National-level infrastructure and economic effects of switchgrass cofiring with coal in existing power plants for carbon mitigation

We update a previously presented Linear Programming (LP) methodology for estimating state level costs for reducing CO2 emissions from existing coal-fired power plants by cofiring switchgrass, a biomass energy crop, and coal. This paper presents national level results of applying the methodology to the entire portion of the United States in which switchgrass could be grown without irrigation. We present incremental switchgrass and coal cofiring carbon cost of mitigation curves along with a presentation of regionally specific cofiring economics and policy issues. The results show that cofiring 189 million dry short tons of switchgrass with coal in the existing U.S. coal-fired electricity generation fleet can mitigate approximately 256 million short tons of carbon-dioxide (CO2) per year, representing a 9% reduction of 2005 electricity sector CO2 emissions. Total marginal costs, including capital, labor, feedstock, and transportation, range from $20 to $86/ton CO2 mitigated,with average costs ranging from $20 to $45/ton. If some existing power plants upgrade to boilers designed for combusting switchgrass, an additional 54 million tons of switchgrass can be cofired. In this case, total marginal costs range from $26 to $100/ton CO2 mitigated, with average costs ranging from $20 to $60/ton. Costs for states east of the Mississippi River are largely unaffected by boiler replacement; Atlantic seaboard states represent the lowest cofiring cost of carbon mitigation. The central plains states west of the Mississippi River are most affected by the boiler replacement option and, in general, go from one of the lowest cofiring cost of carbon mitigation regions to the highest. We explain the variation in transportation expenses and highlight regional cost of mitigation variations as transportation overwhelms other cofiring costs.     

State-level infrastructure and economic effects of switchgrass cofiring with coal in existing power plants for carbon mitigation

This paper presents a linear programming (LP) methodology for estimating the cost of reducing a state's coal-fired power plant carbon dioxide emissions by cofiring switchgrass and coal. LP modeling allows interplay between regionally specific switchgrass production forecasts, coal plant locations, and individual coal plant historic performance data to determine an allocation of switchgrass minimizing cost or maximizing carbon reduction. The LP methodology is applied to two states, Pennsylvania (PA) and Iowa (IA), and results are presented with a discussion of modeling assumptions, techniques, and carbon mitigation policy implications. The LP methodology estimates that, in PA, 4.9 million tons of CO2/year could be mitigated at an average cost of less than $34/ton of CO2 and that, in IA, 7 million tons of CO2/year could be mitigated at an average Cost of Mitigation of $27/ton of CO2. Because the factors determining the cofiring costs vary so much between the two states, results suggest that cofiring costs will also vary considerably between different U.S. regions. A national level analysis could suggest a lowest-cost cofiring region. This paper presents techniques and assumptions that can simplify biomass energy policy analysis with little effect on analysis conclusions.     

Densified biomass can cost-effectively mitigate greenhouse gas emissions and address energy security in thermal applications

Regional supplies of biomass are currently being evaluated as feedstocks in energy applications to meet renewable portfolio (RPS) and low carbon fuel standards. We investigate the life cycle greenhouse gas (GHG) emissions and associated abatement costs resulting from using densified switchgrass for thermal and electrical energy. In contrast to the large and positive abatement costs for using biomass in electricity generation ($149/Mg CO(2)e) due to the low cost of coal and high feedstock and power plant operation costs, abatement costs for replacing fuel oil with biomass in thermal applications are large and negative (-$52 to -$92/Mg CO(2)e), resulting in cost savings. Replacing fuel oil with biomass in thermal applications results in least cost reductions compared to replacing coal in electricity generation, an alternative that has gained attention due to RPS legislation and the centralized production model most often considered in U.S. policy. Our estimates indicate a more than doubling of liquid fuel displacement when switchgrass is substituted for fuel oil as opposed to gasoline, suggesting that, in certain U.S. locations, such as the northeast, densified biomass would help to significantly decarbonize energy supply with regionally sourced feedstock, while also reducing imported oil. On the basis of supply projections from the recently released Billion Ton Report, there will be enough sustainably harvested biomass available in the northeast by 2022 to offset the entirety of heating oil demand in the same region. This will save NE consumers between $2.3 and $3.9 billion annually. Diverting the same resource to electricity generation would cost the region $7.7 billion per year. While there is great need for finding low carbon substitutes for coal power and liquid transportation fuels in the U.S., we argue that in certain regions it makes cost- (and GHG mitigation-) effective sense to phase out liquid heating fuels with locally produced biomass first.     

