Lessons Learned from CCS Demonstration in EU

Transcription

1 Octavius CCS Conference Paris, November 2015 Rotterdam Opslag en Afvang Demonstratieproject (ROAD) Lessons Learned from CCS Demonstration in EU ROAD

2 Agenda Introduction to ROAD Lessons Learned: Capture Integration Project siting: Port and Industrial Area of Rotterdam ROAD: Stepping Stone for CO 2 Hub in Rotterdam and Europe Page 2

3 Co-operating Partners ROAD Maasvlakte CCS Project C.V. is a joint venture of: E.ON Benelux ENGIE (former GDF SUEZ) In co-operation with intended partners: TAQA Energy GDF SUEZ E&P With financial support of: European Commission (EU) Government of the Netherlands Global CCS Institute Private partners (discussions pending) Page 3

4 European CCS Project ROAD is one of last six EEPR projects (due to its favorable location) Don Valley (UK) Pre combustion Offshore Gas reservoir Bełchatów (Poland) Post combustion Onshore Saline aquifers Rotterdam Post combustion Offshore Gas reservoir Compostilla (Spain) Oxfuel + CFB Onshore Saline aquifers Porto Tolle (Italy) Post-combustion Offshore Saline aquifers Jänschwalde (Germany) Oxy fuel / post combustion Onshore Page 4

5 Objectives ROAD Demonstrate feasibility (technical, economic) of large-scale, integrated CCS chain on power generation Capture and storage of ca. 1.1 Mt CO 2 per year in (nearly) depleted gas reservoirs in period of Acquire knowledge and experience with deployment of large-scale, integrated CCS chain: Technical Legal Economic Organisational Social Page 5

6 Time Path and Milestones 14 July 2009 : Application submitted for funding under EEPR September 2009 : Project selected for funding by European Commission May 2010 : Ministerial order Dutch funding published Grant Agreement signed by European Commission and ROAD Project September 2010 : Front-End Engineering Design studies Capture Plant completed Starting note Environmental Impact Assessment published June 2011 May 2012 : Submitting Environmental Impact Assessment, permit applications : Capture permits definitive and irrevocable September 2013 : Storage permits definitive and irrevocable 2016 : Final Investment Decision 2019 : Start of operation CCS chain : Demonstration phase CCS chain Page 6

7 Integrated CCS Chain ROAD Page 7

8 Power plant Output: MWe Efficiency: 46% Capture ready Integrated CCS Chain ROAD Capture plant Technology: post combustion Size: 250 MW equivalent Capture rate: 90% CO 2 capture: 1,1 Mt/yr Page 8

9 Transport Pipeline length: 5 km onshore 20 km offshore Integrated Diameter: 16 inch CCS (insulated) Chain ROAD Transport capacity: 5 Mt/yr (dense) Design specs: 140 bar (max.) 80 C(max.) Platform P18-A (TAQA) Offshore Pipeline: 25 km Shipping Lane Crossing Harbour Crossing Page 9

10 Integrated CCS Chain ROAD Storage Depleted gas reservoir P18 (TAQA) Depth: -3,500 m Storage capacity: 35 Mt (P18) 8 Mt (P18-4) Available: 2017 Alternatives / future expansion options are in focus (i.a. EOR) Page 10

11 Status ROAD Engineering Permits Contracts Finance Detail engineering of capture plant underway, FEED is complete Some long lead suppliers chosen and components engineered Pipeline route engineered and flow assurance study completed Tie-ins (i.a. flue gas, steam) with power plant installed Storage design complete, detail storage FEED ready to start Permitting procedures finalized (beginning 2012) Capture permits are definitive and irrevocable Storage permits are definitive and irrevocable (TAQA) Sept 2013 Transport permits agreed, with publication ready Capture supplier selected and EPC contract was ready to be signed (on hold) Contracts with power plant (utilities etc) ready for signature Commercial contracts for transport (GDF Suez) and storage (TAQA) are agreed textually, and will be signed at FID But, price validity has expired - reconfirmation once funding gap is closed Very low CO 2 prices have caused a financing gap compared to plan (> 100M) Delay in CCS role-out and loss of confidence in EU low carbon energy policy has also weakened the strategic case for the demo Currently, phased approach is being investigated by EC and several Member States in order to finance construction and initial operation ROAD remains ready to start construction as soon as the funding gap has been closed Page 11

12 Agenda Introduction to ROAD Lessons Learned: Capture Integration Project siting: Port and Industrial Area of Rotterdam ROAD: Stepping Stone for CO 2 Hub in Rotterdam and Europe Page 12

13 Location of Capture Plant: Maasvlakte Power Plant 3 Retrofit on Existing Coal-Fired Power Plant (Capture Ready) Page 13

