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Techno-Economic Analysis Driving The Energy Transition: Episode 19


What is the best way to deliver more energy while also reducing emissions? We can develop techno-economic models to estimate costs for the delivery of energy services and their impact on the environment. Techno-economics is the art of predicting the present or future cost of delivered products and services from emerging technologies.

Transition to new technologies will not happen unless we can reduce costs for introducing them to levels that the public can afford, including those technologies which could enable reduced carbon footprints or improved convenience and performance. To do this, we develop models of different approaches and estimate costs for delivering energy services, both with today’s technology and for predicted improvements for the future.

These estimates can provide “levelized costs” of reducing CO₂ emissions across varying pathways including electrification, hydrogen, synthetic fuels from CO₂, or CO₂ capture and storage. They can also compare costs to consumers of technology options over the lifetime of use. Thus, we use sophisticated models to help guide and choose technology directions, to avoid the inefficiency of trial-and-error.

Figure ET-24 compares the total cost of ownership for different small sport utility vehicles as a function of engine or drive-train type [1], for studies done in 2021 predicting costs for model year 2025. Vehicle costs for the battery electric vehicle are higher, but this results in fuel savings due to the lower cost per mile of electric power (with at-home charging) versus liquid fuels such as gasoline or diesel. Electric vehicles also have a simpler drive train, which can result in lower maintenance costs. Consumers can then make their own decisions on which type of vehicle to purchase, on the basis of cost and performance.

 

Total Cost of Ownership of Small Sport Utility Vehicles (SUV)

Figure ET-24: Total Cost of Ownership of Small Sport Utility Vehicles (SUV) [1]

ICE-SI = internal combustion engine, spark ignition (gasoline)
ICE-CI = internal combustion engine, compression ignition (diesel)
HEV = hybrid electric gasoline vehicle
PHEV = plug-in hybrid electric vehicle
FCEV = hydrogen fuel cell electric vehicle
BEV = battery electric vehicle with 300-mile range
 
Reference

1. Argonne National Lab Energy Systems Division: Comprehensive Total Cost of Ownership Quantification for Vehicles with Different Size Classes and Powertrains, Report 21/4.
https://publications.anl.gov/anlpubs/2021/05/167399.pdf