An Optimised Investment Model of the Economics of Integrated Returns from CCS Deployment in the UK/UKCS

Research output: Working paperDiscussion paper

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Abstract

In spite of the UK Government's ambition for at least 20 GW of CCS to be deployed in the UK/UKCS by 2030, the attitude of potential investors thus far remains lukewarm. Several reasons have been adduced for this. The present paper makes a contribution to the debate on removing the barriers to CCS investment by investigating the criteria and scope for negotiation among the CCS investors of mutually acceptable prices for trading the captured CO2 and storage services. A decision-making framework was deployed to design and implement an investment model, using the Net Present Value criterion. Stochastic optimisation was executed and optimal solutions found for the investors within a range of carbon prices and sequestration fees. This range permits negotiation among the participants in the CCS chain to the mutual benefit of all, compatible with a co-operative Nash-type equilibrium.
Original languageEnglish
Place of PublicationAberdeen
PublisherUniversity of Aberdeen
Pagesi-v, 1-33
Number of pages39
Volume126
Publication statusPublished - May 2013

Publication series

NameNorth Sea Study Occasional Papers
PublisherUniversity of Aberdeen
Volume126

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Economics
Investors
Integrated
Carbon sequestration
Fees
Decision making
Government
Stochastic optimization
Optimal solution
Carbon price
Co2
Net present value

Cite this

Kemp, A. G., & Kasim, S. (2013). An Optimised Investment Model of the Economics of Integrated Returns from CCS Deployment in the UK/UKCS. (pp. i-v, 1-33). (North Sea Study Occasional Papers; Vol. 126). Aberdeen: University of Aberdeen.

An Optimised Investment Model of the Economics of Integrated Returns from CCS Deployment in the UK/UKCS. / Kemp, Alexander G. ; Kasim, Sola .

Aberdeen : University of Aberdeen, 2013. p. i-v, 1-33 (North Sea Study Occasional Papers; Vol. 126).

Research output: Working paperDiscussion paper

Kemp, AG & Kasim, S 2013 'An Optimised Investment Model of the Economics of Integrated Returns from CCS Deployment in the UK/UKCS' North Sea Study Occasional Papers, vol. 126, University of Aberdeen, Aberdeen, pp. i-v, 1-33.
Kemp AG, Kasim S. An Optimised Investment Model of the Economics of Integrated Returns from CCS Deployment in the UK/UKCS. Aberdeen: University of Aberdeen. 2013 May, p. i-v, 1-33. (North Sea Study Occasional Papers).
Kemp, Alexander G. ; Kasim, Sola . / An Optimised Investment Model of the Economics of Integrated Returns from CCS Deployment in the UK/UKCS. Aberdeen : University of Aberdeen, 2013. pp. i-v, 1-33 (North Sea Study Occasional Papers).
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