Optimal CO2-based syngas supply chain configurations in Europe: Insights into location and scaling

• The syngas demand determines the location and size of a CO 2 electrolysis plant. • CO 2 -based syngas plants are best placed co-located or decentralized by product location. • An average electrolysis plant capacity of 340 ktonne syngas/year is found under different (hypothetical) syngas market sizes in Europe. • The lowest levelized cost of syngas is obtained when the electrolyzer is paired with bioethanol CO 2 , at 673 EUR 2018 /tonne syngas. Syngas production via high-temperature co-electrolysis of CO 2 (CO 2 E) shows great potential to reduce the reliance on fossil fuels within the chemical industry. This paper presents an optimization model (MILP) to investigate syngas production from CO 2 in the European chemical sector. The model assesses the economic performance of CO 2 E in prospective supply chains and explores alternative supply chain configurations under different syngas market sizes. The results reveal that the optimal placement of the CO 2 electrolysis plant in the supply chain is co-located or decentralized at the product location. This configuration reduces the need for syngas transportation by delivering CO 2 to the demand site, which is typically more cost-effective. At a syngas market fulfillment of 2%, the lowest levelized cost of syngas is achieved at 673 EUR 2018 /tonne, with electrolysis plants averaging a production capacity of 100 ktonne syngas/year. This levelized cost is between 1.5 and 4 times higher than the fossil-based reference.