Optimisation of Carbon Capture Utilisation and Storage Supply Chains Under Carbon Trading and Taxation

In recent years, several strategies have been developed to reduce the carbon dioxide (CO2) released into the atmosphere. Carbon Capture, Storage and Utilisation (CCUS) is one of the proposed solutions. However, CCUS systems are expensive to install and operate. Furthermore, most studies in the literature have focused on CO2 utilisation and storage separately, without accounting for the effects of other CO2 emission management strategies. To address this gap, a Mixed Integer Linear Programming (MILP) framework for a supply chain network is developed in this work, incorporating CO2 storage, utilisation, permit trading, and carbon emission taxation. Multi-criteria decision analysis (MCDA) techniques are implemented to select CO2-based products for CO2 utilisation. The MILP framework is set to achieve the maximum environmental and economic performance using a Multi-Objective Optimisation (MOO) approach. This involves using the e-constraint method as a solution procedure to minimise the total cost of the supply chain network while maximising CO2 reduction. A case study of supply chains in Germany is conducted to demonstrate the applicability of the model. The game theoretical Nash approach is successfully applied to determine the fair trade-off between the two objectives.