Carbon Capture & Storage Industrial stakes

Transcription

1 Carbon Capture & Storage Industrial stakes Air Liquide / Marc David Polytechnique, Conférence Coriolis (12/03/2010)

2 Air Liquide CCS industrial opportunities and risks Technical innovation Demonstration projects Conclusion Research & Development

3 Air Liquide, the world leader in gases for industry, health and the environment 42,300 employees Present in 75 countries 1 million customers Revenue 12 billion Research & Development

4 A diversified and solid business mix 2009 Gas & Services revenue: 10 billion 32% 8% 42% 18% Large Industries Air gases and hydrogen 15-year contracts Pipeline networks Industrial basins Electronics Carrier gases Specialty gases Equipment and Installations Industrial Merchant Bulk and cylinder gases Diverse sectors and customers Healthcare Hospitals Homecare Hygiene Research & Development

5 Unique expertise and skills Separating the components of the air to take advantage of their properties Producing molecules from natural resources of the Planet Air Liquide Technologies Oxygen Nitrogen Hydrogen Helium Argon & rare gases Silane Carbon monoxide Acetylene Research & Development

6 The world leader in gases for Industry Health Environment Refinery Metals Food Chemicals Automotive Hospitals Homecare patients Hygiene and disinfection Reducing polluting emissions Producing renewable energies Research & Development

7 International network of R&D centres CRCD (France) CTAS (France) FRTC (Germany) DRTC (USA) Gellep (Germany) Satellite R&D Teams in AL facility ALL (Japan) Houston (USA) Satellite R&D team in AL IM ITRI (Taiwan) Satellite R&D Teams at our customers facilities researchers Castres Lille Hamburg Annual innovation budget of 218 Mi Group R&D centres R&D subsidiaries Research & Development

8 Healthier life Our 3 R&D axes Sustainable environment Communicating world aligned with the Group strategy Research & Development

9 Efficient Production Clean processes Improve energy efficiency and productivity Reduce greenhouse gas emissions New Energies Contribute to the development of clean electricity production Research & Development

10 Air Liquide CCS industrial opportunities and risks Technical innovation Demonstration projects Conclusion Research & Development

11 Carbone Cycle Surplus de CO2 depuis 1750 Stock de carbone disponible : Flux annuels XXX : Stock de carbone XXX : Evolution du stock depuis 1750 Research & Development

12 CO 2 capture and storage system Fuels Processes Storage options Research & Development

13 CCS : a key technology to tackle climate change BLUE scenario: implementation of technologies allowing 50% reduction of current level by only scenario fitting with IPCC climate recomandation needs to implement CCS widely on CO 2 industrial sources. Comparison of the World Energy Outlook ppm case and the BLUE Map scenario, source 2008 Research & Development

14 CCS Potential Market Research & Development

15 Potential demonstration projects Climate bill «Waxman-Markey» (not voted): 100+ demo project in 10 years NER300 IGCC: 1 to 2 projects Post: 2 projects Oxy: 1 to 2 projects???? Research & Development

16 Risks Technical/Industrial Uncertainties around CCS technologies Potential bottleneck of CCS equipment for industrial ramp-up Costs and energy penalty Knowledge sharing in a (pre)-competitive environment Financial Uncertainties of funding (EU, Member States etc ) Uncertainties around cost of CCS technologies, revenues and incentives Funding streams not in line with cost spending for CCS Development of new insurance tools Regulatory Lack of regulation framework for permitting (especially storage) Need for long-term CO2 regulation at national, regional and international level Lack of clarity on role of coal Public support Lack of awareness of CCS among general public Risk of NIMBY response to any new industrial assets (incl CCS) Source: ZEP D&I, 2009 Research & Development

17 Legal framework in Europe CCS Directive Providing the legal basis for geological storage of CO2 in the European Union including opt. in EOR/EGR Entry into force So far no member state has transposed the EU Directive into national law ETS Directive European directive on the greenhouse CO2 emissions stored count as not emitted under ETS Up to 300 million allowances from NER to stimulate up to 12 CCS Demo Plants No decision today Research & Development

18 Cold envelope?? CO2 dispersion Pipeline embrittlement?? Solids formation in the pipe? Release flow?? CO 2 dispersion?? Solid CO 2 sublimation?? Toxic impurities?? Research & Development

19 Air Liquide CCS industrial opportunities and risks Technical innovation Demonstration projects Conclusion Research & Development

20 Air Liquide CO2 Capture Technologies CO 2 Purity Absorption Membranes Cryogenics Commercial Technologies Adsorption units (VPSA) Demonstration 1% 20% 40% 60% 80% 100% Feed CO 2 content Research & Development

