Design/economics of low-carbon power generation from natural gas and biomass with synthetic fuels co-production

There is growing optimism about the prospects for large natural gas reserves in shale formations. This paper explores the feasibility vis-à-vis coal power generation of a new approach for decarbonized natural gas power generation. Key features of process designs examined here are co-production of synthetic transportation fuels with electricity and cofeeding of some biomass with natural gas in such co-production systems. Key questions addressed in the analysis of these systems are: 1) can the competitiveness of natural gas in economic dispatch be improved vis-à-vis a natural gas combined cycle, and 2) can the GHG emissions price needed to induce CCS for natural gas power generation be reduced from that required to induce CCS for NGCC. We find that gas/biomass co-production systems with CCS will be able to defend high capacity factors in economic dispatch at projected oil prices with only modest GHG emission prices. We also find that the breakeven GHG emission price needed to induce CCS for natural gas power generation is reduced considerably vis-à-vis NGCC-CCS.