CCS and CCU. their Role in the Mitigation of Greenhouse Gas Emissions from Energy Intensive Industry

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1 CCS and CCU their Role in the Mitigation of Greenhouse Gas Emissions from Energy Intensive Industry Stanley Santos IEA Greenhouse Gas R&D Programme Cheltenham, UK Methanol Technology and Policy Congress Frankfurt, Germany December 2015

2 2013 CCS Roadmap: Key Findings CCS is a critical component in a portfolio of low-carbon energy technologies, contributing 14% of the cumulative emissions reductions between 2015 and 2050 compared with business as usual. The individual component technologies are generally well understood. The largest challenge is the integration of component technologies into large-scale demonstration projects. Incentive frameworks are urgently needed to deliver upwards of 30 operating CCS projects by CCS is not only about electricity generation: 45% of captured CO 2 comes from industrial applications between 2015 and The largest deployment of CCS will need to occur in non-oecd countries, 70% by China alone accounts for 1/3 of the global total of captured CO 2 between 2015 and The urgency of CCS deployment is only increasing. This decade is critical in developing favourable conditions for long-term CCS deployment. OECD/IEA 2013

3 WEO2015 Special Report on Climate Change 113 Gt CO2 Abatement (Cumulative) OECD/IEA 2013

4 Rationale for CCS: Only large-scale mitigation option for many industries Updated from Tracking Clean energy Progress report 2013, industry-ccs annex (IEA)

5 IEAGHG s CCS Activities in Process Industries Iron and Steel Industry Techno-economic evaluation of CCS deployment in steel mill completed 2013 Overview of the current state and future development of CO2 capture technologies in the Iron Making Process completed st Steel industry CCS workshop with VDEH and Swerea MEFOS in Germany in November nd Steel industry CCS workshop in Japan November 2013 collaboration with World Steel and IETS Cement Industry Techno- economic assessment completed in 2008 Studies on barriers to implementation completed in 2013 (with GCCSI) Hydrogen Production for Industrial Applications State of the art review completed Techno-economic evaluation for SMR in Merchant Market Scenario now completed Final Report due Q1 of 2016 Techno-economic evaluation for SMR in Captive Market Scenario (Methanol, Ammonia/Urea & Oil Refining) is underway. Oil Refining Industry Techno-economic evaluation is now underway due Q1 of 2017 Pulp and Paper Industry Techno-economic evaluation now underway due Q3 of 2016

6 IS CO2 CAPTURE AND USE (CCU) - A PARTNER OR THREAT TO CCS?

7 Emergence of CCU CO2 as Raw Materials to Different Chemical Industries Emergence of utilization of CO2 could be a pros and cons to industrial CCS deployment. Development of CCU could provide early demonstration opportunities for novel CO2 capture technologies. However, use of CO2 as raw materials doesn t necessarily reduce CO2 emissions (per se). Nonetheless, we should accept the reality that CCU will play a role in the future of industrial CO2 mitigation scenarios.

8 Emergence of CCU CO2 Usage in various activities Figure from US DOE, ADEME and ENEA

9 Conclusion (No. 1) CO2 Capture and Use could be a beneficial to CCS by providing an avenue to early demonstration of CO2 Capture technologies

10 Conclusion (No. 2) CO2 Capture and Use could be an alternative option to address the cost of CO2 emissions (i.e. EU ETS)

11 Blast Furnace (TGR BF) Raw Top Gas CO: 46-49% CO2: 37-38% H2: 8-9% Balance: N2 CO2 Removal evaluated by ULCOS consists of: PSA, VPSA VPSA or PSA + Cryogenic Separation Chemical Absorption Concentration of CO2 depends on capture technology used CO2 removal Recycled Top Gas CO: 73-75% CO2: ~3% H2: 14-15% Balance: N2

12 Results from IEAGHG Study Case 3: OBF with MDEA/Pz CO2 Capture Nitrogen 5 Nm3 Raw Materials Coke 253 kg Sinter 1096 kg (70%) Pellets 353 kg (22%) Lump 125 kg (8%) Limestone 6 kg Quartzite 3 kg OBF Screen Undersize 21 kg DRR: 11% FT: 2140oC TGT: 170oC HM Si: 0.5% HM C:4.7% Air Top Gas Cleaning 332 Nm3 18 Nm3 Natural Gas 563 Nm3 900oC BF Dust 15 kg BF Sludge 4 kg OBF Top Gas 1385 Nm3 OBF Process Gas Fired Heaters Steam 2.0 GJ CO2 Capture & Compression Plant Flue Gas 352 Nm3 Carbon Dioxide 867 kg OBF Process Gas 938 Nm3 Oxygen 253 Nm3 Nitrogen 5 Nm3 PCI Coal 152 kg 205 Nm3 41oC BF Slag 235 kg Hot Metal 1000 kg 1470oC OBF-PG to Steel Works 171 Nm3

