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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

[ http://www.endseurope.com/index.cfm?go=26737&referrer=channel%2Dclimate ]

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