Question on the levelized cost computation

[Mahmoud]

Dear all, I am modeling a DAC technology for which I am including a screenshot from Items detail. 
I am setting NCAP~1 to 1. From the documentation it seems that this option allows to account for by product revenue streams. My question is on how to interpret the levelized cost of DAC in the following configuration: 

marginal price of TOTCO2net = 100$/t, CO2Captured is subject to a 40$/t storage cost, and NCAPR of my DAC technology shows 60$/t. Does this mean that the levelized cost of DAC is 100+60-40 =200$/t?

[Antti-L]

The levelised cost calculation is primarily designed for technologies where the commodity marginals of the main outputs and inputs are positive, i.e. they have a positive value (like electricity and fuels have a positive values).  Interpretation becomes less obvious when the product values are negative.

Nonetheless, your question made me recall a similar thread:  Levelised cost calculation. Maybe rereading that discussion can help you with the interpretation?

I see that you also have a subsidy, apparently as high as 180 USD/tonne, defined for the CO2 input flow, up to 2040. If your next Milestone after 2040 is 2050, note that this subsidy will be partly effective also for the 2050 period (because with your data and IE=4, it would be assumed to decrease linearily from the 2040 value to zero in 2050). If you would like the subsidy to become zero already in 2041, please define a zero value for it in 2041.

[Mahmoud]

I wondered whether I already submitted an older thread about the levelized cost calculation for DAC but couldn't find the thread. Apologies for submitting the same question once again. Now, I get it. I hope I won't get confused again   

> I see that you also have a subsidy, apparently as high as 180 USD/tonne...

Yes, I am modeling some carbon capture-related provisions from the Inflation Reduction Act. Thank you for letting me know about the extrapolation of the subsidy through 2050.

So Thankful for your help, Antti!!