Costs for integrating wind into the future ERCOT system with related costs for savings in CO2 emissions

Wind power can make an important contribution to the goal of reducing emissions of CO2. The major problem relates to the intrinsic variability of the source and the difficulty of reconciling the supply of electricity with demand particularly at high levels of wind penetration. This challenge is explored for the case of the ERCOT system in Texas. Demand for electricity in Texas is projected to increase by approximately 60% by 2030. Considering hourly load data reported for 2006, assuming that the pattern of demand in 2030 should be similar to 2006, and adopting as a business as usual (BAU) reference an assumption that the anticipated additional electricity should be supplied by a combination of coal and gas with prices, discounted to 2007 dollars of $2 and $6 per MMBTU respectively, we conclude that the bus-bar price for electricity would increase by about 1.1 ￠/kWh at a wind penetration level of 30%, by about 3.4 ￠/kWh at a penetration level of 80%. Corresponding costs for reductions in CO2 range from $20/ton to $60/ton. A number of possibilities are discussed that could contribute to a reduction in these costs including the impact of an expanded future fleet of electrically driven vehicles.     

Are renewables portfolio standards cost-effective emission abatement policy?

Renewables portfolio standards (RPS) could be an important policy instrument for 3P and 4P control. We examine the costs of renewable power, accounting for the federal production tax credit, the market value of a renewable credit, and the value of producing electricity without emissions of SO2, NOx, mercury, and CO2. We focus on Texas, which has a large RPS and is the largest U.S. electricity producer and one of the largest emitters of pollutants and CO2. We estimate the private and social costs of wind generation in an RPS compared with the current cost of fossil generation, accounting for the pollution and CO2 emissions. We find that society paid about 5.7 cent/kWh more for wind power, counting the additional generation, transmission, intermittency, and other costs. The higher cost includes credits amounting to 1.1 cent/kWh in reduced SO2, NOx, and Hg emissions. These pollution reductions and lower CO2 emissions could be attained at about the same cost using pulverized coal (PC) or natural gas combined cycle (NGCC) plants with carbon capture and sequestration (CCS); the reductions could be obtained more cheaply with an integrated coal gasification combined cycle (IGCC) plant with CCS.     

Short run effects of a price on carbon dioxide emissions from U.S. electric generators

The price of delivered electricity will rise if generators have to pay for carbon dioxide emissions through an implicit or explicit mechanism. There are two main effects that a substantial price on CO2 emissions would have in the short run (before the generation fleet changes significantly). First, consumers would react to increased price by buying less, described by their price elasticity of demand. Second, a price on CO2 emissions would change the order in which existing generators are economically dispatched, depending on their carbon dioxide emissions and marginal fuel prices. Both the price increase and dispatch changes depend on the mix of generation technologies and fuels in the region available for dispatch, although the consumer response to higher prices is the dominant effect. We estimate that the instantaneous imposition of a price of $35 per metric ton on CO2 emissions would lead to a 10% reduction in CO2 emissions in PJM and MISO at a price elasticity of -0.1. Reductions in ERCOT would be about one-third as large. Thus, a price on CO2 emissions that has been shown in earlier workto stimulate investment in new generation technology also provides significant CO2 reductions before new technology is deployed at large scale.     

Baseload coal investment decisions under uncertain carbon legislation

More than 50% of electricity in the U.S. is generated by coal. The U.S. has large coal resources, the cheapest fuel in most areas. Coal fired power plants are likely to continue to provide much of U.S. electricity. However, the type of power plant that should be built is unclear. Technology can reduce pollutant discharges and capture and sequester the CO2 from coal-fired generation. The U.S. Energy Policy Act of 2005 provides incentives for large scale commercial deployment of Integrated Coal Gasification Combined Cycle (IGCC) systems (e.g., loan guarantees and project tax credits). This analysis examines whether a new coal plant should be Pulverized Coal (PC) or IGCC. Do stricter emissions standards (PM, SO2, NOx, Hg) justify the higher costs of IGCC over PC? How does potential future carbon legislation affect the decision to add carbon capture and storage (CCS) technology? Finally, can the impact of uncertain carbon legislation be minimized? We find that SO2, NOx, PM, and Hg emission standards would have to be far more stringent than twice current standards to justify the increased costs of the IGCC system. A C02 tax less than $29/ton would lead companies to continuing to choose PC, paying the tax for emitted CO2. The earlier a decision-maker believes the carbon tax will be imposed and the higher the tax, the more likely companies will choose IGCC w/CCS. Having government announce the date and level of a carbon tax would promote more sensible decisions, but government would have to use a tax or subsidy to induce companies to choose the technology that is best for society.     

