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Fossil-Fuel Options for Power Sector Net-Zero Emissions with Sequestration Tax Credits.

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Achieving net-zero emissions in the power sector requires balancing reliability and cost. Bioenergy with carbon capture and storage (CCS) and natural gas with CCS and direct air capture and storage (DACS) show strong potential for decarbonization.

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Area of Science:

  • Energy policy
  • Climate change mitigation
  • Power systems engineering

Background:

  • Rapid decarbonization of the electric power sector faces challenges in maintaining grid reliability and minimizing costs.
  • Existing U.S. tax incentives, like Section 45Q, influence the economic viability of carbon sequestration technologies.

Purpose of the Study:

  • To evaluate generation strategies for achieving net-zero emissions while ensuring grid reliability and cost-effectiveness.
  • To identify optimal combinations of carbon-constrained fossil-fuel and negative emissions technologies for power sector decarbonization.

Main Methods:

  • Policy analysis of various generation strategies including nuclear, renewables with storage, and carbon capture and storage (CCS) technologies.
  • Evaluation based on a "triple objective" framework: net-zero emissions, grid reliability, and cost minimization.
  • Assessment considering U.S. tax credits for carbon sequestration (Section 45Q).

Main Results:

  • Cofiring bioenergy in coal plants with CCS and coupling natural gas plants with CCS and DACS robustly outperform other strategies.
  • These combinations demonstrate significant potential for decarbonizing the electric power sector under various assumptions.
  • The economic viability is enhanced by current U.S. tax incentives for carbon sequestration.

Conclusions:

  • Capacity-expansion modelers, planners, and policymakers should prioritize combinations of carbon-constrained fossil-fuel and negative emissions technologies.
  • Modifications to national incentives may further accelerate the adoption of these dominant strategies.
  • These approaches offer a viable pathway toward a carbon-free economy while addressing grid reliability and cost concerns.