Global Overview of CCS and Challenges Ahead

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1 Global Overview of CCS and Challenges Ahead John Gale General Manager IEA Greenhouse Gas R&D Programme Carbon Capture and Storage: Where are we now? Intercontinental Hotel, Wellington, New Zealand Monday 27 th April 2009

2 Introduction Review of current global CCS technology status Challenges we face Demonstration plant activities Challenges we face Challenges for wide scale implementation

3 Capture & Storage Technical Status Snohvit capturing and injecting 0.7Mt/y CO2 since 2008 Rangeley injecting 3 Mt/y CO2 since 80 s Sleipner capturing and injecting 1Mt/y CO2 since 1996 Weyburn capturing and injecting 1Mt/y CO2 since 2000 Total Anthropogenic CO2 captured and injected currently 7Mt/y In-Salah capturing and injecting 1Mt/y CO2 since 2004

4 Capture and Transport Technical Status Pipeline network to capture and supply 1.2Mt/y CO2 by 2010 Snohvit 160km Sub sea pipeline Permian Basin, 3000km pipeline network operating since mid 80 s Weyburn 300km transboundary pipeline Long distance transport of CO2 by pipeline is established technology

5 New Commercial Scale Developments US Regional Carbon Planned Aquifer projects in Sequestration Programme Canada could add 6-8Mt/y 9 planned 1Mt/year projects to start CO2 captured and stored before 2011 by 2012 Many are integrated projects Total Anthropogenic CO2 captured and injected could increase to 24Mt/y by 2012 Source:NETL Source: Alberta Research Council

6 Challenge We Need to Accelerate Injection Rates

7 Challenge We need to deploy CCS in power and industrial sectors

8 Integrated Demonstration Plant Initiatives European Commission in 2007 set out a plan for demonstration plants Draft Storage Directive Programme to monitor demonstrations IEA Recommendations to G8 Need for 20 demonstration plants by 2020 Endorsed by G8 at Hokkaido Summit in Spring 2008 GCCSI established in 2009 to progress uptake of demonstration projects globally

9 Portfolio Approach Required Need to ensure all technical combinations are tested and assured All fossil fuels tested in combinations All capture technology options tested and components assured Transmission options tested Likely range of geological storage options tested and geological range assessed How can this best be achieved?

10 Planned and Proposed Integrated Demos. (illustrative as of June 2008) Large number of project announcements Guaranteeing which project will proceed is difficult in current economic/political climate Several have fallen by the way side already

11 EPRI 2007

12 Technical Challenges Post combustion capture Large number of pilot plants in operation A lot of commercial activity Technology not yet demonstrated at scale Pre combustion capture Technology components available but whole process integration could be a challenge Hydrogen turbine not commercially available? Oxy fuel combustion Pilot scale tests needed to build confidence in this option.

13 Costs Currently capture costs about 75% of CCS project costs Studies by IEA GHG on plant replication have indicated that costs could decrease by 10-40% Technology developments could drive this lower Offsetting this are increases in equipment /labour costs seen in the last 2 years have raised plant costs by 7-20%

14 Other challenges Regulatory surety is required Now happening in may jurisdictions Financial support will be required Demonstrations projects will be financially underpinned by Governmental support Public support is essential Demonstration projects will be a big test of public opinion Need to learn from successful projects how to engage the public

15 The Netherlands must become a frontrunner in the development of CO 2 capture, transport and storage. Quote from Minister Cramer, at the opening of the TNO-CATO test facility for CO 2 Capture Netherlands CCS Conflict CCS meets resistance in Barendrecht: The city of Barendrecht has rejected plans to store CO 2 in an underground gas field. The mayor and city council members made their case against the project based on expert advice. From article on: 5 th March 2009

16 Other Industrial Sectors Recently looked at cement industry Technically feasible to introduce CCS technology into cement plants Costs are high 107/t CO2 avoided for a typical EU plant 60/t CO2 avoided for a typical Asian plant Integration could halve costs May be commercial implications for CCS deployment 50% of current cement production in China No driver to implement CCS.

17 Challenges Ahead (1) Challenges Ahead (1) Going from tens to thousands of plants worldwide will present a number of challenges: Suitability of large geological resource needs to be confirmed Need to reduce costs and energy efficiency penalty Need to be able to introduce new technology into 1 st generation plants Development of large open access CO2 pipeline infrastructures is needed quickly in regions Need to integrate CCS plants into electricity grid Flexible operation is this realistic?

18 Challenges Ahead (2) Challenges Ahead (2) Need international political will to develop a post Kyoto strategy Needed soon Need to deploy CCS in developing countries Current route to finance these through CDM blocked Need to create a long term stable market price for CCS to stimulate future investment

19 Summary There are significant challenges ahead But they are not insurmountable The technology has come a long way already in a short time We know what has to be done so we have to stay focused

20 Thank You! Happy to take any questions!