Evaluating the role of cogeneration for carbon management in Alberta

Evaluating the role of cogeneration for carbon management in Alberta Developing long-term carbon control strategies is important in energy intensive industries such as the oil sands operations in Alberta. We examine the use of cogeneration to satisfy the energy demands of oil sands operations in Alberta in the context of carbon management. This paper evaluates the role of cogeneration in meeting Provincial carbon management goals and discusses the arbitrary characteristics of facility- and product-based carbon emissions control regulations. We model an oil sands operation that operates with and without incorporated cogeneration. We compare CO 2 emissions and associated costs under different carbon emissions control regulations, including the present carbon emissions control regulation of Alberta. The results suggest that incorporating cogeneration into the growing oil sands industry could contribute in the near-term to reducing CO 2 emissions in Alberta. This analysis also shows that the different accounting methods and calculations of electricity offsets could lead to very different levels of incentives for cogeneration. Regulations that attempt to manage emissions on a product and facility basis may become arbitrary and complex as regulators attempt to approximate the effect of an economy-wide carbon price. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Energy Policy Elsevier

Evaluating the role of cogeneration for carbon management in Alberta

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Publisher
Elsevier
Copyright
Copyright © 2011 Elsevier Ltd
ISSN
0301-4215
D.O.I.
10.1016/j.enpol.2011.09.051
Publisher site
See Article on Publisher Site

Abstract

Developing long-term carbon control strategies is important in energy intensive industries such as the oil sands operations in Alberta. We examine the use of cogeneration to satisfy the energy demands of oil sands operations in Alberta in the context of carbon management. This paper evaluates the role of cogeneration in meeting Provincial carbon management goals and discusses the arbitrary characteristics of facility- and product-based carbon emissions control regulations. We model an oil sands operation that operates with and without incorporated cogeneration. We compare CO 2 emissions and associated costs under different carbon emissions control regulations, including the present carbon emissions control regulation of Alberta. The results suggest that incorporating cogeneration into the growing oil sands industry could contribute in the near-term to reducing CO 2 emissions in Alberta. This analysis also shows that the different accounting methods and calculations of electricity offsets could lead to very different levels of incentives for cogeneration. Regulations that attempt to manage emissions on a product and facility basis may become arbitrary and complex as regulators attempt to approximate the effect of an economy-wide carbon price.

Journal

Energy PolicyElsevier

Published: Dec 1, 2011

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