CO2 Sequestration through Deep Saline Injection and ...

Figure 33
Cash Flow Diagram for 15% Discounted ROI for PBR with PV
3.9.3. Sequestration using PBR and CCLC
The fixed capital investment for CO2 Sequestration using the PBR system and CCLC generation
have been estimated to be close to $18.4 billion installed (See Appendix D for full capital
estimation calculations). The break even biomass sale price would be $4,371/ton. This is based
on a $18.4 billion fixed capital investment, a $100 million land cost, a 42% taxation rate, a
6.50% interest rate, a salvage value of $3.5 billion, a utility cost of $100,000/year, an operating
labor expense of $900,000/year, a biomass production rate of 147.6 ton/h, a carbon dioxide credit
of $5/ton at 267 ton/hr, a nutrient rich water cost of $0.99/ton at 60 ton/hr, a 20 year plant life, a
3 year construction period, and 10 year MARCS discounted depreciation rate.
Under the same conditions, a biomass selling price of $6,627/ton would yield a return on
investment of 15%. This price would yield a net present value of approximately $15.4 billion
and a pay back period of 6.2 years.
4. RECOMMENDED SEQUESTRATION SYSTEM AND DESIGN
Even though the PBR system has been shown to be viable and potentially profitable under
current market conditions, the market for algal biomass is not currently large enough to support a
significant sequestration effort. It is because of this and the sequestration scale of the project
that the final design recommendation shall consist of deep saline injection only until such point
that the market conditions can support a larger scale PBR system.
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