Case Study Analysis and Solutions

Case ID: 711036

Abstract:
Case Solution & Analysis for AEP: Carbon Capture and Storage by Richard H.K. Vietor
By October 2010, American Electric Power, the largest coal-fired, electric utility in the United States, had been operating a carbon capture and sequestration pilot plant for one year. Using a proprietary, Alstom chilled ammonia technology, AEP was capturing and sequestering 90% of the carbon dioxide in a small waste stream at its Mountaineer plant in West Virginia. As part of its larger carbon reduction strategy, AEP was launching construction of a $680 million demonstration plan, partially funded with DOE money. Mike Morris, AEP's chairman, was frustrated though, that Congress had not passed a cap-and-trade bill, and was worried how he would recover AEP's share of this huge investment. Could he find partners in this cutting-edge demonstration, or at least, add it to his utility rate base?

Keywords:
Business & government relations, Climate change, Economic development, Energy, Small & medium-sized enterprises, AEP Carbon Capture and Storage Case Solution

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