IDEAS home Printed from https://ideas.repec.org/p/ris/fcnwpa/2012_018.html
   My bibliography  Save this paper

Assessment of Clean-Coal Strategies: The Questionable Merits of Carbon Capture-Readiness

Author

Listed:
  • Rohlfs, Wilko

    () (Institute of Heat and Mass Transfer)

  • Madlener, Reinhard

    () (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))

Abstract

In this paper we investigate the value of capture-readiness by modeling the cost effectiveness of various alternative technological options and focusing on different cleancoal technology pathways. The modeling framework developed is based on stochastic net present value calculations. It allows for consideration of path-dependent and technologyspecific risk combinations inherent in the input and output commodities that are relevant for operating the plant. We find that capture-readiness competes with alternative options of power plant replacements and that capture-readiness is not necessarily preferable from an economic perspective.

Suggested Citation

  • Rohlfs, Wilko & Madlener, Reinhard, 2012. "Assessment of Clean-Coal Strategies: The Questionable Merits of Carbon Capture-Readiness," FCN Working Papers 18/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
  • Handle: RePEc:ris:fcnwpa:2012_018
    as

    Download full text from publisher

    File URL: http://www.fcn.eonerc.rwth-aachen.de/global/show_document.asp?id=aaaaaaaaaagvvxt
    File Function: Full text
    Download Restriction: no

    Other versions of this item:

    References listed on IDEAS

    as
    1. Hammond, G.P. & Akwe, S.S. Ondo & Williams, S., 2011. "Techno-economic appraisal of fossil-fuelled power generation systems with carbon dioxide capture and storage," Energy, Elsevier, vol. 36(2), pages 975-984.
    2. Mondal, Monoj Kumar & Balsora, Hemant Kumar & Varshney, Prachi, 2012. "Progress and trends in CO2 capture/separation technologies: A review," Energy, Elsevier, vol. 46(1), pages 431-441.
    3. Rohlfs, Wilko & Madlener, Reinhard, 2010. "Valuation of CCS-Ready Coal-Fired Power Plants: A Multi-Dimensional Real Options Approach," FCN Working Papers 7/2010, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    4. Harkin, Trent & Hoadley, Andrew & Hooper, Barry, 2012. "Using multi-objective optimisation in the design of CO2 capture systems for retrofit to coal power stations," Energy, Elsevier, vol. 41(1), pages 228-235.
    5. Skorek-Osikowska, Anna & Janusz-Szymańska, Katarzyna & Kotowicz, Janusz, 2012. "Modeling and analysis of selected carbon dioxide capture methods in IGCC systems," Energy, Elsevier, vol. 45(1), pages 92-100.
    6. Rohlfs, Wilko & Madlener, Reinhard, 2010. "Cost Effectiveness of Carbon Capture-Ready Coal Power Plants with Delayed Retrofit," FCN Working Papers 8/2010, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN), revised Dec 2010.
    7. Cormos, Calin-Cristian, 2012. "Integrated assessment of IGCC power generation technology with carbon capture and storage (CCS)," Energy, Elsevier, vol. 42(1), pages 434-445.
    8. Riahi, Keywan & Rubin, Edward S. & Schrattenholzer, Leo, 2004. "Prospects for carbon capture and sequestration technologies assuming their technological learning," Energy, Elsevier, vol. 29(9), pages 1309-1318.
    9. Rohlfs, Wilko & Madlener, Reinhard, 2011. "Multi-Commodity Real Options Analysis of Power Plant Investments: Discounting Endogenous Risk Structures," FCN Working Papers 22/2011, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    10. William F. Sharpe, 1964. "Capital Asset Prices: A Theory Of Market Equilibrium Under Conditions Of Risk," Journal of Finance, American Finance Association, vol. 19(3), pages 425-442, September.
    11. Olajire, Abass A., 2010. "CO2 capture and separation technologies for end-of-pipe applications – A review," Energy, Elsevier, vol. 35(6), pages 2610-2628.
    12. Nicholson, Martin & Biegler, Tom & Brook, Barry W., 2011. "How carbon pricing changes the relative competitiveness of low-carbon baseload generating technologies," Energy, Elsevier, vol. 36(1), pages 305-313.
    13. Lund, Henrik & Mathiesen, Brian Vad, 2012. "The role of Carbon Capture and Storage in a future sustainable energy system," Energy, Elsevier, vol. 44(1), pages 469-476.
    14. Rubin, Edward S. & Chen, Chao & Rao, Anand B., 2007. "Cost and performance of fossil fuel power plants with CO2 capture and storage," Energy Policy, Elsevier, vol. 35(9), pages 4444-4454, September.
    15. Gerbelová, Hana & Versteeg, Peter & Ioakimidis, Christos S. & Ferrão, Paulo, 2013. "The effect of retrofitting Portuguese fossil fuel power plants with CCS," Applied Energy, Elsevier, vol. 101(C), pages 280-287.
    16. Davison, John, 2007. "Performance and costs of power plants with capture and storage of CO2," Energy, Elsevier, vol. 32(7), pages 1163-1176.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:eee:eneeco:v:70:y:2018:i:c:p:453-464 is not listed on IDEAS
    2. Knaut, Andreas & Madlener, Reinhard & Rosen, Christiane & Vogt, Christian, 2012. "Effects of Temperature Uncertainty on the Valuation of Geothermal Projects: A Real Options Approach," FCN Working Papers 11/2012, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    3. Rohlfs, Wilko & Madlener, Reinhard, 2013. "Challenges in the Evaluation of Ultra-Long-Lived Projects: Risk Premia for Projects with Eternal Returns or Costs," FCN Working Papers 13/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    4. Harmsen - van Hout, Marjolein & Ghosh, Gaurav & Madlener, Reinhard, 2013. "The Impact of Green Framing on Consumers’ Valuations of Energy-Saving Measures," FCN Working Papers 7/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    5. Rohlfs, Wilko & Madlener, Reinhard, 2013. "Optimal Power Generation Investment: Impact of Technology Choices and Existing Portfolios for Deploying Low-Carbon Coal Technologies," FCN Working Papers 12/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    6. Harmsen - van Hout, Marjolein & Ghosh, Gaurav & Madlener, Reinhard, 2013. "An Evaluation of Attribute Anchoring Bias in a Choice Experimental Setting," FCN Working Papers 6/2013, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).

    More about this item

    Keywords

    CCS; Capture-ready; Coal combustion; Retrofit;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:fcnwpa:2012_018. 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: (Hendrik Schmitz). General contact details of provider: http://edirc.repec.org/data/fceonde.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.