气候变化领域集成服务门户(CCPortal): Cost-benefit comparison of carbon capture; utilization; and storage retrofitted to different thermal power plants in China based on real options approach

CCPortal

DOI	10.1016/j.accre.2020.11.006
	Cost-benefit comparison of carbon capture; utilization; and storage retrofitted to different thermal power plants in China based on real options approach
	Fan J.-L.; Shen S.; Xu M.; Yang Y.; Yang L.; Zhang X.
发表日期	2020
ISSN	1674-9278
起始页码	415
结束页码	428
卷号	11 期号:4
英文摘要	A trinomial tree model based on a real options approach was developed to evaluate the investment decisions on carbon capture, utilization, and storage (CCUS) retrofitted to the three main types of thermal power plants in China under the same power generation and CO2 emissions levels. The plant types included pulverized coal (PC), integrated gasification combined cycle (IGCC), and natural gas combined cycle (NGCC) plants. We take into account a subsidy policy consistent with the 45Q tax credit of the U.S., as well as uncertainty factors, such as carbon price, technological progress, CO2 geological storage paths, oil price, and electricity price. The results showed that the investment benefit of ordinary NGCC power plants is 93.04 million USD. This provides greater economic advantages than the other two plant types as their investment benefit is negative if the captured CO2 was used for enhanced water recovery (EWR), even if 45Q subsidies are provided. Compared with NGCC + CCUS power plants, PC + CCUS and IGCC + CCUS power plants have more advantages in terms of economic benefits and emission reduction. The 45Q subsidy policy reduced the critical carbon price, which determines the decision to invest or not, by 30.14 USD t−1 for the PC and IGCC power plants and by 15.24 USD t−1 for the NGCC power plants. Nevertheless, only when the subsidy reaches at least 71.84 USD t−1 and the period limit is canceled can all three types of power plants be motivated to invest in CCUS and used the capture CO2 for EWR. Overall, the government should focus on the application of CCUS in coal-fired power plants (in addition to developing gas power generation), especially when CO2 is used for enhanced oil recovery (EOR). The government could introduce fiscal policies, such as 45Q or stronger, to stimulate CCUS technology development in China. © 2020 National Climate Center (China Meteorological Administration)
语种	英语
来源期刊	Advances in Climate Change Research
文献类型	期刊论文
条目标识符	http://gcip.llas.ac.cn/handle/2XKMVOVA/168710
作者单位	Center for Sustainable Development and Energy Policy Research (SDEP), School of Energy & Mining Engineering, China University of Mining & Technology, Beijing (CUMTB), Beijing, 100083, China; State Key Laboratory of Coal Resources and Safe Mining, China University of Mining and Technology, Beijing, 100083, China; School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China; Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing, 100081, China; School of Economics and Management, China University of Geosciences, Beijing, 100083, China; The Administrative Centre for China's Agenda 21 (ACCA21), Ministry of Science and Technology (MOST), Beijing, 100038, China
推荐引用方式 GB/T 7714	Fan J.-L.,Shen S.,Xu M.,et al. Cost-benefit comparison of carbon capture; utilization; and storage retrofitted to different thermal power plants in China based on real options approach[J],2020,11(4).
APA	Fan J.-L.,Shen S.,Xu M.,Yang Y.,Yang L.,&Zhang X..(2020).Cost-benefit comparison of carbon capture; utilization; and storage retrofitted to different thermal power plants in China based on real options approach.Advances in Climate Change Research,11(4).
MLA	Fan J.-L.,et al."Cost-benefit comparison of carbon capture; utilization; and storage retrofitted to different thermal power plants in China based on real options approach".Advances in Climate Change Research 11.4(2020).