Long-Term Energy and Climate Implications of Carbon Capture and Storage Deployment Strategies in the US Coal-Fired Electricity Fleet

To understand the long-term energy and climate implications of different implementation strategies for carbon capture and storage (CCS) in the US coal-fired electricity fleet, we integrate three analytical elements: scenario projection of energy supply systems, temporally explicit life cycle modeling, and time-dependent calculation of radiative forcing. Assuming continued large-scale use of coal for electricity generation, we find that aggressive implementation of CCS could reduce cumulative greenhouse gas emissions (CO(2), CH(4), and N(2)O) from the US coal-fired power fleet through 2100 by 37-58%. Cumulative radiative forcing through 2100 would be reduced by only 24-46%, due to the front-loaded time profile of the emissions and the long atmospheric residence time of CO(2). The efficiency of energy conversion and carbon capture technologies strongly affects the amount of primary energy used but has little effect on greenhouse gas emissions or radiative forcing. Delaying implementation of CCS deployment significantly increases long-term radiative forcing. This study highlights the time-dynamic nature of potential climate benefits and energy costs of different CCS deployment pathways and identifies opportunities and constraints of successful CCS implementation.     

Implications of Near-Term Coal Power Plant Retirement for SO(2) and NO(X) and Life Cycle GHG Emissions

Regulations monitoring SO(2), NO(X), mercury, and other metal emissions in the U.S. will likely result in coal plant retirement in the near-term. Life cycle assessment studies have previously estimated the environmental benefits of displacing coal with natural gas for electricity generation, by comparing systems that consist of individual natural gas and coal power plants. However, such system comparisons may not be appropriate to analyze impacts of coal plant retirement in existing power fleets. To meet this limitation, simplified economic dispatch models for PJM, MISO, and ERCOT regions are developed in this study to examine changes in regional power plant dispatch that occur when coal power plants are retired. These models estimate the order in which existing power plants are dispatched to meet electricity demand based on short-run marginal costs, with cheaper plants being dispatched first. Five scenarios of coal plant retirement are considered: retiring top CO(2) emitters, top NO(X) emitters, top SO(2) emitters, small and inefficient plants, and old and inefficient plants. Changes in fuel use, life cycle greenhouse gas emissions (including uncertainty), and SO(2) and NO(X) emissions are estimated. Life cycle GHG emissions were found to decrease by less than 4% in almost all scenarios modeled. In addition, changes in marginal damage costs due to SO(2), and NO(X) emissions are estimated using the county level marginal damage costs reported in the Air Pollution Emissions Experiments and Policy (APEEP) model, which are a proxy for measuring regional impacts of SO(2) and NO(X) emissions. Results suggest that location specific parameters should be considered within environmental policy frameworks targeting coal plant retirement, to account for regional variability in the benefits of reducing the impact of SO(2) and NO(X) emissions.     

Forest bioenergy or forest carbon? Assessing trade-offs in greenhouse gas mitigation with wood-based fuels

The potential of forest-based bioenergy to reduce greenhouse gas (GHG) emissions when displacing fossil-based energy must be balanced with forest carbon implications related to biomass harvest. We integrate life cycle assessment (LCA) and forest carbon analysis to assess total GHG emissions of forest bioenergy over time. Application of the method to case studies of wood pellet and ethanol production from forest biomass reveals a substantial reduction in forest carbon due to bioenergy production. For all cases, harvest-related forest carbon reductions and associated GHG emissions initially exceed avoided fossil fuel-related emissions, temporarily increasing overall emissions. In the long term, electricity generation from pellets reduces overall emissions relative to coal, although forest carbon losses delay net GHG mitigation by 16-38 years, depending on biomass source (harvest residues/standing trees). Ethanol produced from standing trees increases overall emissions throughout 100 years of continuous production: ethanol from residues achieves reductions after a 74 year delay. Forest carbon more significantly affects bioenergy emissions when biomass is sourced from standing trees compared to residues and when less GHG-intensive fuels are displaced. In all cases, forest carbon dynamics are significant. Although study results are not generalizable to all forests, we suggest the integrated LCA/forest carbon approach be undertaken for bioenergy studies.     

