Technology Interactions Cut China's Coal Decarbonization Costs, Enabling 1.2 Gt Negative-Cost Mitigation
An optimization study of China's coal fleet demonstrates that technology interactions reshape both costs and optimal portfolios for decarbonization. Explicit joint evaluation of conservation, biomass co-firing and carbon capture identifies 1.2 Gt negative-cost abatement and a US$56 t-1 price for neutrality. Infrastructure coordination for shared resources emerges as the key policy lever.
The arXiv preprint develops an interaction-aware framework that simultaneously optimizes three retrofit pathways while constraining shared biomass supply and CO2 storage. Plant-level heterogeneity in age, efficiency and location drives different optimal portfolios: early plants favor conservation, mid-age units adopt biomass, and newer units add capture. Accounting for synergies and competition alters both individual technology costs and fleet-wide marginal abatement curves.
This shifts the cost-optimal sequence from isolated measures toward staged deployment ending in biomass-plus-capture for net-negative emissions. The result directly informs China's 2030-2060 targets and global coal-retrofit strategies by showing that ignoring interactions overstates required carbon prices. Infrastructure planning for biomass logistics and storage hubs becomes the binding constraint rather than plant-level economics alone.
Related IEA and IPCC analyses reach similar conclusions on retrofit sequencing but lack the plant-resolution interaction modeling performed here. The preprint's shared-resource constraints highlight supply-chain bottlenecks that single-technology studies routinely omit. Coordinated policy on biomass certification and CO2 transport networks will determine whether the modeled negative-cost potential materializes.
Next steps include coupling the framework with dynamic biomass yield projections and testing sensitivity to storage capacity estimates under China's announced CCUS clusters.
Zhang et al.: By 2035 interaction-aware planning will lower the carbon price needed for 80% fleet mitigation by at least 15% versus siloed approaches.
Sources (3)
- [1]Primary Source(https://arxiv.org/abs/2608.11404)
- [2]Supporting Source(https://www.iea.org/reports/ccus-in-clean-energy-transitions)
- [3]Supporting Source(https://www.ipcc.ch/report/ar6/wg3/)