21 CO 2 Capture from Air Liquide H 2 units CO 2 removal Options: CO 2 from process gas removal Up to 60% of the total CO 2 emission CO 2 from flue gas Up to ~90% of the total CO 2 emission Steam Natural gas Wet Flue-gas Wet Syngas 1 SMR Shift PSA Wet Syngas 2 H 2 PSA off-gas Dry Off-gas Air Puertollano, Spain, 48,000 Nm 3 /h of H 2 with CO 2 recovery (~ 300 tpd) La Coruna, Spain, 31,400 Nm 3 /h of H 2 with CO 2 recovery market (~ 135 tpd) Research & Development

22 CO 2 Capture from Blast Furnaces (1/2) ULCOS Project: European program pooling together the efforts & talents of 48 partners (Steel & its supply chain). Experimental blast furnace with in-process CO 2 capture AL Scope: CO 2 removal unit (PSA) and oxygen supply - Pilot plant started-up in Sweden Ore Coke Exported gas Blast furnace gas Dust CO 2 storage ULCOS: Ultra-Low CO 2 Steelmaking Consortium of 48 European Companies CO, H 2 (N 2 ), CO 2 CO 2 Removal Unit Tail gas VPSA PSA CO, H 2 (N 2 ) Heater Coal Oxygen Hot Metal (+ Slag) CO 2 Removal Unit for Experimental Blast Furnace trials (3 tpd) Research & Development

23 CO 2 Capture from Blast Furnaces (2/2) Amine scrubbing (amdea) -36% VPSA + low temperature purification ULCOS hypothesis Research & Development

24 Technologies for Clean Power Production 1 2 Post-combustion Oxy-combustion CO 2 capture units 3 Pre-combustion/IGCC Air Boiler Post combustion capture Example: Amines 1 Fossil Fossil fuels fuels (e.g. Coal) 2 Oxy-boiler C+O2<>CO2 Cryogenic Purification (CPU) Compression or liquefaction 3 O 2 Transport Partial Oxidation Gasifier (IGCC) Gasification C+1/2O2<>CO Reforming Shift CO+H2O<>CO2+H2 + Rectisol Storage Turbine Research & Development

25 What is Oxy-Combustion in a power plant? Air Traditional combustion Oxy-combustion O 2 N Carbon based fuel CO 2 + energy N 2 O 2 CO 2 Carbon based fuel CO 2 energy Combustion gases Combustion gases 100 O 2 H 2 O 100 H 2 O H 2 O % by volume N 2 CO 2 N 2 % by volume CO 2 CO 2 O 2 0 In Out 0 In Out Research & Development

26 Net Plant Efficiency Coal oxycombustion : best in class for capture Net Plant Efficiency* % (HHV) without CCS 39.4 SC PC** Air-Fired IGCC Avg SC PC Air-Fired Amines *Plant Efficiency = produced electricity / coal heating value with CCS 29.3 SC PC Oxy-Fired 33.6 B&W / AL*** SC PC Oxy-Fired ** SP PC = Super Critical Pulverized Coal IGCC = Integrated Gasification Combined Cycle 32.1 Babcock & Wilcox / Air Liquide 2008 results IGCC Avg TECHNOLOGY ***Data from DOE/NETL reports and B&W Air Liquide studies ( ) Research & Development

27 Air Liquide Expertise in Oxy-combustion: From solution design to industrial validation R&D furnace Modelization Flame measurement Different types of burners * From Metals to Glass Industry and Power Generation Since the 70 s through the 80 s & 90 s Towards the 21st Century Efficiency and flexibility + Emissions reduction + CO 2 capture *Source: Babcock & Willcox 5 Research & Development Combustion technologies Supporting technologies

28 Oxycombustion of Gaseous and Liquid Fuels Specific proprietary oxyburner development: Fuel flexibility for gas & liquid fuels Air mode for transient operation Optimum operating procedures (air / oxy modes) Flue gas recycle Flue gas recycle Oxygen Oxygen Fuel Fuel Synthetic air approach Air Liquide oxy-burner No external oxygen mixing: Advantageous characteristics of oxygen flames: flame stability, turndown ratio, uneasy fuels. Improved operating safety: dedicated pure oxygen circuit all along distribution system. Additional flexibility to adjust Flue Gas Recycle rate. Research & Development

29 Oxy-Combustion for CCS on coal fired boilers CO 2 recycle Ash Sulphur Water, inert gases CO 2 ESP* FGD* CO 2 cryogenic purification unit CO 2 transport & storage Boiler Coal steam turbine power generator steam O 2 Mixer ASU water (H 2 O) AIR ~20 TPD O 2 /MWe net Required bricks for CCS compared to reference plant without CCS *ESP: Electro-Static Precipitation. FGD: Flue Gas Desulphurization Research & Development

