What Parasitic Load? a New Paradigm for Ccus

In the traditional scenario for postcombustion carbon capture from a coal-fired power plant, the addition of a CO₂ capture facility by the plant operator/owner incurs an additional power demand to run the capture facility. This internal draw of power means less electricity is available for sales to customers or the market (revenue). Sale of the captured CO₂ to the oil field will recoup some of the capture costs. Potential savings realized from the recently established 45Q tax credit may offset an additional portion of the capture cost if the power plant operator has sufficient tax burden to capitalize on the full value of the tax credits. An alternate scenario that may be applicable to the coal-fired power plants in North Dakota involves efficiency improvements, smart heat utilization, a means of maintaining baseload generation, and the introduction of a third-party carbon capture entity. The inclusion of this externally/jointly funded third-party entity changes the traditional paradigm. In this scenario, a portion of electricity sales to the grid is replaced by a combination of steam and electricity sales to the capture entity. In other words, the capture entity has become a new customer: large, close, and long-term. The net effect to the power station is essentially zero lost sales. The capture entity will then sell captured CO₂ to an oil field for EOR. In addition, the capture entity can be structured to create a sufficient taxable appetite that can monetize tax incentives available through the 45Q Program. Several studies looking at how this new business scenario could link and benefit North Dakota coal-fired power generation and oil and gas production are under way. This alternative structure and the associated business case could ensure that every entity along the path is a “winner.”