CCS can be cost-competitive after 2020 ?report
By ECOTRADE on 7/20/2011 02:31:48
The industry-led Zero Emissions Platform (ZEP) has said it is confident carbon capture and storage (CCS) technology will prove successful and be cost-competitive with other low-carbon technologies once its commercialisation phase begins.
A ZEP report published on Friday estimates the electricity generation cost of a CCS power plant using hard coal at about 70 per megawatt hours, excluding carbon costs. This is 20/MWh more than the same installation without CCS.
The cost of gas-fired plants equipped with CCS would be a lot higher than for those using coal. The cost difference with a plant without CCS is also about 20/MWh: 70/MWh, rising to 90/MWh with CCS, excluding carbon costs.
CCS plants will continue to need significant financial support after 2020. Those using hard coal would become economically viable at a carbon price of 37 per tonne of CO2, compared with 34/tonne and 90/tonne for lignite and gas respectively. This makes CCS coal plants potentially cost-competitive in the mid-2020s.
In the EU, demonstration plants to be built between 2015 and 2020 will get funding from programmes such as the NER300. The emissions trading scheme (ETS) will not be a sufficient driver for investment until the carbon price is high enough to allow full-scale commercialisation. Other funding instruments will be needed.
Source : Ends Europe