Negative emissions will play a key role in achieving global carbon neutrality and limiting global warming. Direct Air Capture (DAC) is a promising carbon dioxide (CO2) removal technology that captures CO2 directly from the atmosphere. It is highly scalable, can be deployed in a wide range of locations, and enables accurate monitoring of the removed CO2. When combined with permanent geological storage, DAC can provide long-term negative emissions. However, DAC is currently associated with high investment costs and substantial energy demand, making the cost of CO2 removal very high. Policy support is therefore essential to accelerate deployment, reduce costs through technological learning and enable the transition from first-of-a-kind (FOAK) to nth-of-a-kind (NOAK) systems.
The objective of this master thesis is to evaluate the economic impact of different policy instruments on DAC economics. You will review existing policies for DAC and model the impact of these on the cost of CO2 capture and economic feasibility. In addition, your analysis will compare support requirements for FOAK and NOAK systems to assess how policy needs may evolve over time.
The thesis work will include the following tasks:
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