Carbon emissions reduction potential in the US chemicals and pulp and paper industries by applying CHP technologies

Abstract

The chemical and the pulp/paper industries combined provide 55% of CHP generation in the US industry. Yet, significant potential for new CHP capacities exists in both industries. From the present steam consumption data, the authors estimate about 50 GW of additional technical potential for CHP in both industries. The reduced carbon emissions will be equivalent to 44% of the present carbon emissions in these industries. They find that most of the carbon emissions reductions can be achieved at negative costs. Depending on the assumptions used in calculations, the economic potential of CHP in these industries can be significantly lower, and carbon emissions mitigation costs can be much higher. Using sensitivity analyses, they determine that the largest effect on the CHP estimate have the assumptions in the costs of CHP technology, in the assumed discount rates, in improvements in efficiency of CHP technologies, and in the CHP equipment depreciation periods. Changes in fuel and electricity prices and the growth in the industries' steam demand have less of an effect. They conclude that the lowest carbon mitigation costs are achieved with the CHP facility is operated by the utility and when industrial company that owns the CHP unit can sell extra electricitymore » and steam to the open wholesale market. Based on the results of the analyses they discuss policy implications.« less