Economic Evaluation of an Advanced Super Critical Oxy-Coal Power Plant with CO2 Capture
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Today’s carbon constrained world with its increasing demand for cheap energy and a fossil fuel intensive fleet of power producers is making carbon capture and storage (CCS) desirable. Several CCS technologies are under investigation by various research and development groups globally. One of the more promising technologies is oxy-fuel combustion, since it produces a CO2 rich flue gas which requires minor processing to meet storage condition requirements. In this study the economics of an advanced super critical oxy-coal power plant burning lignite, simulated in-house was assessed. A robust and user-friendly financial tool box has been developed with commonly acceptable default parameter settings. Capital, operation and maintenance costs were estimated along with corresponding levelized cost of electricity and CO2 avoidance costs calculated using the detailed financial model developed. A levelized cost of electricity of 131 $/MWhrnet along with a levelized CO2 avoidance cost of 64 $/tonne was estimated for an ASC oxy-coal power plant with CO2 capture. Also a levelized cost of electricity of 83 $/MWhrnet was estimated for an ASC air-fired coal power plant without CO2 capture capabilities as the base plant. The price of electricity was observed to increase from 83 $/MWhrnet to 131 $/MWhrnet translating into a 57% increase. The sensitivity of the overall economics of the process was assessed to several parameters. The overall economics was found sensitive to the choice chemical engineering plant cost index (CEPCI), capacity factor, size of power plant, debt ratio, fuel price, interest rate, and construction duration.