14 Interactions Between Power Plant and Capture Plant Page 14

15 Lessons Learned on Capture Integration 1. Way ROAD project is funded, with substantial capital grants, but a low reward for operation, created a strong incentive to minimise capital costs, with a much lower focus on reliability 2. Focus on minimizing capital costs had a high impact on some major design choices. Capture plant is single train (including a single compressor). For interfaces with MPP3, capacity margins in MPP3 design are used for capture plant where possible 3. Because of relatively small capture plant size, capture plant could make use of MPP3 s electric auxiliary system, MPP3 s cooling water system, extraction of steam from existing steam cycle of MPP3 4. Engineering capture plant together with power plant would have led to other solutions with lower CAPEX, e.g. more optimal lay-out and combining utility system Page 15

16 Agenda Introduction to ROAD Lessons Learned: Capture Integration Project siting: Port and Industrial Area of Rotterdam ROAD: Stepping Stone for CO 2 Hub in Rotterdam and Europe Page 16

17 Rotterdam Port and Industrial Area Largest port of Europe (top 10 world ports) Direct added value 15,5 billion Indirect added value 6,5 billion Direct and indirect added value 3,3% of GNP Direct employment people Indirect employment people Annual average business invesment 1,5 billion...and 17% (2013: 28 Mt) of total CO 2 emissions in the Netherlands (2013: 166 Mt) Rotterdam port and industrial complex is of great strategic value for (North-west) Europe Gateway to 350 million consumers Page 17

18 Rotterdam Port and Industrial Area Power plants Refineries Industrial gases Chemicals and biofuels 40 km Page 18

19 Why CCS Demonstration Projects in The Netherlands? Several industrial areas with many large point sources New power stations under construction with potential deployment of CCS Depleted onshore and offshore gas reservoirs in years to come Gas reservoirs have right structure for permanent CO 2 storage Indepth knowledge of gas transport because of dense natural gas grid Vast experience with exploration and production of oil and gas, gas storage in gas reservoirs and aquifers God s greatest gift to Rotterdam is its location Alexander Rinnooy Kan, former chairman of the Dutch Social Economic Council Page 19

20 North Sea CO 2 Storage Capacity Page 20

21 Agenda Introduction to ROAD Lessons Learned: Capture Integration Project siting: Port and Industrial Area of Rotterdam ROAD: Stepping Stone for CO 2 Hub in Rotterdam and Europe Page 21

22 Rotterdam Vision: CO 2 Hub of Northwest Europe Rotterdam Antwerp Amsterdam Ruhr area Many industrial areas with many large point sources Many depleted offshore gas reservoirs in years to come CO 2 pipeline CO 2 shipping Page 22

23 Many OCAP: Next Step: Large-scale Existing ROAD COProject 2 Supply 2 Emitters to Greenhouses Power plants Refineries Industrial gases Chemicals and biofuels 40 km Page 23

24 Monthly Demand Rotterdam CO 2 Hub Existing OCAP* System OCAP System: Supplies 400 kt CO 2 to 600 greenhouses Shell Pernis CO 2 is from natural gasbased hydrogen production facility Abengoa is a first generation bioethanol plant OCAP claims CO 2 emission reduction of 200 kt/year through avoidance of natural gas use in the greenhouses There is additional CO 2 demand OCAP can t meet OCAP Supply Area Westland B-driehoek Zuidplaspolder CO 2 transport (pipeline) CO 2 supply to greenhouses Planned CO 2 supply to greenhouses Max. CO 2 Supply CO 2 Demand Month * OCAP: Organic CO 2 for Assimilation by Plants Page 24

25 Monthly Demand Proposed Link between ROAD and OCAP OCAP cannot expand due to lack of CO 2 in summer peak (usually a few days only) ROAD could supply OCAP with summer peak CO 2 Expansion is desirable to reduce CO 2 emissions by greenhouses Estimate of greater than 200kt/yr further reduction achievable (with heat pipe - to be confirmed) In winter CO 2 from Shell and Abengoa (bio-ccs) could be sent for geological storage by ROAD Max. CO 2 Supply Estimated Supply ROAD Estimated Supply Shell/Abengoa Potential Additional Storage Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Month Page 25

26 Rotterdam Connection CO ROAD with 2 Hub: Antwerp and Vision OCAP and 2030 Ruhr Area Expanding CO 2 Supply to Greenhouses T Power plants Refineries Industrial gases Chemicals and biofuels 40 km Page 26

27 ROAD Maasvlakte CCS Project C.V. Visit Parallelweg NA Schiedam The Netherlands Post P.O. Box AC Schiedam The Netherlands Contact T: +31 (0) F: +31 (0) E: info@road2020.nl W: Page 27