Implications of generator siting for CO2 pipeline infrastructure

The location of a new electric power generation system with carbon capture and sequestration (CCS) affects the profitability of the facility and determines the amount of infrastructure required to connect the plant to the larger world. Using a probabilistic analysis, we examine where a profit-maximizing power producer would locate a new generator with carbon capture in relation to a fuel source, electric load, and CO2 sequestration site. Based on models of costs for transmission lines, CO2 pipelines, and fuel transportation, we find that it is always preferable to locate a CCS power facility nearest the electric load, reducing the losses and costs of bulk electricity transmission. This result suggests that a power system with significant amounts of CCS requires a very large CO2 pipeline infrastructure.