UKCCSC Winter School Jan 2012 Jeremy Carey, Technology Manager, SSE

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1 Capture Technology Selection and Deployment UKCCSC Winter School Jan 2012 Jeremy Carey, Technology Manager, SSE

2 Content SSE CCS in SSE Strategy CCPilot100+ R&D Programme Peterhead Technology Selection

3 SSE Background Generation Networks Customers Services Strategy To deliver sustained real growth in the dividend payable to shareholders through the efficient operation of, and investment in, a balanced range of economically-regulated and market-based energy businesses.

4 UK CCS Deployment Drivers CCC 4 th Carbon Budget: Reducing CO2 through the 2020s 300g/kWhr 120Mte CO2 / 400TWhrs 150g/kWhr 60Mte CO2 / 400TWhrs 50g/kWhr 20Mte CO2 / 400TWhrs

5 GB Generation A >60 Mte / year CO 2 overspend (@400TWhrs) Mte CO Nuclear Renewable Coal TWhrs Gas 2030 Carbon Budget

6 Why Flexible CCS? (Or Why not more wind / nuclear?) Poyry: How wind generation could transform gas markets in GB and Ireland, 2010 Weather patterns of January 2000 but with wind penetration of 2030

7 CCS: A low Carbon Wind / Nuclear Enabler Already examples where wind farms have been bid OFF and fossil plant held ON by NG to maintain constrained grid stability 5 th / 6 th April 2011 High rain and wind led to need for downward regulation in Scotland Several Wind Farms bid OFF for several hours 16 th May 2011 Several Wind Farms bid OFF for several hours 2GTs at Peterhead and Longannet U3 held ON at low load at same time 21 st September 2011 Several Scottish Wind Farms bid OFF Several English Fossil Plant Held ON 2GTs at Peterhead held ON at low load An indicator of the critical enabling role of flexible fossil capacity

8 Mapping Technology Deployment Strategic Importance Forest Fires Technology Transfer Bring In-House - No Reinvention! Significant Funding: Collaborate if necessary Camp Fires Sparks Road Map Target key risks Collaborate Seek Funding Tinderbox Which Quadrant should CCS fit into? Outsource R&D Knowledgeable Customer Ventures? Universities Technology Monitoring Build R&D Networks 10 yrs Time to Commercialisation

9 SSE CCS Strategy Overview 1. Engage in collaborative R&D (OxyCoal1&2, CASSEM, CASS-CAP, CO 2 Re-use, storage integrity ) 2. Pilot capture technology at scale CCPilot100+ at Ferrybridge (Coal) 3. Demonstrate full chain on Gas Peterhead CCGT Post Combustion Demo Build company CCS operations know how 4. Be CCS Ready on future CCGT Fleet Be ready to move when the time is right BUT avoid first mover disadvantage

10 First Mover Disadvantage? Biomass Offshore wind Onshore wind Unacceptable Risk Acceptable Risk Marine & Tidal Wall of death Source EPRI

11 CCPilot100+ Driving Innovation

12 CCPilot100+ Project Objectives Confirmation of Performance Comparison with Renfrew Pilot Validation of Design Models Benchmarking DPS Technology vs. Market Steam / Electricity consumption Solvent Consumption UK Capacity Building SSE & Supply Chain Informed Buyer, Informed Operator Regulators, Academics, Wider Stakeholders

13 Core R&D Programme Also includes corrosion coupon extraction and analysis Phase 2 is similar but with a more advanced solvent

