C-Energy's Red Hill Plant: Meeting the SO2 Challenge

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017


This case is suitable for graduate-level quantitative analysis, business and government, environment and sustainability, and global economics courses. Students must consider the tradeoffs between continuing to run an old coal-burning plant and purchasing emissions allowances (EAs) versus upgrading to emissions-reducing wet or dry scrubbers. Reducing emissions creates the possibility of selling the plant's surplus EAs (which are likely to increase in price). Choosing a wet or dry scrubber requires considering installation cost and construction time, variable cost, and SO2 removal efficiency. Ideally, the investment should pay back over time, but management believes some net investment could also be justified. For that, however, complete analyses from both economic and environmental perspectives are required. A supplemental spreadsheet is available to accompany the case (UVA-QA-0726X).



Ovchinnikov, A. (2017), "C-Energy's Red Hill Plant: Meeting the SO2 Challenge", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000063

Download as .RIS



University of Virginia Darden School Foundation

Copyright © 2008 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.