30 Air Separation Unit optimized for Oxycombustion From today s most efficient ASUs to a new specific design for oxy-combustion ISAB IGCC (2x 1800 tpd O 2 ) Operation since 1999 & the world s largest ASUs (additional power reduction through cycle integration) Sasol Train 15 (4200 tpd O 2 Sea level) Operation since 2003 (copy order in 2007) Cryogenic production of oxygen has been used for more than 100 years and is still improving Research & Development

31 Leveraging cryogenic expertise : oxygen production Cryogenic separation O2 production in large quantities Continuous improvement in past century R&D to accompany oxy-combustion Larger production capacity Lower production cost : energy efficiency and purity (85-98%) Research & Development

32 Air Liquide CCS industrial opportunities and risks Technical innovation Demonstration projects Conclusion Research & Development

33 A Global Roadmap Research & Development

34 CCS technology blocks according to Mc Kinsey Research & Development

35 CCS financial gap Commercial CCS is dependant upon regulation and appropriate financial mechanism to justify investment for CO 2 reduction and storage Source: McKinsey Research & Development

36 Demonstrator projects Significant scale-up from proof-of-concept/pilot plant, prior to future design of pre-commercial/commercial plants. Based on high cost and high risk, with extensive transverse cooperation and most often with Government funding. Internal transversal projects Strong image impact Research & Development

37 Total Lacq (France): CO 2 Free Steam Generation AL ASU AL dryers AL burners Project: Integrated oxy-combustion CCS chain. Retrofit 32 MWth gasboiler. CO 2 geo-sequestration in depleted gas field. Successful oxy-boiler start-up happening right now. AL Scope: 4 oxyburners, ASU (230 tpd), CO 2 Dryers. Research & Development

38 Callide (Australia): Complete CO 2 CPU Pilot Plant Boiler (30 MWe gross) COAL Air Separation Unit 660 tpd CO 2 Compression & Purification Unit 75 tpd CO 2 Storage Project: Retrofit by CS Energy of a 30 MWe PC boiler to oxycombustion with CO 2 partial capture and geo-sequestration- Start-Up: 2011 AL Scope: CO 2 Compression & Purification Unit (75 tpd) and Oxygen supply (660 tpd) Research & Development

39 Chair of education and research on CCS Chair Holder : Denis Clodic, CEP-Paris Budget: 700 k /y over mini 5 years Objective: to contribute to accelerate CCS research and development on the key topics which concern the complete CO2 industrial chain from the CO2 emission to the storage, including societal acceptability, technical risks and economics. The originality is both to gather the main CO2 French actors and to have a playing field at industrial scale within the Le Havre industrial basin. 5 PhD have already been launched: Developing CCS in our societies : local stakes and public policies CO2 monitoring by 3D tomography coupled with interferometry Integrated approch of dynamic risk analysis of the CO2 stockage supply chain Tracking CO2 leakages in fresh groundwater' Introducing CCS operations into territorial performance measurement: the case of Le Havre industrial cluster Raff. TOTAL 3,54 Ciment. LAFARGE 0,84 Lubrizol 0,04 EXXON Chemical 0,56 Sodes 0,08 Industrial : Air Liquide, EdF,GdF-Suez, Lafarge and Total Local authorities stakeholders: Grand Port Maritime du Havre, Le Havre Township and Le Havre community of agglomeration Research Laboratories: CIRED, BRGM, CIRETI (Le Havre), Geosciences, CERNA, CRC and CEP-Paris EDF 5,30 Yara 0,18 TOTAL Petrochemical 0,32 Raff. EXXON 2,80 Research & Development

40 VASCO : VAlorisation and Storage of CO2 Carbon management should be guided by a clear will of sustainable economic and territory development, through an optimization between: 1. CO2 as a feedstock for algae production aimed at fish food, Geogreen (Coordinator), IFP, BRGM, IFREMER, Air Liquide & GdF-Suez 2. Industrial valuation such as agro-business and water treatment, 3. CO2 boat transport for EOR, with a liquefaction terminal in Fos port, 4. Carbon transport and geological storage in deep saline aquifers located not far from Fos area. Potential Global emissions : 20 Mt/y in 2025 Source : CCS Paris Symposium -November 5, 2009, G Munier, Geogreen Research & Development

41 Air Liquide CCS industrial opportunities and risks Technical innovation Demonstration projects Conclusion Research & Development

42 Conclusions The range of CO2 capture & purification technology options is improving rapidly (cost, effectiveness) Best technological solution depends on project specifics (feedstock, processes, use of CO2 produced) Large-scale demonstrator projects are necessary to demonstrate integration of technologies along CCS valuechain Demonstrators also permit testing business models, partnerships, mastering costs Public support, Legal framework and Public fundings are urgent and mandatory Research & Development

43 Il faut agir vite en maîtrisant les risques MERCI! Research & Development