Research Economics and Costs

Project: The Economics of CO2 Storage

Research Team: Gemma Heddle, Michael Klett, Bert Bock, Richard Rhudy and Howard Herzog

Sponsor: Carbon Sequestration Initiative and T.V.A.

Year: 2003

Abstract:
The following storage options were evaluated in this study:

• Enhanced oil recovery

• Enhanced coalbed methane recovery

• Depleted oil reservoir storage

• Depleted gas reservoir storage

• Deep saline aquifer storage

• Ocean storage via pipeline

• Ocean storage via tanker

For each option, the CO2 source is a nominal 500 MWe gross Integrated Gasification Combined Cycle (IGCC) plant, operating at an 80 percent capacity factor.  This plant delivers 7,389 tonnes of CO2 per day.  Given this source of CO2, a baseline conceptual design was generated for each option.  From the baseline conceptual design, capital and O&M costs, and an economic analysis with several figures of merits were developed.  These were then used to develop sensitivity and life cycle analyses.

In the case of the ocean storage options, it is assumed that three IGCC power plants supply CO2 to a shoreline collection point.  Based on this, the ocean storage systems need to be designed to handle three times the quantity of CO2, i.e. 22,167 tonnes of CO2 per day.

Publications:
Heddle, G., H. Herzog and M. Klett, "The Economics of CO2 Storage," M.I.T. LFEE 2003-003 RP, August (2003).<PDF>

Bock, B.R., R.G. Rhudy, and H.J. Herzog, "CO2 Storage and Sink Enhancements: Developing Comparable Economics," presented at the Sixth International Conference on Greenhouse Gas Control Technologies, Kyoto, Japan, October 1-4 (2002). <PDF>