Articles by Sean Casten

The cost of the FutureGen ‘clean coal’ plant doubles

This from Greenwire today ($ub req'd): "The DOE FutureGen program has announced that their "clean coal" plus carbon sequestration is checking in at $1.8 billion for a 275 MW plant, or $6500/kW."

OK, so it's at an early stage, but even if you cut that cost in half, it still doesn't pencil out. How long before we get over the illusion that coal is cheap?

Story below the fold. (Note that I have given them the benefit of the doubt that their description of the plant as a "275 watt" facility was a typographical error.)

NY Gov. Spitzer favors 100% auction under RGGI

New York state has announced that they intend to auction 100% of their carbon allowances under RGGI. This is a good thing.

There is a 60 day comment period now open. File those comments, NY Gristers!

Don’t believe the power company hype about coal’s low price

This just in from Restructuring Today ($ub req'd): Sunflower Electric, of the recent Kansas decision not to allow an electric permit because of CO2 concerns, has argued that the decision was a bad idea because it will drive up power prices. But their math is wrong.

Here's a partial excerpt from the RT story:

A decision by the Kansas Department of Health & Environment to deny a coal power plant permit would mean higher power bills for some. That's "an absolute certainty," Sunflower Electric Power told us Friday.

How much higher? At today's prices the firm could pay 1.5¢ for coal versus 8¢ for natural gas.

Uh, no. But this is a mistake that is aggressively and frequently made by our electricity generators.

Shellenberger & Nordhaus echo flawed economic assumptions

I just finished reading Shellenberger & Nordhaus' latest, and while I realize I am a bit late to the party, I think they say some fascinating things -- perhaps not for the reasons they intended.

S&N manage to succinctly distill an awful lot of the ideas that are core not only to policy debates on carbon, but to policy discussions of any major change to the economy. Understanding these biases is critical to understanding why S&N write what they write, but also why they are so deeply wrong.