Abstract

The article presents the impact of prices of carbon dioxide on the economic efficiency of 14 coal gasification technologies employed for producing electricity, hydrogen and methanol measured with the use of NPV method. All technical, technological and economic assumptions in the assessment have been made for Polish conditions. The impact of CO2 prices were examined in the range of 30-200 PLN/Mg. The production capacity of the base technology corresponds with the fuel consumption of indicative coal having the calorific value of 20.5 GJ/Mg, used in the amount of 100 Mg/h. On the basis of the conducted research, with respect to all technical and economic assumptions, it can be stated that for the base scale there is a clear impact of prices of CO2 emission allowances above the 90 PLN/Mg CO2 . Such a level of carbon dioxide prices makes the decision concerning construction of geological sequestration systems (CCS, carbon capture and storage) worthwhile. This applies in particular to the production of electric energy. For the variants focused on hydrogen production there is a dominance of variants with CCS system only at the price exceeding 120 PLN/Mg CO2 , and in the case of methanol such a situation occurs above 150 PLN/Mg CO2 .

Highlights

  • Gasification of coal has a relatively long history in Poland, it has never been implemented on industrial scale

  • The sensitivity of net present value (NPV) results in case of gasification for power generation from coal grades analysed was relatively low, which is due to the conditions of the valuation model and low NPV values in the base scenario (CO2 emissions allowance trading at 30 PLN/Mg)

  • The study presents the results of economic efficiency assessment for 14 technological variants of hard and brown coal gasification to produce electricity, hydrogen, and methanol

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Summary

Introduction

Gasification of coal has a relatively long history in Poland, it has never been implemented on industrial scale. Increasing interest in that technology has been noted for the production of power (and heat), hydrogen, or methanol, which are raw materials for chemical synthesis, and further processing [1, 2]. Hydrogen is used for the production of ammonia and – further on – chemical fertilizers [3,4]. Ammonia production capacity in Poland is assessed at some 3.0 Tg a year [5]. Production of hydrogen by means of coal gasification appears to be a technology competitive in terms of costs, feasible on industrial scale [12, 3]

Statement of reasons for dealing with the topic
Approach to valuation
Key technical and technological assumptions
Key economic and financial assumptions
Results of studies
Summary and conclusions
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