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Article

Comparative Analysis of Carbon Capture and Storage Finance Gaps and the Social Cost of Carbon

1
National Energy Technology Laboratory (NETL), Site Support Contractor, 3610 Collins Ferry Road, P.O. Box 880, Morgantown, WV 26505, USA
2
NETL, Site Support Contractor, 626 Cochrans Mill Road, P.O. Box 10940, Pittsburgh, PA 15236, USA
3
NETL, Economist, 626 Cochrans Mill Road, P.O. Box 10940, Pittsburgh, PA 15236, USA
*
Author to whom correspondence should be addressed.
Academic Editor: Christopher A. Simon
Energies 2021, 14(11), 2987; https://doi.org/10.3390/en14112987
Received: 20 April 2021 / Revised: 10 May 2021 / Accepted: 18 May 2021 / Published: 21 May 2021
(This article belongs to the Special Issue Alternative Energy Policy)
This paper evaluates how changes in economic market and policy conditions, including the establishment of a per-unit tax on unabated emissions of carbon dioxide (CO2) set equal to estimates of the social cost of carbon (SCC), influence the economics of carbon capture and storage (CCS) for two hypothetical power generation facilities located in the United States. Data are provided from modified versions of models and resources created and managed by the National Energy Technology Laboratory. Changes in economic market and policy conditions are evaluated over a series of scenarios in which differences in the levelized cost of electricity (LCOE) provide estimates of the financial gap necessary to overcome for CCS to be considered the cost-minimizing choice for each power generation facility type considered. Results suggest that for the coal and natural gas power generation facilities considered, a per-unit tax set equal to an SCC exceeding $123 per metric ton of CO2 (/tCO2) emitted (2018 dollars) and $167/tCO2 emitted, respectively, in combination with current Section 45Q tax credits, yields investment in CCS as the cost-minimizing choice; SCC values as low as $58/tCO2 and $98/tCO2 can make CCS the cost-minimizing choice with additional support policies (e.g., free transportation and storage options). View Full-Text
Keywords: social cost of carbon; carbon capture and storage; negative externality; financial gaps; economic efficiency social cost of carbon; carbon capture and storage; negative externality; financial gaps; economic efficiency
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MDPI and ACS Style

Harker Steele, A.; Warner, T.; Vikara, D.; Guinan, A.; Balash, P. Comparative Analysis of Carbon Capture and Storage Finance Gaps and the Social Cost of Carbon. Energies 2021, 14, 2987. https://doi.org/10.3390/en14112987

AMA Style

Harker Steele A, Warner T, Vikara D, Guinan A, Balash P. Comparative Analysis of Carbon Capture and Storage Finance Gaps and the Social Cost of Carbon. Energies. 2021; 14(11):2987. https://doi.org/10.3390/en14112987

Chicago/Turabian Style

Harker Steele, Amanda, Travis Warner, Derek Vikara, Allison Guinan, and Peter Balash. 2021. "Comparative Analysis of Carbon Capture and Storage Finance Gaps and the Social Cost of Carbon" Energies 14, no. 11: 2987. https://doi.org/10.3390/en14112987

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