Production of Hydrogen and Electricity with CO₂ Capture – Updated Economic Analysis

Publication Overview

Costs of building power generation plants in general and fuel prices have increased rapidly in recent times. This report provides information on costs of electricity and hydrogen production by coal gasification with CO₂ capture on a 2nd quarter 2008 basis. This is an update of information presented in IEA GHG report 2007/13.

Publication Summary

Power plant construction costs and fuel prices have increased substantially in recent times.

The estimated 2nd quarter 2008 capital costs of new IGCC plants without and with CO₂ capture are 2070 and 2970 €/kWe respectively. At the current exchange rate of 1.5 US$/ the capital costs are equivalent to 3110 and 4460 US$/kWe.

The costs of electricity generation without and with CO₂ capture at a 10% discount rate are 0.084 and 0.114 €/kWh respectively. At the current exchange rate these are equivalent to 0.126 and 0.171 US$/kWh.

Based on the difference between the costs of IGCC plants with and without CO₂ capture, the cost of avoiding CO₂ emissions is €48/t (US$72/t).