Capture Technology Cost Buydown in CO2 EOR Market Applications Under an Alternative Energy Portfolio Standard

Abstract

Abstract Although CO2 capture and storage (CCS) as a major carbon-mitigation option is key to the affordability of a low- carbon energy future and substantial progress that has been made in advancing CCS, what has been accomplished falls far short of what is needed to enable a low-carbon energy future. Here a strategy is outlined aimed at helping get the faltering global CCS enterprise back on track. It involves: (a) exploiting the US CO2 enhanced oil recovery (CO2 EOR) opportunity to help buy-down costs of promising CO2 capture technologies via experience (learning by doing) and (b) enacting an Alternative Energy Portfolio Standard (AEPS) as a policy instrument to promote this CO2 EOR activity in coal-dependent states or regions. Alternative power-only options based on coal and natural gas as well as options coproducing liquid transportation fuels and electricity based on coal and coal/biomass are considered as candidates for technology cost buydown (TCB) under the AEPS, and impacts of the TCB on electricity prices are estimated for the most promising technologies.