Gas CCS in China

Dr Jia Li Dr Xi Liang

30-31 May 2013

International Gas CCS Network Meeting, London

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Content

• Update on CCS in China

• Background on Chinese Natural Gas Industry

• Post-combustion Capture Studies in CCGT Power Plant

- Datang Study

- Huaneng Pilot

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CCS R&D Activities and Scoping Projects

• National 973 Projects (two led by Petro China)

• National 863 Projects (incl. IGCC, Algae, Oxyfuel, EOR)

• National Key Technology Program (CO2 storage, capture from blast furnace iron making)

• EU-UK-China NZEC / COACH /STRACO2

• UK-China Chinese Advanced Power Plants Carbon Capture Options

• US-China Clean Energy Research Centre

• Australia – China CO2 Geologic Storage Cooperation Project

• Italy – China CCS Cooperation

• Guangdong CCS Readiness Project

• A number of studies by Asian Development Bank and the World Bank

• Participation in ISO standard design

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CCS Pilot Projects in China

• Petro China Jilin Oilfield, EOR, 100,000 t/a (2007- )

• CAS – Jinlong CO2 Chemical Utilization, 10,000 t/a (2007- )

• Huaneng Gaobeidian post-combustion capture, 3000 t/a (2008 -)

• CNOOC biodegradable plastic CO2 utilisation, 2100 t/a (2009- )

• Huaneng Shidongkou post-combustion capture, 120,000 t/a (2009- )

• Chongqing Shuanghuai post-combustion capture, 10,000 t/a (2010- )

• SINOPEC Shengli Oil Field post-combustion and EOR, 40,000 t/a (2010 - )

• Lianyungang Clean Coal Energy System pre-combustion, 30,000t/a (2011- )

• Shenhua CTL capture and saline aquifer storage, 100,000 t/a (2011 - )

• ENN Microalgae Bio-fuel Demonstration, 20,000 t/a (TBC)

• Huaneng Green-gen IGCC CCS Pilot, up to 100,000t/a capture (TBC)

• Hubei Yingcheng Oxy-combustion R&D, 50,000 t/a capture (TBC)

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Strong Support Announced for CCS Pilot and Demonstration in China 27 Apr 2013

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Primary Tasks Immediately identified by NDRC

1. Develop pilot and demonstration projects along the CCUS technology chain

2. Develop CCUS demonstration projects and base

3. Explore and establish financial incentive mechanisms

4. Strengthen Strategy and Planning for CCUS development

5. Promote CCUS standards and regulation

6. Strengthen capacity building and international collaboration.

Source: NDRC, 2013

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Gas Production and Consumption in China

0.0

20.0

40.0

60.0

80.0

100.0

120.0

140.0

160.0

bil

lio

n c

ub

ic m

etr

e (

bcm

)

Year

Total Consumption Total Production

Source: BP, 2012; NDRC, 2013

Compounded growth rate (2003-2012): Consumption: 15.8% Production: 11.9%

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Gas Net Import Ratio in China

0%

5%

10%

15%

20%

25%

30%

2007 2008 2009 2010 2011 2012

Gsa

Net

Im

po

rt R

atio

Year

Source: BP, 2012; NDRC, 2013

The dependency ratio of crude oil is 56% in 2012

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Conventional Gas 51%

Coal SNG 6%

CBM 6% Shale Gas

2%

Import Gas 35%

Estimated Gas Sources in 2015

• Total domestic production: 176 bcm

• Conventional gas: 138.5 bcm

• Coal Synthetic Natural Gas: 15 to 18 bcm

• Coal bed methane: 16 bcm

• Shale Gas: 6.5 bcm (with 200 bcm potential)

• Import LNG and pipeline gas: 93.5 bcm

Source: NEA, 2012 http://zfxxgk.nea.gov.cn/auto86/201212/W020121203312244945303.pdf

Clean coal and CCS in China and the developing economies of Asia, Dr Andrew J Minchener, http://www.ukccsrc.ac.uk/7-february-future-uk-coal-ccs-options-workshop

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Natural Gas in China

• The share of natural gas in the energy mix will increase from 4% in 2010 to 10% in 2020

• The government is reforming the gas market, current regulated “city-gate gas prices” are around CNY 3 to 3.3 per m3 in the east of China

• Natural gas will be applied for generating electricity in major cities with tight “environment capacity”, such as Beijing, Shenzhen, Shanghai, Guangzhou

• The CCGT capacity is estimated to increase from 20GW in 2010 to 60GW in 2015 and 110GW in 2020

• Some pioneer projects are studying CCS in gas-fired power plants in China

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Datang Gas CCS Study

ADB TA‐8001 (PRC): Study on Carbon Capture and

Storage in Natural Gas-Based Power Plants

Information provided by Dr Andrew Minchener (Project Lead)

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Project Objectives

• Develop a CCS roadmap for natural gas-based CHP plants;

• Carry out a techno-economic feasibility analysis for a CCS pilot scale demonstration on the Gaojing CHP plant;

• Formulate a CCS-readiness plan for natural gas-based CHP plants;

• Establish a capacity strengthening programme for various stakeholder groups concerned with the application of CCS for gas fired CHP systems.

