Mapping the economy of coal power plants retrofitted with post-combustion and biomass co-firing carbon capture in China

As a major carbon-emitting country, China has considerable potential for carbon capture and storage (CCS) applications, but economics is critical for CCS deployment. In this study, the levelized cost of electricity (LCOE) at province level was calculated for operational coal-fired power plants after post-combustion carbon capture (CC) retrofitting. The costs of captured CO2 and avoided CO2 were then compared. The economics of CC-retrofitted coal-fired power plants co-firing with biomass (BECC) were also analyzed. CC retrofitting is economical in North and Northwest China (except Qinghai) where coal prices are low. However, BECC retrofit is more suitable for coal-fired power plants in Central China where biomass prices are low. Therefore, the variation in the resource conditions among provinces should be considered when promoting CC and BECC retrofits. Compared with other power sources, coal-fired power generation becomes much more expensive after retrofits. We calculated the carbon price and capacity subsidy intensity that could support the retrofit of coal units. Effective carbon price should be 142.44-406.06 CNY/t for retrofits, and the capacity subsidy intensity ranges from 175.14-721.52 CNY/kW. The current carbon market and capacity market are not sufficiently developed to support retrofitting. The development of the carbon market with effective carbon price signals and proper power market mechanisms is critical to the rollout of CCS in China.