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    Cost and Performance ofCarbon Dioxide Capturefrom Power Generation

    INTERNATIONALENERGYAGENCY

    MATTHIASFINKENRATH

    W OR KIN G PA PE R

    2011

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    The views expressed in this working paper are those of the author(s) and do not necessarilyreflect the views or policy of the International Energy Agency (IEA) Secretariat or of its

    individual member countries. This paper is a work in progress, designed to elicit commentsand further debate; thus, comments are welcome, directed to the author at:

    [email protected]

    Cost and Performance ofCarbon Dioxide Capturefrom Power Generation

    INTERNATIONALENERGYAGENCY

    MATTHIASFINKENRATH

    2011

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    INTERNATIONAL ENERGY AGENCY

    The International Energy Agency (IEA), an autonomous agency, was established inNovember 1974. Its mandate is two-fold: to promote energy security amongst its membercountries through collective response to physical disruptions in oil supply and to advise member

    countries on sound energy policy.The IEA carries out a comprehensive programme of energy co-operation among 28 advancedeconomies, each of which is obliged to hold oil stocks equivalent to 90 days of its net imports.The Agency aims to:

    n Secure member countries access to reliable and ample supplies of all forms of energy; in particular,through maintaining effective emergency response capabilities in case of oil supply disruptions.

    n Promote sustainable energy policies that spur economic growth and environmental protectionin a global context particularly in terms of reducing greenhouse-gas emissions that contributeto climate change.

    n Improve transparency of international markets through collection and analysis ofenergy data.

    nSupport global collaboration on energy technology to secure future energy suppliesand mitigate their environmental impact, including through improved energy

    efficiency and development and deployment of low-carbon technologies.

    n Find solutions to global energy challenges through engagementand dialogue with non-member countries, industry,

    international organisations and other stakeholders. IEA member countries:

    Australia

    Austria

    Belgium

    Canada

    Czech Republic

    Denmark

    Finland

    France

    Germany

    Greece

    Hungary

    Ireland

    Italy

    Japan

    Korea (Republic of)

    Luxembourg

    NetherlandsNew Zealand

    Norway

    Poland

    Portugal

    Slovak Republic

    Spain

    Sweden

    Switzerland

    Turkey

    United Kingdom

    United States

    The European Commission

    also participates in

    the work of the IEA.

    Please note that this publication

    is subject to specific restrictions

    that limit its use and distribution.

    The terms and conditions are available

    online at www.iea.org/about/copyright.asp

    OECD/IEA, 2010

    International Energy Agency9 rue de la Fdration

    75739 Paris Cedex 15, France

    www.iea.org

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    OECD/IEA2011 CostandPerformanceofCarbonDioxideCapturefromPowerGeneration

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    Tableofcontents

    Acknowledgements........................................................................................................................5

    Executivesummary

    ........................................................................................................................

    7

    Introduction....................................................................................................................................9

    Scopeofanalysis...........................................................................................................................11

    Analysedtechnoeconomicdataandkeytargetmetrics...........................................................11

    EvaluatedCO2captureprocesses...............................................................................................12

    Dataselectedforanalysis...........................................................................................................12

    Approachandmethodology.........................................................................................................15

    Costofgeneratingelectricitycalculation...................................................................................15

    Conversionand

    calibration

    of

    cost

    data

    .....................................................................................

    16

    Conversionandcalibrationofperformancedata.......................................................................18

    Boundaryconditionsandassumptions......................................................................................19

    Costandperformanceresultsanddiscussion.............................................................................22

    Maincasestudies..........................................................................................................................22

    PostcombustionCO2capturefromcoalfiredpowergenerationbyamines.......................23

    PrecombustionCO2capturefromintegratedgasificationcombinedcycles.......................27

    OxycombustionCO2capturefromcoalfiredpowergeneration.........................................30

    PostcombustionCO2capturefromnaturalgascombinedcycles........................................34

    Summaryof

    results

    .....................................................................................................................

    37

    Futurecostandperformancepotential.....................................................................................38

    Uncertaintyandsensitivityofresults.........................................................................................39

    Conclusionsandrecommendations.............................................................................................41

    References....................................................................................................................................43

    Annex:Studycaseswithlimitedavailabledata............................................................................45

    PostcombustionCO2capturefromcoalfiredpowergenerationbyammonia...................45

    Acronyms,abbreviationsandunitsofmeasure..........................................................................47

    Listoffigures

    Figure1.Illustrationofthemethodologyfordataanalysis..........................................................15

    Figure2.Postcombustioncapturefromcoalfiredpowergeneration

    byamines:CO2captureimpact.....................................................................................................25

    Figure3.Precombustioncapturefromintegratedgasificationcombined

    cycles:CO2captureimpact............................................................................................................28

    Figure4.Oxycombustioncapturefromcoalfiredpowergeneration:CO2captureimpact.......32

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    CostandPerformanceofCarbonDioxideCapturefromPowerGeneration OECD/IEA2011

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    Figure5.Postcombustioncapturefromnaturalgasfiredpower

    generation:CO2captureimpact....................................................................................................35

    Figure6.Impactofa50%variationinkeyassumptionsonLCOE..............................................40

    Figure7.Postcombustioncapturefromcoalfiredpowergeneration

    byammonia:

    CO2

    capture

    impact

    .................................................................................................

    46

    Listoftables

    Table1.Overviewofgeneralboundaryconditionsofreviewedstudies.....................................18

    Table2.Technoeconomicassumptionstypicallyusedbydifferentorganisations,

    andinthisanalysis........................................................................................................................20

    Table3.Postcombustioncapturefromcoalfiredpowergenerationbyamines........................24

    Table4.Postcombustioncapture:influenceofcoalsandpowerplanttypes............................26

    Table5.Precombustioncapturefromintegratedgasificationcombinedcycles........................27

    Table6.

    Pre

    combustion

    capture:

    influence

    of

    coals

    ...................................................................

    30

    Table7.Oxycombustioncapturefromcoalfiredpowergeneration..........................................31

    Table8.Oxycombustioncapture:influenceofcoalsandpowerplanttypes.............................33

    Table9.Postcombustioncapturefromnaturalgasfiredpowergeneration..............................34

    Table10.AveragecostandperformancedatabyCO2captureroute..........................................38

    Table11.Postcombustioncapturefromcoalfiredpowergenerationbyammonia..................45

    Listofboxes

    Box1.

    Fuel

    price

    assumptions

    .......................................................................................................

    20

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    OECD/IEA2011 CostandPerformanceofCarbonDioxideCapturefromPowerGeneration

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    Acknowledgements

    This paper was prepared by Matthias Finkenrath, Energy Analyst in the Carbon Capture and

    Storage (CCS) Unit under the Directorate of Sustainable Energy Policy and Technology at the

    InternationalEnergy

    Agency

    (IEA).

    Theauthorwouldliketothankseveralindividualsforreviewingthemanuscriptofthisworking

    paper and for providing invaluable feedback: John Davison and Mike Haines from the IEA

    Implementing Agreement for a Cooperative Programme on Technologies Relating to

    Greenhouse Gases Derived from Fossil Fuel Use (Greenhouse Gas Implementing Agreement);

    John Kessels from the Implementing Agreement for the IEA Clean Coal Centre; Christopher

    Short from the Global CCS Institute; Clas Ekstrm from Vattenfall; John Chamberlain from

    gasNatural fenosa; Trygve Utheim Riis and Aage Stangeland from the Research Council of

    Norway; Tore Hatlen from Gassnova; Howard Herzog from the Massachusetts Institute of

    Technology;andJeffreyPhillipsandGeorgeBoorasfromtheElectricPowerResearchInstitute

    (EPRI).SpecialthankstoEPRIsCoalFleetforTomorrowR&Dprogrammeforsharingdatafrom

    theirpublication.

    The author would also like to thank his colleagues at the IEA, in particular Juho Lipponen for

    overarching guidance and support, and also Uwe Remme, Dennis Volk, Brendan Beck, Justine

    GarrettandJulianSmithforreviewingthedraftandprovidingveryhelpfulcomments.Additional

    thankstoMarilynSmithforhereditorialsupportandBertrandSadinandAnneMayneofthe

    IEACommunicationandInformationOfficeforcoverdesignandfinallayout.

    Formoreinformationonthisdocument,contact:

    MatthiasFinkenrath,IEASecretariat

    Tel.+33(0)140576779

    Email:

    [email protected]

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    OECD/IEA2011 CostandPerformanceofCarbonDioxideCapturefromPowerGeneration

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    Executivesummary

    Energy scenarios developed by the International Energy Agency (IEA) suggest that carbon

    captureandstorage (CCS) frompowerplantsmightcontributeby2050toaround10%ofthe

    energyrelated

    carbon

    dioxide

    (CO2)

    emission

    reduction

    required

    to

    stabilise

    global

    warming

    (IEA,2010).SinceCO2capture frompowergeneration isanemergingtechnologythathasnot

    beendemonstratedonacommercialscale,relatedcostandperformanceinformation isbased

    onfeasibilitystudiesandpilotprojectsandisstilluncertain.

    This paper analyses technoeconomic data for CO2 capture from power generation, including

    CO2 conditioning and compression, in order to support energy scenario modelling and policy

    making.Costandperformancetrendsareshownbasedonestimatespublishedoverthelastfive

    years in major engineering studies for about 50 CO2 capture installations at power plants.

    Capitalcostand levelisedcostofelectricity (LCOE)arereevaluatedandupdatedto2010cost

    levels to allow for a consistent comparison. Presented data account for CO2 capture but not

    transportation and storage of CO2. They are estimates for generic, early commercial plants

    basedon

    feasibility

    studies,

    which

    have

    an

    accuracy

    of

    on

    average

    30%.

    The

    data

    do

    not

    reflect

    projectspecificcostorcostforfirstlargescaledemonstrationplants,whicharelikelyhigher.

    For coalfired power generation, no single CO2 capture technology outperforms available

    alternative capture processes in terms of cost and performance. Average net efficiency

    penalties for post and oxycombustion capture are 10 percentage points relative to a

    pulverisedcoalplantwithoutcapture,andeightpercentagepointsforprecombustioncapture

    compared to an integrated gasification combined cycle. Overnight costsof power plants with

    CO2captureinregionsoftheOrganisationforEconomicCooperationandDevelopment(OECD)

    are about USD3800 per kW (/kW) across capture routes, which is 74% higher than the

    referencecostswithoutcapture.Costfiguresvarysubstantiallydependingonthetypeofpower

    plant

    type

    and

    fuel

    used.

