Reducing the costs of CO 2 capture and storage ( CCS )

Dis trib u tio n lis t Cop yright a nd Dis c la im e r Im porta nt Dis cla im e r CSIRO advises that the information contained in this publication comprises general statements based on scientific research. The reader is advised and needs to be aware that such information may be incomplete or unable to be used in any specific situation. No reliance or actions must therefore be made on that information without seeking prior expert professional, scientific and technical advice. To the extent permitted by law, CSIRO (including its employees and consultants) excludes all liability to any person for any consequences, including but not limited to all losses, damages, costs, expenses and any other compensation, arising directly or indirectly from using this publication (in part or in whole) and any information or material contained in it. 6. Es tim ate d c os ts for PCC in c oal fire d powe r pla nts in Aus tra lia .. Figure 4 Overview of the various contributions to the cost of generation for a new coal fired power station (Dave and et al. Table 4 Example new coal fired power plant performance in Australia with and without capture (Dave and et al. Reducing the costs of CO2 capture and storage (CCS) 3 1. EXECUTIVE S UMMARY Australia has a significant existing coal fired power generation capacity, contributing 80 percent of the total electricity generation. Constructing new or retrofitted coal with CO 2 capture and storage (CCS) involves three key steps. Firstly CO 2 is extracted at some point in the coal to electricity conversion process, depending on the type of technology used. The CO 2 is then prepared for transport and stored in a suitable geological sink. Australia has an enormous potential resource for geological storage of CO 2. However, like mineral resources, storage sites must be graded by their economic potential. Usable storage "reserves" will depend on the price of carbon and distance from the capture plant. The cheapest locations for CO 2 storage are the Latrobe Valley in the Gippsland Basin (A$7 per tonne of CO 2 avoided), the Southern Queensland in the Surat Basin (A$12 per tonne) and the Perth region in the Bunbury Trough of the Perth Basin (A$10 per tonne). Costs ranges in other regions can be very wide being based on limited cost and reservoir data. Significant exploration is …