A techno-economic assessment of carbon-sequestration tax incentives in the U.S. power sector

Anderson, Jeffrey J.; Rode, David C.; Zhai, Haibo; Fischbeck, Paul S.

doi:10.1016/j.ijggc.2021.103450

Cited by 18 publications

(26 citation statements)

References 38 publications

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“…This analysis should be inclusive of resource intermittency when there is already high VRE penetration, as not all existing CFEGUs or NGCC plants are suitable for CCS retrofit and site-specific attributes are important. 47 , 74 Expanded to the national level, this may require as much as 20% of U.S. generation be produced by net-zero technologies to minimize the exponential rise in system costs from curtailment and storage solutions in a generation portfolio with high VRE penetrations. 17 , 22 , 25 …”

Section: Resultsmentioning

confidence: 99%

“…In a previous paper, 47 we addressed two gaps in the aforementioned literature to achieve emission reductions with 45Q incentives in the 2030 U.S. fossil-fuel fleet. One gap addressed was the economic decision of the owner in determining the least-cost configuration of the individual EGU to achieve emissions reduction when faced with fungible competition.…”

Section: Introductionmentioning

confidence: 99%

“… 48 , 49 While Edmonds et al 44 also examined the impact of the 45Q tax credit for immediate sequestration, the result is confounded with that for EOR and is further confounded across the power and industrial sectors. Anderson et al, 47 also furthered the discussion of future 45Q policies to promote carbon capture 43 , 44 through modification of the credit level and duration to promote CCS for specific generation technologies.…”

Section: Introductionmentioning

confidence: 99%

“…To further explore these gaps, in this policy analysis we expand upon previous work 47 and complete a LCOE comparison of 17 generation technologies at the national level in 2030 (shown in Table 1 ) that satisfy two constraints: (1) net-zero or zero-carbon emissions, (2) 100% resource adequacy. From this comparison, we contend that employing existing fossil-fuel assets with CCS and DACS technologies to achieve net-zero emissions may enable the U.S. power sector to decarbonize at a lower cost than relying on large VRE penetration with adequate energy storage to achieve resource adequacy (see SI Section S2 ).…”

Section: Introductionmentioning

confidence: 99%

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Fossil-Fuel Options for Power Sector Net-Zero Emissions with Sequestration Tax Credits

Anderson

Rode

Zhai

et al. 2022

Environ. Sci. Technol.

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Three of the main challenges in achieving rapid decarbonization of the electric power sector in the near term are getting to net-zero while maintaining grid reliability and minimizing cost. In this policy analysis, we evaluate the performance of a variety of generation strategies using this “triple objective” including nuclear, renewables with different energy storage options, and carbon-emitting generation with carbon capture and storage (CCS) and direct air capture and storage (DACS) technologies. Given the current U.S. tax credits for carbon sequestration under Section 45Q of the Internal Revenue Code, we find that two options: (1) cofiring bioenergy in existing coal-fired assets equipped with CCS, and (2) coupling existing natural gas combined-cycle plants equipped with CCS and DACS, robustly dominate other generation strategies across many assumptions and uncertainties. As a result, capacity-expansion modelers, planners, and policymakers should consider such combinations of carbon-constrained fossil-fuel and negative emissions technologies, together with modifications of the current national incentives, when designing the pathways to a carbon-free economy.

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Section: Resultsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Fossil-Fuel Options for Power Sector Net-Zero Emissions with Sequestration Tax Credits

Anderson

Rode

Zhai

et al. 2022

Environ. Sci. Technol.

Self Cite

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“…Because of the limitations imposed by natural conditions, China has overlooked the significance of environmental security to society's long-term viability, and the trend of environmental change is not encouraging. China must mobilize social resources to the maximum extent possible for green development through policy guidance, assistance, and market-oriented initiatives (Anderson et al, 2021;Khan et al, 2022). Regional environmental civilization development is promoted through green finance.…”

Section: Introductionmentioning

confidence: 99%

Green Finance Strategies for the Zero-Carbon Mechanism: Public Spending as New Determinants of Sustainable Development

Xing

2022

Front. Environ. Sci.

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A green economy is one that mainstreams nature and people’s concerns and provides well-paying jobs for the economy. In the past, researchers examined the relationship between financial growth and carbon emissions, and very limited studies examined the role of green finance in carbon extenuation. Based on these four indicators, which are sustainable credit, sustainable safety, sustainable insurance, and sustainable asset, a green finance index was developed in this study. In this study, a vector error correction model (VECM) is used to examine associations between the growth level of green finance, public spending, and the zero-carbon mechanism using data from 2005 to 2018. The results of this study indicate that China’s green finance industry had grown quickly, with enhancements in green finance and increased public spending, all contributing to reducing the country’s environmental degradation. The simultaneous increase in carbon intensity slowed the expansion of non-fossil energy usage, reduced the flow of investing in green projects, and finally deteriorated the development of green finance. Furthermore, renewable energy usage in China is chiefly influenced by carbon intensity and green finance, both of which had clear policy-driven consequences. The effects of green finance strategies have consistently fallen short of expectations and lacked consistency. This study makes recommendations for improving the effectiveness of green finance policy implementation and increasing renewable energy to reduce or erode the economic gains of the zero-carbon mechanism.

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Life cycle assessment of carbon capture and storage in saline aquifers for coal‐fired power generation: An Indian scenario

2022

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Human activity is causing an increase in the atmospheric concentration of greenhouse gases (GHGs) resulting in global climate change. The use of carbon capture and storage (CCS) in energy supply systems is one method of reducing GHG emissions. Three pulverized coal‐fired power stations near the Krishna–Godavari basin with and without CCS have been evaluated using the life cycle assessment and economical approach. Mono‐ethanolamine (MEA) postcombustion CO2 capture, compression, transportation with the pipeline, and storage in the Krishna–Godavari basin are all part of the CCS system. Up to 89% of power plants’ CO2 emissions can potentially be reduced. The retrofitting of a CO2 capture unit into a power plant adds the most to emissions and the cost of the CCS system. There is a 66% rise in the electricity cost when CCS is implemented in an existing power station, with a capital cost of about US$3.4billion. © 2022 Society of Chemical Industry and John Wiley & Sons, Ltd.

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A techno-economic assessment of carbon-sequestration tax incentives in the U.S. power sector

Cited by 18 publications

References 38 publications

Fossil-Fuel Options for Power Sector Net-Zero Emissions with Sequestration Tax Credits

Fossil-Fuel Options for Power Sector Net-Zero Emissions with Sequestration Tax Credits

Green Finance Strategies for the Zero-Carbon Mechanism: Public Spending as New Determinants of Sustainable Development

Life cycle assessment of carbon capture and storage in saline aquifers for coal‐fired power generation: An Indian scenario

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