    The

    relative

    increase

    in

    overnight

    costs

    compared

    to

    a

    reference

    plant

    withoutCO2capture isacomparablystablemetricacrossstudies. It isthusrecommended for

    estimating cost if limited data are available. Projected LCOE is on average USD105 per

    megawatthour(/MWh).AveragecostsofCO2avoidedareUSD55pertonneofCO2(/tCO2)ifa

    pulverisedcoalpowerplantwithoutCO2captureisusedasareference.

    For natural gasfired power generation, postcombustion CO2 capture is most often analysed

    andappears themostattractiveneartermoption.Averagecostandperformanceprojections

    include net efficiency penalties of eight percentage points for postcombustion CO2 capture

    fromnaturalgascombinedcycles.OvernightcostsareUSD1700/kWincludingCO2capture,or

    82%higherthanthereferenceplantwithoutcapture.LCOE isUSD102/MWhandcostsofCO2

    avoidedareUSD80/tCO2ifanaturalgascombinedcycleisusedasareference.

    CostestimatesstatedaboveareaveragefiguresforOECDregions.CostdataforinstallationsinChinaindicatesignificantlylowercostscomparedtotheabovementionedfigures.Allovernight

    costs include a contingency for CCS plants to account for unforeseen technical or regulatory

    difficulties.LCOEandcostsofCO2avoideddonotincludeaCO2emissionprice.

    Harmonisationofcostingmethodologiesisneededinordertosimplifytechnologycomparisons.

    Thoughasimilarapproachisusedforestimatingcostandperformanceacrossstudies,specific

    methodologies,terminologiesandunderlyingassumptionsareinconsistent.

    Broader assessments of CO2 capture from power generation in nonOECD countries are still

    underrepresented, though according to global energy scenarios deployment of CCS in these

    regionsmighthavetoexceedexpectedlevelsinOECDcountries.

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    OECD/IEA2011 CostandPerformanceofCarbonDioxideCapturefromPowerGeneration

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    Introduction

    The Intergovernmental Panel on Climate Change (IPCC) concludes a significant reduction of

    worldwidegreenhousegas(GHG)emissions isrequired inordertostabilisetheglobalaverage

    temperature

    increase

    at

    2.0C

    to

    2.4C

    above

    preindustrial

    levels.

    Equivalent

    CO2

    emissions

    needtobecutbyatleast50%by2050comparedtotheyear2000(IPCC,2007).

    TheIEAregularlyanalysespathwaysforreducingenergyrelatedCO2emissions.Comparedtoa

    businessasusualBaselineScenario,carboncaptureandstorage (CCS) frompowergeneration

    could contribute in 2050 to 10% of the required global reduction in energyrelated CO2

    emissions (IEA,2010).Apart fromCCS inpowergeneration,CCS from industrialandupstream

    applications is expected to provide a similar emission reduction. CCS is thus a potential key

    contributortoCO2emissionmitigation, inadditiontoother importantaimssuchas improving

    energyefficiencyandincreasingrenewablepowergeneration.

    CCShasbeenappliedcommerciallyintheoilandgasindustryforseveraldecades.Thisincludes

    technologies

    along

    the

    CCS

    value

    chain

    such

    as

    solvent

    based

    separation

    of

    CO2

    from

    gas

    streams,transportationofCO2bypipelineandstorageofCO2 inaquifers.CO2 isalsousedfor

    enhancedoilrecovery(EOR).

    CCS is however still an emerging technology in the power sector, where it has not yet been

    demonstrated at large scale. Applying CCS to fullsize power plants requires scaleup of

    commercially available CO2 capture processes. Consequently, current cost and performance

    information related to CCS from power generation is limited to estimates from engineering

    studiesandpilotprojects.Thisisdifferenttoestablishedpowertechnologiesforwhichcostand

    performancedataofcommercialunitsarewellknownandregularlysummarised(OECD,2010).

    AdedicatedreviewofpublisheddataisneededtotracklatestCCSdevelopments.Thequalityof

    technoeconomic data for CCS will likely improve once additional information from the first

    commercialscale demonstration plants, which are currently in planning, become available.

    Meanwhile, bestpossible estimates of cost and performance of power plants with CCS are

    requiredasinputforenergyscenariosandasabasisforcleanenergypolicymaking.Againstthis

    background, this paper summarises and analyses technoeconomic data on CO2 capture from

    powergenerationthatwerepublishedoverthelastfiveyears.

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    OECD/IEA2011 CostandPerformanceofCarbonDioxideCapturefromPowerGeneration

    Page|11

    Scopeofanalysis

    CCS applied to power generation is an emerging technology. Technoeconomic data for CO2

    capturefrompowergenerationthusremainuncertain;afactthatisfurtheramplifiedbycurrent

    unprecedentedeconomic

    uncertainties

    resulting

    from

    the

    recent

    global

    financial

    crisis.

    MostenergyscenariosthatanalyseclimatechangemitigationpathsexpectthatCO2capturewill

    contributesubstantiallytoglobalCO2emissionreductioninthecomingdecades.TheIEAEnergy

    TechnologyPerspectives2010(ETP2010)publicationestimatesthatby2050around10%ofthe

    emission reduction will stem from CO2 capture from power generation alone compared to a

    businessasusualBaselineScenario(IEA,2010).

    This analysis aims to illustrate cost and performance trends related to CO2 capture from

    powergenerationoverthelastfiveyears.Thischaptergivesanoverviewabouttypesofdata

    thatareanalysedanddescribeswhichspecificcapturecasesandpublicationsareconsidered

    inthisstudy.

    Analysedtechnoeconomicdataandkeytargetmetrics

    Thisworkingpaperevaluateskeydatathatarecommonlyrequiredasinputforenergyscenario

    modellingandgeneralenergypolicysupport,suchas:

    powerplanttype

    fueltype

    capacityfactor

    netpoweroutput

    netefficiency

    overallCO2capturerate

    netCO2emissions

    capitalcost

    operationandmaintenance(O&M)cost

    yearofcostdata

    locationof

    power

    plant

    Publishedtechnoeconomicinformationisreviewedandreevaluatedinordertocompareresults

    ofdifferentstudies.Updateddataareprovidedforthefollowingkeymetrics:

    overnightcosts

    levelisedcostofelectricity(LCOE)

    costofCO2avoided

    Costandperformancedataarerequiredforboththepowerplantwithoutcapture(alsoreferred

    toas

    reference

    plant)

    and

    for

    the

    power

    plant

    with

    capture.

    This analysis focuses on fundamental technoeconomic information typically used for cross

    technology comparisons under consistent boundary conditions. Cost data presented in this

    studyaregenericinnatureandnotmeanttorepresentcostsofspecificCO2captureprojects,

    whichare likelytobedifferent. Investmentdecisionsabout individualCCSplantswilldepend

    on numerous casespecific boundary conditions such as (among others): national or regional

    policyandregulatoryframeworks;emissionandpowermarkets;theexperienceandriskprofile

    of the investor; or available incentive and financing structures. In addition, local ambient

    conditions and available fuel qualities can have a strong impact on the capture technology

    choiceanditsviability.

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    CostandPerformanceofCarbonDioxideCapturefromPowerGeneration OECD/IEA2011

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    Cost and performance information for the transport and storage of captured CO2 will need to

    complement data for CO2 capture. Transportation and storage data are even more difficult to

    generalisecomparedtoCO2captureprocessdata,giventhattheyareverysitespecificoreven

    unique for every single project. Because of this complexity, available storage capacities and

    associatedcostsstillremainsubjecttosignificantresearch inmanyregionsoftheworld.Unlike

    CO2capturefrompowergeneration,anumberoflargescaleCO2transportandstorageprojectshoweverexiststhatareoperatingtodayandwhichcanprovidesome,albeitlimited,dataonthe

    associatedcosts.TechnoeconomicdatarelatedtothetransportandstorageofCO2,inparticular

    relatedtoCO2storagecapacities,arenotcoveredinthispaper,butimprovingrelatedknowledge

    is essential. Consequently, the IEA and other organisations are addressing this challenge in

    separate,dedicatedworkstreams.

    EvaluatedCO2captureprocesses

    This working paper analyses CO2 capture from power generation. CO2 capture from industrial

    applications

    is

    evaluated

    through

    the

    forthcoming

    United

    Nations

    Industrial

    DevelopmentOrganisation(UNIDO)roadmap,andisthusnotdiscussed(UNIDO,2010).

    The study focuses on CO2 capture from newbuild coal and natural gasfired power

    generationplantswithatleast80%overallcapturerate.Onlycommercialscalepowerplants

    over 300MW net power output are considered. Data forbiomassfired installations are still

    scarce in comparison to coal and natural gasfired power plants. They are thus not

    systematically evaluated in this working paper, but a case study with biomass cofiring is

    includedforcomparison.

    ThispaperfocusesonearlycommercialinstallationsofCO2capturefrompowergenerationand

    does not cover demonstration plants. Cost and performance information related to firstofa

    kind

    CO2

    capture

    demonstration

    plants

    is

    often

    not

    representative

    of

    commercial

    units

    that

    are

    installed later, forexamplesincetheyaresuboptimallyoroverdesigned.Significant largescale

    commercialdeploymentofCCStechnologyforpowergenerationapplicationsisnotexpectedto

    takeplacepriortotheyear2020.Therefore,costandperformancedataconsideredinthisstudy

    are primarily estimates for early commercial CO2 capture processes from power plants that

    wouldbeinservicearound2020.1

    Onlycapturetechnologiesthathavebeendemonstratedonasignificantpilotscale(orevenata

    commercialsize inother industries)areconsidered in thisanalysis.Novel technologies forCO2

    capturefrompowergenerationthatare inanearlyphaseofdevelopment,suchasmembrane

    based processes, are not covered. The general improvement potential for CO2 capture from

    powergenerationinthefuturebytechnologicallearningisdiscussedinChapter4.

    Dataselectedforanalysis

    Technoeconomic studies on CO2 capture from power generation are numerous. In this paper,

    CO2 capture cost and performance data of selected studies are reviewed, reevaluated and

    updatedtocurrentcostlevels.Onlystudiesbyorganisationsthatperformedbroadcomparisons

    acrossallcaptureroutesareconsidered.Publicationsbyauthorsthatarefocusingtheiranalyses

    onindividualoraverylimitednumberofcapturetechnologiesarenotincluded.Inordertolimit

    the reevaluationof older data toa reasonable timehorizon,onlystudies thatwerepublished

    1 Not all of the reviewed studies provide explicit timelines or a definition of the level of commercial deployment

    associatedto

    their

    performance

    and

    cost

    estimates,

    and

    some

    reports

    envision

    full

    scale

    commercial

    deployment

    alreadyearlier.

