TABLE 5.5 Estimated Costs of Various Fuel Products With and Without a CO2-Equivalent Price of $50 per Tonnea

Fuel Product

Cost Without CO2-Equivalent Price ($/bbl gasoline equivalent)

Cost With CO2-Equivalent Price of $50/Tonne ($/bbl gasoline equivalent)

Gasoline at crude oil price of $60/bbl

75

95

Gasoline at crude oil price of $100/bbl

115

135

Cellulosic ethanol

115

110

Biomass-to-liquid without CCS

140

130

Biomass-to-liquid with CCS

150

115

Coal-to-liquid without CCS

65

120

Coal-to-liquid with CCS

70

90

Coal-and-biomass-to-liquid without CCS

95

120

Coal-and-biomass-to-liquid with CCS

110

100

aNumbers are rounded to nearest $5. Estimated costs of fuel products for coal-to-liquids conversion represent the mean costs of fuels produced via FT and MTG.

results of the relatively small co-fed coal and biomass plant (total feed, 8000 tons per day) are particularly interesting. Fuels produced by that plant cost about $95/bbl on a gasoline-equivalent basis without CCS, and CO2 atmospheric releases from plants with CCS are negative. Those results point to the importance of that option in the U.S. energy strategy.

The important influence of CO2 price on fuel price is shown in Figure 5.6. In reading the graph, it is important to note that it shows the breakdown of all costs, including negative costs such as credit from electricity generation or carbon uptake. These negative costs must be subtracted from the positive ones in order to obtain the actual costs. For example, the cost of biomass-to-liquid fuel with CCS is $151/bbl – $37/bbl = $114/bbl. CO2 emissions for corn grain ethanol are slightly lower than for gasoline. In contrast, CO2 emissions of cellulosic ethanol without CCS are close to zero.

Figure 5.6 shows that a CO2 price of $50 per tonne significantly increases the costs of the fossil-fuel options, including the costs of petroleum-based gasoline. The large amount of CO2 vented in the coal-to-liquids process without CO2 storage almost doubles the cost of product once a carbon price of $50 per tonne of CO2 is imposed. The carbon price brings the cost of biochemical conversion options down to about $110/bbl.



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