Policy Analysis of CO₂ Capture and Sequestration with Anaerobic Digestion for Transportation Fuel Production

Abstract

Low carbon fuel and waste management policies at the federal and state levels have catalyzed the construction of California’s wet anaerobic digestion (AD) facilities. Wet ADs can digest food waste and dairy manure to produce compressed natural gas (CNG) for natural gas vehicles or electricity for electric vehicles (EVs). Carbon capture and sequestration (CCS) of CO2 generated from AD reduces the fuel carbon intensity by carbon removal in addition to avoided methane emissions. Using a combined lifecycle and techno-economic analysis, we determine the most cost-effective design under current and forthcoming federal and state low carbon fuel policies. Under many scenarios, designs that convert biogas to electricity for EVs (Biogas to EV) are favored; however, CCS is only cost-effective in these systems with policy incentives that exceed $200/tonne of CO2 captured. Adding CCS to CNG-producing systems (Biogas to CNG) only requires a single unit operation to prepare the CO2 for sequestration, with a sequestration cost of $34/tonne. When maximizing negative emissions is the goal, incentives are needed to either (1) fund CCS with Biogas to EV designs or (2) favor CNG over electricity production from wet AD facilities.