// CO2 as a raw material

Market analysis with a focus on DAC

CO₂ is already an important process agent and raw material for industry which is used in a variety of ways. CO₂ is needed for the production of synthetic urea, for example, and is used in the beverage and food industry and as a shielding gas for welding processes in industry. The demand for CO₂ will grow in the future as many production operations in industry are being converted to climate-neutral processes. The production of climate-neutral synthetic fuels will also increase. Fossil sources are currently still predominantly used to extract CO₂. It is important, however, to switch to climate-neutral processes, such as direct air capture technologies (DAC), for the extraction of CO₂ in the medium to long term in order to achieve the climate targets.

A market ramp-up of DAC technology on an industrial scale, with separation rates in the megaton range, would offer extensive potential for adding value for the manufacturing industry in Baden-Württemberg. Industry in Baden-Württemberg occupies a strong position in plant engineering and construction in the global context and appears predisposed for the manufacture and export of DAC systems and DAC components.

In order to determine the future worldwide demand for DAC systems, the “Direct air capture technology with added value from Baden-Württemberg” project will start with an analysis of the current demand for CO₂ in the individual branches of trade and sectors of industry. It will then go on to analyse the development of future demand on the basis of various data sources.

The diagram shows two situations that describe the current state and the desired state for the future. The current state sees CO2 emissions from fossil hydrocarbons through current energy and raw material systems. There is a small CO2 market and plastic recycling. In the future, the energy and feedstock systems are based on carbon cycles, as the emissions generated by synthetically produced hydrocarbons are used as feedstock for plastics or hydrocarbon synthesis. DAC and BECCS (bioenergy with carbon capture and storage) as technologies contribute to the growing CO2 market as they enable the cycle. — Development of the CO2 market for a climate-neutral economy and energy system

In addition to the use of DAC for the extraction of CO₂ for further processing in downstream processes, there will be an estimation of the number of DAC systems which will be required in combination with long-term storage systems in view of the need for negative emissions to meet the 1.5 °C target.

Finally, this will be taken as a basis to identify the scope for generating sales and creating jobs in industry in Baden-Württemberg through the production of systems and components for DAC technology. Reference will be made for this purpose to the methodology developed at the ZSW which is designed to identify factors for adding value and is adapted to DAC technology.