Study on economic aspects and the introduction of clean coal technologies with CCS

Abstract

The advantages of coal are the largest reserves among any other fossil fuels, and can be found in many places including some developed countries. Due to the weak energy security of Japan, it is necessary to use coal as an energy source. We have designed the detailed energy model of electricity sector in which we take both energy conversion efficiency and economic aspects into consideration. The Japan model means an energy-economic model focusing on the structure of the energy supply and demand in Japan. Furthermore, the most suitable carbon capture and storage (CCS) system consisting of CO2 collection, transportation, storages are assumed. This paper examines the introduction of clean coal technologies (CCT's) with CCS into the electricity market in Japan, and explores policy options for the promotion of CCT's combined with CCS. We have analyzed the impacts of carbon tax where each fossil technology, combined with CCS, becomes competitive in possible market. CO2 mitigation costs for all plants with CCS are detailed and compared.