Technical Assessment and Economic Comparison between Carbon Tax and Possible Low-Carbon Scenarios to Offset Excess Greenhouse Gas Emissions in the Petrochemical Sector

Ghsasemi Kafrudi, Esmaeil; Amini, Meysam; Samiee, Leila; Ebadi, Ali

doi:10.22078/jpst.2026.5737.1982

Technical Assessment and Economic Comparison between Carbon Tax and Possible Low-Carbon Scenarios to Offset Excess Greenhouse Gas Emissions in the Petrochemical Sector

Articles in Press

Document Type : Research Paper

Authors

Esmaeil Ghsasemi Kafrudi ¹

Meysam Amini ²

Leila Samiee ²

Ali Ebadi ²

¹ Development and Optimization of Energy Technologies Research Division, Research Institute of Petroleum Industry (RIPI)

² Development and Optimization of Energy Technologies Research Division, Research Institute of Petroleum Industry (RIPI),

10.22078/jpst.2026.5737.1982

Abstract

The primary objective of this article is to explore solutions for managing carbon tax payments. It examines the impact of various greenhouse gas (GHG) reduction strategies, beyond energy optimization measures, such as the use of renewable energy in the petrochemical industry, blue hydrogen production, urea production utilizing carbon capture and utilization (CCUS) technology, and green methanol, on petrochemical plants that produce urea and ammonia. Initially, the carbon footprint and tax amount of each complex are calculated. The results showed that establishing a renewable power plant is profitable for all complexes. Urea production is profitable for petrochemicals with investments exceeding approximately $90 million, and green methanol is profitable for those with investment costs exceeding about $200 million. However, the scenario of urea production using blue hydrogen is unprofitable for all considered complexes. The petrochemicals that are not subject to carbon taxes can also sell their carbon credits resulting from emission reductions to those that are subject to carbon taxes. The prices of these credits in Germany and South Korea are $5 and $30, respectively, and the Certified Emission Reduction (CER) price worldwide based on the Clean Development Mechanism (CDM) is $0.5.

Keywords

Techno-economic

Environmental

petrochemicals