydrogen could be transported to the end-user via gas distribution networks similar to, and adapted from, those in use today. This would reduce both installation costs and end-user disruption. However, before hydrogen can provide domestic heat, it is necessary to assess the ‘risk’ associated with its distribution in direct comparison to natural gas. Here we develop a comprehensive and multi-faceted quantitative risk assessment tool to assess the difference in ‘risk’ between current natural gas distribution networks, and the potential conversion to a hydrogen based system. The approach uses novel experimental and modelling work, scientific literature, and findings from historic large scale testing programmes. As a case study, the risk assessment tool is applied to the newly proposed H100 demonstration (100% hydrogen network) project. The assessment includes the comparative risk of gas releases both upstream and downstream of the domestic gas meter. This research finds that the risk associated with the proposed H100 network (based on its current design) is lower than that of the existing natural gas network by a factor 0.88.     

A liquefied energy chain for transport and utilization of natural gas for power production with CO2 capture and storage – Part 3: The combined carrier and onshore storage

A novel energy and cost effective transport chain for stranded natural gas utilized for power production with CO₂ capture and storage is developed. It includes an offshore section, a combined gas carrier and an integrated receiving terminal. The combined carrier will transport liquid carbon dioxide (LCO₂) and liquid nitrogen (LIN) outbound, where natural gas (NG) is cooled and liquefied to LNG by vaporization of LIN and LCO₂ onboard the carrier. The same carrier is used to transport the LNG onshore, where the NG can be used for power production with CO₂ capture. The combined carrier consists of 10 cylindrical tanks with a diameter of 9.2 m and varying lengths from 14 to 40 m. The total ship volume is 13,000 m³. Assuming 85% capture rate of the CO₂, the maximum ship utilization factor (SUF) is 63.4%. Due to the combined use of the storage tanks, the SUF is decreased with 1.4% points to 62%. The ship is equipped with a bi-directional submerged turret loading for anchoring and loading of NG and unloading of CO₂. Two ships can deliver NG to and remove CO₂ from a 400 MW_net power plant, and still obtain continuous production of LNG offshore without intermediate storage. The investment cost for each gas carrier is 40 million EUR giving total transport cost of 16.9 EUR/tonne LNG. The cost for the offshore transfer system is 6.6 million EUR per tonne LNG, whereas the cost for onshore storage and loading system is 3.1 and 0.8 million EUR per tonne LNG, respectively. The total specific costs for the ship transport, including onshore storage, loading shipping and offshore unloading are 27.5 EUR per tonne LNG for a roundtrip of 5 days, including voyage, production of LNG, unloading, connecting and berthing.     

Optimizing hybrid offshore wind farms for cost-competitive hydrogen production in Germany

Nearly 96% of the world's current hydrogen production comes from fossil-fuel-based sources, contributing to global greenhouse gas emissions. Hydrogen is often discussed as a critical lever in decarbonizing future power systems. Producing hydrogen using unsold offshore wind electricity may offer a low-carbon production pathway and emerging business model. This study investigates whether participating in an ancillary service market is cost competitive for offshore wind-based hydrogen production. It also determines the optimal size of a hydrogen electrolyser relative to an offshore wind farm. Two flexibility strategies for offshore wind farms are developed in this study: an optimal bidding strategy into ancillary service markets for offshore wind farms that build hydrogen production facilities and optimal sizing of Power-to-Hydrogen (PtH) facilities at wind farms. Using empirical European power market and wind generation data, the study finds that offshore-wind based hydrogen must participate in ancillary service markets to generate net positive revenues at current levels of wind generation to become cost competitive in Germany. The estimated carbon abatement cost of “green” hydrogen ranges between 187 EUR/tonCO₂e and 265 EUR/tonCO₂e. Allowing hydrogen producers to receive similar subsidies as offshore wind farms that produce only electricity could facilitate further cost reduction. Utilizing excess and intermittent offshore wind highlights one possible pathway that could achieve increasing returns on greenhouse gas emission reductions due to technological learning in hydrogen production, even under conditions where low power prices make offshore wind less competitive in the European electricity market.     

Economic accounting and high-tech strategy for sustainable production: A case study of methanol production from CO2 hydrogenation

The global proposal of ‘carbon neutrality’ puts forward higher innovation demand for the cleaner energy production. The potential for employing “green” methanol produced from hydrogen obtained by water electrolysis and collected CO₂ from a gas-fired power station is examined in this study.The consumption of electricity for renewable methanol production is 1.045 times as much as that for traditional methanol production, the traditional method consumes 2.5 times as much thermal energy as the renewable methanol process. In addition, the total direct and indirect CO₂ emissions from renewable methanol production are almost one-third of the emissions from the traditional method. The total cost of setting up the units of a renewable and a traditional methanol production plant with an annual capacity of 100,000 tons is $50.1 million and $46.806 million in this study case, respectively. If the methanol price hits $310 per ton, renewable methanol production will be highly economically viable. But if electricity and gas prices rise or CO2 emission tax is imposed, renewable and conventional methanol production plants will lose their economic feasibility. Therefore, in order to deal with this risk, the establishment of special high-tech parks is of great significance to reduce costs and stabilize the sustainable development of relevant industries.     

Economic and environmental impact analysis of carbon tariffs on Chinese exports

As an alternative measure for the proposal of border tax adjustments (BTAs) advocated by the countries that seek to abate CO₂ emissions (hereafter referred to as ‘abating countries’), export carbon tax (ECT) voluntarily conducted by the developing countries has been widely discussed in recent years. This paper uses the multi-regional and multi-commodity computable general equilibrium (CGE) model and the GTAP8.1 database to investigate the economic and environmental effects of carbon tariffs on Chinese exports. The following three policy scenarios are considered: 1) the abating countries implement cap-and-trade emission programs without BTAs; 2) the unilaterally abating countries levy import tariffs and export subsidies on non-abating countries; and, 3) the abating countries implement unilateral climate policies combined with ECT imposed by China. The ECT policy of China is evaluated with a carbon price set at 17 US$/t-CO₂. Results illustrate that the ECT voluntarily implemented by China is ineffective in reducing its domestic CO₂ emissions. Moreover, ECT merely has a minor impact on global emissions. Finally, the competitiveness of China's energy-intensive and trade-exposed (EITE) industries suffers substantial losses if export tariffs are imposed. However, China's gains in terms of welfare and gross domestic product (GDP) would be slightly improved if an ECT policy is implemented, compared to the scenario where China is subjected to BTAs levied by the abating coalition. In the light of the tradeoff between tariff revenue for welfare and competiveness losses of the EITE industries, it is therefore difficult to conclude that carbon tariff on Chinese exports is an alternative policy to BTAs.