How will carbon emissions regulations revise energy conservation economics?

Copying and distributing are prohibited without permission of the publisher

06.01.2010 | Davis, E., Mustang Engineers, LP, Houston, Texas; Glasgow, I. M., Mustang Engineers, LP, Houston, Texas; Nguyen, T., Mustang Engineers, LP, Houston, Texas; Palmer, R. E., Mustang Engineering, Houston, Texas; Polcar, S., Mustang Engineers, LP, Houston, Texas; Price, J., Mustang Engineers, LP, Houston, Texas; Stuecheli, C., Mustang Engineers, LP, Houston, Texas

Including the cost of carbon in refinery project economics has the potential to convert previously marginal energy projects into more attractive options

Keywords:

A program directed at reducing greenhouse gas (GHG) emissions is gaining higher interest by US public policy makers. This is evident by the House of Representatives passing The American Energy and Security Act (H.R. 2454) in June 2009. The US EPA is actively evaluating avenues in which the Clean Air Act can be used to reduce GHG emissions based on its determination that these substances (GHGs) are an endangerment to human health and welfare.

In H.R. 2454, individual refiners would be responsible for GHG emissions from their manufacturing operations plus the emissions from the combustion of the fuels sold by the refinery. These total emissions represent about 35% of the total US GHG inventory. However, in H.R. 2454, the refining sector is given 2% of the available emission allowances per year until 2025. Result: Refiners will be required to purchase or to find offsets for over 90% of their regulated GHG emissions.

To continue reading please, log in to hydrocarbonprocessing.com.

Subscribe now for premium access and unlimited access to the site, including archived articles and the process handbooks. Start a free trial to gain access to articles from the current issue of Hydrocarbon Processing.

Already have an account?

Subscribe today and gain unlimited and immediate access to the site. Plus, you'll receive the next 12 issues of the magazine in your choice of print or digital format. Start your subscription today.