Type of Model: Business Financial Planning
Industry: Electricity – Carbon Capture and Storage
Client: CTSCo – subsidiary of Xstrata
As part of the Australian Government flagship programs into energy, CTSCo has been pursuing a pre feasibility study of carbon transport and geosquestration in Queensland. The parameters of the study included the requirement for the transport and injection of CO2 of at least 75Mt over 30 years. The APFS program was funded jointly by the Commonwealth and Queensland Governments, the Australian Coal Association and Xstrata Coal.
A cost model was developed based on preliminary investigations. The model considered various different combinations of capture (Post Combustion Capture and a new IGCC plant as well as dedicated capture or generting sources), transport (pipeline and road) and 4 different geosequestration sites. The cost model provided an estimate of the overall cost per tonne of transport and storage of CO2 for the life of the project.
Sensitivity analysis was conducted on all major geological and technical inputs to the model and a range of costs was produced for varying assumptions and configurations.
Taxation treatment and plug and abandonment costs were included in the model as were cost of capital calculations.
The model was included in three major reports that were submitted to the Federal Government as part of the ongoing flagship program requirements.