Veda2.0 Released!


Costs for CCS and DAC technologies
#1
Hi, 

We are including DAC and CCS technologies in our model, but have difficulties with understanding how to input the cost in TIMES. 
The data source provide costs in M€/(tCO2/hour). We have tested including the cost both in capacity units (Cap2ACT = 8.76) and acitivity units (CAP2ACT = 1). For the latter, we convert the cost by using M€/(tCO2/hour) * 8760 * AFA. The two approaches give significant differences in results. 

Attached is a screenshot of the input for CCS in the latter case. What is the correct approach to use in this case? 


Attached Files Thumbnail(s)
   
Reply
#2
> We are including DAC and CCS technologies in our model, but have difficulties with understanding how to input the cost in TIMES.

Yes, I understand that unit conversions may sometimes be confusing, but otherwise I think the TIMES investment cost concept NCAP_COST is pretty clear and transparent: It represents the total investment costs (as opposed to e.g. annualized cost or a CAPEX component of levelized costs) per unit of capacity. Usually the only thing to check would be whether interest during construction (IDC) is included in the data or not, because IDC should be either included or excluded in NCAP_COST, depending on whether one wants to use NCAP_ILED or not.

> The data source provide costs in M€/(tCO2/hour).

Ok, so if the cost is given as CINV (M€/(tCO2/hour)), and the desired capacity unit is kta (kilotonnes per year) I think that can be directly translated into CINV/8.76 (M€/kta), because 1 t/hour = 8.76 kt/a.

> We have tested including the cost both in capacity units (Cap2ACT = 8.76) and acitivity units (CAP2ACT = 1). For the latter, we convert the cost by using M€/(tCO2/hour) * 8760 * AFA.

Ok, so in the first case you simply use the original CINV value, but define the conversion from the capacity unit to activity unit as 8.76.  This means that your activity using should be in kt, and your currency unit should be M€.  If so, I think that would be quite correct, because the Cap2ACT = 8.76 would make it equivalent with the division by 8.76 I wrote above.

But in the second case, do you multiply CINV by 8760 and AFA?  Or divide it by 8760 and AFA?  I don't see how either could be correct.  And using AFA would be justified only if the cost represents a unit production cost component (e.g. CAPEX component of levelized costs), but I don't think this is the case here.

> Attached is a screenshot of the input for CCS in the latter case.

Ok, here you also use kNOK. It would help if you would show the original data for this case as well....
Reply
#3
Dear Antti,

Thank you for the reply.

My mistake - we divide by 8.76 as you explain in your calculation with CINV/8.76 (M€/kta).
And I agree that AFA should not be included in the cost component as it doesn't represent unit production cost.

I believe we manage the unit conversion correct now. Thank you!
Reply


Possibly Related Threads…
Thread Author Replies Views Last Post
  Activity without new capacities for many new technologies icedd_rc 1 225 13-09-2024, 06:03 PM
Last Post: Antti-L
  Help with modelling CCS technologies for cement industry farzin 10 1,781 13-08-2024, 11:14 PM
Last Post: Antti-L
  Tax credits implementation for low-carbon technologies jabarivelisdeh 18 7,598 27-07-2023, 01:12 AM
Last Post: olexandr
  transportation costs between regions dtsintsk 7 2,995 06-07-2023, 01:03 AM
Last Post: dtsintsk
  Dummy technologies (IMP*Z) outperforming available technologies jabarivelisdeh 3 1,772 18-03-2023, 05:27 AM
Last Post: jabarivelisdeh
  PCG for multiple commodity technologies jabarivelisdeh 2 1,489 01-03-2023, 10:18 AM
Last Post: jabarivelisdeh
  Costs ArmineA 14 9,127 21-03-2022, 10:27 PM
Last Post: Gary
  Costs ArmineA 2 2,000 03-03-2022, 04:28 PM
Last Post: ArmineA
  calculating fuel costs using cost_flo and/or eq_combalm iris 4 3,790 05-08-2021, 08:29 PM
Last Post: iris
  Modeling New Vehicle Technologies eorear86 2 2,794 23-03-2021, 10:20 PM
Last Post: Pernille.S

Forum Jump:


Users browsing this thread: 1 Guest(s)