A Transparent Techno-Enviro-Economic Assessment of a Coal-Fired Power Plant: Integrating Biomass Co-Firing and CO2 Sequestration Technology in a Carbon-Priced Environment

The integration of carbon capture and storage (CCS) into coal and biomass co-firing systems (CBCCS) offers a promising solution for reducing carbon emissions in electricity generation. This study evaluates hypothetical scenarios in Malaysia and Indonesia, focusing on techno-economic-environmental transparency. The analysis shows a negligible change in plant net efficiency (~1%) across biomass co-firing ratios of 5-20% in both countries. The capture penalty increases at higher biomass ratios, particularly at 20% co-firing, due to higher auxiliary power demands and steam extraction. As biomass share increases, net CO2 emissions decrease by an average of 43% in Malaysia and 34% in Indonesia. Economic evaluations show a positive revenue increase for Malaysia at a 20% co-firing ratio, while Indonesia faces a revenue deficit (0.6%) under the same condition, mainly due to an unattractive carbon price and feed-in tariff from 2027 onward. Malaysia faces a higher risk of stranded assets due to earlier retirement plans, compared to Indonesia. As the co-firing ratio increases, the risk of stranded assets decreases by 3% in Malaysia and 0.6% in Indonesia. The present work showcases the intricate and synergistic effects of energy and commodity market dynamics from a micro-sector perspective towards plant revenue. This allows both Indonesia and Malaysia to learn from each other in their quest to achieve energy independence and security. Collaboration in tapping renewable sources is one way the two countries can secure energy for their domestic needs while addressing the challenges of carbon lock-in and the impact of stranded assets.