title: Viability of Carbon Capture and Sequestration Retrofits for Existing Coal-Fired Power Plants under an Emission Trading Scheme.
abstract: Using data on the coal-fired electric generating units (EGUs) in Texas we assess the economic feasibility of retrofitting existing units with carbon capture and sequestration (CCS) in order to comply with the Clean Power Plan's rate-based emission standards under an emission trading scheme. CCS with 90% capture is shown to be more economically attractive for a range of existing units than purchasing emission rate credits (ERCs) from a trading market at an average credit price above $28 per MWh under the final state standard and $35 per MWh under the final national standard. The breakeven ERC trading prices would decrease significantly if the captured CO2were sold for use in enhanced oil recovery, making CCS retrofits viable at lower trading prices. The combination of ERC trading and CO2use can greatly reinforce economic incentives and market demands for CCS and hence accelerate large-scale deployment, even under scenarios with high retrofit costs. Comparing the levelized costs of electricity generation between CCS retrofits and new renewable plants under the ERC trading scheme, retrofitting coal-fired EGUs with CCS may be significantly cheaper than new solar plants under some market conditions.
authors: Department of Engineering and Public Policy, Carnegie Mellon University , Pittsburgh, Pennsylvania 15213, United States.
authors: Shuchi
authors: S
authors: Talati
authors: Department of Engineering and Public Policy, Carnegie Mellon University , Pittsburgh, Pennsylvania 15213, United States.
authors: Haibo
authors: H
authors: Zhai
authors: Department of Engineering and Public Policy, Carnegie Mellon University , Pittsburgh, Pennsylvania 15213, United States.
authors: M Granger
authors: MG
authors: Morgan
mesh_terms: D000397:Air Pollution; D002244:Carbon; D002245:Carbon Dioxide; D057965:Carbon Sequestration; D003031:Coal; D011210:Power Plants / Q000191:economics
chemical_list: D003031:Coal; D002245:Carbon Dioxide; D002244:Carbon