Files  |  Alternatives and Innovations  |  26 June 2008

Costs of policies for CO2 capture and storage in the Netherlands. A preliminary study.

by H. Groenenberg & H. C. de Coninck, Energy research Centre of the Netherlands

This study provides projections of costs related to policies on CO2 capture and storage (CCS) in the Netherlands until 2020. Four scenarios for upscaling CCS are defined: ‘no upscaling’, ‘medium’, ‘substantial’ and ‘high’, resulting in avoided emissions of 1 to 1.5, 6, 12 and 15 MtCO2/yr in 2020. The ‘substantial’ and ‘high’ scenarios correspond with national target emission levels of 200 and 180 MtCO2-eq/yr respectively.

The scenarios included Zero Emission Power Plants (ZEPPs) and CO2 capture from industrial point sources. Post-combustion capture and retrofitting of existing power generation plants have not been considered. Projections are provided for costs of three types of policy instruments: (1) public support for private investment in capture technologies and pipelines; (2) subsidies under the Law Environmental Quality Electricity Production (MEP); and (3) subsidies to fill the financial gap between costs and CO2 market price for ZEPPs and industrial sources. Methodologies for estimating these costs vary. Nevertheless, as a first estimate, costs for total capital requirements outweigh costs for MEP subsidies or for filling the cost gap with the CO2 market price.

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