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

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

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).

Keywords

Citation

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

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Publisher

:

University of Virginia Darden School Foundation

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

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