An enhanced model of capacity expansion with CO2 cap-and-trade and EOR CO2 re-emergence

This paper describes an enhanced model of power production under CO₂ cap-and-trade regulation. Re-emergence of CO₂ from EOR (enhanced oil recovery) processing is considered, and the net CO₂ release is quantified accordingly. New cost data is used to reflect the cost increase in the past few years. Binary variables are used for new construction of power plants, transmission, CO₂ pipelines, and retrofitting, while continuous variables are used for representing others such as power production, CO₂ generation, etc. The objective is to minimize regional cost of meeting demand under potential CO₂ cap-and-trade regulation in the United States. In case studies, 28 nodes are used to represent production and demand in five States including Indiana and its surrounding states. Seventy sequestration sites are chosen for the 28 nodes, including EOR, ECBM (enhanced coal bed methane) and aquifers.