Here is an excerpt from my forthcoming article for American Coal Magazine in the form of a .xlsm macro-enabled spreadsheet using the DOE/NETL Power Systems Financial Model’s latest upgrade.
This is how the UK can preserve its existing coal plants through retrofit plus make a ridiculous amount of money through co-production as the DuPont de Nemours folks did it back in the 1920s and 1930s but using, of course, upgraded and emissions-compliant off-the-shelf equipment. This also requires only partial underground sequestration if any as manufacturing capabilities can be expanded to meet developing demand to take up all the CO2 emissions into marketable product.
This spreadsheet only represents a small percentage of total CO2 emissions monetization (in the 5-8% range) to start.
Critiques and comments welcome.
You may need to download this file or ‘Save Link As’ on this link, depending on how your browser handles this sort of Excel output.
Start with the Overview tab on the bottom left and do not forget to enable the macros. You need either MS Excel 2003 or 2007 to read the file.
Coal pricing used is Montana, Texas, Wyoming and (of course) North Dakota, which typically are in the $15-20/short ton price range FOB the minemouth. Even with the finest of Pennsylvania anthracite at $70/ton, there is still a massive yield in terms of byproduct revenue.
This represents several months’ prep of the input and, specifically, pricing of the new-build refinery equipment installation onto the existing flue gas system.
Please note the retrofit cost to existing plants could be as little as 30% of new build overall and maximum of 45% of new build.
Please also note that if you do not know what levelised cost of electricity means by formal definition, please use your search engine. Thanks. The same goes for other financial terms specific to utility finance: GAAP applies.
You have my permission to share this with your MP and with the UK coal mining community, too. It is madness to continue along the lines the DECC is recommending.
This is a draft work with specific omissions noted in the text of the spreadsheet. Should you need one compiled properly, specific to your plant, please gather the info needed for the two “INPUT” pages of the spreadsheet and forward them on to me. You will then have something to present to your MP or coal power plant upgrade and preservation advocacy group with which they can fight DECC, Ofgem or your local utility board.
© W. James O’Brien Associates 2013
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