CARBON CAPTURE, TRANSPORTATION AND STORAGE AN IRISH PERSPECTIVE

Transcription

1 CARBON CAPTURE, TRANSPORTATION AND STORAGE AN IRISH PERSPECTIVE Richard Vernon SLR Consulting Ireland UCD Earth Systems Institute 24 th November 2008

2 THE POLICY CONTEXT...we will build on analysis by SEI on costs, benefits and future potential for Ireland of CCS Strategies. Subject to developments, the Government would envisage the commercial operation of a new clean coal power generation plant before 2020

3 ASSESSMENT OF THE POTENTIAL FOR GEOLOGICAL STORAGE OF CO 2 FOR THE ISLAND OF IRELAND Commissioned by:

4 PROJECT MANAGEMENT Geological Assessment Energy Policy Environmental Management Geology/ GIS CO 2 Sequestration Models Geo-Modelling /Hydrodynamics Containment Capture Technologies Scenario Modelling Economic Analysis Energy Policy Hydrodynamics Risk Assessment Scenario Modelling Economic Modelling

5 TERMS OF REFERENCE Identify large scale CO 2 point emissions appropriate for capture; Identify appropriate geological storage structures for each; Identify optimal, cost-effective capture, delivery and storage routes for each point; Move from theoretical to viable potential for geological storage of CO 2 on the island of Ireland

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7 ALL-ISLAND CO 2 ALLOCATIONS National Allocation Plans

8 2008 MAJOR POINT SOURCE EMISSIONS Concentration (Hub) Point Source CO 2 Emissions Source Sectors Mt pa (actual) Shannon Estuary Power Sector, Cement & Alumina 9.7 Mt Dublin City and Huntstown Power Sector & Industry 5.5 Mt Belfast Power & Industry 4.8Mt ROI Midlands Power & Cement 3.2 Mt Cork/ Cork Harbour Power & Oil Refining 1.8 Mt Drogheda/ Platin Cement & Periclase 1.6 Mt Cavan Monaghan Cement 1.1 Mt Derry Power & Industry 0.6 Mt Fermanagh Tyrone Industry Cement 0.5 Mt Total (all-island) 28.8Mt pa

9 ESB MONEYPOINT GENERATING STATION

10 Basin Locations Corrib Gas Spanish Point Dragon Kinsale Gas Field

11 TECHNO ECONOMIC RESOURCE PYRAMID CSLF 2007

12 QUANTIFIED STORAGE POTENTIAL 93,000 Mt Kinsale 330Mt Portpatrick 37Mt 1,500 Mt 3,500 Mt Portpatrick 2700Mt Peel 68,000Mt 88,800 Mt

13 GEOLOGICAL STORAGE CAPACITY Kinsale Gas Field (depleting) Kinsale (330 Mt practical ) most preferred option due to known reservoir characteristics and potential short term (<10 year) availability, post-production If proven up to matched capacity 60+ years storage of current 5Mt Moneypoint emissions 50 years of modelled 6.24Mt Moneypoint CO 2 emissions

14 MARATHON KINSALE HEAD FIELD LAYOUT

15 KINSALE ALPHA PLATFORM

16 GEOLOGICAL STORAGE CAPACITY Clare Basin - Saline Aquifer? Unquantifiable storage capacity during study Clare Basin strategically placed, proximal to Moneypoint, but will require costly programme to prove up No gas discovery to date limited exploration potential? Will require offshore investigation of Carboniferous Sandstones High risk with low probability of quantifying storage

17 CONCLUSIONS Island of Ireland has significant potential to store CO 2 in geological formations. Most assessable and best understood is the Kinsale gas complex. Sherwoood Sandstone offshore the East Coast offers significant aquifer storage. Potential storage in East Irish Sea oil and gas fields and aquifer The total quantified but unproven CO 2 storage capacity of the Island of Ireland is 93,000 Mt >> 88,800 Mt falls into the theoretical storage capacity and 5,000 Mt of effective/practical CO 2 storage capacity. The estimated storage capacities in this study have been classified according to the CSLF methodology

