Carbon Capture Storage (CCS) in China’s power plants
This project evaluates the economic feasibility of CCS retrofitting in power plants in China, and investigates how industrial investors deal with uncertainties when making investment decisions related to CCS.
CCS as dealt with here implies capturing the emissions of CO2 from power generation and industrial facilities in geological sequestration, or valuable products and uses. CCS has received increasing global attention as part of a portfolio of options to help reduce human-generated CO2. In addition, this could result in value-added products, creating jobs and economic benefits. Through physical, chemical, technical and enhanced oil processes, CO2 utilization can help offset the cost of power plants and other facilities, while contributing to the low-carbon transformation of power plants. CCS technologies can thus potentially become an important component of a widespread climate strategy.
China relies heavily on thermal power generation, which results in significant CO2 emissions. However, the country has several on-going demonstration projects for CO2 capture connected to these power plants. China’s carbon trading market was implemented in the early 2018, first covering the electricity industry. Carbon taxes are also on the way. After the 19th CPC National Congress, China proposed a series of policies to promote the development of biomass power, including co-firing in coal power generation. As a result, in the short and middle term, power plants will face changing cost structures, and thus need to make investment decisions related to emissions in power plants. In this context, research on CCS investment decisions for power plant transformations has theoretical and practical significance.
Sweden has a stringent climate policy in place. The country has long experience with instruments to address carbon emissions and promote bioenergy. Lately, CCS is being investigated as a way to create sinks and further reduction of greenhouse gas emissions from biomass heat and power plants. The cooperation in this project is aimed at bringing insights to CCS research in China.
About the Project
This project is a cooperation between the KTH Royal Institute of Technology in Stockholm, Sweden and BIT Beijing Institute of Technology, China.
Aug 2018 – Aug 2019
Professor , KTH
Professor Bao-Jun Tang, CEEP-BIT, China
, Visiting PhD student from CEEP-BIT, China
CSC China Scholarship Council