On Friday 11 May the Department of Energy and Climate Change (DECC) issued a discussion paper on Potential Cost Reductions in Carbon Capture and Storage (CCS) in the Power Sector. The report presented the initial findings of consultant Mott MacDonald’s review of the scope for cost reduction in CCS in the UK.
The report considered how CCS affects power generation costs, reviewed how other studies have approached cost reduction, and then developed bottom-up projections of the scope for cost reduction across the main technology routes. The paper estimated the cost of electricity from full-chain CCS coal plants could fall from £140.6/MWh in 2013 to £109.4/MWh in 2020, but there was a huge level of uncertainty of forecasting the costs of new technologies into the future. DECC hoped the paper will provoke further discussion with industry through the CCS Cost Reduction Task Force.
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