Simulating the economic feature of CCUS operations in coal-based power generation

The insufficient economic viability of CCUS project operations and the inadequate incentive policy system are significant bottlenecks hindering the development of coal-based CCUS projects. This study employs the ITEAM-CCUS model to evaluate the comprehensive economic characteristics of CCUS project operations and conducts an in-depth analysis using the Jinjie Power Plant 150 kt/a CCUS demonstration project as a case study. The research identifies differentiated strategies for the required intensity of single incentive policies and the comprehensive effects of policy combinations, as well as their impact on the economic feasibility of CCUS project operations. The findings reveal that: ① the ITEAM-CCUS model assessment indicates that coal-based CCUS projects possess substantial emission reduction potential and demonstrate favorable economies of scale at both regional and enterprise levels; ② the case analysis suggests that during the early demonstration phase of CCUS projects, deterministic incentive policies such as generation hour compensation and feed-in tariff subsidies should be implemented. In contrast, market-oriented policies like carbon trading and green power trading are more suitable for the operational promotion phase; ③ different policy combinations exhibit varying impacts on the levelized capture cost of CCUS projects, with a comprehensive policy system significantly supporting CCUS project operations. The study recommends enhancing economic policy support for CCUS project operations and adopting differentiated policies at various stages to improve the economic feasibility of coal-fired CCUS operations.