An Economic Study of Carbon Capture and Storage System Design and Policy
Carbon capture and storage (CCS) and a point of electricity generation is a promising option for mitigating greenhouse gas emissions. One issue with respect to CCS is the design of systems for carbon dioxide transportation as well as injection and storage. This dissertation develops a model, OptimaCCS, that combines economic and spatial optimization for the integration of CCS transportation and injection/storage infrastructure to minimize costs. The model solves for the lowest-cost set of pipeline routes and injection/storage sites that connect CO2 sources to the storage. It factors in pipeline costs, site-specific storage costs, and pipeline routes with consideration for existing right-of-ways and land use. It also considers cost reductions that result from networking the pipeline segments from the plants into trunk lines that lead to the storage sites. OptimaCCS is demonstrated for a system involving carbon capture at 14 Texas coal-fired power plants and three potential deep-saline aquifer sequestration sites. In turn, OptimaCCS generates 1) a cost-effective CCS pipeline network for transporting CO2 from all the power plants to the possible storage sites, and 2) an estimate of the costs associated with the CO2 transport and storage. It is used to examine variations in the configuration of the pipeline network depending on storge-site-specific differences in injection costs. These results highlight how various levels of cooperation by CO2 emitters and injection cost differences among possible storage sites can affect the most cost-effective arrangement for deploying CCS infrastructure.
This study also analyzes CCS deployment under the features of a proposed law, the American Power Act (APA) of 2010, which contained a goal of CCS emission capacity of 72 Gigawatt (GW) by 2034. A model was developed that simulates CCS deployment while considering different combinations of carbon price trajectories, technology progress, and assumed auction prices. The model shows that the deployment rate of CCS technology under APA is affected by the available bonus allowances, carbon price trajectory, CCS incentive, technological adaptation, and auction process. Furthermore it demonstrates that the 72GW objective can only be achieved in a rapid deployment scenario with quick learning-by-doing and high carbon price starting at $25/ton in 2013 with a 5% annual increase. Furthermore, under the slow and moderate deployment scenarios CCS capacity falls short of achieving the 72 GW objective.
Keywords: Energy Modeling; Economic Modeling; Energy Policy; Carbon Capture and Storage; Optimization; CO2 Transport; CO2 Pipeline;
Comments: This dissertation is currently embargoed from public access to protect the copyright of OptimaCCS.