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Stanwell says cheaper to start CO2 dumps from scratch: high energy penalty of up to 30pc on a retrofitted power station makes the cost of retrofitting, unviable

Posted by gmarkets on 3 September, 2007

Stanwell Corporation told the House of Representatives, Standing Committee on Science and Innovation on geosequestration that, without significant technological improvements, the cost of post-combustion capture would probably make it more attractive to build a new generation plant from scratch, rather than retrofit old plants. 30pc retrofit energy penalty: Terry Daly, researcher at the University of NSW’s Centre for Energy and Environmental Markets, told the Committee that the high energy penalty of up to 30 per cent on a retrofitted power station made the cost of retrofitting unviable.

Cost varies depending on technology: Whichever technology was chosen, the different operating conditions and diversity of coal type meant significant variability in cost. For example, the Centre for Energy and Environmental Markets noted that the cost of CCS for Victorian brown coal based generators was likely to be higher because of the need for offshore storage and the high moisture content of Victoria’s brown coal, which would require an additional coal drying process for IGCC and oxyfuel application.

Oxyfuel pulverised coal combustion looks good: According to the MIT study, the effect of coal type on capture application means that ‘multiple technologies will likely be deployed’. The study noted, for example, that, with further technological developments, oxyfuel pulverised coal combustion could prove as attractive as IGCC, especially with lower quality coals.

Reference: ‘Between a rock and a hard place: The science of geosequestration’. House of Representatives, Standing Committee on Science and Innovation, August 2007, Canberra. For Media comment: contact the Committee Chair, Mr Petro Georgiou MP, on (02) 6277 4419 or the Deputy Chair, Mr Harry Quick MP, (02) 6277 4304. For information: contact the Commettee Secretary on (02) 6277 4150. Issued by: Liaison and Projects Office, House of Representatives, Phone: (02) 6277 2392. Copies of the report can be obtained from the website: http://www.aph.gov.au/house/committee/scin/geosequestration/index.htm

Erisk Net, 13/8/2007

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