international conference on ccs: session 1.2 - mr. juho lipponen

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© OECD/IEA 2010 Carbon Capture and Carbon Capture and Storage: Storage: Global Potential and Challenges Global Potential and Challenges NDRC and ADB International CCS NDRC and ADB International CCS Conference Conference Beijing, 28 July 2011 Beijing, 28 July 2011 Juho Lipponen Juho Lipponen Head of Unit, Carbon Capture and Head of Unit, Carbon Capture and Storage Storage International Energy Agency International Energy Agency

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Page 1: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

Carbon Capture and Storage: Carbon Capture and Storage: Global Potential and ChallengesGlobal Potential and Challenges

NDRC and ADB International CCS ConferenceNDRC and ADB International CCS ConferenceBeijing, 28 July 2011Beijing, 28 July 2011

Juho LipponenJuho LipponenHead of Unit, Carbon Capture and StorageHead of Unit, Carbon Capture and Storage

International Energy AgencyInternational Energy Agency

Page 2: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

INTERNATIONAL ENERGY AGENCY

IEA countriesOECD countries, but not IEA members

Inter-governmental body founded in 1973, currently 28 Member Countries Policy advice and energy security coordination Whole energy policy spectrum and all energy technologies Flagship publications include WEO and ETP Host to more than 40 technology-specific networks (“Implementing

Agreements” or “IAs”) Operated independently with their own membership and financing Includes GHG IA

Active in CCS since 2000; dedicated CCS unit created in 2010 Provides policy advice Supports broader IEA cross-technology analysis

Page 3: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

IEA – China NEA Joint Statement

Mr. WU Yin, Deputy Administrator, National Energy Administration,

China, during the Meeting of the IEA Governing Board at Ministerial Level in Paris on

14 October 2009.

Energy security Energy efficiency Renewable energy Market reform Cleaner coal Energy statistics Technology collaboration Personnel exchanges Translation of publications

Page 4: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CONTENTS

1. Trends and targets in energy use and related emissions

2. Potential of carbon capture and storage

3. Challenges ahead for CCS

Page 5: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

GLOBAL CO2 EMISSIONS DOUBLED

Global energy-related CO2 emissions have more than doubled in past 40 years, from 14Gt to 30Gt

Until very recently, emissions driven by OECD countries Since 2005, non-OECD countries emit more than OECD Current CO2 concentration in atmosphere roughly 390ppm

Page 6: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

ENERGY DEMAND CONTINUES TO GROW

Energy demand +35% by 2035 China: 35% of global incremental demand OECD demand stagnates

* “New Policies Scenario”, IEA World Energy Outlook 2010

0

2 000

4 000

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18 000

1990199520002005201020152020202520302035

Mto

e ChinaUnited StatesEuropean UnionIndiaMiddle EastJapan

Inter-regional (bunkers)Rest of world

Page 7: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CO2 EMISSIONS CONTINUE TO GROW

Energy-related CO2 emissions 35 Gt by 2035 Gas-related CO2 emissions grow fastest (1,3%pa),

followed by coal (0,5%pa) 650ppm CO2-eq pathway

* “New Policies Scenario”, IEA World Energy Outlook 2010

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1980 1990 2000 2010 2020 20302035

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Oil

Coal

Page 8: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

TOWARDS SUSTAINABLE FUTURE Current policies or “reference scenarios” unsustainable Scientific evidence and policy ambitions now often target

“450ppm scenarios” (50-50 chance to keep temperature increase at ≤2C)

Critical period NOW to establish policy and develop technology

Page 9: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CARBON CAPTURE & STORAGE: LIMITED ROLE WITH KNOWN POLICIES...

Steady improvement of average coal plant efficiency Share of CCS in coal-fired power remains below 10% in 2035 (and

only 3% of total power generation) No gas-CCS No or very limited industry-CCS

Page 10: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

… BUT CRITICAL IN “450” SCENARIOS

IEA analysis assigns critical role for CCS in a least-cost pathway to reaching 450ppm scenario

Role of CCS increases after 2030 contributes 1/6 of total needed reductions against baseline 2010-2050

450ppm achievable without CCS, but at higher cost Stronger reliance globally on gas replacing coal is alone not enough to

stabilise emissions

Page 11: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CAN THE POTENTIAL OF CCS BE EXPLOITED?

3000+ projects across the globe 3000+ across industries: CCS not only about coal-fired power 150Gt CO2 captured and stored

Page 12: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CCS IN INDUSTRIAL APPLICATIONS

NEW publication

Release on 20 September in Beijing!

CCS a key emissions abatement option in industry; in several industries, deep emission cuts can only be achieved through CCS

Potential to reduce CO2 emissions by up to 4.0 Gt annually by 2050 Up to 1800 projects globally by 2050 Investment of some 880bn USD 2010-2050 Applying CCS in high-purity sectors represents early opportunity

Page 13: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CO2 IS CAPTURED AND STORED AS WE SPEAK…

Sleipner 1Mt Snohvit 0,7Mt

Weyburn >2,3Mt

In Salah 1,2Mt Rangely 1Mt

Five integrated large-scale projects are currently storing >5Mt CO2 per year; also other relevant projects

Several smaller-scale pilot installations across the globe Applied R&D by government, industry and research community Academic research into capture, transport and storage

technologies and related sciences China: several pilot projects demonstrating technologies needed

to capture, transport and store CO2

Page 14: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

… AND MORE IS PLANNED

72 other integrated large-scale projects in various stages of development

Source:

Page 15: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CHALLENGES REMAIN FOR CCS Firm decisions to address climate change Understanding of CCS and recognition of its role CCS in industry and biomass

OECD vs. non-OECD countries International legal issues e.g.

London Protocol and OSPAR

Knowledge on storage capacity Time required for storage site development Long-term liability Public acceptance

CAPEX, OPEX Market

dynamics, incl. impact of cheap gas

Industrial deployment bottlenecks

Infrastructure planning and coordination

Existing public support 25-35bn USD globally

OECD – non-OECD Incentive policy

pathways

Need to mobilise 5 trillion USD 2010-2050

Page 16: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

CONCLUDING REMARKS

Energy demand and emissions continue to grow CCS has potential to deal with 1/6 of needed

emission reductions by 2050 This potential WON’T be realised if the world

does not adopt policies towards 450ppm type outcomes

This potential MAY be realised, if ambitious policy and incentives exist…

…and other challenges are solved China has developed significant experience in

CCS technologies and can leverage this position

Page 17: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

ADVANCING DIALOGUE IS ESSENTIAL

AND MANY OTHERS!

Page 18: International Conference on CCS: Session 1.2 - Mr. Juho Lipponen

© OECD/IEA 2010

Thank you!

[email protected]+33 1 40 57 66 80

www.iea.org/ccs