Research On Differential Subsidies For CO₂-EOR From The Perspective Of Full Industrial Chain

Research shows that carbon dioxide utilization and storage（CCUS）is integral to carbon neutrality goals and that it relies on policy incentives to scale.Although CO₂-EOR is the most economically feasible technical solution in CCUS,it is currently limited by high cost and cannot be promoted on a large scale.It also needs to be promoted through subsidies.The current research on CO₂-EOR subsidy policy does not consider the difference in subsidy demand of different projects,which leads to the over-subsidy of projects with low subsidy demand,at the same time,the project with high subsidy demand cannot be started due to insufficient subsidies.This is unconventional.Natural gas production subsidies have been proven in practice.In addition,unlike ordinary oil and gas exploration projects,the technical and economic feasibility of CO₂-EOR is also affected by the matching conditions of source and sink.In the process of conducting differential subsidies research,the upstream and midstream of the industrial chain should be fully considered,that is,carbon capture and transportation.influencing factors.Therefore,this paper conducts research on differential subsidy policy from the perspective of full industrial chain.Firstly,this paper systematically sorts out and collects the influencing factors of subsidy demand in each link of the full industrial chain such as carbon capture,transportation,oil displacement and storage.Subsequently,a subsidy demand evaluation model covering the influencing factors of all aspects of the industry was established.The evaluation model not only considered the subsidy demand under the traditional financial analysis framework,but also considered the impact of the option value of the flexible investment of the CO₂-EOR project on the subsidy demand.Scenario simulation using the evaluation model found that the key factors affecting the subsidy demand of the project are the unit CO₂ capture cost,reservoir depth,CO₂ utilization coefficient and matching storage volume.In comparison,the transportation mode and transportation distance have little impact.Next,the key factors are classified as follows:the capture link is divided into pre-combustion capture,post-combustion capture,and oxygen-enriched combustion capture according to the capture method;the reservoir burial depth is divided into shallow,medium and deep;The CO₂ utilization coefficient is divided into two types:high and low.Then calculate the economic matching storage amount of different types of projects under different subsidy levels,and use this as the critical point to divide the subsidy object level.In addition,in view of the significant impact of crude oil price on subsidy demand,an adjustment plan is designed in which the subsidy level is linked to the crude oil price under the condition that the subsidy gradient level is fixed.Finally,the calculation example shows that the policy efficiency is improved by 65.1%by applying the subsidy strategy proposed in the paper.