Source: Minchener, 2013

Clean coal and CCS in China and the developing economies of Asia, Dr Andrew J Minchener, http://www.ukccsrc.ac.uk/7-february-future-uk-coal-ccs-options-workshop

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Steam turbine hall and HRSG

Source: Minchener, 2013

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Steam turbine hall

Source: Minchener, 2013

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Datang Plan for Gas CCS

• A CCS pilot scale demonstration for Gaojing natural gas power plant through post-combustion chemical scrubbing (3 tonne per day)

• Establish CCS-readiness guidelines to meet new and future CCS retrofitting requirements for applications to all natural gas power plants within PRC

• ADB TA provides an important assessment of strategic and technical options and impact on economic competitiveness (draft report by End July 2013; followed by stakeholder workshops in Oct and Dec)

Source: Minchener, 2013

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Huaneng Gas CCS Pilot

Information provided by Mr Lianbo Liu (Project Manager)

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CCM Verification Project CCM燃气碳捕集验证项目

First CO2 capture pilot plant for natural gas based power station in China, built by CERI in 2012 (1000 tons CO2 per year)

CERI建造的中国首套燃气电厂二氧化碳捕集测试系统（规模1000吨CO2/年）

This plant (named CCM Verification Plant here) is also served as a verification plant for Norway CO2 Capture Mongstad (CCM) project

挪威CCM碳捕集工程的验证项目，第一阶段

CCM Project is executed by Statoil to build a full-scale post combustion capture of CO2 from a combined heat and power station at Mongstad

CCM项目将对Mongstad热电厂烟道气进行CO2全捕集，工程建设由挪威国家石油公司负责

CCM Verification plant has been running stably for 3000 hours with capture efficiency >85%（85%~92%）

在保证84%捕集率的条件下，CCM验证项目已连续稳定运行2000小时（捕集率84%~92%）

Features of CCM Verification Plant CCM工程项目特征

Absorber with Intercooling System 吸收塔伴中间冷却 Novel Regeneration System, Reducing 20% Energy Cost

Compared with Traditional Stripper 新型再生系统，相对传统再生方式可减少20%能耗 Natural Gas Boiler to Provide Flue Gas and Steam 天然气锅炉提供烟道气和再生用蒸汽、烟气循环 Solvent Reclaim System 溶液回收再生装置 Two Independent Online Lab Analysis Systems to Ensure

Accurate Experimental Data 两套独立的实验室在线分析系统，确保数据相符和准确 PLC with UPS for Pilot Plant PLC自动控制，备有UPS不间歇电源 Data Collection and Online Share with Norway 数据采集和在线共享

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CCM Process Flowsheet CCM 工艺流程

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CCM Process - Absorption CCM 工艺过程 – 吸收部分

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CCM Process - Regeneration CCM 工艺过程 – 再生部分

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Control Office and Operators 控制室与运行人员 Sampling and Analyzers Calibration

Every Day 每天进行实时采样和仪表校验 Analysis is also Checked Monthly by

an Independent Company 第三方分析公司进行数据校验

Control Office & Lab Analysis 控制室和实验室分析

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Online Database Files 在线数据文件

Automatic Data Collection Every 5 Seconds, and Generating Performance Curves

现场数据采集，每5秒存储形成数据库文件，通过数据分析，形成小时统计数据及性能曲线

烟气成分实时数据 Daily Analyzer Calibration Flue gas content analysis real-time data

Solvent ph level and density

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Automatic Data Collection Every 5 Seconds, and Generating Performance Curves

现场数据采集，每5秒存储形成数据库文件，通过数据分析，形成小时统计数据及性能曲线

电动阀开度实时监测

吸收塔温度分布图

Online Database Files 在线数据文件

Absorption Tower Temperature Distribution

Electricity Valve Real Monitoring

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Final Remark

• Chinese government starts to support demonstrations of CCS technologies (from Apr 2013)

• Gas fired power plants will increase rapidly though it is still a small proportion of total generation capacity

• Coal SNG will increase dramatically (13th Five Year Plan Period (2015 to 2020) if the Shale Gas production missed the proposed target

• CCGT power plants are likely first deployed in large cities and developed regions, with limit land resource and high population density, therefore CCS Ready is very important to avoid the carbon lock-in effect

• Datang and Huaneng are developing pilot CO2 capture projects in gas-fired power plants

• SNG and natural gas processing will provide low-cost opportunities for CCS in the gas industry (they are both inherently Capture Ready!)

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After May 12, 2008, Wenchuan Earthquake in China, Dongfang Turbine moved to the 173 hectares “new base”.

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Contact

• Dr Jia Li ( captureready@gmail.com )

China Low-carbon Energy Action Network (CLEAN)

Administered by Linkschina Investment Advisory

2101, Block B, Huaguoshan Buliding

Shekou, Shenzhen, China

+ 86 755 2682 9033