14 FERRYBRIDGE POWER STATION Carbon Capture Pilot 100+ Plant CONTRACT NUMBER FERRYBRIDGE POWER STATION Carbon Capture Pilot 100+ Plant Test Programme Overall Test Programme comprising: Five Test Campaigns CONTRACT NUMBER FERRYBRIDGE POWER STATION Carbon Capture Pilot 100+ Plant CONTRACT NUMBER DOOSAN POWER SYSTEMS DOOSAN POWER SYSTEMS FERRYBRIDGE POWER STATION RENFREW, UNITED KINGDOM. CRAWLEY, UNITED KINGDOM. Carbon Capture Pilot 100+ Plant CONTRACT NUMBER THIS DOCUMENT IS THE PROPERTY OF DOOSAN POWER SYSTEMS AND IS ONLY ALLOWED TO BE USED BY DOOSAN POWER SYSTEMS DOOSAN POWER SYSTEMS EXPRESS PERMISSION & LICENCE FROM FERRYBRIDGE POWER STATION RENFREW, UNITED KINGDOM. CRAWLEY, UNITED KINGDOM. DOOSAN POWER SYSTEMS Carbon Capture Pilot 100+ Plant CONTRACT NUMBER DOOSAN POWER SYSTEMS RENFREW, UNITED KINGDOM. THIS DOCUMENT IS THE PROPERTY OF PHASE DOOSAN POWER 0: Commissioning SYSTEMS AND IS ONLY ALLOWED TO BE USED BY DOOSAN POWER SYSTEMS EXPRESS PERMISSION & LICENCE FROM CRAWLEY, UNITED KINGDOM. DOOSAN POWER SYSTEMS Test Protocol Campaign 0 THIS DOCUMENT IS THE PROPERTY OF PHASE DOOSAN POWER 0: SYSTEMS Commissioning Document No: B601-PT A AND IS ONLY ALLOWED TO BE USED BY DOOSAN POWER SYSTEMS DOOSAN POWER SYSTEMS EXPRESS PERMISSION & LICENCE FROM RENFREW, UNITED KINGDOM. CRAWLEY, UNITED KINGDOM. DOOSAN POWER SYSTEMS Test Campaign D Protocol Campaign 0 THIS DOCUMENT IS THE PROPERTY OF PHASE DOOSAN POWER 0: SYSTEMS Commissioning Document No: B601-PT A DOOSAN POWER SYSTEMS AND IS ONLY ALLOWED TO BE USED BY EXPRESS PERMISSION & LICENCE FROM CRAWLEY, UNITED KINGDOM. DOOSAN POWER SYSTEMS Test Campaign C Protocol Campaign /08/11 First Issue Doosan Power THIS DOCUMENT IS THE PROPERTY OF Systems DOOSAN POWER SYSTEMS PHASE 0: Commissioning Document No: B601-PT A AND IS ONLY ALLOWED TO BE USED BY EXPRESS PERMISSION & LICENCE FROM DOOSAN POWER SYSTEMS Campaign B Issue Date Revision Authors Verifier Approver Test Protocol Campaign /08/11 First Issue Doosan Power 03/08/11 R A Gardiner 03/08/11 DPS: F D Fitzgerald Systems PHASE 0: Commissioning Document No: B601-PT A SSE: M Till Campaign A VAT: J Alin Issue Date Revision Authors Verifier Approver Test Protocol Campaign /08/11 First Issue Doosan Power 03/08/11 R A Gardiner 03/08/11 DPS: F D Fitzgerald Systems Document No: B601-PT A SSE: M Till Campaign 0 VAT: J Alin Issue Date Revision Authors Verifier Approver DOOSAN POWER SYSTEMS RENFREW, UNITED KINGDOM. 1 03/08/11 First Issue Doosan Power 03/08/11 R A Gardiner 03/08/11 DPS: F D Fitzgerald Systems SSE: M Till VAT: J Alin Issue Date Revision Authors Verifier Approver 1 03/08/11 First Issue Doosan Power 03/08/11 R A Gardiner 03/08/11 DPS: F D Fitzgerald Systems SSE: M Till Issue Date Revision Authors Verifier Approver 03/08/11 R A Gardiner 03/08/11 DPS: F D Fitzgerald SSE: M Till VAT: J Alin VAT: J Alin 7-10 Test Sets Per campaign Example Test Sets from Campaign 0 0/1 Baseline Performance / Lean Solvent Flow Rate Optimisation LSF, STP 0/2 Absorber Performance 2-9 Tests Per test set 0/3 0/4 TKO TM Optimisation Stripper Pressure Sensitivity LSF, STP LSF, STP, TKF Lean Solvent Flow Rate LSF kg/h CST 0/4/1 (Base Case) CST 0/4/2 CST 0/4/3 CST 0/4/4 Current Best Case LSF 0/5 LSF, STP, TKF, SPR Lean Solvent Temperature Sensitivity LSF, STP, TKF, SPR, LST (To Absorber C101) m 3 /h 0/6 Flue Gas Inlet Temperature Sensitivity Stripper Pressure (C102) SPR barg /7 Long Term Operation LSF, STP, TKF, SPR, LST, FGT Steam Pressure STP barg Varied STP to achieve 90% CO 2 Capture

15 Possible CCPilot100+ Extensions CCGT Flue Gas Simulation Lower CO 2 concentration: Capture Performance Higher O 2 concentration: Solvent Degradation Inc. Flexibility Amine Tanks? Dehydration? Compression?

