  Low carbon synfuel can displace transport fossil fuels such as diesel and jet
fuel and help achieve the decarbonization of the transportation sector at a
global scale, but large-scale cost-effective production facilities are needed.
Meanwhile, nuclear power plants are closing due to economic difficulties:
electricity prices are too low and variable to cover their operational costs.
Using existing nuclear power plants to produce synfuels might prevent loss of
these low-carbon assets while producing synfuels at scale, but no
technoeconomic analysis of this Integrated Energy System exist. We quantify the
technoeconomic potential of coupling a synthetic fuel production process with
five example nuclear power plants across the U.S. to explore the influence of
different electricity markets, access to carbon dioxide sources, and fuel
markets. Coupling synfuel production increases nuclear plant profitability by
up to 792 million USD(2020) in addition to a 10 percent rate of return on
investment over a 20 year period. Our analysis identifies drivers for the
economic profitability of the synfuel IES. The hydrogen production tax credit
from the 2022 Inflation Reduction Act is essential to its overall profitability
representing on average three quarters of its revenues. The carbon feedstock
transportation is the highest cost - more than a third on average - closely
followed by the synfuel production process capital costs. Those results show
the key role of incentive policies for the decarbonization of the
transportation sector and the economic importance of the geographic location of
Integrated Energy Systems.
