10.6084/m9.figshare.1011610.v1
Carey W King
Carey
W King
Gürcan Gülen
Gürcan Gülen
Stuart M Cohen
Stuart M Cohen
Vanessa Nuñez-Lopez
Vanessa
Nuñez-Lopez
Summary of system-wide economics of CCUS network ($2009 million)
IOP Publishing
2013
eor
electricity prices
system economics drop
power plants
oil recovery
CO 2
ccus
Electric Reliability Council
npv
CO 2 demand
anthropogenic CO 2
CO 2 emissions penalty
Environmental Science
2013-09-09 00:00:00
Dataset
https://iop.figshare.com/articles/dataset/___Summary_of_system_wide_economics_of_CCUS_network_2009_million_/1011610
<p><b>Table 4.</b>
Summary of system-wide economics of CCUS network ($2009 million). A 10% discount rates is used for NPV analysis. Three values for a given scenario represent the three different electricity prices assumed for sensitivity analysis (from top to bottom, 0.05$ kWh<sup>−1</sup>; industrial; residential).
</p> <p><strong>Abstract</strong></p> <p>This letter compares several bounding cases for understanding the economic viability of capturing large quantities of anthropogenic CO<sub>2</sub> from coal-fired power generators within the Electric Reliability Council of Texas electric grid and using it for pure CO<sub>2</sub> enhanced oil recovery (EOR) in the onshore coastal region of Texas along the Gulf of Mexico. All captured CO<sub>2</sub> in excess of that needed for EOR is sequestered in saline formations at the same geographic locations as the oil reservoirs but at a different depth. We analyze the extraction of oil from the same set of ten reservoirs within 20- and five-year time frames to describe how the scale of the carbon dioxide capture, utilization, and storage (CCUS) network changes to meet the rate of CO<sub>2</sub> demand for oil recovery. Our analysis shows that there is a negative system-wide net present value (NPV) for all modeled scenarios. The system comes close to breakeven economics when capturing CO<sub>2</sub> from three coal-fired power plants to produce oil via CO<sub>2</sub>-EOR over 20 years and assuming no CO<sub>2</sub> emissions penalty. The NPV drops when we consider a larger network to produce oil more quickly (21 coal-fired generators with CO<sub>2</sub> capture to produce 80% of the oil within five years). Upon applying a CO<sub>2</sub> emissions penalty of 60$2009/tCO<sub>2</sub> to fossil fuel emissions to ensure that coal-fired power plants with CO<sub>2</sub> capture remain in baseload operation, the system economics drop significantly. We show near profitability for the cash flow of the EOR operations only; however, this situation requires relatively cheap electricity prices during operation.</p>