Assessing the Option Value of Retrofitting a 200MW Power Plant to Oxyfuel CO2 Capture.

An advantage of oxyfuel capture technology is the flexibility of capable of retrofitting existing conventional coal-fired power plants. This analysis investigates the option value of retrofitting a 200MW coal-fired power plant to Oxyfuel CO 2 capture power plant. The initial retrofit option value is the theoretical financial value for pre- investment (Oxyfuel CO 2 Capture Ready) to keep the oxyfuel CO 2 capture retrofit option open. The study assumes carbon price (either carbon tax or carbon allowance market) is the only driver for oxyfuel CO 2 capture retrofit decision and there are no other operational or investment options in the decision making process. [ABSTRACT FROM AUTHOR]