Abstract

The International Energy Agency (IEA) recommends phasing out all unabated power plants by 2040. Fossil fuel power plants account for 70.1% of the total installed generation capacities in Taiwan. Carbon capture, utilization and storage (CCUS) is an effective means to achieve net-zero transformation of the power sector by improving the performance of existing power generation plants and expanding the production of low-carbon hydrogen. The estimate of this study shows that CCUS may make a significant contribution to net zero emissions (NZE) of the power sector in Taiwan; besides, a mechanism titled Carbon-Free Energy Certificate (C-FEC) mechanism may convert the greenhouse gas (GHG) reductions outside the value chain of power plants into GHG reductions within the value chain. Along the way to NZE, the following policies and actions need to be adopted to facilitate CCUS related markets: fiscal measures, sharing CO2 transmission and storage infrastructure among industries, and get together domestic and foreign enterprises to realize industrial transformation/upgrading.

Key Words: Net Zero Emissions; Carbon Capture, Utilization and Storage; Negative Emission Technologies; Carbon Dioxide Removal; Levelized Cost of Electricity; Carbon-Free Energy Certificate (C-FEC).