Economics
The project has significant additional costs when compared with a conventional power plant due to the additional investment and operating costs in capturing the carbon dioxide emissions. However the proximity of the power station to the oil reservoirs means that the CO2 can be used for enhanced oil recovery (EOR) and creates an economic value for the CO2 off-take, partially offsetting the increased costs.
The additional oil recovered would also generate new tax revenues for the state and federal Governments and enhance California's energy security and supply, reducing the state’s dependence on foreign oil imports.
The project also has wider economic benefits, including reducing exposure of the California economy to rising natural gas prices, by providing an alternative fuel for power generation. The project would also provide additional employment in the Kern County area and will generate additional county revenues from sales and property taxes.