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    over the last five years (between 2006 and 2010) are covered. In rare cases, the underlying

    originaldatamightstemfromearlieryears.

    Reevaluating and comparing cost and performance data across studies presents a major

    challenge. There are differences in the types of data published, and in the cost estimation

    methodologiesused.

    In

    addition,

    there

    is

    often

    limited

    transparency

    with

    respect

    to

    underlying

    boundaryconditionsandassumptions.

    The studies selected for further analysis in this working paper exhibit a broad coverage of

    evaluated capture routes and used a consistent evaluation methodology for assessing their

    individualcapturecases.Inaddition,theyaretypicallybasedonanengineeringlevelanalysisand

    providedetailedcostandperformanceestimatesand informationonkeyboundaryconditions,

    which allow for further processing and analysis.2 Technoeconomic data from studies by the

    followingorganisationsareincludedinthisworkingpaper:

    CarnegieMellonUniversityCMU(Rubin,2007;Chen,2009;Versteeg,2010)

    ChinaUKNearZeroEmissionsCoalInitiativeNZEC(NZEC,2009)

    CO2CaptureProjectCCP(Melien,2009)

    ElectricPowerResearchInstituteEPRI(EPRI,2009)

    GlobalCCSInstituteGCCSI(GCCSI,2009)

    GreenhouseGasImplementingAgreementGHGIA(Davison,2007;GHGIA,2009)

    NationalEnergyTechnologyLaboratoryNETL(NETL,2008;NETL,2010af)

    MassachusettsInstituteofTechnologyMIT(MIT,2007;Hamilton,2009)

    Intheeventseveralevaluationsweremadebyorganisationsonthesamecaptureprocessover

    thelastfiveyears,onlythemostrecentlypublisheddataareincludedinthisanalysis.

    Itis

    likely

    there

    are

    additional

    studies

    that

    should

    be

    considered

    in

    future

    analysis.

    The

    author

    wouldappreciatesuggestionsofadditionalstudiesthatmatchthegeneralselectioncriteriaand

    should be considered in potential updates of this review. Since similarly broad and detailed

    studies were not found for other regions, the analysed studies are limited to CO2 capture

    installationsintheUnitedStates,theEuropeanUnionandChina.

    Theselectedstudiesarebasedondatafrombottomupengineeringstudies,whichperformcost

    and performance estimates based on detailed process flow sheet data that account for main

    equipmentorprocessunitislands.Theyprovide,ataminimum,themaincostandperformance

    data for the base power plant, the CO2 capture process and a CO2 compression unit for

    compressing and pumping the separated CO2 to a supercritical pressure for transportation.

    Besides

    the

    core

    CO2

    capture

    and

    compression

    units,

    other

    additional

    major

    equipment

    and

    utility systems are required. This includes equipment for oxygen generation, fluid handling,

    exhaust pretreatment for drying or purification, and compression and pumping, which is

    accountedforinalltheselectedstudies.

    CO2 transportandstorage arenotevaluated in most of the publications, and any data on CO2

    transportandstorageisnotconsideredinthispaper.Mostcostestimatesusedinthisstudyare

    basedontheassumptionthatprocessesandprocessequipmentareproventechnologiesor,at

    least, have been demonstrated on a commercial scale. Thus costs required for research,

    developmentandinitialdeploymentindemonstrationplantsarenotincluded.

    2

    Severalstudies

    are

    not

    considered

    as

    the

    level

    of

    detail

    regarding

    costs

    or

    boundary

    conditions

    is

    insufficient

    for

    furtheranalysisunderthisstudy(e.g.ENCAP,2009;McKinsey,2007).

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    CostandPerformanceofCarbonDioxideCapturefromPowerGeneration OECD/IEA2011

    Page|14

    Thoughitisoftennotexplicitlystated,thegroupofanalysedstudiesgenerallyassumesthatCO2

    capture and compression is integrated into a new power plant and benefits from at least a

    minimum infrastructure, which is typical for an industrial site. This includes availability of

    engineeringand localhumanresources,equipment,utilityandfuelsupply,accesstothepower

    grid and appropriate options for transporting and storing separated CO2. In addition, for such

    newbuild,

    brown

    field

    installations,

    the

    study

    assumes

    full

    flexibility

    in

    terms

    of

    plant

    integration

    andoptimisation.

    This working paper does not analyse the impact of retrofitting CO2 capture to existing power

    plants. Incremental costs of adding CO2 capture to those plants could be higher than the

    incrementalcostsshowninthereviewedstudies,sincetheseexistingplantsweredesignedwith

    noconsiderationsforfutureCO2capture.

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    Page|15

    Approachandmethodology

    Thefundamentalapproachusedinthisstudytoreviewandanalysepublishedtechnoeconomic

    informationonCO2capture is illustrated inFigure1. Ina firststep,applicable literatureonthe

    subjectis

    researched

    and

    reviewed.

    In

    order

    to

    allow

    acomparison

    of

    cost

    data

    from

    different

    years, economic data of the selected studies are calibrated by aligning their scope and by

    updatingtheircostto2010USDcostlevelsusingmarketexchangeratesandprocessequipment

    costindices.Performancerelateddataarenotrecalibratedforreasonsthatareoutlinedinmore

    detailfurtherbelow.

    Subsequently, updated costdataareused to reevaluateLCOE and costofCO2 avoided of the

    different capture cases. To provide consistency with previous work by the OECD, the

    methodologyandunderlyingassumptionsarebasedonthesameapproachthatwastakenbythe

    OECD Projected Costs ofGenerating Electricity 2010 analysis, which for simplicity is hereafter

    referredtoasPCGE2010(OECD,2010).

    Common

    financial

    and

    operating

    boundary

    conditions

    and

    fuel

    prices

    are

    applied

    for

    all

    cases.

    Cost and performance trendsacrossstudies are identified basedon the updateddata.Further

    detailsofthecalibrationmethodology, includingadescriptionof limitationsoftheanalysis,are

    providedinthischapter.

    Figure1.Illustrationofthemethodologyfordataanalysis

    Calibrationof

    economic

    data

    of

    major

    studies

    Reviewofindividualtechnoeconomicstudies

    Coversonlymajorstudiesacrosscaptureroutespublishedwithinthelastfiveyears(200610) Focusonlargescale(>300MWnetpower)coalandnaturalgasfiredpowergeneration Limitedtonewbuilt,earlycommercialtechnologieswithmorethan80%overallCO2capture

    Costingscopealignedacrossstudies(totalcapitalrequirement, overnightcosts,etc.) CurrenciesofstudiesupdatedtoUSD Costsupdatedto2010costlevelusingcostindices

    1

    2

    ReevaluationofcostofelectricityandCO2avoidance3

    Dataanalysisanddiscussionofresults4

    Originalandrecalibratedcostdatareported Comparisonofresults Discussionofkeycosttrends

    Conclusionsandrecommendations5

    BasedonOECDProjectedCostofGeneratingElectricity2010methodology Standardised financialandfuelcostassumptions used Commonsetofoperationandmaintenancecostdata

    Costofgeneratingelectricitycalculation

    LCOE is commonly used as a measure of comparing generating costs of different power

    generationandcapture technologiesoveraplantseconomic life.LCOE isequaltothepresent

    valueofthesumofdiscountedcostsdividedbythetotalelectricityproduction.

    This study uses a LCOE model that wasjointly developed by the IEA and the Nuclear Energy

    Agency(NEA)

    with

    support

    of

    adiverse

    group

    of

    international

    experts

    and

    organisations

    for

    the

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    PCGE2010 publication. The underlying philosophy and methodology behind the calculation is

    discussedindetailintheOECDpublicationandnotrepeatedinthispaper.

    Basedon IEAandNEAconvention,akeyassumptionof theLCOEapproach isthat the interest

    rateusedfordiscountingcostsdoesnotvaryoverthelifetimeoftheprojectunderconsideration.

    Areal

    discount

    rate

    of

    10%

    is

    used

    for

    all

    cases

    in

    this

    study,

    which

    is

    the

    higher

    of

    two

    discount

    rates defined in the PCGE 2010 study. This figure is chosen for this study because of an

    anticipatedhighertechnicalandfinancialriskassociatedwithinvestmentsinCCStechnologiesin

    the early phase of commercialisation. It should be noted that apart from considerations about

    technology maturity, other factors (such as the type of plant ownership) influence the cost of

    financingaproject.Thiswouldbereflectedintheapplicablediscountrates.

    LCOE is also used as a basis for providing estimates of costs of CO2 avoidance for different

    capture technologies. Further background on the terminology, including how to derive CO2

    avoidance costs are extensively discussed in previous publications. This includes important

    considerationsrelatedtoselectingameaningfulreferencepowerplantwithoutCCSforcalcula

    tingcostofCO2avoided(IPCC,2005;GCCSI,2009).

    ItisimportanttonotethatincontrasttotheOECDPCGE2010publication,reportedLCOEdata

    do not include a USD30/tCO2 emission price, since this approach is less common for CCS

    related cost comparisons. Hence in this working paper no CO2 emission price is added for

    calculatingLCOE.

    Conversionandcalibrationofcostdata

    Several methodologies are used to estimate economic data, in particular capital costs, of CO2

    capture from power generation. There is neither a standardised methodology nor a set of

    commonlyagreedonboundaryconditions,whichaddstothecomplexityofcomparingdatafrom

    different

    studies.

    Moreover,

    some

    factors

    are

    often

    not

    fully

    transparent,

    such

    as

    costing

    methodologies, sources of costs, the exact scope of data as well as assumptions on individual

    cost parameters. As a consequence, it is not straightforward to transform technoeconomic

    informationfromdifferentstudiesintoacomparablesetofdata.

    Though there is no consistently applied approach for cost evaluation, similarities exist

    throughoutstudiesintermsofhowCO2capturecostsareconceptuallyassessed.Costdataare

    usuallysplit intocapitalcosts(relatedtotheconstructionofequipment),fuelcosts,andnon

    fueloperatingandmaintenancecosts(relatedtotheprocessand itsequipment).Thesecosts

    arecommonlyused together tocalculate the firstyearcostofelectricity (COE)orLCOEover

    thelifetimeoftheplant.

    Sourcesof

    capital

    costs

    are

    often

    not

    clearly

    stated

    in

    publications.