Implications of the recent reductions in natural gas prices for emissions of CO2 from the US power sector

CO(2) emissions from the US power sector decreased by 8.76% in 2009 relative to 2008 contributing to a decrease over this period of 6.59% in overall US emissions of greenhouse gases. An econometric model, tuned to data reported for regional generation of US electricity, is used to diagnose factors responsible for the 2009 decrease. More than half of the reduction is attributed to a shift from generation of power using coal to gas driven by a recent decrease in gas prices in response to the increase in production from shale. An important result of the model is that, when the cost differential for generation using gas rather than coal falls below 2-3 cents/kWh, less efficient coal fired plants are displaced by more efficient natural gas combined cycle (NGCC) generation alternatives. Costs for generation using NGCC decreased by close to 4 cents/kWh in 2009 relative to 2008 ensuring that generation of electricity using gas was competitive with coal in 2009 in contrast to the situation in 2008 when gas prices were much higher. A modest price on carbon could contribute to additional switching from coal to gas with further savings in CO(2) emissions.     

The cost of carbon capture and storage for natural gas combined cycle power plants

This paper examines the cost of CO(2) capture and storage (CCS) for natural gas combined cycle (NGCC) power plants. Existing studies employ a broad range of assumptions and lack a consistent costing method. This study takes a more systematic approach to analyze plants with an amine-based postcombustion CCS system with 90% CO(2) capture. We employ sensitivity analyses together with a probabilistic analysis to quantify costs for plants with and without CCS under uncertainty or variability in key parameters. Results for new baseload plants indicate a likely increase in levelized cost of electricity (LCOE) of $20-32/MWh (constant 2007$) or $22-40/MWh in current dollars. A risk premium for plants with CCS increases these ranges to $23-39/MWh and $25-46/MWh, respectively. Based on current cost estimates, our analysis further shows that a policy to encourage CCS at new NGCC plants via an emission tax or carbon price requires (at 95% confidence) a price of at least $125/t CO(2) to ensure NGCC-CCS is cheaper than a plant without CCS. Higher costs are found for nonbaseload plants and CCS retrofits.     

Energy and material balance of CO2 capture from ambient air

Current Carbon Capture and Storage (CCS) technologies focus on large, stationary sources that produce approximately 50% of global CO2 emissions. We propose an industrial technology that captures CO2 directly from ambient air to target the remaining emissions. First, a wet scrubbing technique absorbs CO2 into a sodium hydroxide solution. The resultant carbonate is transferred from sodium ions to calcium ions via causticization. The captured CO2 is released from the calcium carbonate through thermal calcination in a modified kiln. The energy consumption is calculated as 350 kJ/mol of CO2 captured. It is dominated by the thermal energy demand of the kiln and the mechanical power required for air movement. The low concentration of CO2 in air requires a throughput of 3 million cubic meters of air per ton of CO2 removed, which could result in significant water losses. Electricity consumption in the process results in CO2 emissions and the use of coal power would significantly reduce to net amount captured. The thermodynamic efficiency of this process is low but comparable to other "end of pipe" capture technologies. As another carbon mitigation technology, air capture could allow for the continued use of liquid hydrocarbon fuels in the transportation sector.     

