gwen andrews - making ccs projects happen
TRANSCRIPT
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Gwen Andrews
Vice President, Power & Environmental Policies,
Asia & Oceania
Making CCS Projects Happen
ADB Clean Energy Forum
June 2012
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Three main activities in four Sectors
Equipment &
services for power
generation
ALSTOM THERMAL POWER
Equipment & services for
rail transport
Equipment & services for
power transmission
ALSTOM TRANSPORT
ALSTOM GRIDALSTOM RENEWABLE POWER
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Global power market forecast
New Power Plant Orders in GW p.a, medium term
Highest demand in emerging countries
Growing share of CO2-free across the globe.
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CO2Capture Solutions within Alstom
Source: Vattenfall
Pre-combustion
(New only)
Power Plant with CO2 capture
Solutions developed by Alstom
Post-combustion Oxy-combustion
(New + retrofit) (New + retrofit)
Chilled Ammonia
Advanced Amines
Oxy combustion with Air Separation Unit
Chemical Looping Combustion
CCS must be applied to the installed base as well as to new plants
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Alstom activity on demonstrations
1st and 2nd Generation CCS
Germany-30 MWth Oxy - Lignite
US -2 MWth
Adv. Amines - coal
Oxy 350 MWe lignite,
Post 350 MWe eq. coal
US - 15 MWth
Oxy - coals
Roumania >250MWe Chilled
ammonia - Lignite
Poland 260 MWeAdv. Amines - Lignite
US 3 MWth
Chemical looping - coal
:
Sweden - 5 MWth
Chilled AmmoniaFuel oil
US - 5 MWth
Chilled Ammonia, Coal
France - 30 MWth
Oxy - Gas
Sweden 0.25 MWth
Post C. multi purpose
Norway - 40 MWth
Chilled Ammonia - Gas
France 5 MWth
Adv. Amines - Coal
Germany1
MWth
Chemical looping - coal
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What we have achieved
USA - Coal - Chilled
Ammonia
Vattenfall SchwarzePumpeGermany - Lignite &Bit. Coal - Oxy
USA - Coal -
Advanced Amines
CO2capture rate
CO2 purity
Reached
>99.7%
>99.9%
>99.5%90%
90%
90%
Load [%] on net efficiency
Realistic limit
USA - Coal - Chilled
Ammonia
>99%90%
15
20
25
10**
Pilot operation confirm CO2capture works and performances are improving
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Costs of decarbonised power compared
8465
0
100
200
300
400
Nucle
ar
Hydr
o
Geoth
ermal
CCGT
CCS
2015
O
nsho
reW
ind
PCHardc
oalC
CS20
15
O
ffsho
reW
ind
Solar
PV
Solar
Therm
al
/ MWh CoE - Low Carbon technologies Europe in 2011-2016 period
Reference case
CCS on Coal and Gas is competitive
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Barriers and Challenges
Technical
- technical performance has been proven
- costs of energy penalty an issue
Storage
- mapping and proving appropriate storage takes time
- locations near large sources are most economic
Regulatory
- Regulation of ownership, operation and monitoring of storage
- Policy regulation to encourage CCS (eg, emissions performance standards)
- Regulation to avoid stranded assets (eg, CCS ready standards)
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Barriers and Challenges - Financing
The biggest challenge is to find a means of financing the large scale
demonstrations that will allow the technology to become commercialised
Capital costs will need to be shared by governments, as the investment required
for capture, transport and storage is too large to be borne by utilities during the
demonstration phase
A method must be found to cover the operating costs of CCS demonstration
plants as well
- carbon pricing may cover some of the shortfall where it exists
- preferential tariffs can ensure that extra costs are covered
- there is precedent for preferential tariffs in terms of renewable energy
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Datang CCS DEMO Projects
Full size Oxy-fuel combustion CO2 capture
Cogeneration of Heat and Power based on Super
Critical boiler using lignite
Location: Daqing, Heilongjiang province
EOR and CO2 storage: adjacent to PetroChinas
Daqing oil field for EOR, near Songliao basin for
geological sequestration
Partial flue gas stream slip to Post-combustion CO2 capture
Ultra Super Critical boiler using bituminous or subbituminous coal
Location: Dongying, Shangdong province
EOR: very close to Sinopecs Shengli oil field for EOR
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Key Success Factors for CCUS in China
Cost effective CO2 capture technology
Reliable and cost effective CO2 Storage
Outside funding for project execution
Special power tariff/ EOR or other utilisation schemes
MOST endorsement of CCS capture technology and storage technology
NDRC approval of project execution
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How does CCS get financed?
Europe: NER 300 funding
- value of 300 million permits from the New Entrant Reserve in the EU ETS
- money identified upfront, time given for consortia to bid, competitive biddingpossible
US: project proposals assessed by DOE:
- AEP Mountaineer had received $330 million
- but could not get rate relief from the West Virginia state regulator
China: early days and the process is ad hoc
- international funding is necessary
- special tariff is necessary
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Issues for ADB
CCS is a developing technology of particular importance to Asia
It requires co-operation by a number of partners, public and private, in the
chain of capture, transport and storage
These are inherently complex projects
In emerging economies, CCS requires transfer of technology and skills
Which can realistically only come from Western companies at this point
Equally, it requires complex and co-ordinated support from government and
financial partners
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Two obvious impediments from ADB procurement policies
The prohibition against consultants being further involved in project delivery
Projects in countries like China can only be realised by technology suppliers
and utilities working together
Partners must commit early and co-operate through the entire chain of study,
design, financing, construction and operation of the project
The requirement for International Competitive Bidding
The co-operative model is ill suited to ICB
No international technology supplier will undertake the early planning work at
the risk of losing the project to a competitor
CCS is not a commercial technology that many vendors can provide
A different approach is required to realise innovative projects
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Conclusion: What makes CCS projects different?
Technology not yet proven at commercial scale, and continuous R&D required with projects
Large scale demonstrations required for learning and cost reduction
Demonstration projects in China can help to bring costs down to address Asian
expectations
There must be co-operation between utility clients and suppliers with experience in
integrating CCS equipment into power plants for this to succeed
There is as yet no real competitive landscape for CCS. A way must be found to fund
commercial scale demonstrations on a flexible basis without commercialisation, there is no
competition
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