technology update: where do we stand with ccs technologies?...transport storage technology...
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Technology update: Where do we stand with CCS technologies?
Prof. Kelly Thambimuthu
Chair, IEAGHG Executive Committee CERT Seminar
“Carbon Capture and Storage - Regaining Momentum” Sydney, Australia
20-21 February 2012
IEA Greenhouse Gas R&D Programme • A collaborative research programme founded in 1991 as an IEA
Implementing Agreement fully financed by its members
• Aim: Provide members with definitive information on the role that technology can play in reducing greenhouse gas emissions. Scope: All greenhouse gases, all fossil fuels and comparative assessments
of technology options Focus: On CCS in recent years
• Producing information that is: Objective, trustworthy, independent Policy relevant but NOT policy prescriptive Reviewed by external Expert Reviewers Subject to review of policy implications by Members
Membership
IEAGHG Activities • Task 1: Evaluation of technology options
• Based on a standard methodology to allow direct comparisons and are peer reviewed
• Task 2: Facilitating implementation • Provision of “evidence based information”
• Task 3: Facilitating international co- operation
• Knowledge transfer from existing, laboratory, pilot and commercial scale CCS projects globally
• Task 4:To disseminate the results as widely as possible.
CCS Status 2012 (Power Sector)
Power Generation
Technology developed at
scale for Coal, gas and biomass
Capture Transport Storage
Technology development by
vendors underway
Technology developed at
scale for some industry sectors
Demonstration at scale in power sector needed
Numerous technology
developers/vendors
CO2 pipeline network
demonstrated in North America
Ship transport technically
feasible
Numerous CO2 injection projects
successfully injecting up to 1Mt/y
CO2
Knowledge base on subsurface
issues/modelling/ monitoring growing
Why have some projects failed? • Regulatory uncertainty – still the case in some
jurisdictions • EC CCS Directive Approved in 2009
o Only one country to date has implemented EC Directive into National Law
UK
o Germany will only regulate for demonstration plants
• USA o USAEPA adapted existing UIC programme for CO2 injection in 2011
New Class VI wells programme http://water.epa.gov/type/groundwater/uic/wells_sequestration.cfm
o Operators trying to circumvent process for CO2-EOR operations which use Class II well programme
Why have some projects failed? • Economic/Investor uncertainty • No stable price for Carbon under EU ETS
o Need $50/t but current price under €10/t
• In contrast price for CO2 for EOR stimulating take up in USA/Canada
• Economic woes in many countries affecting viability of projects
• Global market economics mean it more cost effective for operators to invest in more dynamic markets
o Brazil, Mexico, Turkey, Indonesia etc.,
UK FEED Summary • Capture plant designs – in relative terms was easy • Pipelines • A lot of issues with routing and design but these
could be overcome
• Storage reservoirs • Even in a mature oil and gas basin like North Sea
the storage reservoir can throw up issues and create significant uncertainty
http://www.decc.gov.uk/en/content/cms/emissions/ccs/demo_prog/feed/feed.aspx
Storage Resource study by IEAGHG&GCCSI • The storage resource issue is a primary issue that
needs to be resolved • To ensure CCS projects go ahead we need:
• More up front investment on stage resource assessment • Longer project lead times
• Only if Governments recognise this issue can we make significant progress on CCS deployment globally.
http://www.globalccsinstitute.com/publications/global-storage-resources-gap-analysis-policy-makers
DSF European project cost
10
Probability density total
0
0,02
0,04
0,06
0,08
0,1
0,12
0,14
0,16
0,18
3 6 9 12 15 18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81
Total cost distribution for onshore bankability for an intensely explored area
Mean cost Cost of failure
M€
The distributions includes estimated failure costs of data acquisition, wells…
Moving forward
• Don’t despair!! - demonstrations will happen • Need to learn from FEED activities • Extrapolate costs to nth generation plants
• Need to continue R&D,D on capture • Development of lower cost 2nd/3rd generation
capture technologies • Be ready to demonstrate asap.
• Need more CO2 injections projects • Develop learning/knowledge base.
