CCS Demonstration Projects

Transcription

1 CCS Demonstration Projects Iain Wright, CO 2 Project Manager, BP EU Parliament: CCS Hearing Brussels: March 5 th 2008

2 Agenda The Significance of CCS Industrial-Scale Deployment: Challenges Lessons Learned from BP s CCS projects: - In Salah (Algeria) - Peterhead (Scotland) - Carson (California) - Abu Dhabi (UAE) Questions and Answers 2

3 Summary BP is Taking Big Steps Towards CCS Deployment What s required: Regulatory Framework: Is it Legal? Policy Framework: Can I Get Paid (enough)? How to deal with: Long-term CO 2 Stewardship? Early-Mover Projects are developing answers to the three key questions. BP is ready to invest in CCS projects in locations where the three key questions are answered. 3

4 CCS Can Solve a Quarter of Climate Change UN IPCC Scenarios (CCS can contribute 15-55%) Princeton CMI Wedges Socolow/Pacala 4

5 Technology Options for GHG Stabilization The Stabilisation Wedge Emission trajectory BAU Emission trajectory to achieve 500ppm 1 GtC Slices of the Stabilisation Wedge 5

6 CO 2 Reduction Options ($/te) Cost of CO 2 mitigation (above today s economics) 1600 CO 2 reduction costs ($/tco 2 ) Power Generation (Fixed Sources) Transport (Mobile) Onshore Wind Hydrogen for Power (C&S) Nuclear Offshore Wind Wave Solar PV Hybrid Vehicles Biofuels Hydrogen for Tpt. Source: European Commission Report (Jan 2004), DoT, DTi (2003), BP Analysis 6

7 We Need a Market to Pull the Technology 7

8 European Roadmap for CCS (ZEP) Deployment ZEP CO2 Avoided (millions tonnes/year) FP 6 R&D: GRACE, NGCAS SACS, GESTCO CASTOR, ENCAP CACHET, ReMoVe DYNAMIS ZEPs Included in EU ETS European ZEP Policy & Regulatory Framework European Early Mover Funding Mechanisms Enables New Project CO2 Avoidance Cost Enables Enables Years ZEFFPP Business as Usual 25 New Policy Projects Early Mover Project 10 Early Mover Project 9 Early Mover Project 8 Early Mover Project 7 Early Mover Project 6 Early Mover Project 5 Early Mover Project 4 RWE Germany Mid-Norway Peterhead UK ZEFFPP CO2 Avoidance Cost Source: EU ZEP Technology Platform Strategic Deployment Document (September 2006) New Project CO2 Avoidance Cost ( /tonne) 8

9 GHG Impact of ZEP Deployment in Europe CO2 Avoided (million tonnes/yr) 4,000 3,000 2,000 1,000 One Princeton Wedge Kyoto Protocol CDM EU ZEP Deployment Years 9

10 Industry Can Transport and Store CO 2 Washington Wyoming Canadian Maine Oregon California Nevada Montana Idaho Arizona LaBarge Wyoming North Dakota South Dakota Nebraska Utah Colorado McElmo Dome Sheep Mountain Great Plains Coal Plant Kansas Oklahoma Bravo Dome New Hampshire Vermont Minnesota Wisconsin New York Massachusetts Michigan Rhode Island Connecticut Pennsylvania Iowa New Jersey Ohio Delaware Illinois Indiana Maryland W. Virginia Missouri Virginia Kentucky North Carolina Tennessee Arkansas South Carolina New Mexico Texas Terrell, Puckett, Mitchell, Grey Ranch Plants Louisiana MississippiAlabama Georgia Jackson Dome Florida Permian Basin Louisiana/Mississippi PETRA 12/1/99 10:10:02 AM 19 th July Ft/In 10

11 Permian Basin CO 2 Purchased for EOR Million Tonnes per Year Bravo Dome Sheep Mtn. McElmo Dome

12 A Business Model for CCS in the Power Sector Pre-Combustion Capture (IGCC) CO 2 Hydro- Carbon CO 2 Storage CH 4 Coal, Gas 4 Syngas Manufacture H 2 e - Combined Cycle Power Generation Low-Carbon Electricity Provides optionality for future to supply H 2 into other sectors H 2 Transportation 12

