CO₂-derived ethylene, a promising product of carbon capture and utilization (CCU) technologies, holds significant potential in mitigating carbon emissions while producing valuable chemicals. However, its economic viability hinges on multiple factors such as production costs, technological advancements, and market dynamics. Ethylene, a key raw material in plastics, is typically produced via fossil-fuel-based processes like steam cracking of hydrocarbons. In contrast, CO₂-derived ethylene involves capturing CO₂ from sources like industrial emissions or the atmosphere and converting it into ethylene using renewable energy. The primary challenge lies in the high cost of CO₂ capture, the need for renewable energy inputs, and the complexities of catalytic conversion technologies, all of which make this process more expensive than traditional ethylene production methods.
To evaluate its economic feasibility, a cost-benefit analysis must consider several aspects. Firstly, the price of renewable energy—vital for reducing the carbon footprint of the process—plays a crucial role in determining the overall costs. Technological advancements in CO₂ capture, storage, and conversion can potentially lower the cost, but achieving economies of scale remains a significant hurdle. Additionally, government incentives or carbon pricing mechanisms could make CO₂-derived ethylene more attractive by internalizing the environmental costs of traditional production methods. On the benefit side, the product’s ability to close the carbon loop by utilizing excess CO₂ presents an environmental advantage, which could yield positive long-term returns in the form of regulatory benefits, such as carbon credits or subsidies for low-carbon products.
The market for CO₂-derived ethylene also remains uncertain, as it must compete with existing low-cost, fossil-based ethylene production. Nevertheless, as industries and governments increasingly prioritize sustainability and emission reductions, the demand for greener alternatives could create new market opportunities. In conclusion, while CO₂-derived ethylene is not yet economically competitive with traditional production methods, ongoing technological innovation, coupled with supportive policy frameworks, could improve its cost-effectiveness and ultimately make it a viable component of the circular economy.