CCS from the gas-fired power station at Kårstø A commercial analysis
AbstractSummary The article presents a commercial investment analysis of the carbon capture project at the KÃ¥rstÃ¸ gas processing plant in south-western Norway. We update an earlier analysis and critically review the methods used--including those applied for cost estimating. Our conclusion is that carbon capture and storage (CCS) at KÃ¥rstÃ¸ would be a very unprofitable climate measure with poor cost efficiency. It would require more than USD 1.7 billion1 in subsidies, or in excess of USD 133 million per year. That corresponds to a subsidy of roughly USD 0.1 per kWh on the power station's electricity output. The cost per tonne of carbon emissions abated is about USD 333, which is about 20 times the international carbon emission allowance price and many times higher than alternative domestic climate measures.
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Bibliographic InfoPaper provided by University of Stavanger in its series UiS Working Papers in Economics and Finance with number 2010/1.
Length: 26 pages
Date of creation: 18 Mar 2010
Date of revision:
Other versions of this item:
- Osmundsen, Petter & Emhjellen, Magne, 2010. "CCS from the gas-fired power station at Kårstø? A commercial analysis," Energy Policy, Elsevier, vol. 38(12), pages 7818-7826, December.
- A10 - General Economics and Teaching - - General Economics - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-02 (All new papers)
- NEP-ENE-2010-05-02 (Energy Economics)
- NEP-ENV-2010-05-02 (Environmental Economics)
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.:
- Osmundsen, Petter, 2009. "Time consistency in Petroleum Taxation - The case of Norway," UiS Working Papers in Economics and Finance 2009/18, University of Stavanger.
- Emhjellen, Kjetil & Emhjellen, Magne & Osmundsen, Petter, 2002. "Investment cost estimates and investment decisions," Energy Policy, Elsevier, vol. 30(2), pages 91-96, January.
- Osmundsen, Petter & Emhjellen, Magne, 2010. "Decision criteria for climate projects," UiS Working Papers in Economics and Finance 2010/2, University of Stavanger.
- Emhjellen, Magne & Osmundsen, Petter, 2013.
"CCS – Failing to pass decision gates,"
UiS Working Papers in Economics and Finance
2013/7, University of Stavanger.
- Emhjellen, Magne & Osmundsen, Petter, 2012. "Rate of return requirement for climate versus petroleum projects," UiS Working Papers in Economics and Finance 2012/7, University of Stavanger.
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