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.
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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
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: (Shamier, Wendy)
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.