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

FCN Working Paper No. 18/2012

37 Pages Posted: 21 Mar 2013

See all articles by Wilko Rohlfs

Wilko Rohlfs

RWTH Aachen University - Faculty of Mechanical Engineering

Reinhard Madlener

RWTH Aachen University

Date Written: December 1, 2012

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 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

Suggested Citation

Rohlfs, Wilko and Madlener, Reinhard, Assessment of Clean-Coal Strategies: The Questionable Merits of Carbon Capture-Readiness (December 1, 2012). FCN Working Paper No. 18/2012. Available at SSRN: https://ssrn.com/abstract=2236259 or http://dx.doi.org/10.2139/ssrn.2236259

Wilko Rohlfs (Contact Author)

RWTH Aachen University - Faculty of Mechanical Engineering ( email )

Eilfschornsteinstr. 18
Aachen, 52056
Germany

Reinhard Madlener

RWTH Aachen University ( email )

School of Business and Economics / E.ON ERC
Mathieustra├če 10
Aachen, 52074
Germany
+49 241 80 49 820 (Phone)
+49 241 80 49 829 (Fax)

HOME PAGE: http://www.eonerc.rwth-aachen.de/fcn

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