CCS (carbon capture and storage) investment possibility in South East Europe: A case study for Croatia Alfredo Vi  skovi  c * , Vladimir Franki, Vladimir Valenti  c Faculty of Engineering Rijeka, University of Rijeka, Vukovarska 58, 51 000 Rijeka, Croatia article info Article history: Received 18 October 2013 Received in revised form 31 March 2014 Accepted 2 April 2014 Available online xxx Keywords: Carbon capture and storage Emission trading scheme South East Europe abstract In order to reduce carbon emissions, great efforts are required to optimise the processes and solve the main technical and economic problems which currently limit a large-scale diffusion of CCS (carbon capture and storage) technologies. In this paper, the main results of a techno-economic comparison between USCPC or USC plants (ultra supercritical pulverised coal combustion) with and without CCS are presented. In this study, a few related questions about the development of CCS and power generation technologies in SEE (South East Europe) are answered. The main questions considered are: (1) what are the current cost estimates for building a new entrant power plant with an installed CCS system compared to a typical USC power plant (2) what is the breakeven carbon-dioxide price to justify CCS investment for USCPC power plants. To answer these questions, a LCOE (levelised cost of electricity) model is built for the power plants in study, with assumptions best representing the current costs and technologies in the EU (European Union). Then, a sensitivity analysis of some of the key parameters of the LCOE to reveal their impact on the financial viability of the project is done. The technical model of the plant is imple- mented in the database of the SEE REM (South East Europe Regional Electricity Market) in order to evaluate its performance on the electricity market and results gained are analysed. Ó 2014 Elsevier Ltd. All rights reserved. 1. Introduction The phenomenon where water vapour, CO 2 (carbon dioxide), methane and other atmospheric gases absorb outgoing infrared radiation causing an increase of Earth’s temperature is called the greenhouse effect [1]. Researchers estimate that the global average surface temperature has increased between 0.6 and 1.0  C during the last 150 years and will increase by 1.4e5.8  C from 1990 to 2100 [2]. Among the greenhouse gases, CO 2 is the major contributor for global warming and it has the greatest adverse impact which ac- counts approximately 55% of the observed global warming. CO 2 alone is responsible for about 64% of the enhanced greenhouse effect [3]. Anthropogenic CO 2 (carbon dioxide) emissions in recent years are higher than ever and further emissions increase seems inevitable with the increasing population and associated energy needs [4]. Environmental pollution has emerged as a global issue, directly related to the quality of life. Therefore, when planning an expansion of the generation portfolio it is necessary to evaluate the economic efficiency per type of generation technology and take into account the associated effects on the environment [5]. As recognised by the UNFCCC (United Nations Framework Convention on Climate Change) [6e8], deep cuts in GHG (global greenhouse gas) emissions are necessary to keep the increasing global tem- perature below 2  C above pre-industrial levels. Planned reduction in emissions is 20% in year 2020 compared to year 1990 and 50% by year 2050 compared to 2005 [9,10]. Required emission reductions in both developed and developing countries will require a major transformation of the energy and economic systems worldwide [11]. When looking at the electricity generation by fuel, fossil fuels are used to produce around two thirds of the world’s electricity; coal, natural gas, and oil contribute about 41%, 22% and 5% respectively [1,12]. In 2010, 43% of CO 2 emissions from fuel com- bustion were produced from coal, 36% from oil and 20% from gas. In 2010, CO 2 emissions from the combustion of coal were 13.1 GtCO 2 [4]. The following paper discusses coal based electricity generation and one of the new technologies related to it that has the potential to significantly reduce harmful emissions e CCS (carbon capture and storage). CCS is a process consisting of the separation of CO 2 from industrial and energy-related sources, transport to a storage location and long-term isolation from the atmosphere. CCS is identified by the European Commission [13,14], World Energy * Corresponding author. Tel.: þ385 51 651444; fax: þ385 51 651416. E-mail address: aviskovic@riteh.hr (A. Vi skovi c). Contents lists available at ScienceDirect Energy journal homepage: www.elsevier.com/locate/energy http://dx.doi.org/10.1016/j.energy.2014.04.007 0360-5442/Ó 2014 Elsevier Ltd. All rights reserved. Energy xxx (2014) 1e13 Please cite this article in press as: Vi skovi c A, et al., CCS (carbon capture and storage) investment possibility in South East Europe: A case study for Croatia, Energy (2014), http://dx.doi.org/10.1016/j.energy.2014.04.007