    Typically,

    costs

    are

    based

    on

    estimates for main equipment or process islands that are provided by vendors or taken from

    equipment cost databases. Often equipment costs are readjusted (using scaling laws) to the

    specific processconditions,andcostsareadded for installation and indirectexpensesrequired

    forthecompleteconstructionoftheplant.

    Assumptions about additional capital expenses vary across studies or are not clearly reported.

    Examplesoftheseadditionalcapitalcostsincludeengineeringandoverhead,commissioningexpenses,

    orprocessandequipmentcontingencies.Insomeinstances,thesametermsareuseddifferently.

    For consistency with previous OECD studies and in order to reduce the impact of project

    specificcostelementsthisstudyusesovernightcostsasthekeymetricforquantifyingcapital

    cost.According

    to

    OECD

    terminology,

    overnight

    costs

    include:

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    preconstructionorownerscosts;

    engineering,procurementandconstruction(EPC)costs;and

    contingencycosts.

    Overnight costs assume a power plant could be constructed in a single day. They reflect

    technological

    and

    engineering

    costs

    in

    a

    particular

    country

    but

    avoid

    impacts

    of

    the

    specific

    financialstructurethatisinplacetorealiseconstruction.Whileforrealprojectsinvestorsneedto

    pay close attention to total capital requirements, overnight costs are useful in particular for

    energyscenariomodellers,policymakersandutilitiesforcomparisonsofcostsatanearlystage

    ofassessment.

    Overnightcostsexcludeinterestduringconstruction(IDC).IDCisaddedforLCOEcalculationsin

    order to account for the actual time it takes to construct the power plant. This also includes

    relatedequipmentoutside thepowerplantboundary (suchas transmission linesor railroads

    for coal transportation), and the costs of financing construction before the power plant

    becomesoperational.

    Preconstruction

    or

    owners

    costs

    are

    miscellaneous

    additional

    costs

    directly

    incurred

    by

    the

    ownerofaprojectsuchasownersstaff,land,permitting,environmentalreportingandfacilities.

    Ownerscostsaresubjecttomuchconfusion.MostCCSrelatedcoststudiesdonotprovidethe

    precisescopeandcontentofownerscosts.Or,sometimesothercostelementssuchasstartup

    costs, contingencies or fees are lumped into a single owners cost factor on top of EPC costs.

    Owners costs can vary widely from project to project depending on whether it is publicly or

    privatelyowned.Theyremainamajoruncertaintyacrossallstudies.

    Engineering, procurement and construction costs typically cover the required total process

    capital. This includes direct and indirect costs for equipment and labour, general supporting

    facilities,butalsocostsrelatedtoengineeringandprojectmanagement,homeoffice,overhead

    or

    technology

    fees.

    Contingency costs are included in order to reflect cost uncertainties due to the level of

    project definition, the risk related to technology maturity and performance, or unforeseen

    regulatorydifficulties.

    Overnight costs are used as a basis for LCOE calculations in this working paper. Several

    studiesreviewedusealternativeterminologies orhaveadifferentscopewithrespecttokey

    capitalcostfigures.

    CapitalcostdatapublishedbyMITandGCCSIalreadyincludeIDC;thesecostsarerecalculatedin

    this paper to represent overnight costs without IDC. If originally published cost data do not

    include owners costs, these are added to capital cost. This applies to data by MIT and NETL.3

    Totalcapital

    requirement

    and

    total

    plant

    costs

    are

    published

    by

    EPRI.

    Total

    plant

    costs

    without

    ownerscostsareusedfromEPRIasabasisfortheanalysisperformedunderthisstudy.Owners

    costareaddedinthiscase.

    The currency for reporting economic data used in this report is US dollar (USD). Cost data

    reported inothercurrenciesareconvertedtoUSDusingtheconversionrateoftheyearofthe

    costsaspublished,unlessaconversionrateisprovidedintheoriginalpublication.4

    Apart from a currency conversion, it is also necessary to account for changes in installed

    equipmentcostovertime.Sincepublished informationdoesnotallowforadetailedescalation

    onacomponentbycomponentbasis,generalcostindicesareusedtorecalibratecosttocurrent

    3

    Apartfrom

    data

    from

    NETL

    (2010a),

    which

    already

    include

    owners

    cost.

    4 Resultingexchangerates:USD0.146perCNY(NZEC,2009)andUSD1.35perEUR(GHGIA,2009).

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    levels. In this study, published cost data are updated to 2010 cost levels using the Chemical

    EngineeringPlantCostIndex,CEPCI(CE,2010).

    Insummary,calibrationofcapitalcostdataincludes:

    Calibrationtoovernightcostsestimates(byaddingownerscostsorsubtractingIDC);

    ConversionoftheoriginalcurrencytoUSD;and

    Calibrationofcostsasquotedto2010costlevelsbyusingcostindices.

    Unless otherwise stated (e.g. with respect to fuel cost assumptions), the same boundary

    conditionsareappliedtoalldataregardlessofthe locationofthepowerplantforeseenbythe

    authorsofthestudies.Publicationyears,projectlocationsandcurrenciesofthereviewedstudies

    areshowninTable1.

    Table1.Overviewofgeneralboundaryconditionsofreviewedstudies

    Organisation CCP CMU EPRI GCCSI GHGIA NETL NZEC MIT

    Publicationyear(s) 2009

    2007,

    2009,

    2010

    2009 2009 2007,

    2009

    2008,

    2010 2009

    2007,

    2009

    Projectlocation EU US US US EU US CHN US

    Currency USD USD USD USD USD,EUR USD CNY USD

    Cost location factors are not applied in this study. Instead, for each data point shown in this

    workingpaperthelocationofthepowerplantisprovidedasspecifiedintheoriginalstudy.Thisis

    helpfulsincedifferencesinlocalcostlevels,inparticularrelatedtolabourcostandproductivity,

    are expected for different locations. A sensitivity analysis of locationspecific costs for CO2

    captureinstallations

    can

    be

    found

    in

    the

    literature

    (GCCSI,

    2009).

    Conversionandcalibrationofperformancedata

    ThetechnicalperformanceofpowerplantswithCO2captureistypicallysummarisedintermsof

    plant efficiencies, power output and CO2 emissions. Terminology related to performance

    evaluation is used consistently throughout technoeconomic studies. Key performance and

    operationalparametersreported includethenetefficiencyorheatrate,thenetpoweroutput,

    specificCO2emissions,andtheplantcapacityfactororloadfactor.

    Performanceestimates inpublishedstudiesareusuallybasedonfundamentalmassandenergy

    balances from process flow sheets of the power plant and the CO2 capture and compression

    process. Analyses are commonly based on process simulation as it is typically performed to

    assess general feasibility or for frontend engineering and design (FEED) studies. Standardised

    (ISO)ambientconditionsareusuallyassumedforthestudies.

    Nonetheless, importantdifferences inrelevanttechnicalassumptionscanapply, forexample in

    terms of fuel types or qualities, CO2 compression and pumping discharge pressures, or

    assumptions regardingcoolingwatercharacteristics (e.g.Zhai,2010).Due to thecomplexityof

    theprocessesorlimiteddetailprovidedinpublishedinformation,itwasimpossibletorecalibrate

    performance results across the breadth of studies under consideration. Though performance

    related data are not reevaluated in this analysis, it is important to note that differences in

    performanceassumptions

    can

    have

    asubstantial

    impact

    on

    results.

    The

    potential

    impact

    varies

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    across capture and power plant technologies, and is discussed in more detail in the scientific

    literature(e.g.Rubin,2007).

    Published overall CO2 capture rates are between 85% and 100%. Data are not scaled to a

    standardised capture rate, since reported cases likely represent the most costeffective or

    advantageous

    operating

    conditions.

    Furthermore,

    some

    capture

    processes

    would

    be

    limited

    intheir flexibility in terms of achievable capture rates. To enable a comparison (on a consistent

    level)ofcostdataacrosstechnologiesatslightlydifferentcapturerates,costsofCO2avoidedare

    includedinthispaper.

    CO2purity isabove99.9% forsolventbasedpost andprecombustioncaptureprocesses.Oxy

    combustion can achieve a similar purity level. However, some oxycombustion capture plants

    result in a higher level of noncondensablegases and contaminants in theseparated CO2. This

    dependsonthepurityofsuppliedoxygenandfuel,thelevelofairinleakageintotheboiler,the

    process design and intensity of purification. This study does not calibrate cost or performance

    data with respect to CO2 purity. However, oxycombustion data with CO2 purities lower than

    99.9%aremarkedaccordinglywhenresultsarepresented.

    Rescalingofcostandperformancedatatoacommonnetpowerplantoutput, forexampleby

    using powerscaling laws, was considered even though reported net power outputs show a

    relativelymoderatespreadacrossdatapoints.However,itisnotappliedsincescalingcanleadto

    misleadingresults forcaptureprocessesthatrelyonusingmultipletrainsofequipmentdueto

    currentsizelimitations.

    Boundaryconditionsandassumptions

    Financialandoperationalboundaryconditions,suchasconstructiontimes,projectlifetimesand

    capacityfactorsareadoptedfromtheOECDPCGE2010publication.Theparametersusedinthis

    working

    paper

    are

    listed

    in

    Table

    2,

    together

    with

    assumptions

    typically

    used

    by

    different

    organisations.

    Contributionsofownerscostsrangebetween5%and25%across individualstudies.Thisstudy

    assumesan averagecontribution ofownerscosts toovernight costs of15%. For reevaluating

    LCOE,IDCiscalculatedseparatelyforeachcase.

    ThePCGE2010studyassumesa15%contingencycostforpowerplantswithonlyasmallnumber

    ofinstalledfacilities.Thiscontingencyaccountsforunforeseentechnicalorregulatorydifficulties,

    andisaddedtotheLCOEcalculationinthelastyearofconstruction.InthePCGE2010study,itis

    applied for nuclear power plants, offshore wind and CCS.5 For all other technologies, a 5%

    contingency is added. This working paper follows the same approach. Contingency cost

    calculationsare

    based

    on

    EPC

    cost.

    5

    Thisdoes

    however

    not

    apply

    to

    data

    for

    nuclear

    power

    plants

    in

    France,

    Japan,

    Korea

    and

    the

    United

    States,

    where

    a

    largenumberofnuclearplantsarealreadyinstalled.

