Economics at your fingertips  

Optimal design and operations of a flexible oxyfuel natural gas plant

Holger Teichgraeber, Philip G. Brodrick and Adam R. Brandt

Energy, 2017, vol. 141, issue C, 506-518

Abstract: We co-optimize the design and operations of a flexible semi-closed oxygen-combustion combined cycle (SCOC-CC) carbon capture plant under time-varying electricity prices. The system consists of a cryogenic air separation unit, liquid oxygen storage, a gas turbine, a heat-recovery steam generator, and a steam turbine. The gas turbine is modeled allowing part-load operation. Computational optimization is used to maximize net present value (NPV) in order to examine the potential benefits achievable through upfront investments in increased flexibility (i.e., allowing price arbitrage between times of low and high price). Case studies of Germany and California are examined. Flexible SCOC-CC systems are not profitable in either region under current electricity prices. With electricity prices ≈2 times current prices, we find systems with positive NPVs. Oxygen storage is used in days with extreme price variability. Optimal designs favor constant operation, without over- or under-sizing system components and without additional oxygen storage. Sensitivity analyses show that external factors such as mean electricity price (± 200%), natural gas price (± 150%), and nominal discount rate (± 50%) have the strongest effect on NPV. Electricity price variability, which is thought to increase with increased penetration of renewables, does not strongly impact system design and profitability.

Keywords: Nonlinear optimization; Semi-closed oxygen-combustion combined cycle; Thermodynamic and cost modeling; Carbon capture; Gas turbine; Air separation unit (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (2) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2018-11-03
Handle: RePEc:eee:energy:v:141:y:2017:i:c:p:506-518