Costs of policies for CO2 capture and storage in the Netherlands. A preliminary study.
This study provides projections of costs related to policies on CO2 capture and storage (CCS) in the Netherlands until 2020. Four scenarios for upscaling CCS are defined: ‘no upscaling’, ‘medium’, ‘substantial’ and ‘high’, resulting in avoided emissions of 1 to 1.5, 6, 12 and 15 MtCO2/yr in 2020. The ‘substantial’ and ‘high’ scenarios correspond with national target emission levels of 200 and 180 MtCO2-eq/yr respectively.
The scenarios included Zero Emission Power Plants (ZEPPs) and CO2 capture from industrial point sources. Post-combustion capture and retrofitting of existing power generation plants have not been considered. Projections are provided for costs of three types of policy instruments: (1) public support for private investment in capture technologies and pipelines; (2) subsidies under the Law Environmental Quality Electricity Production (MEP); and (3) subsidies to fill the financial gap between costs and CO2 market price for ZEPPs and industrial sources. Methodologies for estimating these costs vary. Nevertheless, as a first estimate, costs for total capital requirements outweigh costs for MEP subsidies or for filling the cost gap with the CO2 market price.