Energy systems analysis of CCS feasibility with endogenous technological change

This research develops an energy-economic model with endogenous technological change. This model assumes a decrease of specific capital cost and O&M cost from technological change, and considers that technological experience is shared among the same component technologies. Furthermore, feasibility of CCS in Japan's electricity sector is analyzed. The analysis is performed based on scenarios with alternative assumptions over technological change of CCS component technologies; carbon capture, transport, and injection technologies. As a result, technological change doubles CCS potential, and generation technologies with CCS can produce 10% of total power generation in 2030. In addition, CO₂ reduction from CCS introduction is increased by half, and 16% of carbon emissions in 2030 are reduced. CCS introduction increases the total system cost by 3%. Technological change has little influence on the total system cost. Aggressive R&D effort for CCS might push reduction by 20% of carbon emissions in 2030.