1
Viability of Carbon Capture and
Sequestration Retrofits for Existing Coalfired Power Plants under an Emission
Trading Scheme
CEDM Annual Meeting
May 24, 2016
Shuchi Talati
Ph.D. | Engineering and Public Policy
2
Introduction
 The Clean Power Plan: Finalized CO2 Emission Performance
Standards for Existing Fossil Fuel-Fired EGUs
 Commences in 2022; 32 percent reduction in power plant CO2
emissions from 2005 levels by 2030
 Target rates based on BSER - 3 building blocks
 Heat Rate Improvement at coal EGUs
 Increased NGCC generation
 Increased use of renewables
  No carbon capture & sequestration (CCS)
 IPCC finds that the cost to keep atmospheric CO2 concentration
below 450 ppm would be 138% higher without CCS
 Retrofits will promote learning for the technology
3
Introduction
Choices for state plan
 (1) Form of Standard
 Rate vs Mass
 (2) Approach
 Uniform national EPS
 State goal rate
 Use of trading
 Emission Rate
Credits (ERCs)
EPA CPP State Plan Decision Tree (2015)
4
Methods
 IECM modeling of 18 feasible Coal-Fired
EGUs
 Based on Zhai et al (2015)
 Major cost metric: Levelized Cost of
Electricity (LCOE)
 Cost of CO2 avoided
 3 mitigation options for CCS retrofits
 Existing EGUs (ERC Purchase)
 EGUs retrofitted with Partial CCS (no
ERCs)
 EGUs retrofitted with Full CCS (ERC
Generation)
 Calculation of changing LCOE to meet
different rate standards and within an ERC
market
5
Feasible EGUs
Retrofit of Partial CCS
Retrofit of
Existing
Characteristic
EGUs
National
State
Standard
Standard
Full CCS
Average Gross Power Output (MW)
529
529
529
529
Net Power Output (MW)
505
448
440
418
Efficiency (HHV, %)
32.6
25.8
24.7
21.6
Annual Operation Hours
8186
8186
8186
8186
CO2 Emission Rate (lb/MWh)
2220
1305
1042
336
4.13
3.67
3.60
3.41
15.3
43.4
49.4
65.5
Annual Net Electricity Generation
(Billion kWh)
Unit Levelized Cost of Electricity (2009
constant $/MWh)
6
Results: Cost of CCS Retrofits
 LCOE vs Emission Rate
7
Results: Base Case
8
Results: Base Case
9
Results: High Retrofit Cost
Scenarios
High Retrofit Cost Scenario Parameters
Project/Process Contingency: 30%  50%
Retrofit Factor: 1.0  1.25
FCF: .113  .15
EOR: 0  $10/ton, $30/ton
10
Discussion
 Interaction with Renewables
 Wind
 Solar PV
 Average breakeven ERC
prices for wind and solar =
$21 and $42 per MWh
 At ERC prices < $141 per
MWh on average, coal-fired
EGUs retrofitted with full CCS
are cheaper than PV
11
Discussion
 ERC trading programs are able to improve the economic viability of CCS
retrofits, especially for the implementation of CCS for 90% CO2 capture.
 If ERC market prices were less than the breakeven values, additional
economic incentives, such as financial support, subsides or revenue from
CO2 utilization, would be needed in order to promote CCS deployment.
 Though the increased LCOE from CCS is much greater under the high
retrofit cost scenarios, higher EOR sale prices could bring the highest risk
scenario prices low enough to still being profitable.
 CCS retrofits should be made with close evaluation of environmental
impacts. Water use increases dramatically with CCS, and could serve as
major limiting factor for retrofitting units, especially for those in drier
climates.
12
Acknowledgements
 This research was supported by the Center for Climate and
Energy Decision Making (SES- 0949710), through a
cooperative agreement between the National Science
Foundation and Carnegie Mellon University.
 This research was also possible through the generous support
of the Bertucci Fellowship and Pugh Fellowship
13
Thank you! Questions?
14
LCOE Calculation
𝐿𝐶𝑂𝐸 =
𝑇𝐶𝑅 ∗ 𝐹𝐶𝐹 + 𝐹𝑂𝑀
+ 𝑉𝑂𝑀 + 𝐻𝑅 ∗ 𝐹𝐶
𝐶𝐹 ∗ 𝐴𝑛𝑛𝑢𝑎𝑙 𝐻𝑜𝑢𝑟𝑠 ∗ 𝑀𝑊
Where:
TCR = total capital requirement ($)
FCF = fixed charge factor (fraction)
FOM = fixed O&M costs ($/year)
CF = capacity factor (%)
MW = net power output (MW)
VOM = variable nonfuel O&M costs ($/year)
HR = net heat rate (MBtu/MWh)
FC = unit fuel cost ($/MBtu)
15
CPP Equations
𝑇𝑜𝑡𝑎𝑙 𝐸𝑅𝐶𝑠 𝑁𝑒𝑒𝑑𝑒𝑑 =
𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 − 𝐸𝐺𝑈 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑒𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒
∗ 𝑁𝑒𝑡 𝑔𝑒𝑛𝑒𝑟𝑎𝑡𝑖𝑜𝑛
𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑
𝐿𝐶𝑂𝐸𝑈𝑡𝑖𝑙𝑖𝑧𝑖𝑛𝑔 𝑇𝑟𝑎𝑑𝑒 = 𝐿𝐶𝑂𝐸𝐶𝑢𝑟𝑟𝑒𝑛𝑡
𝐶𝑜𝑠𝑡 𝑜𝑓 𝐶𝑂2 𝐴𝑣𝑜𝑖𝑑𝑒𝑑
𝑅𝑒𝑡𝑟𝑜𝑓𝑖𝑡 +
𝐸𝑅𝐶𝑠 𝑁𝑒𝑒𝑑𝑒𝑑 + 𝐺 𝑒𝑛𝑒𝑟𝑎𝑡𝑒𝑑(−
∗ 𝐶𝑜𝑠𝑡1 𝐸𝑅𝐶
𝑀𝑊ℎ
𝑀𝑊ℎ
𝐿𝐶𝑂𝐸𝑈𝑡𝑖𝑙𝑖𝑧𝑖𝑛𝑔 𝑇𝑟𝑎𝑑𝑒 − 𝐿𝐶𝑂𝐸𝐶𝑢𝑟𝑟𝑒𝑛𝑡
$
2000 𝑙𝑏𝑠
=
∗
𝑡𝑜𝑛 𝐶𝑂2
𝐸𝐺𝑈 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑟𝑎𝑡𝑒 − 𝐸𝑚𝑖𝑠𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑
𝑡𝑜𝑛
16
Coal Prices/EOR
17
Renewables LCOE
Input parameters for LCOE calculations for PV and wind
Plant Type (Time)
PV(2016)
PV(2030)
Wind(2016)
Wind(2030)
Capital Cost (2011$/kW)
2145
1294
1695
1668
Fixed O&M (2011$/kW)
7.37
7.37
46.5
46.5
Heat Rate (Btu/kWh)
9756
9756
9756
9756
Capacity Factor (in Texas)a
22%
22%
36%
36%
Net Power Output (MW)
150
100
150
100
Capital Charge Rate (%)
10.85
10.85
10.85
10.85
18
Auxiliary Power