18 SOURCE TO SINK OPTIONS Sources for Capture Critical Economies of scale Centre on largest Power Plants Maximise existing infrastructure (coal jetties, HV transmission lines) Shannon Estuary: Moneypoint Belfast Lough: Kilroot Cork Harbour Transport to Sink by Pipeline Moneypoint: pipeline to Kinsale Basin Kilroot: pipeline to offshore Larne/ Portpatrick Cork Power generation, pipeline to Kinsale

19 PREFERRED HUB OPTIONS

20 CLEAN COAL PLANT AT MONEYPOINT: Selected scale of plant to maximise existing transmission capacity of 900 MW Plant would supply ~ 15% of electricity demand on an allisland basis If Kinsale is proven there would be sufficient CO 2 storage capacity for 6.3 Mt of CO 2 per year for the life of the plant

21 STORAGE SITES FOR CO 2 FROM Kinsale - MONEYPOINT Kinsale Head estimate practical storage capacity 330 Mt CO 2 Matched Capacity is likely to be less than 330 Mt but adequate for the life of the plant Involves ~ 235 km of pipeline (185 km onshore, 50 km offshore) Clare Basin Alternative Time scale to explore prospects for CO 2 storage in nearby Clare Basin is conservatively estimated at 10 years plus Pipeline distance would depend on where in the basin the injection points are located could be as little as 30 km but much longer if offshore

22 OPTIONS FOR CORK HARBOUR New CCGT s under construction ESB at Aghada 431 MW BGE at Whitegate 432 MW Location Potential hub sources are geographically close to Aghada and Whitegate Cork Harbour good take off point for Kinsale as storage locaton

23 ECONOMICS OF CCS Cost of clean coal CCS may be 3 billion Capture costs ~ 70% Cost of power capturing 90% CO 2 would be MWh competitive (ESB 104/ MWh 2007) Little difference in cost / MWh of capture technologies Ireland need not decide if wish to wait +8 years Should Ireland elect to be one of 12 EU demo?? Window of opportunity at Kinsale? Power plant in Ireland with CCS, at CO 2 price of 35/t could be competitive in all-island market

24 IRISH ENERGY POLICY CCS would support fuel diversification/ security of supply Comparative costs of electricity ESB 104/ MWh (2007); BNE 86 /MWh (2007) Comparative prices to REs: wave 220/ offshore wind 140 / MWh large onshore 57 / micro-hydro 72/ MWh CCS could be very attractive at price midway between onshore/ offshore wind

25 COMPARATIVE ELECTRICITY GENERATION COSTS Coal at $90/tonne and CO 2 at 35/tonne Price of Power from CCS and non CCS sources ( /MWh) Price per MWh DB price for economic CCS MW 0 Wave Power Incentive Offshore Wind Power Incentive Price ESB 2007 Average Generation Cost 3A New Kilroot 540 MW PC CCS 1A Moneypoint 900 MW PC CCS 2A Cork 900 MW PC CCS Onshore Large Scale Wind Energy Support Price (current) New 900 MW Coal Fired Plant no CO2 penalty Source Type

26 ETS CO 2 PRICE VOLATILITY

27 RECOMMENDATIONS 1. Storage: prove up Kinsale ( 15m +) 2. Further geological studies at Portpatrick & Clare to increase confidence in storage capacities 3. Establishment of an Irish Sea Task Force be considered (EISB /Kish/ Peel/ CISB) 4. Consideration be given to undertake one of early EU 12 Demo projects 5. Price support similar to renewable energies (offshore wind, wave) be considered for CCS

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29 RECOMMENDATIONS 1. Storage: prove up Kinsale ( 15m +) 2. Further geological studies at Portpatrick & Clare to increase confidence in storage capacities 3. Establishment of an Irish Sea Task Force be considered (EISB /Kish/ Peel/ CISB) 4. Consideration be given to undertake one of early EU 12 Demo projects 5. Price support similar to renewable energies (offshore wind, wave) be considered for CCS 6. Commence national awareness programme of potential benefits of CCS

30 For further information, pleased contact: Richard Vernon T: +353 (0) M: +353 (0) E: rvernon@slrconsulting.com