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.