EconPapers    
Economics at your fingertips  
 

Switching to biomass co-firing in European coal power plants: Estimating the biomass and CO2 breakeven prices

Vincent Bertrand ()

Working Papers from Chaire Economie du climat

Abstract: This paper investigates the cost of biomass co-firing in European coal power stations. We propose a tractable and original method, that enables us to get expressions of biomass and CO2 breakeven points for co-firing in different types of coal plants. We call them carbon switching price and biomass switching price. They correspond to carbon and biomass prices that make coal plants equally attractive under co-firing or classical conditions (i.e. when coal is the only input). The carbon switching price is the carbon price from which it becomes profitable to include biomass in coal plants (i.e. if the actual carbon price is higher than the carbon switching price, co-firing is profitable). The biomass switching price is the biomass price beyond which including biomass in coal plants is no longer profitable (i.e. if the actual biomass price is lower than the biomass switching price, co-firing is profitable). We also run some sensitivity analyses to investigate the effect of modifying quantity and quality of biomass entering in boilers of coal plants. Results show that the carbon switching price associated with using biomass in lignite plants is always cheaper than that of hard-coal, due to higher lignite price. Additionally, we find that the biomass switching price has higher values with lignite plants. This reflects the greater benefits associated with including biomass in lignite plants, due to greater coal cost savings with higher lignite price. Results also indicate that the carbon switching price increases, and the biomass switching price decreases, when the biomass quality decreases, due to greater losses in conversion efficiency. However, we observe no significant influence when varying the incorporation rate, reflecting the quantity of biomass in coal plants.

Keywords: Biomass; Electricity Production; Co-Firing; Switching Price; EU ETS (search for similar items in EconPapers)
Pages: 16 pages
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.chaireeconomieduclimat.org/RePEc/cec/wp ... iomass-switching.pdf First version, 2013 (application/pdf)

Related works:
Journal Article: Switching to biomass co-firing in European coal power plants: Estimating the biomass and CO2 breakeven prices (2013) Downloads
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: https://EconPapers.repec.org/RePEc:cec:wpaper:1306

Access Statistics for this paper

More papers in Working Papers from Chaire Economie du climat
Bibliographic data for series maintained by Chaire Economie du Climat ().

 
Page updated 2021-10-14
Handle: RePEc:cec:wpaper:1306