Implications of the Reuse of Captured CO 2 for European Climate Action Policies

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1 Overview of project: Implications of the Reuse of Captured CO 2 for European Climate Action Policies Dr. Paul Zakkour Carbon Counts (on behalf of Carbon Counts and Ecofys) CO 2 Reuse Workshop, Brussels, 7 th June 2013

2 Project objectives and approach Project objectives:* 1. Understand role of CO 2 reuse (CCU) in supporting EU Climate Action (DG CLIMA) objectives 2. Consider key drivers and barriers for CCU in EU 3. Compare CCU activities in EU with rest of the world 4. Assess the options for better integrating CCU into EU policy: both DG CLIMA & DG RTD Approach two parts: Part 1 Overview of CCU technologies Part 2 Actions to support CCU in EU * Non exhaustive review of CCU technologies and activities 2

3 What is CCU? Why is it of interest? conversion CO 2 non-conversion feedstock energy solvents working fluid Urea yield boosting Polymers Carbamates Carbonates Biofuels Syngas/methane Formic acid Renewable methanol Enhanced oil recovery (EOR) En. gas recovery (EGR) Enhanced coal bed methane (ECBM) En. geothermal systems (EGS) Supercritical CO 2 power cycles Source: Ecofys/Carbon Counts Drivers for considering CCU: Emergence of new techniques to convert CO 2 to high value products Concerns over CCS value-chain costs/lack of progress in Europe Lack of CO 2 storage potential in some EU MSs Enhance energy security and support renewables Support industrial innovation and competitiveness Challenges and barriers: Low activation state need for energy + catalysts = costs/emissions 3

4 Research Demonstration Economically feasible under certain conditions Mature market What is the status of CCU? CCU category CCU technology CO 2 to fuels Enhanced commodity production Enhanced hydrocarbon recovery CO 2 mineralisation Chemicals production Main activities Some activities Hydrogen (renewable methanol) Hydrogen (formic acid) Algae (to biofuels) Photocatalytic processes Nanomaterial catalysts Power cycles (using scco 2 ) Enhanced production (urea; methanol) Miscible/immiscible floods (CO 2 -EOR) Miscible/immiscible floods (CO 2 -EGR) Sorption-based displacement (ECBM) Carbonate mineralisation CO 2 concrete curing Bauxite residue carbonation Sodium carbonate Polymers Other chemicals (e.g. acetic acid) Algae (for chemicals) Source: Ecofys/Carbon Counts 4

5 Who is involved in CCU development? Where? Geographical factors play an important role in determining interest/potential for several technologies (e.g. climate, material/energy availability etc.) US all segments at all levels. Many more start-up companies Europe all segments at all levels Asia pockets of R&D across various segments, especially energy Source: Ecofys/Carbon Counts KEY Academia Start-ups Industry CO 2 to fuels Enhanced commodity production Enhanced hydrocarbon production Carbonate mineralisation Chemicals production 5

6 Economic factors affecting CCU Creating revenues (using waste) Avoiding costs (e.g. EU ETS costs) Value Creation Market demand Potential volumes of CO 2 that could be utilised (highly variable <1 MtCO 2 /yr to several 100) Commercial Displacing lower cost, trusted, incumbents Focus on high-value (speciality) products could yield results Eco-labelling Costs Capital Energy Other OPEX Scope for cost reduction 6

7 CCU and Climate Policy CCU category Technology / application Potential abatement effect Algae cultivation CO 2 to fuels Renewable methanol Formic acid Displacement of fossil fuel and/or other GHG benefits C a p t u r e d C O 2 Enhanced commodity production Enhanced hydrocarbon production Photo-catalysis Enhanced geothermal systems with CO 2 Supercritical CO 2 power cycles Urea yield boosting Methanol yield boosting Enhanced coal bed methane (ECBM) Enhanced gas recovery (EGR) Enhanced oil recovery (EOR) Improved efficiency Temporary storage CO 2 mineralisation Chemicals production Carbonate mineralisation Concrete curing Bauxite residue treatment Sodium bicarbonate Polymers Other chemical processes Permanent storage Source: Ecofys/ Carbon Counts EC Regulation 601/2012 (MRGs): No longer allow transfers to be deducted from inventory Scope for exists to include...future innovations to allow new pathways for CCU to be opted-in to EU ETS 7

8 CCU and Other EU Policy Renewable Energy Directive Fuel Quality Directive: Fuel blending rates at 3% do not appear to be near-term barrier EU Standard EN197-1 on cement: Could potentially affect blending rates of CCU products in cement Carbon capture and storage: Are synergies, but dialogue between CCU and CCS communities seems limited to date Innovation strategy Capacity to contribute to several strands: e.g. green growth and industrial competitiveness 8

9 Future action to support CCU Push factors Pull factors Drive innovation through RD&D support Horizon 2020 Innovation centres Technology platform Technology prize * Drive commercial interest through market creation EU ETS and climate policy RED and renewables policy Technology innovation policy Eco-labelling * For example, the proposed Energy Security Trust Fund in the US included a US$ 25M prize for the first natural gas CCGT CCS project in the country 9

10 Near-term policy considerations Stakeholders and communication Diverse set of actors involved in CCS space (academia, industry, start-ups) Wide range of technologies with different characteristics No single voice acting for CCU interests Should stakeholders provide single voice for CCU at EU level? What is the right forum technology platform? Research and development ( push factors) Horizon 2020 is under design at the current time CCU technologies could feature across both thematic and cross-cutting programmes, but: Not really in the minds of policy-makers - should it be? What more could be done to highlight CCU in Horizon 2020? Climate and energy policy ( pull factors) No apparent near-term needs to support CCU (e.g. under EU ETS or RED). Are there areas where policy actions could support development? (inclusion of CCU element within NER300?) Is there a role of a technology prize to support CCU development? 10

11 Further information available at: Report coming soon Thank you Paul Zakkour, Carbon Counts Web: Chris Hendriks, Ecofys Web: