Event Title
Conference on China and Global Climate Change : Reconciling International Fairness and Protection of the Atmospheric Commons
Location
AM310, Lingnan University
Start Date
18-6-2009 4:00 PM
End Date
18-6-2009 5:00 PM
Language
English
Description
The total thermal power capacity has grown by 65GW to over 600GW by the end of 2008 (CEC, 2009). Chinese government, industry and academic stakeholders perceive that China will not mandate new plants to be built with carbon dioxide capture and storage systems in the short term and there is little incentive even to contemplate the first steps needed to fit plants with capture equipment (Reiner et al, 2007). Therefore, we evaluate CO2 Capture Ready (CCR) investment, which would enable thermal power plants to be retrofitted to capture CO2 without unnecessary additional costs when the appropriate policy and /or economic drivers are in place (IEA, 2007).
In order to understand the value and investment characteristics of CCR in China, a typical 600MW pulverized-coal fired ultra-supercritical power plant was assessed. Combined with a detailed engineering assessment, we obtained the costs for different CCR scenarios. To analyze CCR investment opportunities, we apply a cash flow model for valuing Capture Options, as developed in Liang et al (2007). Results are obtained by Monte-Carlo simulation, with assumptions based on engineering surveys and the IEA (2007) CCR study, as well as plant performance information and expert estimations on carbon prices, coal prices and electricity prices.
Document Type
Presentation
Recommended Citation
Liang, X., Reiner, D., Gibbins, J., & Li, J. (2009). Evaluating CO2 capture ready investment in new-built thermal power plants in China. In China and global climate change: Proceedings of the conference held at Lingnan University, Hong Kong, 18-19 June 2009 (pp. 296-308). Centre for Asian Pacific Studies and the Environmental Studies Programme, Lingnan University, Hong Kong.
Included in
Evaluating CO2 capture ready investment in new-built thermal power plants in China
AM310, Lingnan University
The total thermal power capacity has grown by 65GW to over 600GW by the end of 2008 (CEC, 2009). Chinese government, industry and academic stakeholders perceive that China will not mandate new plants to be built with carbon dioxide capture and storage systems in the short term and there is little incentive even to contemplate the first steps needed to fit plants with capture equipment (Reiner et al, 2007). Therefore, we evaluate CO2 Capture Ready (CCR) investment, which would enable thermal power plants to be retrofitted to capture CO2 without unnecessary additional costs when the appropriate policy and /or economic drivers are in place (IEA, 2007).
In order to understand the value and investment characteristics of CCR in China, a typical 600MW pulverized-coal fired ultra-supercritical power plant was assessed. Combined with a detailed engineering assessment, we obtained the costs for different CCR scenarios. To analyze CCR investment opportunities, we apply a cash flow model for valuing Capture Options, as developed in Liang et al (2007). Results are obtained by Monte-Carlo simulation, with assumptions based on engineering surveys and the IEA (2007) CCR study, as well as plant performance information and expert estimations on carbon prices, coal prices and electricity prices.