Assessment of Clean-Coal Strategies: The Questionable Merits of Carbon Capture-Readiness
FCN Working Paper No. 18/2012
37 Pages Posted: 21 Mar 2013
Date Written: December 1, 2012
In this paper we investigate the value of capture-readiness by modeling the cost effectiveness of various alternative technological options and focusing on different clean-coal technology pathways. The modeling framework developed is based on stochastic net present value calculations. It allows for consideration of path-dependent and technology-specific 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.
Keywords: CCS, Capture-ready, Coal combustion, Retrofit
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