The Carbon Capture as a Service Model provides for Enchant to create a Carbon Capture SPV that will decarbonize 100% of the emissions from the plant and be financed by a combination of Tax Equity, Sponsor Equity, and Project Debt. It may also include partial ownership in the host power plant in order to utilize the necessary power and steam at cost, where applicable.

Advantages

Aligns the interests of Enchant and the current plant owners who want to decarbonize their power but may resist capital investments that cannot be included in rate base, and who do not want to access tax equity markets

  • Facilitates the exit of owners whose regulatory regime require that they divest ownership of coal-fired generation to comply with RPS
  • Allows the plant to run at a higher Capacity Factor as the power sold to the grid is reduced the amount of power sold to the Carbon Capture SPV customer. Demand for Clean Firm Power is strong
  • Can provide a way for exiting owners to replace their ownership with a PPA for decarbonized power
  • Ownership transfer transactions will be structured to leave the power plant liabilities with the exiting owners

Unit Model for Carbon Capture as a Service

  • Target project size: 750 MW
  • Estimated Development Cost: $23 million
  • Estimated Acquisition Cost: $75 million
    (incl. decommissioning and reclamation)
  • Estimated Cost of CCS plant and
    infrastructure: $1.16 billion