13 Lessons Learned from BP s CCS Projects In Salah (Algeria) Peterhead (Scotland) Carson (California) Abu Dhabi (UAE) 13

14 In Salah CO2 Storage Project: Algeria Lisbon CO2 storage at Krechba S P A I N Cordoba Cartagena Skikda Algiers Tunis Tangiers Hassi Bir Rekaiz Hassi R Mel A m in e C O 2 Rem oval MOROC CO Hassi Messaoud REB Proposed ISG Pipeline P r o c e s s in g F a c ilit ie s C re ta c e o u s S a n d sto n e s & M u d ston e s ~ m e tre s t h ic k ( R e g io n a l A q u ife r ) Krechba 4 G as P r o d u c t io n W e lls 3 CO2 In j e c t io n W e lls Teg ALGERIA L I B YA Reg Garet el Befinat In Salah Hassi Moumene Tiguentourine (BP) Gour Mahmoud C a r b o n if e r o u s M u d s t o n e s ~ m e t r e s t h ic k In Salah Gas Project C a r b o n if e r o u s R e s e r v o ir ~ 2 0 m e t r e s t h ic k Gas MAURITANIA Wa The CO MAL I te r 2 S to rage S ch e m e at K re ch b a NI G ER Climate Change Milestones Industrial Scale Demonstration of CO2 Geological Storage (Conventional Capture) Storage Formation is very similar to the North Sea (USA & China) Started Storage in August mmtpa CO2 Stored (17mm tonnes total) $100mm Incremental Cost for Storage, No commercial benefit Test-bed for CO2 Monitoring Technologies $30mm Research Project 14

15 CO2 Storage Project 50mmscf/d CO2 (1mmtpa) Compression Transportation Injection Storage Krechba 501 Pilot hole plus 1250 metres of horizontal section 15

16 Peterhead Hydrogen Project, Scotland Project Milestones? Would have been: Europe s largest hydrogen power plant 1 st CO 2 EOR in North Sea 1 st Storage-optimised EOR 1 st CO 2 storage in an offshore oil field Auto Thermal Reforming Climate Change Milestones 475 MW of low-carbon electricity Starting mmtpa CO 2 captured and stored = 500,000 cars off the road Infrastructure available today CO 2 EOR does have a regulatory framework 16

17 Carson Hydrogen Project, California California project (DF2) Project Milestones Could be: World s largest hydrogenfired power generation facility Gasification of petcoke a solid fuel generated as a byproduct of the refining process Climate Change Milestones 500 MW of clean electricity ~ 325,000 Southern Californian homes 4 mmtpa CO 2 avoided, could startup 2012 = 1 million cars off the road Pipeline required to transport the CO 2 to EOR and permanent storage Lowest CO 2 emissions in the world for an IGCC plant. 17

18 Hydrogen Power Project, Abu Dhabi Could be: Project Milestones World s first power plant powered by hydrogen derived from natural gas Delivered CO 2 could replace natural gas for Enhanced Oil Recovery On-stream by 2012 Climate Change Milestones 420 MW of low-carbon electricity = 5% of Abu Dhabi s capacity 1.7 mmtpa CO 2 avoided = decarbonizing Abu Dhabi s transport sector Secure geological storage of CO 2 18

19 Summary CCS can be deployed Today with today s technology Technology under development today could be deployed in 5-10 years time to reduce costs Industry already has the Key Skills: Operate large chemical plants (pre and post-combustion capture) Manage high-pressure fluids in deep geological formations Understand what makes a good storage site Europe has a Roadmap for CCS Deployment: industrial-scale Demonstration Projects? Policy Framework to fund the Higher cost Regulatory Framework for geological storage Public Acceptance China won t do this until the US/Europe lead the way 19

20 Thank You - Questions? Useful Links: Check your carbon footprint at: Princeton Wedges: CCS Technology: EU CCS Roadmap: New Hydrogen Power JV: Iain s wrightiw@bp.com Krechba 501 Pilot hole plus 1250 metres of horizontal section 20