The costs of CC(U)S adaptation: The case of Russian power industry

Abstract

In the context of the Climate Agenda, CC(U)S technologies are promising decarbonization options, but they are not widespread. The costs of CC(U)S are still high, and economic assessment of such initiatives for different sites and regions are of particular interest. This paper is aim to analyze the main approaches to costing CC(U)S, as well as the economic assessment of the CO2 capture option implementation on coal-fired power plant in the Murmansk region (Russia). The paper presents a brief analysis of CC(U)S costing approaches and focuses on economic assessment of CO2 capture at Apatitskaya coal-fired power plant, determining such indicators as Levelized cost of electricity and Cost of CO2 captured. The calculations have shown that the cost of CO2 captured at power plant in the Murmansk region is relatively high (263 USD per tonne). The main reasons are high capital costs, lack of tax incentives and project support. Also, the reasons are lack of economies of scale and high energy penalty. Monetization of CO2, state support of CC(U)S, scaling technologies with accompanying cost reductions can be the basis for improving the economics of such projects.