Assessing the cost reduction potential of CCUS cluster projects of coal-fired plants in Guangdong Province in China

Abstract

Carbon capture, utilization, and storage (CCUS) have garnered extensive attention as a target of carbon neutrality in China. The development trend of international CCUS projects indicates that the cluster construction of CCUS projects is the main direction of future development. The cost reduction potential of CCUS cluster projects has become a significant issue for CCUS stakeholders. To assess the cost reduction potential of CCUS cluster projects, we selected three coal-fired power plants in the coastal area of Guangdong as research targets. We initially assessed the costs of building individual CCUS projects for each plant and subsequently designed a CCUS cluster project for these plants. By comparing individual costs and CCUS cluster project costs, we assessed the cost reduction potential of CCUS cluster projects. The results show that the unit emission reduction cost for each plant with a capacity of 300 million tonnes per year is 392.34, 336.09, and 334.92 CNY/tCO₂. By building CCUS cluster project, it could save 56.43 CNY/tCO₂ over the average cost of individual projects (354.45 CNY/tCO₂) when the total capture capacity is 9 million tonnes per year (by 15.92%). Furthermore, we conducted a simulation for the scenario of a smaller designed capture capacity for each plant. We found that as the capture scale increases, the cost reduction potential is higher in the future.

Graphical abstract

Keywords

cost reduction potential / CCUS cluster projects / coal-fired plant / carbon neutrality

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Acknowledgments

This research is supported by funds from the Department of Education of Guangdong Province (No. 2021KQNCX143), the National Social Science Foundation of China (Grant No. 21AGJ009) and the Research Base of Carbon Neutral Finance for Guangdong-Hong Kong-Macao (No. 22ATJR03).

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