CCS to be cost neutral for new gas stations: UK
Adding carbon capture and storage (CCS) to a combined-cycle gas turbine (CCGT) commissioning in 2025 could be cost neutral over the lifetime of the plant, but the cost of such units would still be almost double that of onshore wind and solar, according to forecasts from the UK's Department for Business, Energy and Industrial Strategy (Beis).
Beis forecast the levelised cost of electricity (LCOE) for conventional CCGTs commissioning in 2025 and running for 25 years at £85/MWh in 2018 prices. It would also be £85/MWh for a CCGT with CCS.
This is based on carbon costs of £32/MWh for a conventional CCGT, and just £3/MWh for one with CCS, implying an average carbon price of £80-100/t over the 25-year lifetime. This is well above the current level of around £44/t, based on front-year EU emissions trading system (ETS) prices and the UK's additional £18/t carbon price support. Beis assumes the carbon price will rise above £200/t by 2050.
Construction costs for a CCGT with CCS are forecast to be £23/MWh, compared with £7/MWh for one without CCS. Assumed fuel costs are £40/MWh for CCGT but £45/MWh for one with CCS. CO2 transport and storage costs are just £3/MWh for a unit with CCS.
The LCOE for a CCGT with CCS is expected to remain similar for projects delivering out to 2040, whereas for units with unabated gas generation it rises to £125/MWh by 2040, as carbon costs are projected to rise to £70/MWh.
UK utility SSE is looking to build a CCGT with CCS in the mid-2020s.
The forecast LCOEs for renewables coming on line in 2025 are much lower, at £57/MWh for offshore wind, £46/MWh for onshore wind and £44/MWh for large-scale solar.
Such projects have no fuel or carbon costs, but higher construction costs at £27-31/MWh, and fixed operation and maintenance costs of £10-19/MWh, compared with £2/MWh for CCGTs.
The LCOE for new solar projects falls to £33/MWh by 2040, while onshore wind falls to £44/MWh and offshore wind to £40/MWh.
Offshore wind load factors are expected to rise to 51pc in 2025, 57pc in 2030 and 63pc in 2040. This comes as turbine sizes steadily rise from 9MW in 2020 to 20MW in 2040.
Offshore wind costs have fallen dramatically since the last report in 2016, when Beis was forecasting an LCOE of £106/MWh by 2025 and £103/MWh by 2030.
Its forecast for nuclear projects is unchanged from 2016, at £95/MWh in 2012 prices for projects coming on line in 2025.
Beis also calculated an "enhanced LCOE" which includes the wider system impacts of a technology, such as its ability to provide firm capacity and to help balance the system.
The enhanced LCOE falls to £40-65/MWh for a CCGT coming on line in 2025, compared with £61-73/MWh for one with CCS, £56-73/MWh for onshore wind, £53-66/MWh for large-scale solar and £69-85/MWh for offshore wind.
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Brussels, 17 September (Argus) — European Commission president Ursula von der Leyen today presented candidates for commissioner posts, confirming names put forward for portfolios including climate, energy, agriculture and trade. Von der Leyen — who was confirmed by European Parliament as Commission president on 18 July — has committed to doubling down on climate and energy policy. Her 2024-29 mandate stipulates greenhouse gas emissions cuts of at least 90pc by 2040 compared with 1990. Her commissioners, if appointed, will implement those policies. She is nominating Teresa Ribera to oversee competition policy but also "clean, just and competitive transition" that would include energy, climate, environment and other Green Deal files. Ribera is Spain's deputy prime minister and responsible for the country's ecological transition. Von der Leyen has proposed the current EU climate commissioner Wopke Hoekstra for the portfolio of climate, net-zero and clean growth. Hoekstra, who replaced previous Green Deal commissioner Frans Timmermans , will also be responsible for taxation. Other nominees include former Danish climate minister Dan Jorgensen, up for energy and housing commissioner. Former Swedish minister for EU affairs Jessika Roswall is proposed for a portfolio including environment and circular economy, and Luxembourgish Christophe Hansen, a former member of EU parliament, is proposed as agriculture and food commissioner. Von der Leyen now needs to ensure that candidate-commissioners are approved by parliamentary committees and then by plenary. Hearings will also focus on candidates' abilities to implement policies. "Parliamentary scrutiny will not cut corners," European Parliament president Roberta Metsola said. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Energy firms on alert after flooding in Europe: Update
Energy firms on alert after flooding in Europe: Update
Adds details throughout Warsaw, 16 September (Argus) — Torrential rain has led to major flooding across large swathes of central and eastern Europe, causing power outages and significant damage to transport infrastructure in southwest Poland and the Czech Republic. Parts of Austria, Germany, Hungary, Slovakia and Romania are also affected. In Poland, most of the affected areas so far are in the southwest of the country close to the border with the Czech Republic including the towns of Jelenia Gora, Klodzko, Nysa and Glucholazy. Urban areas further down the Odra river are also at risk including the cities of Wroclaw and Opole, where elevated water levels are expected in the coming days. The Polish government held an emergency meeting earlier today and a state of emergency has since been declared in the affected areas. Polish utility company Tauron, which operates the electricity distribution network in the worst affected area, said some of its infrastructure was disconnected in several towns including Klodzko and Glucholazy. But Poland's power grid operator PSE said there has been no damage to transmission infrastructure. Likewise, Polish gas pipeline operator Gaz-System said it has not suffered any damage but remains in crisis mode. Polish train operator PKP Intercity suspended passenger rail traffic to and from the Czech Republic on 15 September until further notice, while local TV showed images of damaged road and waterways infrastructure, including bridges and dams as well as retail fuel stations. Poland's wholesale coal market, which is usually busy in the autumn, could stall in flood-hit areas for a few weeks as priority is given to the clean-up operation and repairing transport infrastructure, according to traders in the country. But Polish biofuel firm Bioagra, which operates a bioethanol plant near the flood-hit town of Nysa, told Argus that the facility continues to operate normally. In the Czech Republic, Orlen Unipetrol — operator of 108,000 b/d Litvinov and 66,000 b/d Kralupy refineries — said all its production sites continue to operate although the company has shut 11 of its service stations in the country. The firm said its crisis management team at each production site is monitoring the situation and it is in contact with authorities. Elsewhere in the Czech Republic, utility Veolia has had to shut plants in Ostrava and Krnov. Hungarian oil firm Mol — which operates service stations in Poland, the Czech Republic and Slovakia, as well as refineries in Hungary and Slovakia — told Argus that preparatory flood prevention works are underway. It is in contact with authorities and there is currently no threat to security of fuel supply, it said. Hungarian authorities expect water levels on the river Danube at Budapest to continue rising until the weekend, which could affect Veolia's 428MW gas-fired power plant at Gonyu upstream from the capital and potentially power firm MVM's 2GW Paks nuclear plant downstream from Budapest. Floods on smaller rivers Lajta and Raba in northwest Hungary are also yet to peak. Austrian refiner OMV said it has put in place precautionary safety and mitigation measures at its 193,700 b/d Schwechat refinery and two other sites at Gansendorf and Lobau in the federal state of Lower Austria, which was declared a disaster region on 15 September. No damage to property or people has been reported so far but OMV has closed four retail stations temporarily in the state as a precaution, it said. By Tomasz Stepien and Bela Fincziczki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Energy firms on alert after flooding in central Europe
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Data centers may be 'wild card' for gas demand
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