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Economic Process Selection of Liquefied Natural Gas Regasification: Power Generation and Energy Storage Applications
- Park, Jinwoo, Lee, Inkyu, You, Fengqi, Moon, Il
- Industrial & engineering chemistry process design and development 2019 v.58 no.12 pp. 4946-4956
- carbon markets, clean energy, cold, discount rate, electricity, electricity costs, energy, liquefied natural gas, power generation, power plants, process design, profitability, wastes
- Liquefied natural gas (LNG) demand has been rapidly increasing due to the global need for clean energy resources. This study analyzes and compares LNG regasification processes and technologies from the technoeconomic perspective and focuses on utilizing LNG cold energy as an economically beneficial option. The comparative technoeconomic analyses focus on the following three process: (1) a simple LNG regasification process, which wastes LNG cold energy; (2) an LNG regasification power plant (LPP) process, which utilizes LNG cold energy to generate electricity; (3) an LNG regasification power plant integrated with a cryogenic energy storage (LPCES) process, which utilizes LNG cold energy to store electricity. The results indicate that the LPP process has the highest net present value of $215 million for 1 MTPA LNG regasification, whereas the simple LNG regasification process and the LPCES process are valued at $210 million and $188 million, respectively. Sensitivity analysis results show that the relative rank of profitability of these three technologies varies according to discount rates, electricity prices, and carbon tax. This study not only revealed that LNG cold energy use can be an economically beneficial option but also helped determine the most profitable LNG regasification process under varying regional and market conditions.