(98a) An Integrative Framework for Optimal Decarbonization Strategies in the Chemicals Sector

In response to climate change, industries are pivoting towards low-carbon energy systems, navigating through a maze of economic, technical, and environmental considerations to mitigate carbon emissions effectively. Our approach introduces a dynamic decision-making framework employing Mixed Integer Linear Programming (MILP) to evaluate and optimize decarbonization technologies. This tool not only assesses the viability of such technologies but also explores diversified bidding strategies and participation in ancillary markets to enhance investment value and mitigate financial risks. Central to this framework is its ability to adapt to the fluctuating energy markets, evolving global emissions trading schemes and carbon border mechanisms, ensuring industries can make informed, long-term investment decisions. By applying this model to an industrial case study, we demonstrate how it can predict market dynamics' influence on investment outcomes, thereby guiding industries to minimize risks and maximize returns. This ensures competitiveness and profitability in a transitioning low-carbon economy, providing a comprehensive roadmap for industrial decarbonization.