Advanced Search
MyIDEAS: Login to save this paper or follow this series

Evaluation of Two Alternative Carbon Capture and Storage Technologies: A Stochastic Model

Contents:

Author Info

  • Luis M. Abadie
  • Ibon Galarraga
  • Dirk Rübbelke

Abstract

In this paper we evaluate two alternative CCS technologies of a coal-fired power plant from an investor’s point of view. The first technology uses CO2 for enhanced oil recovery (EOR) paired with storage in deep saline formations (DSP) and the second one just stores CO2 in DSF. For projects of this type there are many sources of risk, and three sources of uncertainty stand out: the price of electricity, the price of oil and the price of carbon allowances. In this paper we develop a general stochastic model that can be adapted to other projects such as enhanced gas recovery (EGR) or industrial plants that use CO2 for either EOR or EGR with CCS. The model is calibrated with UK data and applied to help understand the conditions that generate the incentives needed for early investments in these technologies. Additionally, we analyse the risks of these investments.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.bc3research.org/index.php?option=com_wpapers&task=downpubli&iddoc=65&repec=1&Itemid=279
Download Restriction: no

Bibliographic Info

Paper provided by BC3 in its series Working Papers with number 2013-07.

as in new window
Length:
Date of creation: Mar 2013
Date of revision:
Publication status: Published
Handle: RePEc:bcc:wpaper:2013-07

Contact details of provider:
Web page: http://www.bc3research.org/

Related research

Keywords: carbon capture and storage; enhanced oil recovery; power plants; stochastic model; futures markets; real options.;

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Shackley, Simon & Waterman, Holly & Godfroij, Per & Reiner, David & Anderson, Jason & Draxlbauer, Kathy & Flach, Todd, 2007. "Stakeholder perceptions of CO2 capture and storage in Europe: Results from a survey," Energy Policy, Elsevier, vol. 35(10), pages 5091-5108, October.
  2. Abadie, Luis M. & Chamorro, José M., 2008. "European CO2 prices and carbon capture investments," Energy Economics, Elsevier, vol. 30(6), pages 2992-3015, November.
  3. Gunnar Luderer & Valentina Bosetti & Michael Jakob & Marian Leimbach & Jan Steckel & Henri Waisman & Ottmar Edenhofer, 2012. "The economics of decarbonizing the energy system—results and insights from the RECIPE model intercomparison," Climatic Change, Springer, vol. 114(1), pages 9-37, September.
  4. Lohwasser, Richard & Madlener, Reinhard, 2012. "Economics of CCS for coal plants: Impact of investment costs and efficiency on market diffusion in Europe," Energy Economics, Elsevier, vol. 34(3), pages 850-863.
  5. Luis M. Abadie & José; M. Chamorro & Mikel González-Eguino, 2011. "Optimal Abandonment of EU Coal-fired Stations," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 175-208.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:bcc:wpaper:2013-07. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sergio Faria).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.