CCS from the gas-fired power station at Kårstø? A commercial analysis
Summary The article presents a commercial investment analysis of the carbon capture project at the Kårstø 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 Kårstø 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.
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.:
- 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.
- Osmundsen, Petter, 2009. "Time consistency in Petroleum Taxation - The case of Norway," UiS Working Papers in Economics and Finance 2009/18, University of Stavanger.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:12:p:7818-7826. 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: (Zhang, Lei)
If references are entirely missing, you can add them using this form.