Scope of the work presented in this paper is to examine and evaluate the
application of the oxyfuel combustion CO_{2} capture technology in a
lignite- fired power plant from an economic point of view. CO_{2}
capture costs and the energy requirements associated with the oxyfuel method
affect significantly the cost of electricity. The paper focuses on the analysis
of the techno-economic factors that result in the increase of the cost of
electricity in comparison with a conventional power plant.

Results from thermodynamic simulations dealing with the most important
features for CO_{2} sequestration are presented, demonstrating the efficiency
penalties related to the application of the oxyfuel technology in a greenfield
application, with respect to a reference typical Greek lignite power plant. The
cycle calculations have been performed using the thermodynamic cycle calculation
software ENBIPRO (ENergie-BUIanz-PROgram), a powerful tool for heat and mass
balance solving of complex thermodynamic circuits, calculation of efficiency,
exergetic and exergoeconomic analysis of power plants. The oxyfuel simulations
are performed by adopting measures for the exploitation of heat that would
otherwise be wasted. Such measures concern the water/ steam cycle and the gas
flows (e.g. the oxygen flow). Heat integration from processes - such as the air
separation, the CO: compression and purification and the flue gas treatment - is
adopted in order to lower as much as possible the efficiency penalty.

The technical, economic and financial assumptions applied provide a common
basis for both power plants (i.e. conventional and oxyfuel) for the assessment
of the variation of the cost of electricity and the CO_{2} capture cost