Comparison of two U.S. power-plant carbon dioxide emissions data sets

Estimates of fossil-fuel CO2 emissions are needed to address a variety of climate-change mitigation concerns over a broad range of spatial and temporal scales. We compared two data sets that report power-plant CO2 emissions in the conterminous U.S. for 2004, the most recent year reported in both data sets. The data sets were obtained from the Department of Energy's Energy Information Administration (EIA) and the Environmental Protection Agency's eGRID database. Conterminous U.S. total emissions computed from the data sets differed by 3.5% for total plant emissions (electricity plus useful thermal output) and 2.3% for electricity generation only. These differences are well within previous estimates of uncertainty in annual U.S. fossil-fuel emissions. However, the corresponding average absolute differences between estimates of emissions from individual power plants were much larger, 16.9% and 25.3%, respectively. By statistical analysis, we identified several potential sources of differences between EIA and eGRID estimates for individual plants. Estimates that are based partly or entirely on monitoring of stack gases (reported by eGRID only) differed significantly from estimates based on fuel consumption (as reported by EIA). Differences in accounting methods appear to explain differences in estimates for emissions from electricity generation from combined heat and power plants, and for total and electricity generation emissions from plants that burn nonconventional fuels (e.g., biomass). Our analysis suggests the need for care in utilizing emissions data from individual power plants, and the need for transparency in documenting the accounting and monitoring methods used to estimate emissions.     

Costs of Solar and Wind Power Variability for Reducing CO(2) Emissions

We compare the power output from a year of electricity generation data from one solar thermal plant, two solar photovoltaic (PV) arrays, and twenty Electric Reliability Council of Texas (ERCOT) wind farms. The analysis shows that solar PV electricity generation is approximately one hundred times more variable at frequencies on the order of 10(-3) Hz than solar thermal electricity generation, and the variability of wind generation lies between that of solar PV and solar thermal. We calculate the cost of variability of the different solar power sources and wind by using the costs of ancillary services and the energy required to compensate for its variability and intermittency, and the cost of variability per unit of displaced CO(2) emissions. We show the costs of variability are highly dependent on both technology type and capacity factor. California emissions data were used to calculate the cost of variability per unit of displaced CO(2) emissions. Variability cost is greatest for solar PV generation at $8-11 per MWh. The cost of variability for solar thermal generation is $5 per MWh, while that of wind generation in ERCOT was found to be on average $4 per MWh. Variability adds ～$15/tonne CO(2) to the cost of abatement for solar thermal power, $25 for wind, and $33-$40 for PV.     

Electricity production from anaerobic digestion of household organic waste in Ontario: techno-economic and GHG emission analyses

The first Feed-in-Tariff (FiT) program in North America was recently implemented in Ontario, Canada to stimulate the generation of electricity from renewable sources. The life cycle greenhouse gas (GHG) emissions and economics of electricity generation through anaerobic digestion (AD) of household source-separated organic waste (HSSOW) are investigated within the FiT program. AD can potentially provide considerable GHG emission reductions (up to 1 t CO(2)eq/t HSSOW) at relatively low to moderate cost (-$35 to 160/t CO(2)eq) by displacing fossil electricity and preventing the emission of landfill gas. It is a cost-effective GHG mitigation option compared to some other FiT technologies (e.g., wind, solar photovoltaic) and provides unique additional benefits (waste diversion, nutrient recycling). The combination of electricity sales at a premium rate, savings in waste management costs, and economies of scale allow AD facilities processing >30,000 t/yr to be cost-competitive against landfilling. However, the FiT does not sufficiently support smaller-scale facilities that are needed as a transition to larger, more economically viable facilities. Refocusing of the FiT program and waste policies are needed to support the adoption of AD of HSSOW, which has not yet been developed in the Province, while more costly technologies (e.g., photovoltaic) have been deployed.     

A technical,economic, and environmental assessment of amine-based CO2 capture technology for power plant greenhouse gas control

Capture and sequestration of CO2 from fossil fuel power plants is gaining widespread interest as a potential method of controlling greenhouse gas emissions. Performance and cost models of an amine (MEA)-based CO2 absorption system for postcombustion flue gas applications have been developed and integrated with an existing power plant modeling framework that includes multipollutant control technologies for other regulated emissions. The integrated model has been applied to study the feasibility and cost of carbon capture and sequestration at both new and existing coal-burning power plants. The cost of carbon avoidance was shown to depend strongly on assumptions about the reference plant design, details of the CO2 capture system design, interactions with other pollution control systems, and method of CO2 storage. The CO2 avoidance cost for retrofit systems was found to be generally higher than for new plants, mainly because of the higher energy penalty resulting from less efficient heat integration as well as site-specific difficulties typically encountered in retrofit applications. For all cases, a small reduction in CO2 capture cost was afforded by the SO2 emission trading credits generated by amine-based capture systems. Efforts are underway to model a broader suite of carbon capture and sequestration technologies for more comprehensive assessments in the context of multipollutant environmental management.     

