Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

what is the annual fuel cost for each plant? what is tne annual o&m cost for each plant? what is the annual carbon tax for

what is the annual fuel cost for each plant?
what is tne annual o&m cost for each plant?
what is the annual carbon tax for each plant?
image text in transcribed
The PennCo Electric Company is planning to construct an 800 MW coal-fired power plant. PennCo is considering two different options as summarized below. Both plants will have an operating life of 30 years. The project will be depreciated using the straight-line method over 30 years to a book value of zero. Burning coal emits 90 metric tons of CO2 per billion BTUs of energy produced. Coal is expected to cost $3.50 per million BTU and there is expected to be a tax on carbon dioxide emissions of $15/Metric ton. Assume that there are 3,412 BTU per kWh. Conventional: A conventional plant burns coal to produce steam that generates electricity. This is the type of power plant commonly in use today. High-Efficiency: A high-efficiency plant produces more electricity per ton of coal; however, the trade-off is that the plant has higher capital cost and O&M costs. Conventional High-Efficiency Capital Cost $1,120,000,000 $1,232,000,000 O&M cost ($/kWh) 0.02 0.03 Efficiency 35% 40% Capacity Factor 80% Salvage Value Operating Life (years) 80% SO 30

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions