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Assessing Fuel Substitution from Coal to Natural Gas for Power Plants in Compliance with FCCC Provisions

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A number of environmental strategies in compliance with the provisions of the Framework Convention on ClimateChange (FCCC)are currently being analyzed by utilities. Natural gas is often the most important one,since its use emits carbon dioxide (CO2)far less than other fossil fuels. The use of natural gas is therefore under serious consideration as a strategy to reduce the impacton global warming from coal thermal plants under current technological levels. In this article, a cost minimization model is formulated to investigate the feasibility for this strategy from a long-termeconomic viewpoint. The model developed is comprised of various strategies such as installing scrubbers, purchasing emission credits, or switching fuels for fossil plants, especially coal-fired thermals, which are currently being implemented or considered byutilities. The implemented results show that substitution of natural gas is less economical than other strategies.
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Document Type: Research Article

Affiliations: Department of Industrial Management National Pingtung University of Science and Technology, Pingtung, Taiwan Republic of China

Publication date: September 1, 2000

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