1. Session 9 - Fossil Fuels II
•
•
•
•
•
Mitigating Environmental Impacts
Economic Solutions to Emissions
Costs of Fossil Fuel Electrical Generation
Emerging Technologies
Importance of Fossil Fuels to Achieving
Sustainability

2. Mitigating Environmental Impacts
of Fossil Fuel Combustion
• Before, during, after combustion
• During combustion, optimally manage:
– Fuel and Oxidant Properties
– Stoichiometry (proper reactant ratios)
– The Three T’s
Each has engineering
and economic limits
For CO2:
MITIGATE
Geoengineering
REMOVE
REDUCE
Improved
efficiency
•Supply
side
•Demand
side
Fuel
Switching
•Higher
H/C
•Nuclear
•Renewables
Capture
•Sequestration
•Capture
and/or use
Biological
Sequestration
Ocean
Fertilization

3. Mitigating Environmental Impacts
of Fossil Fuel Combustion
• Geoengineering is quite interesting:
– Can we controllably alter the reflectivity of the
earth to compensate for CO2-based emissivity
changes?
– A less-than-1% change in either reflectivity or
emissivity of Earth produces a 1 deg K
change in average surface temperature (in
equilibrium state) – very sensitive!

4. Economic Solutions
to Carbon Dioxide Emissions
• Carbon Tax
• Cap and Trade
• Chicago Climate Exchange
– Marketplace for trading on 6 GHGs
– Members: 15% of stationary GHG sources; 20% of
power sector
– Activity: 22.9 million MT in 2007 vs. 1 billion MT for
European Climate Exchange
Source: Chicago Climate Exchange, December 2007 News

5. Economic Solutions
to Carbon Dioxide Emissions
Comparison of Alternatives
Carbon Tax
•
•
•
•
Cap and Trade
Favored by economists • Favored by Congress (profits
through manipulation)
Taxed at wholesale level
• Favored by IPPs, Utilities
Gives price certainty
• Favored by Environmentalists
Predictable gov’t income
(provides firm emission limits)
• Has a working precedent (i.e.,
SO2 cap/trade for electrics)
• Multi-sector

6. Economic Solutions
to Carbon Dioxide Emissions
Track Record of SO2 Cap/Trade Initiative
• When enacted in 1990:
– Goal:
By 2010, reduce to 8.98 million tons
From 1980’s level of 17.5 million tons
• Today (2007):
– Emissions at 10.5 million tons
– On track for 2010 goal
• By 2010:
– Will cost industry and customers $3 billion
– Estimated societal benefits of $100 billion
(primarily health related)

7. Economic Solutions
to Carbon Dioxide Emissions
Track Record of SO2 Cap/Trade Initiative
• When enacted in 1990:
– Goal:
By 2010, reduce to 8.98 million tons
From 1980’s level of 17.5 million tons
• Today (2007):
– Emissions at 10.5 million tons
– On track for 2010 goal
• By 2010:
– Will cost industry and customers $3 billion
– Estimated societal benefits of $100 billion
(primarily health related)