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    Table2.Technoeconomicassumptionstypicallyusedbydifferentorganisations,andinthisanalysis

    Organisation CCP CMU EPRI GCCSI GHGIA N ETL NZEC MIT

    Thisstudy

    (basedon

    OECD,2010)

    Discountrates 10% 9

    10% 9% 10% 10% 10% 10%

    Owner'scost 57% 15% 7% 1525% 7% 10% 15%

    Capacityfactor,coal 75% 80% 85% 85% 85% 85% 85% 85%

    Capacityfactor,naturalgas 95% 75% 85% 85% 85%

    Economiclife,coal 30yrs 30yrs 30yrs 25yrs 30yrs 25yrs 20yrs 40yrs

    Economiclife,naturalgas 25yrs 30yrs 30yrs 25yrs 30yrs 30yrs

    Construction time,coal 4yrs 4yrs 3yrs 3yrs 3yrs 4yrs

    Construction time,naturalgas 3yrs 2yrs

    ContingencieswithCCS 20% 530% 1314% 520% 10% 1520% 10% 15%

    Valuesofbyproductsorwastegeneratedinthepowerplants,suchassulphur,gypsumandslag

    orash,areassumedazeronetcost.Attheendoftheproject lifetime,5%ofovernightcosts is

    appliedincostcalculationsfordecommissioning.Assumptionsonfuelpricesvaryacrossregions

    andaresummarisedinBox1.

    Box1.Fuelpriceassumptions

    Common fuel prices that remain constant over the entire lifetime of the plant are assumed for

    evaluatingelectricitygenerationcosts.Thisstudyusesforconsistencyfuelpricesforbituminouscoals

    andnaturalgasasdefinedintheOECDPCGE2010publication(eventhoughinparticularnaturalgas

    prices

    are

    currently

    lower).

    Sub

    bituminous

    coals

    and

    lignite

    are

    typically

    not

    traded

    on

    an

    international level.Henceforthesecoalsnationalfuelpriceassumptionsareused.Sinceacrossthe

    datacoveredbythisreviewsubbituminouscoalsandligniteareonlyusedinUSplants,fuelpricesas

    reportedbyDOE/NETLareassumed(NETL,2010e).Followingsimilarconsiderations,thefuelpricefor

    biomass,whichisonlyusedinasinglecaseforcofiring,isbasedonassumptionsfromtheunderlying

    study(GHGIA,2009).

    Insummary,thefollowingfuelpricesareassumedinthisstudy:

    OECDEurope

    Bituminouscoal:USD3.60pergigajoule(/GJ)(USD90/tonne)

    Naturalgas:USD9.76/GJ(USD10.30/MBtu)

    Biomass:USD11.32/GJ

    UnitedStates

    Bituminouscoal:USD2.12/GJ(USD47.60/tonne)

    Naturalgas:USD7.40/GJ(USD7.78/MBtu)

    Subbituminouscoal:USD0.72/GJ(USD14.28/tonne)

    Lignite:USD0.86/GJ(USD13.19/tonne)

    China

    Bituminouscoal:USD2.95/GJ(USD86.34/tonne)

    Naturalgas:USD4.53/GJ(USD4.78/MBtu)

    Conversion between lower (LHV) and higher heating value (HHV) thermal plant efficiencies is

    simplifiedbased

    on

    IEA

    conventions,

    with

    a5%

    difference

    for

    coal

    and

    10%

    for

    natural

    gas.

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    LCOEalsoaccounts for variableand fixedO&Mcosts. Incontrast to fixed O&Mcosts,variable

    O&M costs include all consumable items, spare parts, and labour that are dependent on the

    outputlevelatagivenplant.Forprocessesthatarenotyetcommerciallyavailable,itiscommon

    to approximate both variable and fixed O&M costs by a using a percentage estimate of the

    capital cost. This approach was also taken in the abovementioned OECDstudy. O&M costsof

    largescale,

    commercial

    CO2captureinstallationsatpowerplantsstillremainuncertain.Hencea

    constantfractionof4%oftheinstalledcapitalcostsforreferenceplantswithoutCO2captureand

    forplantswithcaptureisappliedasthebasisforO&Mcostassumptionsacrossallcasestudies.

    Since the impact of individual O&M assumptions is reduced, this approach also simplifies

    comparisonsbetweenLCOEresults.

    ReportedCO2emissions includeonlyemissionsrelatedtothepowerplantcombustionprocess.

    Equivalent lifecycle CO2emissionsarehigher due to additional emissions from theacquisition

    and transport of raw materials, power transmission and depending on the specific enduse.

    Recentlifecycleanalysesofcoal andnaturalgasfiredpowerplantshavebeenpublishedbythe

    USDepartmentofEnergy(NETL,2010be).

    Inaddition,

    LCOE

    figures

    provided

    in

    this

    report

    reflect

    private

    costs

    only,

    without

    considering

    externalcostswithrespecttoenvironmentalandhealthrelatedimpactswhichareparticularly

    difficulttoquantify.Externalcostscoverexternalitiesatallstagesoftheproductionprocesssuch

    as construction, dismantling, the fuel cycle and operation, which are converted into monetary

    value. A recent European study provides estimates of external LCOE associated with power

    generationtechnologies.Theimpactassessmentfocusesonpotentialdamageonhumanhealth,

    buildingmaterials,cropsandecosystems,andduetoclimatechange.ForGermanyexternalcosts

    of fossilfuelledpowergenerationwithCCSareestimated in theorderofUSD1.8/MWh in the

    year2025(usingyear2000cost levels),comparedtoaboutUSD4.6/MWh forfossil fuelpower

    generationwithoutCCS(NEEDS,2009).

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    Costandperformanceresultsanddiscussion

    In this working paper cost and performance data for CO2 capture from power generation are

    reviewed,recalibratedandupdatedto2010costlevels.Theresultsofthisanalysisarepresented

    anddiscussed

    in

    this

    chapter.

    Maincasestudies

    Only CO2 capture cases that are covered by several studies are included in this report. The

    evaluationofcoalfiredpowergenerationfocusesonpost andoxycombustionCO2capturefrom

    supercritical (SCPC) and ultrasupercritical pulverised coal (USCPC) boilers as well as pre

    combustion CO2 capture from integrated gasification combined cycles (IGCC). Postcombustion

    CO2captureisalsoanalysedfornaturalgascombinedcycles(NGCC).6

    Hence,resultsforfourmainCO2capturecasesarepresented:

    Postcombustion

    CO2

    capture

    from

    coal

    fired

    power

    generation

    using

    amines

    PrecombustionCO2capturefromintegratedgasificationcombinedcycles

    OxycombustionCO2capturefrompulverisedcoalpowergeneration

    PostcombustionCO2capturefromnaturalgascombinedcycles

    PostcombustionCO2captureusingammoniaisapotentialneartermalternativetoaminebased

    solvents.Asimilarlydetailedanalysis isnotpossibleforammoniabasedsolventssinceonlyfew

    relateddataarepresented intheanalysedstudies.Availabledataarenonetheless listed inthe

    Annexofthisworkingpaperforreference.

    BiomassfiredpowergenerationwithCO2capture isnotevaluated indepthsince information is

    rare

    compared

    to

    coal

    and

    natural

    gasfired

    plants.

    A

    single

    data

    point

    for

    post

    combustion

    capture from coalfired power plants with 10% cofiring of biomass is however added in the

    resultspresentedinthischapterforcomparison.

    As outlined above, results report cost and performance estimates for newbuild, early

    commercialplants.Allcostdata, includingLCOEandcostofCO2avoided,covercostsrelatedto

    thecaptureandcompressionofCO2tosupercriticalpressures,aswellastheconditioningofCO2

    for transportation (but not for CO2 transport and storage). Generally, CO2 capture costs are

    considered to represent the bulk of the costs of integrated CCS projects. CO2 transport and

    storage costs can still be significant depending on the local availability and characteristics of

    storagesites,andarethuscrucialadditionaleconomicfactorstoconsiderinanyprojectspecific

    evaluationorenergyscenariomodellingwork.

    To illustratecostandtechnologydevelopmenttrends,CO2capturedatashown inthefollowing

    tables and figures are sorted by the year of the cost information as provided in the original

    publication.Keydataareshownforreferencecaseswith(w/)CO2captureandwithout(w/o)CO2

    capture.CostofCO2avoidedisausefulmetricforcomparingeconomicsofaspecificCO2capture

    processagainstalternativeCO2capturetechnologies.AnappropriatereferencecasewithoutCO2

    capture needs to be chosen for specific assessments. In a specific newbuild CCS project, this

    referencewouldbethemosteconomicalpowergenerationalternativewithoutCCSthatmeets

    all projectspecific requirements (e.g. regarding plant availability or operating flexibility). This

    6

    Acrossreviewed

    studies,

    only

    asingle

    case

    is

    available

    for

    each

    pre

    and

    oxy

    combustion

    capture

    from

    NGCC;

    thus,

    thesecaptureroutesarenotincludedinthisreview.

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    referenceplantdoesnotnecessarilyhavetobebasedonthesamepowergenerationtechnology

    orusethesamefuel.

    Sinceitisdifficulttodefineauniversallyapplicablereferencetechnology,costofCO2avoidedin

    thisstudyiscalculatedusingthesamepowerplanttypewithandwithoutcapture.ForIGCCwith

    CO2capture,

    cost

    of

    CO2

    avoided

    is

    also

    presented

    using

    aPC

    reference

    based

    on

    data

    published

    bythesameorganisation.CostofCO2avoidedforcoalbasedoxycombustioncaptureisbasedon

    aPCreferencecasewithoutCO2capture,withdatafromthesameorganisation.

    Mosttechnoeconomicdataavailablefromthereviewedstudiesdescribecaptureinstallationsin

    the United States, followed by studies on European power plants.7 An analysis of CO2 capture

    costandperformanceinChinaisincludedinthisanalysis.BroadassessmentsacrossCO2capture

    routesarehoweverscarceforinstallationsinnonOECDcountries.

    In some of the following tables, different power plant and coal types are shown next to each

    otherforthesamecaptureroute.Whilethedifferenttypesarelistedexplicitly,thisisimportant

    tonotesincecoaltypescanvarywidelyfromthepredominantlyanalysedbituminouscoalstothe

    less

    common

    sub

    bituminous

    coals

    or

    lignite.

    In

    addition,

    some

    organisations

    published

    several

    setsoftechnoeconomicdataforthesamefueltypeandcaptureroute.Averagedataprovidedin

    thefarrightcolumnofthetablesareaddedtoguidethereader,butshouldbeinterpretedwith

    somecareagainst thisbackground.Additional tables illustrate the influence of the typeof the

    powerplantandthespecificfuelusedforeachcaptureroute.

    PostcombustionCO2capturefromcoalfiredpowergenerationbyamines

    Costandperformancedata forpostcombustionCO2capture fromcoalfiredpowergeneration

    are shown in Table3. Technoeconomic data for 14 different cases from 7 organisations are

    analysed,includingacasestudyforaninstallationinChina.

    All

    postcombustion

    capture

    cases

    are

    using

    amine

    based

    solvents

    for

    CO2 capture, typically

    monoethanolamine (MEA). Data for aqueous ammoniabased processes are provided in the

    Annex. Postcombustion CO2 capture from SCPC or USCPC boilers that operate on bituminous

    coals(labelledasBitcoal)areanalysedmostoften.Additionaldatacoversubcritical(SubPC)

    orcirculatingfluidisedbed(CFB)boilers,andplantsthatoperateonsubbituminouscoals,lignite

    orwith10%cofiringofbiomassinadditiontobituminouscoal.8

    Averagepublishedcapacityfactorsare83%forthecasesshown;CO2captureratesare87%.Net

    power outputs including CO2 capture range from 399MW to 676 MW, at an average net

    efficiencyof30.9%(LHV)acrossOECDregions.Thecostandperformanceimpactofaddingpost

    combustionCO2capturetoacoalfiredreferenceplantwithoutCO2captureisgiveninFigure2.

    Netefficiency

    penalties

    between

    8.7

    and

    12.0

    percentage

    points

    (LHV)

    are

    estimated

    for

    post

    combustionCO2captureinOECDregions,whichisonaveragea25%reductioninefficiency.The

    netefficiencypenaltyestimatedforaninstallationinChinais10.8percentagepoints.

    7 Another study on CCS performance and cost by the European Technology Platform for Zero Emission Fossil Fuel

    PowerPlants

    (ZEP)

    is

    announced

    for

    2011,

    but

    was

    not

    yet

    available

    at

    the

    time

    of

    this

    publication.

    8 Forbiomasscofiring,actualCO2emissionsarestatedinTable3.Nopriceforagreencertificateisassumed.

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    Table3.Postcombustioncapturefromcoalfiredpowergenerationbyamines

    Regionalfocus

    Average

    (OECD)

    Yearofcostdata

    2005

    2005

    2005

    2005

    2007

    2007

    2007

    2007

    2007

    2007

    2009

    2009

    2009

    2009

    Yearofpub

    lication

    2007

    2007

    2007

    2007

    2009

    2009

    2009

    2009

    2010

    2010

    2009

    2009

    2009

    2009

    Organisatio

    n

    CMU

    MIT

    GHGIAGHGIA

    EPRI

    EPRI

    EPRI

    MIT

    NETL

    NETL

    GCCSI

    GCCSIGHGIA

    NZEC

    ORIGINAL

    DATAASPUBLISHED(convertedtoUSD)

    Region

    US

    US

    EU

    EU

    US

    US

    US

    US

    US

    US

    US

    US

    EU

    CHN

    Specificfue

    ltype

    Bitcoal

    Lignite

    Bitcoal

    Bitcoal

    Sub

    bit

    coal

    Sub

    bit

    coal

    Bitcoal

    Bitcoal

    Bitcoal

    Bitcoal

    Bitcoal

    Bitcoal

    Bit+10%

    Biomass

    Bitcoal

    Powerplan

    ttype

    SCPC

    CFB

    U

    SCPC

    USCPC

    SCPC

    USCPC

    SCPC

    SCPC

    SCPC

    Sub

    PC

    SCPC

    USCPC

    SCPC

    USCPC

    Netpower

    outputw/ocapture(MW)

    528

    500

    758

    758

    600

    600

    600

    500

    550

    550

    550

    550

    519

    824

    582

    Netpower

    outputw/capture(MW)

    493

    500

    666

    676

    550

    550

    550

    500

    550

    550

    550

    550

    399

    622

    545

    Netefficien

    cyw/ocapture,LHV(%)

    41.3

    36.5

    44.0

    44.0

    39.2

    39.8

    40.0

    40.4

    41.2

    38.6

    41.4

    46.8

    44.8

    43.9

    41.4

    Netefficien

    cyw/capture,

    LHV(%)

    31.4

    26.7

    34.8

    35.3

    28.2

    28.8

    29.1

    30.7

    29.9

    27.5

    29.7

    34.9

    34.5

    33.1

    30.9

    CO2emissio

    nsw/ocapture(kg/MWh)

    811

    1030

    743

    743

    879

    865

    836

    830

    802

    856

    804

    707

    754

    797

    820

    CO2emissio

    nsw/capture(kg/MWh)

    107

    141

    117

    92

    124

    121

    126

    109

    111

    121

    112

    95

    73

    106

    111

    Capitalcostw/ocapture(USD/kW)

    1442

    13301

    408

    1408

    2061

    2089

    2007

    1910

    2024

    1996

    2587

    2716

    1710

    856

    1

    899

    Capitalcostw/capture(USD/kW)

    2345

    22701

    979

    2043

    3439

    3485

    3354

    3080

    3570

    3610

    4511

    4279

    2790

    1572

    3

    135

    Relativede

    creaseinnetefficiency

    24%

    27%

    21%

    20%

    28%

    28%

    27%

    24%

    28%

    29%

    28%

    26%

    23%

    25%

    25%

    RE

    EVALU

    ATEDDATA(2010USD)

    Overnightcostw/ocapture(USD/kW)

    1508

    18681

    720

    1720

    2580

    2615

    2512

    2391

    2203

    2172

    2409

    2529

    1873

    938

    2

    162

    Overnightcostw/capture(USD/kW)

    2664

    34042

    581

    2664

    4596

    4657

    4482

    4116

    4148

    4195

    4485

    4255

    3263

    1838

    3

    808

    LCOEw/ocapture(USD/MWh)

    50

    49

    69

    69

    62

    63

    73

    70

    65

    66

    70

    70

    78

    51

    66

    LCOEw/ca

    pture(USD/MWh)

    80

    84

    95

    97

    107

    109

    121

    112

    113

    117

    121

    112

    118

    80

    107

    CostofCO2avoided(USD/tCO2

    )

    43

    40

    42

    42

    60

    61

    68

    58

    69

    69

    74

    68

    59

    42

    58

    Relativein

    creaseinovernightcost

    77%

    82%

    50%

    55%

    78%

    78%

    78%

    72%

    88%

    93%

    86%

    68%

    74%

    96%

    75%

    Relativein

    creaseinLCOE

    59%

    73%

    38%

    40%

    72%

    72%

    67%

    60%

    73%

    77%

    73%

    59%

    52%

    57%

    63%

    OECD

    China

    Notes:DatacoveronlyCO2captureandcompressionbutnottransportationandstorage.

    Overnightcostsincludeowners,

    EPCand

    contingencycosts,

    butnotIDC.

    A15%contingencybased

    onEPCcostis

    addedforunfor

    eseentechnicalorregulatorydifficultiesforCCScases,

    comparedtoa5%contingencyappliedfornon

    CCScases.IDCisincludedinLCOEcalculations.Fuelpriceassu

    mptionsdiffer

    betweenregions

    .

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    Figure2.Postcombustioncapturefromcoalfiredpowergenerationbyamines:CO2captureimpact

    0

    500

    1000

    1500

    2000

    2500

    CMU

    MIT

    GHGIA

    GHGIA

    EPRI

    EPRI

    EPRI

    MIT

    NETL

    NETL

    GCCSI

    GCCSI

    GHGIA

    NZEC

    Increaseinovernightcost(2010USD/kW)

    0

    10

    20

    30

    40

    50

    60

    70

    CMU

    MIT

    GHGIA

    GHGIA

    EPRI

    EPRI

    EPRI

    MIT

    NETL

    NETL

    GCCSI

    GCCSI

    GHGIA

    NZEC

    IncreaseinLCOE(2010USD/MWh)

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    CMU

    MIT

    GHGIA

    GHGIA

    EPRI

    EPRI

    EPRI

    MIT

    NETL

    NETL

    GCCSI

    GCCSI

    GHGIA

    NZEC

    Relativeincreaseinovernightcost(%)

    0

    2

    4

    6

    8

    10

    12

    14

    CMU

    MIT

    GHGIA

    GHGIA

    EPRI

    EPRI

    EPRI

    MIT

    NETL

    NETL

    GCCSI

    GCCSI

    GHGIA

    NZEC

    Netefficiencypenalty(percentagepoints,LHV)

    0%

    20%

    40%

    60%

    80%

    100%

    CMU

    MIT

    GHGIA

    GHGIA

    EPRI

    EPRI

    EPRI M

    ITNETL

    NETL

    GCCSI

    GCCSI

    GHGIA

    NZEC

    RelativeincreaseinLCOE(%)

    0%

    10%

    20%

    30%

    40%

    50%

    CMU

    MIT

    GHGIA

    GHGIA

    EPRI

    EPRI

    EPRI

    MIT

    NETL

    NETL

    GCCSI

    GCCSI

    GHGIA

    NZEC

    Relativedecreaseinnetefficiency(%)

    2005 2007 2009 2005 2007 2009

    2005 2007 2009 2005 2007 2009

    2005 2007 2009 2005 2007 2009

    Notes:DatacoveronlyCO2captureandcompressionbutnottransportationandstorage.Datasortedbyyearofcostinformationas

    published;whitebarsshowdataforinstallationsinChina.Overnightcostsincludeowners,EPCandcontingencycosts,butnotIDC.A

    15% contingency based on EPC cost is added for unforeseen technical or regulatory difficulties for CCS cases, compared to a 5%

    contingencyapplied

    for

    non

    CCS

    cases.

    IDC

    is

    included

    in

    LCOE

    calculations.

    Fuel

    price

    assumptions

    differ

    between

    regions.

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    By adding CO2 capture, overnight costs updated to 2010 cost levels increase on average by

    USD1647/kW, but vary substantially by a factor of more than two between USD861/kW and

    USD2076/kW.ForChinaovernightcostsareexpectedtoincreasebyUSD900/kW.

    Incomparison,therelative(percentagewise)increaseofovernightcostscomparedtoovernight

    costsof

    the

    reference

    power

    plant

    is

    more

    stable

    across

    studies.

    Overnight

    costs

    increase

    by

    on

    average75%whenaddingCO2capture.Thistrend iscomparablyrobustacrossawiderangeof

    powerplanttypes(SCPC,USCPC,CFB),coalsused(bituminous,subbituminousand lignite),and

    tosomeextentevenregions(e.g.theUnitedStatesandtheEuropeanUnion).

    InOECDregions,LCOEincreasesonaveragebyUSD41/MWh,butvariesbetweenUSD26/MWh

    andUSD51/MWh.Therelative increaseofLCOEcomparedtoLCOEofthereferenceplant ison

    average63%.CostsofCO2avoidedareonaverageUSD58/tCO2butvarybetweenUSD40/tCO2

    and USD74/tCO2 for case studies across OECD regions. Costs of CO2 avoided for China are

    estimatedUSD42/tCO2.

    Table4.Postcombustioncapture:influenceofcoalsandpowerplanttypes(OECDonly)

    Specificfueltype

    Powerplanttype USCPC SCPC SubPC USCPC SCPC CFB

    Numberofcasesincluded 3 5 1 1 1 1

    ORIGINALDATAASPUBLISHED(convertedtoUSD)

    Netpoweroutputw/ocapture(MW) 689 581 550 600 600 500 582

    Netpoweroutputw/capture(MW) 631 553 550 550 550 500 545

    Netefficiencyw/ocapture,LHV(%) 44.9 41.4 38.6 39.8 39.2 36.5 41.4

    Netefficiencyw/capture,LHV(%) 35.0 31.0 27.5 28.8 28.2 26.7 30.9

    CO2emissionsw/ocapture(kg/MWh) 731 804 856 865 879 1030 820

    CO2emissionsw/capture(kg/MWh) 101 109 121 121 124 141 111

    Capitalcostw/ocapture(USD/kW) 1844 1896 1996 2089 2061 1330 1899

    Capitalcostw/capture(USD/kW) 2767 3151 3610 3485 3439 2270 3135

    Relativedecreaseinnetefficiency 22% 25% 29% 28% 28% 27% 25%

    REEVALUATEDDATA(2010USD)

    Overnightcostw/ocapture(USD/kW) 1990 2124 2172 2615 2580 1868 2162

    Overnightcostw/capture(USD/kW) 3166 3760 4195 4657 4596 3404 3808

    LCOE w/ocapture(USD/MWh) 69 66 66 63 62 49 66

    LCOEw/capture(USD/MWh) 101 107 117 109 107 84 107

    CostofCO2avoided(USD/tCO2) 51 59 69 61 60 40 58

    Relativeincreaseinovernightcost 58% 76% 93% 78% 78% 82% 75%

    RelativeincreaseinLCOE 46% 62% 77% 72% 72% 73% 63%

    Overall

    Average

    Bitcoal Subbit&Lignite

    Notes: Data cover only CO 2 capture and compression but not transportation and storage. Overnight costs include owners, EPC and contingency

    costs, but not IDC. A15 % contingency based on EPC cost is added for unforeseen technical or regulatory di fficulties for CCS cases, compared to a 5%

    contingency appliedfornonCCScases.IDCis includedin LCOEcalculations.Fuel priceassumptionsdifferbetweenregions.

    TheinfluenceofspecificpowerplantandfueltypesisshowninTable4.Thenumberofsamples

    perpower

    plant

    and

    fuel

    combination

    is

    limited,

    however,

    and

    results

    should

    not

    be

    regarded

    as

    representative.

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    Overnight costs for USCPC plants running on bituminous coals are in comparison quite low. It

    shouldbenotedthoughthattwooutofthethreeunderlyingdatasetsarebasedonupdatedcost

    informationfromasinglereferencefrom2005.

    Data for SubPC bituminous coalfired power plants, as well as all subbituminous and lignite

    firedinstallations,

    are

    each

    based

    just

    on

    asingle

    publication

    (Figure

    4).

    They

    thus

    should

    not

    be

    interpretedinfavouroforagainstalternativeoptions.

    PrecombustionCO2capturefromintegratedgasificationcombinedcycles

    Cost and performance data for precombustion CO2 capture from integrated gasification

    combinedcycles(IGCC)areshowninTable5.Technoeconomicdatafor11differentcasesfrom7

    organisationsareanalysed,includingacasestudyforaninstallationinChina.

    Table5.Precombustioncapturefromintegratedgasificationcombinedcycles

    Regionalfocus China

    Average

    (OECD)

    Yearofcostdata 2005 2005 2005 2007 2007 2007 2008 2008 2008 2009 2009

    Yearofpublication 2007 2007 2007 2010 2010 2010 2009 2009 2009 2009 2009

    Organisation MIT GHGIA GHGIA NETL N ETL N ETL CMU EPRI E PRI GCCSI N ZEC

    ORIGINALDATAASPUBLISHED(convertedtoUSD)

    Region US EU EU US US US US US US US CHN

    Specificfueltype Bitc oa l B itc oa l B itc oa l Bi tc oa l Bi tc oa l B itc oa l Bi tcoal Subbit

    coal Bitcoal Bitcoal Bitcoal

    Powerplanttype GE Shel l GE

    Quench GER+Q

    CoPE

    Gas FSQ Shell

    GE

    Quench(Generic) (Generic)

    Shell

    IGCC TPRI

    Netpoweroutputw/ocapture(MW) 500 776 826 622 625 629 538 573 603 636 633

    Net

    power

    output

    w/

    capture

    (MW) 500 676 730 543 514 497 495 482 507 517 662 546

    Netefficiencyw/ocapture,LHV(%) 40.3 43.1 38.0 40.9 41.7 44.2 40.0 41.0 41.2 43.2 41.4

    Netefficiencyw/capture,LHV(%) 32.7 34.5 31.5 34.3 32.6 32.8 34.5 32.3 32.3 33.6 36.8 33.1

    CO2emissionsw/ocapture(kg/MWh) 832 763 833 782 776 723 819 845 805 753 793

    CO2emissionsw/capture(kg/MWh) 102 142 152 93 98 99 94 141 135 90 95 115

    Capitalcostw/ocapture(USD/kW) 1430 1613 1439 2447 2351 2716 1823 3239 2984 3521 2356

    Capitalcostw/capture(USD/kW) 1890 2204 1815 3334 3466 3904 2513 4221 3940 4373 1471 3166

    Relativedecreaseinnetefficiency 19% 20% 17% 16% 22% 26% 14% 21% 22% 22% 20%

    REEVALUATEDDATA(2010USD)

    Overnightcostw/ocapture(USD/kW) 2009 1970 1758 2663 2559 2956 1551 3702 3410 3279 2586

    Overnightcostw/capture(USD/kW) 2834 2874 2367 3874 4027 4536 2323 5150 4808 4348 1721 3714

    LCOE w/ocapture(USD/MWh) 62 69 75 76 73 81 52 86 92 88 75

    LCOEw/capture(USD/MWh) 83 102 95 104 109 120 71 118 126 115 73 104

    CostofCO2avoided(USD/tCO2) 29 53 30 42 53 62 26 45 51 41 43

    CostofCO2avoidedvsPCbaseline

    (USD/tCO2)18 53 38 57 64 86 28 64 79 64 32 55

    Relativeincreaseinovernightcost 41% 46% 35% 45% 57% 53% 50% 39% 41% 33% 44%

    RelativeincreaseinLCOE 35% 48% 27% 38% 49% 48% 37% 37% 37% 31% 39%

    OECD

    Notes: Data cover only CO2 capture and compression but not transportation and storage. Overnight costs i nclude owners, EPC and contingency costs, but not IDC. A15%

    contingency based on EPC cost is added for unforeseen technical or regulatory difficulties for CCS cases, compared to a 5% contingency applied for non CCS cases. IDC is

    included in LCOE calculations. Fuel price assumptions differ between regions. Generic data shown for EPRI; further details for individual gasifier designs, including data

    forSiemensgasifiersareavailablein EPRI(2009).

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    Figure3.Precombustioncapturefromintegratedgasificationcombinedcycles:CO2captureimpact

    0

    500

    1000

    1500

    2000

    MIT

    GHGIA

    GHGIA

    NETL

    NETL

    NETL

    CMU

    EPRI

    EPRI

    GCCSI

    Increaseinovernightcost(2010USD/kW)

    0

    10

    20

    30

    40

    50

    60

    70

    MIT

    GHGIA

    GHGIA

    NETL

    NETL

    NETL

    CMU

    EPRI

    EPRI

    GCCSI

    IncreaseinLCOE(2010USD/MWh)

    0%

    20%

    40%

    60%

    80%

    100%

    120%

    MIT

    GHGIA

    GHGIA

    NETL

    NETL

    NETL

    CMU

    EPRI

    EPRI

    GCCSI

    Relativeincreaseinovernightcost(%)

    0

    2

    4

    6

    8

    10

    12

    14

    MIT

    GHGIA

    GHGIA

    NETL

    NETL

    NETL

    CMU

    EPRI

    EPRI

    GCCSI

    Netefficiencypenalty(percentagepoints,LHV)

    0%

    20%

    40%

    60%

    80%

    100%

    MIT

    GHGIA

    GHGIA

    NETL

    NETL

    NETL

    CMU

    EPRI

    EPRI

    GCCSI

    RelativeincreaseinLCOE(%)

    0%

    10%

    20%

    30%

    40%

    50%

    MIT

    GHGIA

    GHGIA

    NETL

    NETL

    NETL

    CMU

    EPRI

    EPRI

    GCCSI

    Relativedecreaseinnetefficiency(%)

    2005 2007 20092008 2005 2007 20092008

    2005 2007 20092008 2005 2007 20092008

    2005 2007 20092008 2005 2007 20092008

    Notes:DatacoveronlyCO2captureandcompressionbutnottransportationandstorage.Datasortedbyyearofcostinformationas

    published;nofullsetofdataavailableforinstallationsinChina.Overnightcostsincludeowners,EPCandcontingencycosts,butnot

    IDC.A15%contingencybasedonEPCcostisaddedforunforeseentechnicalorregulatorydifficultiesforCCScases,comparedtoa5%

    contingency applied for nonCCS cases. IDC is included in LCOE calculations. Fuel price assumptions differ between regions. IGCC

    referenceplant

    data

    are

    not

    provided

    in

    the

    NZEC

    (2009)

    publication.

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    Page|29

    AllreviewedstudiesapartfromoneevaluateprecombustionCO2capturefromIGCCplantsthat

    operateonbituminouscoals.GasifiertechnologiesbyConocoPhillips(CoP),GeneralElectric(GE),

    ShellandtheChineseThermalPowerResearchInstitute(TPRI)areanalysed.

    Averagepublishedcapacityfactorsare81%forthecasesshown;CO2captureratesare88%.Net

    poweroutputs

    including

    CO2

    capture

    range

    from

    482

    MW

    to

    730

    MW

    across

    OECD

    regions,

    at

    an

    averagenetefficiencyof33.1%(LHV).The impactofaddingprecombustioncapturetoanIGCC

    referenceplantwithoutCO2captureisillustratedinFigure3.

    Net efficiency penalties between 5.5 and 11.4 percentage points (LHV) are estimated for pre

    combustionCO2captureinOECDregions,which isonaveragea20%reduction inefficiency.No

    IGCCreferenceplantdataareprovidedinthecasestudyonprecombustionCO2captureinChina

    (NZEC,2009).

    By adding CO2 capture, overnight costs updated to 2010 cost levels increase on average by

    USD1128/kWcompared toan IGCC referencecase.However,the increasevariessubstantially

    byafactorofmorethantwobetweenUSD609/kWandUSD1580/kW.9

    The

    relative

    (percentagewise)

    increase

    of

    overnight

    costs

    is

    more

    stable

    across

    studies.

    Overnightcosts increasebyonaverage44%comparedtoan IGCCreferencepowerplantwhen

    adding CO2 capture. This trend appears comparably robust across the range of gasifier

    technologiesandbetweentheUnitedStatesandtheEuropeanUnion.

    LCOE figures follow a similar pattern. In OECD regions LCOE increases on average by

    USD29/MWh relative to an IGCC reference plant, but varies between USD19/MWh and

    USD39/MWh.Therelative increaseofLCOEcomparedtotheLCOEofthereferenceplant ison

    average39%.

    Costs of CO2 avoided are on average USD43/tCO2 if an IGCC reference plant is used, but vary

    betweenUSD26/tCO2andUSD62/tCO2forOECDregionsacrossstudycases.

    If

    a

    pulverised

    coal

    power

    plant

    reference

    case

    is

    used,

    average

    costs

    of

    CO2 avoided rise toUSD55/tCO2. The cost of CO2 avoided in China is estimated USD32/tCO2 relative to a Chinese

    pulverisedcoalpowerplant,orabouthalfofthecostsinOECDregions.

    Table 6 illustrates the influence of specific fuel types. However, only a single data point is

    available for subbituminous and lignitefired installations, which is insufficient for drawing

    conclusionsregardingtechnologycompetitivenesscomparedtobituminouscoalfiredoptions.

    9

    Asstated

    by

    the

    authors

    in

    afollow

    up

    publication

    (MIT,

    2009),

    IGCC

    cost

    estimates

    published

    in

    MIT

    (2007)

    might

    havebeentoooptimistic.

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    Table6.Precombustioncapture:influenceofcoals(OECDonly)

    Numberofcasesincluded 9 1

    ORIGINALDATAASPUBLISHED(convertedtoUSD)

    Netpoweroutputw/ocapture(MW) 639 573 633

    Netpoweroutputw/capture(MW) 553 482 546

    Netefficiency w/ocapture,LHV(%) 41.4 41.0 41.4

    Netefficiency w/capture,LHV(%) 33.2 32.3 33.1

    CO2emissionsw/ocapture(kg/MWh) 787 845 793

    CO2emissionsw/capture(kg/MWh) 112 141 115

    Capitalcostw/ocapture(USD/kW) 2258 3239 2356

    Capitalcostw/capture(USD/kW) 3049 4221 3166

    Relativedecreaseinnetefficiency 20% 21% 20%

    REEVALUATEDDATA(2010USD)

    Overnightcostw/ocapture(USD/kW) 2462 3702 2586

    Overnightcostw/capture(USD/kW) 3555 5150 3714

    LCOE w/ocapture(USD/MWh) 74 86 75

    LCOEw/capture(USD/MWh) 103 118 104

    Costof

    CO2

    avoided

    (USD/tCO2) 43 45 43

    CostofCO2avoidedvsPCbaseline

    (USD/tCO2)54 64 55

    Relativeincreaseinovernightcost 45% 39% 44%

    RelativeincreaseinLCOE 39% 37% 39%

    Overall

    AverageSpecificfueltype Bitcoal

    Subbit&

    Lignite

    Notes: Data cover only CO2capture and compression but not transportation and storage. Overnight

    costs incl ude owners, EPC and contingency costs, but not IDC. A 15% contingency based on EPC cost

    is added for unforeseen technical or regulatory difficulties for CCS cases, compared to a 5%

    contingency applied for nonCCS cases. IDC is included in LCOE calculations. Fuel price

    assumptions differ betweenregions.

    Oxycombustion

    CO2

    capture

    from

    coal

    fired

    power

    generation

    Cost and performance data for oxycombustion CO2 capture from coalfired power generation

    are shown in Table7. Technoeconomic data for 11 different cases from 5 organisations are

    analysed,includingacasestudyforaninstallationinChina.Itshouldbenotedaparticularlylarge

    numberofdatastemfromasinglerecentUSDepartmentofEnergyassessment(NETL,2010e).

    Oxycombustion capture from SCPC and USCPC boilers that operate on bituminous coals are

    most often evaluated in the reviewed studies. Additional data cover CFB boilers, and plants

    operatingonsubbituminouscoalsorlignite.

    Averagepublishedcapacityfactorsare85%forthecasesshown;CO2captureratesare92%.Net

    power

    outputs

    including

    CO2

    capture

    range

    from

    500

    MW

    to

    550

    MW

    in

    OECD

    countries,

    at

    an

    averagenetefficiencyof31.9%(LHV).

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    OECD/IEA2011 CostandPerformanceofCarbonDioxideCapturefromPowerGeneration

    Page|31

    Table7.Oxycombustioncapturefromcoalfiredpowergeneration

    Regionalfocus China Average

    (OECD)

    Yearofcostdata 2005 2005 2007 2007 2007 2007 2007 2007 2009 2009 2009

    Yearof

    publication 2007 2007 2008 2010 2010 2010 2010 2010 2009 2009 2009

    Organisation GHGIA MIT NETL N ETL N ETL NETL N ETL N ETL GCCS I G CCSI NZ EC

    ORIGINALDATAASPUBLISHED(convertedtoUSD)

    Region EU US US US US US US US US US CHN

    Specific fueltype Bitcoal B itcoal B itcoal Subbit

    coal

    Subbit

    coal Lignite

    Subbit

    coal Lignite Bitcoal B itcoal B itcoal

    Powerplanttype USCPC SCPC SCPC SCPC SCPC SCPC CFB CFB SCPC USCPC USCPC

    Netpoweroutputw/ocapture(MW) 758 500 550 550 550 550 550 550 550 550 824 566

    Netpoweroutputw/capture(MW) 532 500 550 550 550 550 549 550 550 550 673 543

    Netefficiencyw/ocapture,LHV(%) 44.0 40.4 41.4 40.6 40.6 39.4 40.9 40.2 41.4 46.8 43.9 41.6

    Netefficiencyw/capture,LHV(%) 35.4 32.1 30.7 32.5 29.5 31.4 31.6 30.7 30.8 34.7 35.6 31.9

    CO2emissionsw/ocapture(kg/MWh) 743 830 800 859 859 925 846 884 800 707 797 825

    CO2emissionsw/capture(kg/MWh) 84 104 0 98 0 103 99 105 0 0 98 59

    Capitalcostw/ocapture(USD/kW) 1408 1330 1579 1851 1851 2003 1938 2048 2587 2716 856 1931

    Capitalcostw/capture(USD/kW) 2205 1900 2660 3093 3086 3163 3491 3821 4121 3985 1266 3153

    Relativedecreaseinnetefficiency 20% 21% 26% 20% 27% 20% 23% 24% 26% 26% 19% 23%

    REEVALUATEDDATA(2010USD)

    Overnightcostw/ocapture(USD/kW) 1720 1868 1976 2317 2317 2507 2426 2563 2409 2529 938 2263

    Overnightcostw/capture( USD/kW) 2875 2849 3555 4133 4124 4227 4665 5106 4098 3962 1481 3959

    LCOE w/ocapture(USD/MWh) 69 59 61 56 56 62 59 63 70 70 51 62

    LCOE

    w/

    capture

    (USD/MWh) 101 84 100 96 97 100 108 119 112 106 69 102

    CostofCO2avoided(USD/tCO2) 49 35 49 52 47 46 66 72 52 50 27 52

    Relativeincreaseinovernightcost 67% 53% 80% 78% 78% 69% 92% 99% 70% 57% 58% 74%

    RelativeincreaseinLCOE 47% 43% 65% 71% 72% 62% 84% 89% 60% 51% 36% 64%

    OECD

    Notes: Data cover only CO2 capture and compression but not transportation and storage. Overnight costs include owners, EPC and contingency costs, but not IDC. A 15%

    contingency based on EPC cost is added for unforeseen technical or regulatory difficulties for CCS cases, compared to a 5% contingency applied for non CCS cases. IDC i s

    included in LCOE calculations. Fuel price assumptions differ between regions. CO 2 purities >99.9% apart from GHG IA (96%), GCCSI (83%) and NETL ca se with 29.5% (LHV)

    efficiency(83%).

    TheimpactofaddingoxycombustionCO2capturerelativetoacoalfiredreferenceplantwithout

    CO2captureisillustratedinFigure4.

    Net

    efficiency

    penalties

    between

    7.9

    and

    12.2

    percentage

    points

    (LHV)

    are

    estimated

    for

    oxy

    combustionCO2captureinOECDregions,whichisonaveragea23%reductioninefficiency.The

    netefficiencypenaltyestimatedforaninstallationinChinais8.3percentagepoints.

    By adding CO2 capture, overnight costs updated to 2010 cost levels increase on average by

    USD1696/kW but vary substantially by a factor of more than two between USD981/kW and

    USD2543/kW.ForChinaovernightcostsareexpectedto increasebyUSD542/kW.Therelative

    (percentagewise)increaseofovernightcostsisonaverage74%comparedtoovernightcostsof

    thereferencepowerplant.

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    CostandPerformanceofCarbonDioxideCapturefromPowerGeneration OECD/IEA2011

    Page|32

    Figure4.Oxycombustioncapturefromcoalfiredpowergeneration:CO2captureimpact

    0

    500

    1000

    1500

    2000

    2500

    3000

    GHGIA

    MIT

    NETL

    NETL

    NETL

    NETL

    NETL

    NETL

    GCCSI

    GCCSI

    NZEC

    Increaseinovernightcost(2010USD/kW)

    0

    10

    20

    30

    40

    50

    60

    70

    GHGIA


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