The Value Proposition for Combining CCS and Ethanol Production

Transcription

1 The Value Proposition for Combining CCS and Ethanol Production Capturing Value from Biogenic CO 2 : Opportunities for Ethanol and Other Industries Johnston, IA Sean McCoy 2 August 2017 Energy Analyst, E Program This work was performed under the auspices of the U.S. Department of Energy by Lawrence Livermore National Laboratory under contract DE-AC52-07NA Lawrence Livermore National Security, LLC

2 The Hard Problem: Realistic Pathways to 2 C Require Negative Emissions Anderson & Peters,

3 In a 2 C world, biogenic CO 2 emissions matter Biogenic CO 2 emissions are not included in emissions accounting by convention emissions of biogenic-source CO 2 return to the air that which was already there However, a molecule of biogenic CO 2 has the impact on climate as any other molecule of CO 2 and the avoidance of it s emission as the same value By avoiding emissions of biogenic CO 2 we can potentially deliver negative emissions 3

4 California Low Carbon Fuel Standard drives reductions in carbon intensity of fuels Goal to reduce lifecycle carbon intensity (CI) of transportation fuels used in California 10% from the 2010 baseline by 2020 Direct Effects Feedstock Production iluc Target CI declines through 2020: fuels sold with a CI above the target generate deficits, below the target generate credits Alternative fuel producers could reduce CI of their fuels with CCS Crude oil producers and refiners can generate credits by reducing emissions via CCS Processing & Transport Fuel Production Transport & Distribution Fuel Use Co-Product Displacement Indirect Effects 4

5 Average LCFS price of $91/tCO 2 over the last 12 months ARB (2016) trading data 5

6 Opportunity: Apply carbon capture and storage to existing dry-mill ethanol production for LCFS credit Fermentation Utility Steam Grain Drying McAloon et al.,

7 The three steps in CCS Capture Separation of CO 2 produced during power generation or manufacturing, followed by its clean-up and compression Transport Movement of CO 2 by pipeline, truck, rail, ship, or barge to a storage facility Storage Injection of CO 2 into a suitable storage unit, selected to safely contain the injected CO 2 for long timescales Source: From L-R, Vattenfall, US DOE/NETL 7

8 Baseline scenario represents modern, efficient facility without capture Scenario Description Production Emissions (gco 2 /MJ) Emissions Change (%) Capture Energy (MJ/L) Baseline Dry-mill, gas-fired DDGS dryer 2.8 gal ethanol per bushel corn feed (10.3 L/bu) 26,200 Btu/gal (7.3 MJ/L LHV) 0.63 kwh/gal (0.6 MJ/L LHV) Fermentation Capture Baseline plus capture of 33.6 (-35.5) +11 (-106) 0.36 fermentation CO 2 Full Capture Capture of emissions from fermentation and steam 17.3 (-35.5) -43 (-160) 0.52 Production emissions contribute approximately 40% of the total lifecycle CI for corn-ethanol in the base case 8

9 Modify existing gas-fired boilers for oxyfuel operation 60 million gallon per year facility requires 30 MW th of low pressure steam, typically generated using a package boiler Same duty as successful Total Lacq oxyfuel demonstration, although a different boiler configuration Flue-gas recycle Corresponding oxygen demand of approximately 200t/d well within existing off-the-shelf oxygen plant capacities Technical assessments of package boiler configurations for oxyfuel combustion needed Oxygen Natural gas Boiler CO 2 to compression Process Heat Direct consumption Make-up water Boiler feed water Deaerator vent Deaerator 9

10 Capture scenarios reduce production phase emissions Scenario Description Production Emissions (gco 2 /MJ) Emissions Change (%) Capture Energy (MJ/L) Baseline Dry-mill, gas-fired DDGS dryer 2.8 gal ethanol per bushel corn feed (10.3 L/bu) 26,200 Btu/gal (7.3 MJ/L LHV) 0.63 kwh/gal (0.6 MJ/L LHV) Fermentation Capture Baseline plus capture of 33.6 (-35.5) +11 (-106) 0.36 fermentation CO 2 Full Capture Capture of emissions from fermentation and steam 17.3 (-35.5) -43 (-160) 0.52 Fermentation emissions are, by convention, considered to be offset by biomass growth; capture is assumed to result in an offsetting credit 10

11 Lifecycle reduction of ethanol carbon intensity of more than 40% 11

12 Capture of fermentation CO 2 makes sense at $35/t Project life of 10 years 15% discount rate CAPEX and non-energy OPEX per US DOE supported Illinois Basin Decatur Project (IBDP) $40/MWh electricity cost (MISO) $10/t transport and storage cost i.e., no EOR benefit Total Capital Cost $12,893,000 Fixed and Variable Cost Incremental Cost Avoidance Cost (LC Basis) $2,833,000/y $0.09/gal $35/t 12

13 Conclusions 1. Application of CCS to corn-ethanol plants in the US has the potential to reduce the CI of resulting fuels by 40% to 60% 2. At current LCFS prices of around $80/tCO 2 capture of fermentation CO 2 is economically attractive where storage is accessible; capture of CO 2 from boilers could also be attractive 3. Technical work is needed to assess and test capture for small scale, nonpower generation options 4. Monetizing the emissions reduction in the LCFS requires an ARB approved CCS quantification mechanism (QM) and permanence protocol Stay tuned! 13

14 Thank-you! Sean McCoy, Ph.D. Energy Analyst, E-Program

15 References (1) Anderson, Kevin, and Glen Peters The Trouble with Negative Emissions. Science 354 (6309): doi: /science.aah4567. McAloon, A., F. Taylor, W. Yee, K. Ibsen, and R. Wooley. Determining the Cost of Producing Ethanol from Corn Starch and Lignocellulosic Feedstocks. A Joint Study Sponsored by U.S. Department of Agriculture and U.S. Department of Energy, Mueller, Steffen, and John Kwik Corn Ethanol: Emerging Plant Energy and Environmental Technologies. Chicago, IL: UIC Energy Resources Center. Posen, I. Daniel, Paulina Jaramillo, and W. Michael Griffin Uncertainty in the Life Cycle Greenhouse Gas Emissions from U.S. Production of Three Biobased Polymer Families. Environmental Science & Technology 50 (6): doi: /acs.est.5b Saygin, D., D. J. Gielen, M. Draeck, E. Worrell, and M. K. Patel Assessment of the Technical and Economic Potentials of Biomass Use for the Production of Steam, Chemicals and Polymers. Renewable and Sustainable Energy Reviews 40 (December): doi: /j.rser Sanderson, Benjamin M., Brian C. O Neill, and Claudia Tebaldi What Would It Take to Achieve the Paris Temperature Targets? Geophysical Research Letters 43 (13): doi: /2016gl Weiss, Martin, Juliane Haufe, Michael Carus, Miguel Brandão, Stefan Bringezu, Barbara Hermann, and Martin K. Patel A Review of the Environmental Impacts of Biobased Materials. Journal of Industrial Ecology 16 (April): S doi: /j x. 15