16 Challenges of GAS Capture. Parameter Coal (UK) Gas (UK) Inlet [CO 2 ] >12% <4% Vented [CO 2 ] (@90%) ~1.2% 0.4% Inlet [O 2 ] ~6% ~12% CO Exported (Mte / year / 100TWhrs) UK TWhrs CO 2 Redux Potential ~8 Mte / yr ~80 Mte / yr Capture more difficult on Gas Transport & Storage easier on Gas Gas Capture more material in GB Context

17 Clean MWe 365 Export Stripper and Compressor Off Empting Rich Amine Tank ~9hr low Stable Export Limit CCS Design Point ~4hr peak Filling Rich Amine Tank 12am 6am 12pm 5pm 9pm 12am GT Load & Absorber Tank Levels Compressor, Stripper and CO2 export Rich Amine Lean Amine

18 Peterhead CCGT CCS Demonstration 385MWe Post Combustion CCGT Retrofit Offshore Storage in Goldeneye Depleted Gas Field ~10Mte of CO 2 over 10 years Target first injection end of 2016

19 Peterhead CCS Process Overview Peterhead CCGT Generator Electrical Energy Grid Connection Gas Supply Gas Turbine HRSG Steam Clean Flue Gas Steam Turbine Steam DCC Flue Rich Absorber Gas Solvent Stripper Lean Solvent CO2 Compression& Dehydration Transport to Storage in Goldeneye CO2 Offshore Pipeline St Fergus Compressor Onshore Pipeline Pressure Control Injection Manifold Xmas Tree Well Completion Pore Space Key Existing Equipment New Equipment Change of Use

20 Why Goldeneye? Sub-surface CO2 storage FEED already complete Most advanced Regulatory engagement on Licence and Permit in Europe >24 million tonnes capacity and excellent injectivity Two good seals and very few legacy wells good for containment Significant expansion potential in the underlying deep saline formation

21 Why Goldeneye? Timing perfect field reached end of gas production in early 2011 Opportunity for re-use of infrastructure that is only 7 years old Normally unmanned good for HSE Dedicated pipeline to shore St Fergus landfall only 10 km from Peterhead A number of partners interested in joining a Storage Joint Venture

22 Anticipated Project Timeline (For Longannet) Goldeneye FEED NER300 Preparation Capture Feasibility Gate1, NER300 Submission EIB Evaluation EIB Award 3 years of commercial operation by 2020 Enabling commercial deployment to start from 2020 PreFEED Activities DECC Gate 2 Consents DECC Phase II FEED Activities 4 years Gate 3 (Financial Close) NER300 Deadline EPC & Commissioning Operation & Injection The programme is dependent on funding award(s)

23 Selecting a Capture Vendor 10 # of Candidate Suppliers 5 1 Market Awareness Feasibility Selection NER Submission PreFEED Selection FEED Selection Award 2013

24 How do we down select? RISK = (Cost)

25 Feasibility P&T Comparison DPS, MHI, Alstom Compared submission data for key technical parameters PEHE PCC Feasibility Study Assessment Rev 0, 15/01/11 P. Kieran, J. Carey, L. Noble, A. Underwood Criteria PROCESS AND TECHNOLOGY Capture Design Summary Units Process Design and Performance CO2 Capture and Export Solvent and Conditioning Steam Energy Requirements Electrical Power and Consumables Flue Gas Process Data Operability and Reliability General

26 Overall Feasibility Evaluation 80% 75% 70% 65% Consortium Technology Interfaces SEQ Total 60% 55% 50% 45% 40% 35% A B C

27 Consortium Thoughts Consortium Evaluation Consortium Safety Record Consortium Capability to deliver this project in UK. Consortium Capacity and Commitment to deliver Consortium Robustness Delivery track record Consortium Wtd Ave Can they deliver a complex X00mn construction project in the UK? Do they have the skills, people and commitment do deliver our project? Are they recently married? What is the divorce risk? What similar projects have they delivered together?

28 Technology Evaluation Technology Evaluation Relative process safety, wastes and emissions TRL10: 10 plants operating for 10 years Indicative Performance Guarantees Available Design Maturity / Experience / Risk Low CO2 / High O2 Risk Scale up Risk Operability / Flexibility Relative energy penalty Relative solvent and other operating costs Technology Wtd Ave

29 Engineering Evaluation Engineering Evaluation Compliance with Scope Are they going to give us the drawings / data / analysis we asked for? Extent of Process and Equipment Design proposed Extent of Site Integration Design proposed Extent of Construction Planning proposed Engineering Wtd Ave How well is the integration with the existing site thought through. Will we get a generic solution or one designed for the site specific details of Peterhead. Will they give us a credible construction execution plan that can be reviewed for safety etc.

30 Commercial Evaluation Commercial Evaluation Compliance with Schedule PreFEED Price Not the most important at this stage Will they match our desired schedules? Compliance with Terms and Conditions Quality of submission Commercial Wtd Ave Can we afford it? (Threshold) Can we negotiate reasonable terms? What are they signalling about their desire for the project and the way they will approach it?

31 Hurdles to CCS Deployment Funding Project Financial Close Capture Plant Pilot + FEED Storage Site Export Route CO2 Source Peterhead Goldeneye Existing Pipelines The key remaining Peterhead / Goldeneye barrier is tangible Government Support

32 Questions?