Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States

Low carbon synfuel can reduce dependence on fossil fuels like diesel and jet fuel, and, with large-scale cost-effective production, contribute to global transportation sector decarbonization, Simultaneously, nuclear power plants are struggling economically due to falling wholesale electricity prices...

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Main Authors: Marisol Garrouste, Michael T Craig, Daniel Wendt, Maria Herrera Diaz, William Jenson, Qian Zhang, Brendan Kochunas
Format: Article
Language:English
Published: IOP Publishing 2025-01-01
Series:Environmental Research: Energy
Subjects:
Online Access:https://doi.org/10.1088/2753-3751/adbf23
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author Marisol Garrouste
Michael T Craig
Daniel Wendt
Maria Herrera Diaz
William Jenson
Qian Zhang
Brendan Kochunas
author_facet Marisol Garrouste
Michael T Craig
Daniel Wendt
Maria Herrera Diaz
William Jenson
Qian Zhang
Brendan Kochunas
author_sort Marisol Garrouste
collection DOAJ
description Low carbon synfuel can reduce dependence on fossil fuels like diesel and jet fuel, and, with large-scale cost-effective production, contribute to global transportation sector decarbonization, Simultaneously, nuclear power plants are struggling economically due to falling wholesale electricity prices. Converting existing nuclear plants for synfuel production could preserve these low-carbon assets and enable large-scale synfuel production, yet no comprehensive technoeconomic analysis exists. This study evaluates the potential of integrating synthetic fuel production with five US nuclear plants, considering electricity and fuel markets and carbon dioxide source access. Such integration could enhance nuclear plant profitability by up to $792 million and offer a 10% return on investment over 20 years. The hydrogen production tax credit from the 2022 Inflation Reduction Act is crucial, comprising 75% of revenues on average. Carbon feedstock transportation has the highest cost at 35%, followed closely by synfuel production capital costs. Incentive policies are thus key for the decarbonization of the transportation sector and the economic importance of the geographic location of Integrated Energy Systems.
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spelling doaj-art-84c800488f884f37befd50f65dac11a12025-08-20T02:10:54ZengIOP PublishingEnvironmental Research: Energy2753-37512025-01-012101501810.1088/2753-3751/adbf23Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United StatesMarisol Garrouste0https://orcid.org/0000-0001-6838-8644Michael T Craig1https://orcid.org/0000-0002-3031-5041Daniel Wendt2Maria Herrera Diaz3https://orcid.org/0000-0002-9608-5664William Jenson4Qian Zhang5Brendan Kochunas6https://orcid.org/0000-0001-7109-9368Nuclear Engineering and Radiological Sciences, University of Michigan , Ann Arbor, MI, United States of AmericaSchool for Environment and Sustainability, University of Michigan , Ann Arbor, MI, United States of America; Industrial and Operations Engineering, University of Michigan , Ann Arbor, MI, United States of AmericaIdaho National Laboratory , Idaho Falls, ID, United States of AmericaIdaho National Laboratory , Idaho Falls, ID, United States of AmericaIdaho National Laboratory , Idaho Falls, ID, United States of AmericaIdaho National Laboratory , Idaho Falls, ID, United States of AmericaNuclear Engineering and Radiological Sciences, University of Michigan , Ann Arbor, MI, United States of AmericaLow carbon synfuel can reduce dependence on fossil fuels like diesel and jet fuel, and, with large-scale cost-effective production, contribute to global transportation sector decarbonization, Simultaneously, nuclear power plants are struggling economically due to falling wholesale electricity prices. Converting existing nuclear plants for synfuel production could preserve these low-carbon assets and enable large-scale synfuel production, yet no comprehensive technoeconomic analysis exists. This study evaluates the potential of integrating synthetic fuel production with five US nuclear plants, considering electricity and fuel markets and carbon dioxide source access. Such integration could enhance nuclear plant profitability by up to $792 million and offer a 10% return on investment over 20 years. The hydrogen production tax credit from the 2022 Inflation Reduction Act is crucial, comprising 75% of revenues on average. Carbon feedstock transportation has the highest cost at 35%, followed closely by synfuel production capital costs. Incentive policies are thus key for the decarbonization of the transportation sector and the economic importance of the geographic location of Integrated Energy Systems.https://doi.org/10.1088/2753-3751/adbf23integrated energy systemsnuclear energysynfuelhydrogen PTCdecarbonizationtransportation sector
spellingShingle Marisol Garrouste
Michael T Craig
Daniel Wendt
Maria Herrera Diaz
William Jenson
Qian Zhang
Brendan Kochunas
Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States
Environmental Research: Energy
integrated energy systems
nuclear energy
synfuel
hydrogen PTC
decarbonization
transportation sector
title Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States
title_full Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States
title_fullStr Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States
title_full_unstemmed Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States
title_short Techno-economic analysis of synthetic fuel production from existing nuclear power plants across the United States
title_sort techno economic analysis of synthetic fuel production from existing nuclear power plants across the united states
topic integrated energy systems
nuclear energy
synfuel
hydrogen PTC
decarbonization
transportation sector
url https://doi.org/10.1088/2753-3751/adbf23
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