3.9 Summary of process and economic modelling assumptions

The default assumptions used for the reference CCS system during the assessments of the various technologies are listed in Table 3-9. As described in the previous sections within this chapter, primary changes from the initial report include revised parameters for the storage reservoir properties and the decrease of the pipeline length from 250km to 100km.

Table 3-9 Process modelling and financial assumptions for reference case

Capital cost estimate basis:
Constant 2010 US dollars (2010 US$)
The reference location is the US Gulf Coast.
Labour is based on non-union rates.
CO2 capture
Power generation: results listed for supercritical, oxy-combustion, IGCC, and NGCC technologies, system design parameters listed in Table 3-1 and Table 3-2.
Industrial processes: natural gas processing, cement production, blast furnace production of steel and fertiliser (ammonia) production.
Transportation: pipeline
CO2 pipeline length: 100km
CO2 pipeline inlet temperature: 25C
CO2 pipeline inlet pressure: 20.2MPa
CO2 pipeline outlet pressure: 15.3MPa
Storage: saline aquifer (reference case was for ‘good reservoir’)
Reservoir pressure 17MPa
Reservoir thickness 15m
Reservoir depth 1,700m
Reservoir absolute permeability 400mD
Site screening and evaluation US$66,000,000
Financial: general
Levelisation period 30 years
Owners’ costs 15%
AFUDC rate 9%
Labour multiplier 1
Coal cost 2.61US$/GJ
Natural gas cost 7.40US$/GJ
Financial: cost of capital Per cent Rate
Debt 40% 6%
Equity 60% 12%
Tax rate for debt interest deduction 33%
Financial: escalation rates
Fixed O&M cost escalation rate 0%
Variable O&M cost escalation rate 0%
Real CO2 emissions escalation rate 0%
Real fuel escalation rate 3%