Avoiding a carbon “lock in”
0
2 000
4 000
6 000
8 000
10 000
12 000
2009 2015 2020 2025 2030 2035
TWh Coal-fired CHP plants
Coal plants fitted with CCS
Ultra-supercritical and IGCC plants
Supercritical plants
Subcritical plants
Source: IEA, WEO 2011
NEED TO RETROIT THESE
PLANTS WITH CCS
NEED TO UPGRADE or
REPLACE PLANT
CCS Retrofit IEAGHG study conclusions
• Retrofitting CCS is worth examining as an alternative to closure and replacement with new plants with CCS • Capture costs are normally higher for retrofits, but • Costs of electricity from retrofitted plants may be lower than for new
plants with CCS, due to lower capital costs for the power plant
• Retrofits to lower efficiency plants will have higher costs but there is no definitive minimum efficiency for retrofits
• There is a wide range of technical options for integrating capture with existing power plants • Whether the site power output has to be maintained is important
• New plants should be built “Capture ready” • Global potential for CCS retrofit needs to be assessed by
looking at individual plants
Transport • One to one pipeline systems can be implemented now • Should not allow ourselves to be distracted by one to one
issues. • Need to develop more extensive transport infrastructure
• Ultimately need to get to a network as big as that for natural gas
• First step is to develop hub systems o Collie Hub, Australia o Alberta Carbon Trunk Line, Canada o LeHavre, France o Rotterdam, Netherlands o Humber and Yorkshire, UK
Summary of CCS technology status • Power generation technology developed • Capture technology ready to be demonstrated
at commercial scale in power sector • One to one pipeline systems ready for
deployments • Hub systems need to be developed • Storage reservoir credibility needs to be
defined in many applications and to allow widespread deployment
What needs to done now? • Need to demonstrate technology • Work to remove key barriers
• Need to develop hub systems as next step in transport system development
• Need to begin development of transport system infrastructure for widescale deployment • Who will finance • Could take at least 10 years to develop routes, overcome
planning and public opposition
• Need to establish geological storage potential at basin level offshore now (see notes) • Significant investment needed NOW • Delay could derail technology deployment indefinately
Industrial application of CCS
• One industry sector has lead the development of CCS • Oil and gas sector • Helped create a substantial knowledge base on storage
• Other sectors have demonstrated capture at appropriate scale • Fertiliser industry
• Now have a demonstration project in USA in biofuels sector • Decateur, Illinois, USA
Industry Application of CCS (to date)
1996
Sleipner 1Mt/y CO2
1998 2000 2002 2004 2006 2008
Weyburn 2.5 Mt/y CO2
Snohvit 0.7Mt/y CO2
2010 2012 2014 2016 2018
In-Salah 1.2 Mt/y CO2
160km sub sea pipeline 350km overland
pipeline
Gorgon 3Mt/y CO2
Other Industries • IEA CCS Road map calls for significant CCS
deployment in industry • Industries like steel & cement manufacturing
very conservative • Working in a global trading market with heavy
competition • Very concerned about their industries
competitiveness • Would move industry out of regulated regions to
maintain their market share
Capture technology development • In cement and iron and steel sector oxyfuel
technologies look most cost effective option • Oxy blast furnace trialled at pilot scale • Demonstration project planned at Florange,
France. • Industry looking at min. 10 year operational cycle
to build confidence in new technology
• Cement industry • Oxy firing of rotary kiln at lab/pilot scale
Moving foward • Will see further application of CCS in oil and gas sector • Need to focus on high purity sources
• Fertiliser plant/CTL and GTL plants
• Need for CO2 for EOR will have a role • Refineries
• As far as the heavy manufacturing industry is concerned: • Already made significant strides in reducing emissions
through energy efficiency improvements • Industry will follow with CCS BUT at its own pace • Remember
o Over 50% of global cement manufacture in China
o Some 55% of global steel product made in China.
Some thoughts on Public Opinion • Public opinion not always in favour with CCS • Same for other Low Carbon Technologies
• Local Issues prevail over global • Aesthetic – NIMBY • What’s in it for me?
• For CCS we need to avoid being tarnished by public backlash from other industries • Shale gas production
GHGT-11 • Call for papers now open • http://www.ghgt.info/index.php/
Content-GHGT11/ghgt-11-submit-paper.html
• Deadline for abstract submission: 10th Feb 2012
GHGT-11 18th – 22nd November 2012
Kyoto, Japan. www.ghgt.info
Thank you