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• Lower energy requirements for the capture process (based on analysis documented in January 1997 MIT/DOE White Paper on CO2 sequestration). • Lower capital costs for the capture process (assumed 10% reduction from the current levels). The choice of the base case is a major determinant in mitigation cost expressed as $ per tonne of CO2 avoided. In Table 2, two different base cases are used. The first calculation uses the reference plant of the same type as the capture plant. In other words, we compare an IGCC capture plant to an IGCC reference plant. The second calculation compares everything to an NGCC reference plant, which is the power plant of choice today. Typically, to account for the transportation and injection of the CO2 once it leaves the power plant, an additional $5-15 per tonne CO2 avoided should be added. However, if the CO2 is going to be utilized for commercial purposes, a credit can be taken, improving the economics greatly. To clearly introduce the above concepts, we have treated CO2 separation and capture discretely from transportation and injection. However, a systems approach is needed to understand the most economical way to proceed. For example, enhanced coal bed methane (ECBM) can utilize nitrogen as well as CO2. Therefore, for ECBM, it may not be necessary to separate out the nitrogen prior to injection. On the other hand, use of flue gas versus CO2 has some drawbacks, such as much higher energy requirements for compression. This paper provides just an introduction to the topic of the economics of CO2 separation and capture. Other important questions not addressed include: • What about retrofits? This paper just looked at new plants. • What will happen beyond 2012? How much more can we improve the economics? • Can we combine CO2 controls with controls on NOx and SO2 to improve the economics? Numbers in this paper assume sequential control. Further information may be found on my web site at: http://web.mit.edu/energylab/www/hjherzog/ or on in the DOE report on Carbon Sequestration: State of the Science at http://www.fe.doe.gov/sequestration/ 4PDF Image | Carbon Capture
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