Question
A power company is considering a new, 250 MW power plant and trying to decide between burning coal or burning natural gas. The company is
A power company is considering a new, 250 MW power plant and trying to decide between burning coal or burning natural gas. The company is concerned that they may have to pay a carbon tax of $44 per 2,000 lb ($44 per ton) of CO2 emitted by the new plant. Burning coal in the new plant will result in CO2emissions of 500 lb/MWh (pounds of CO2 per megawatt-hour of electric energy produced), while burning natural gas will result in CO2 emissions of 300 lb/MWh
How much CO2 will be emitted by the coal burning plant in one year?
How much CO2 will be emitted by the natural gas burning plant in one year?
How much more carbon tax might the company have to pay each year if it chooses to burn coal instead of natural gas in the new power plant?
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