Research on CCUS business model and policy incentives for coal-fired power plants in China

Abstract

Carbon capture, utilization and storage (CCUS) is currently the most potential cutting-edge emission reduction technology in China to achieve the vision of carbon neutrality. The industrialization of CCUS faces multiple challenges such as high cost, technical security and public acceptance, but the lack of mature business model and corresponding incentive policies is the main restrictive factor affecting the industrialization of CCUS technology. Therefore, exploring a feasible CCUS business model and formulating relevant incentive policies are of great significance for promoting the commercial deployment of CCUS and achieving the national carbon neutrality goal. Focusing on coal-fired power plants, this paper uses the system dynamics method to compare and analyze two different CCUS business models from the perspectives of economy, technical feasibility and emission reduction benefits, and evaluate the system operation effects under different incentive policy scenarios. The research results show that the vertical integration model is the most potential CCUS business model in China at present, and different incentive policies will cause different changes in the CCUS system. Based on the research conclusions, this paper puts forward suggestions such as formulating differentiated power generation quota subsidy policies and actively developing the carbon emission trading market.