A "carbonizing dragon": China's fast growing CO2 emissions revisited

China's annual CO(2) emissions grew by around 4 billion tonnes between 1992 and 2007. More than 70% of this increase occurred between 2002 and 2007. While growing export demand contributed more than 50% to the CO(2) emission growth between 2002 and 2005, capital investments have been responsible for 61% of emission growth in China between 2005 and 2007. We use structural decomposition analysis to identify the drivers for China's emission growth between 1992 and 2007, with special focus on the period 2002 to 2007 when growth was most rapid. In contrast to previous analysis, we find that efficiency improvements have largely offset additional CO(2) emissions from increased final consumption between 2002 and 2007. The strong increases in emissions growth between 2002 and 2007 are instead explained by structural change in China's economy, which has newly emerged as the third major emission driver. This structural change is mainly the result of capital investments, in particular, the growing prominence of construction services and their carbon intensive supply chain. By closing the model for capital investment, we can now show that the majority of emissions embodied in capital investment are utilized for domestic household and government consumption (35-49% and 19-36%, respectively) with smaller amounts for the production of exports (21-31%). Urbanization and the associated changes in lifestyle are shown to be more important than other socio-demographic drivers like the decreasing household size or growing population. We argue that mitigation efforts will depend on the future development of these key drivers, particularly capital investments which dictate future mitigation costs.     

Co-control of urban air pollutants and greenhouse gases in Mexico City

This study addresses the synergies of mitigation measures to control urban air pollutant and greenhouse gas (GHG) emissions, in developing integrated "co-control" strategies for Mexico City. First, existing studies of emissions reduction measures--PROAIRE (the air quality plan for Mexico City) and separate GHG studies--are used to construct a harmonized database of options. Second, linear programming (LP) is developed and applied as a decision-support tool to analyze least-cost strategies for meeting co-control targets for multiple pollutants. We estimate that implementing PROAIRE measures as planned will reduce 3.1% of the 2010 metropolitan CO2 emissions, in addition to substantial local air pollutant reductions. Applying the LP, PROAIRE emissions reductions can be met at a 20% lower cost, using only the PROAIRE measures, by adjusting investments toward the more cost-effective measures; lower net costs are possible by including cost-saving GHG mitigation measures, but with increased investment. When CO2 emission reduction targets are added to PROAIRE targets, the most cost-effective solutions use PROAIRE measures for the majority of local pollutant reductions, and GHG measures for additional CO2 control. Because of synergies, the integrated planning of urban-global co-control can be beneficial, but we estimate that for Mexico City these benefits are often small.     

Reducing CO2 emissions and energy consumption of heat-integrated distillation systems

Distillation systems are energy and power intensive processes and contribute significantly to the greenhouse gases emissions (e.g. carbon dioxide). Reducing CO2 emissions is an absolute necessity and expensive challenge to the chemical process industries in orderto meetthe environmental targets as agreed in the Kyoto Protocol. A simple model for the calculation of CO2 emissions from heat-integrated distillation systems is introduced, considering typical process industry utility devices such as boilers, furnaces, and turbines. Furnaces and turbines consume large quantities of fuels to provide electricity and process heats. As a result, they produce considerable amounts of CO2 gas to the atmosphere. Boilers are necessary to supply steam for heating purposes; besides, they are also significant emissions contributors. The model is used in an optimization-based approach to optimize the process conditions of an existing crude oil atmospheric tower in order to reduce its CO2 emissions and energy demands. It is also applied to generate design options to reduce the emissions from a novel internally heat-integrated distillation column (HIDiC). A gas turbine can be integrated with these distillation systems for larger emissions reduction and further energy savings. Results show that existing crude oil installations can save up to 21% in energy and 22% in emissions, when the process conditions are optimized. Additionally, by integrating a gas turbine, the total emissions can be reduced further by 48%. Internal heat-integrated columns can be a good alternative to conventional heat pump and other energy intensive close boiling mixtures separations. Energy savings can reach up to 100% with respect to reboiler heat requirements. Emissions of these configurations are cut down by up to 83%, compared to conventional units, and by 36%, with respect to heat pump alternatives. Importantly, cost savings and more profit are gained in parallel to emissions minimization.