Greenhouse Gas Emissions Trading: Case Studies

Emitter: Typical coal fired generation plant (based on 1990 figures):

  • Installed Capacity: 1320MW (2*660MW steam turbines, subbituminous coal)
  • Generation: 9,828,720 MWh/yr (assuming 85% capacity factor)
  • CO2emissions (1990): 9,482,659 metric tons per year (based on 2,127lb CO2/MWh)
  • Assuming the US Kyoto compliance requirement of 7% below 1990 levels (assumes that requirement for plants is same as country requirement): 8,818,873.70 metric tons
  • Hence, potential annual reductions for the first compliance period (2008-2012) under future regulations:
    2008-2012 average: 9,482,659.89 metric tons per year - 7% below 1990: 8,818,873.70 metric tons per year = required reductions: 663,786.19 metric tons per year.
  • Annual costs of compliance for different prices per ton CO2:

    Approximate annual required reductions 2008-2012 (metric tons CO2E) Price per ton ($) Total annual cost of compliance
    663,786
    $ 1
    $ 663,786
    663,786
    $ 5
    $ 3,318,931
    663,786
    $ 10
    $ 6,637,862
    663,786
    $ 50
    $ 33,189,310

Additional cases to be added …..