Reducing the average cost of CO2 capture by shutting-down the capture plant at times of high electricity prices

Flexible operation of a CCS plant can lower the cost of foregone electricity sales in competitive wholesale electricity markets but reduces the amount of CO2 captured over the life-time of a CCS plant and increases the capital cost of CCS systems per unit of emissions captured. Whether the benefits of flexible CCS exceed the increased costs depends on a relationship between capital and operating costs and cyclical electricity price differentials. In this paper we explore these trade-offs, propose a method to quantify them and apply this framework to U.S. data on CCS capital costs and electricity prices.

► Method to explore tradeoff between benefits and costs of flexible operation of CCS.
► Quantification of potential reductions of average cost of CO2 capture in U.S.
► Examination of electricity prices in major organized markets in the U.S.