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Economics and policies for carbon capture and sequestration in the western United States : a marginal cost analysis of potential power plant deployment

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dc.contributor.advisor Howard J. Herzog. Mort D. Webster and Karen R. Polenske. en_US
dc.contributor.author Shu, Gary en_US
dc.contributor.other Massachusetts Institute of Technology. Dept. of Urban Design Program. en_US
dc.coverage.spatial n-us--- en_US
dc.date.accessioned 2011-05-23T15:30:13Z
dc.date.available 2011-05-23T15:30:13Z
dc.date.copyright 2010 en_US
dc.date.issued 2010 en_US
dc.identifier.uri http://hdl.handle.net/1721.1/62874
dc.description Thesis (S.M. in Technology and Policy)--Massachusetts Institute of Technology, Engineering Systems Division; and, (M.C.P.)--Massachusetts Institute of Technology, Dept. of Urban Studies and Planning, 2010. en_US
dc.description This electronic version was submitted by the student author. The certified thesis is available in the Institute Archives and Special Collections. en_US
dc.description Cataloged from student submitted PDF version of thesis. en_US
dc.description Includes bibliographical references (p. 91-94). en_US
dc.description.abstract Carbon capture and sequestration (CCS) is a technology that can significantly reduce power sector greenhouse gas (GHG) emissions from coal-fired power plants. CCS technology is currently in development and requires higher construction and operating costs than is currently competitive in the private market. A question that policymakers and investors have is whether a CCS plant will operate economically and be able to sell their power output once built. One way of measuring this utilization rate is to calculate capacity factors of possible CCS power plants. To investigate the economics of CCS generation, a marginal cost dispatch model was developed to simulate the power grid in the Western Interconnection. Hypothetical generic advanced coal power plants with CCS were inserted into the power grid and annual capacity factor values were calculated for a variety of scenarios, including a carbon emission pricing policy. I demonstrate that CCS power plants, despite higher marginal costs due to the operating costs of the additional capture equipment, are competitive on a marginal cost basis with other generation on the power grid at modest carbon emissions prices. CCS power plants were able to achieve baseload level capacity factors with $10 to $30 per ton-CO2 prices. However, for investment in CCS power plants to be economically competitive requires that the higher capital costs be recovered over the plant lifetime, which only occurs at much higher carbon prices. To cover the capital costs of first-of-the-kind CCS power plants in the Western Interconnection, carbon emissions prices have been calculated to be much higher, in the range of $130 to $145 per ton-CO2 for most sites in the initial scenario. Two sites require carbon prices of $65 per ton-CO2 or less to cover capital costs. Capacity factors and the impact of carbon prices vary considerably by plant location because of differences in spare transmission capacity and local generation mix. en_US
dc.description.statementofresponsibility by Gary Shu. en_US
dc.format.extent 106 p. en_US
dc.language.iso eng en_US
dc.publisher Massachusetts Institute of Technology en_US
dc.rights M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission. en_US
dc.rights.uri http://dspace.mit.edu/handle/1721.1/7582 en_US
dc.subject Engineering Systems Division. en_US
dc.subject Technology and Policy Program. en_US
dc.subject Urban Studies and Planning. en_US
dc.subject Urban Design Program. en_US
dc.title Economics and policies for carbon capture and sequestration in the western United States : a marginal cost analysis of potential power plant deployment en_US
dc.title.alternative Marginal cost analysis of potential power plant deployment en_US
dc.type Thesis en_US
dc.description.degree M.C.P. en_US
dc.description.degree S.M.in Technology and Policy en_US
dc.contributor.department Massachusetts Institute of Technology. Engineering Systems Division. en_US
dc.contributor.department Massachusetts Institute of Technology. Technology and Policy Program. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Urban Studies and Planning. en_US
dc.contributor.department Massachusetts Institute of Technology. Dept. of Urban Design Program. en_US
dc.identifier.oclc 720967278 en_US


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