13 An Example How CCU is mutually compatible to the Steel Industry Composition of the Different Off-Gases from an Integrated Steel Mill Wet Basis (%vol.) Blast Furnace Gas (BFG) Basic Oxygen Furnace Gas (BOFG) H CO CO N H2O LHV (MJ/Nm3) - wet Wet Basis (%vol.) Coke Oven Gas (COG) CH H CO 3.84 CO N O H 2 O 3.98 Other HC 2.69 LHV (MJ/Nm 3 ) - wet 17.33

14 An Example How CCU is mutually compatible to the Steel Industry Composition of the Different Off-Gases from an Integrated Steel Mill Wet Basis (%vol.) Blast Furnace Gas (BFG) Basic Oxygen Furnace Gas (BOFG) Raw Off-Gas from TGR-BF to CO2 Capture Plant Off-Gas of TGR- BF (CO2 lean) from CO2 Capture Plant Recycled to BF H CO CO N H2O LHV (MJ/Nm3) - wet Wet Basis (%vol.) Coke Oven Gas (COG) CH H CO 3.84 CO N O H 2 O 3.98 Other HC 2.69 LHV (MJ/Nm 3 ) - wet Use of breakthrough technologies such as Top Gas Recycle Blast Furnace (TGR-BF) could also open up options for production of chemicals and can be more economically favourable than CCS deployment.

15 Conclusion (No. 3) We should realise that CCU could play an important role for the energy intensive industries especially if CO2 storage is not accessible However there is catch to this process! Does CCU really contribute to the reduction of greenhouse gas emissions from these industries? o Substitution? or Fossil Fuel Displacement? o Temporary Storage? o LCA analysis is needed.

16 CCS & CCU CHALLENGES AND OPPORTUNITIES TO THE METHANOL INDUSTRY

17 Emergence of CCU CO2 as Raw Materials to Different Chemical Industries Figure adapted from P. Styring (CO2Chem), Methanex Traditional Market (60%) Acetic Acid Formaldehyde Silicone Methyl Methacrylate Emerging Market (40%) MTO (MTBE & Olefins) Marine Fuel DME Fuel Blending Biodiesel MeOH to Ethylene or Propylene Use of CO2 to produce MeOH could be the early market mover for CCU

18 Methanol as Fuel Key Message: Use of CO2 to produce MeOH for fuel could not reduce CO2 per se. This could be a potential form of Technical Carbon Leakage

19 In Europe Due to SECA regulation potential new market for Methanol or DME in the Marine Fuel Business

20 Overview of IEAGHG Study: 5000 MTPD Methanol (Grade AA) Production (without CO2 Capture) New Build Case t CO2/t MeOH

21 Overview of IEAGHG Study: 5000 MTPD Methanol (Grade AA) Production (with CO2 Capture) New Build Case t CO2/t MeOH t CO2/t MeOH

22 Overview of IEAGHG Study: 5000 MTPD Methanol (Grade AA) Production (without & with CO2 Capture) Performance of the Plant Methanol Plant Performance Data Base Case with CO2 Capture INLET STREAMS Natural Gas Feedstock t/h Natural Gas Fuel t/h OUTLET STREAMS Methanol Product to BL TPD 5,000 5,000 t/h POWER BALANCE Methanol Plant Power Consumption MWe Steam and BFW Consumption MWe Utilities + BoP Consumption MWe CO2 capture plant MWe CO2 Compressor MWe Power Import from the Grid MWe SPECIFIC DIRECT EMISSIONS Specific CO2 Emission t/t MeOH Equivalent CO2 in MeOH Product % 79.30% 79.30% Captured CO2 % NA 18.40% Overall CO2 Capture Rate % 79.30% 97.70% SPECIFIC INDIRECT EMISSIONS Specific CO2 Emission (Coal Based) t/t MeOH Specific CO2 Emission (NGCC Based) t/t MeOH SPECIFIC EMISSIONS (TOTAL) Specific CO2 Emission t/t MeOH % CO2 Avoided % %

23 Options for Captured CO2 Full CCS option Partial CCS and CCU (CO2 is for own use) For 5000 MTPD MeOH plant - up to 1000 MTPD of CO2 could be used as additional feedstock to increase the production of methanol Rest are transported and stored Sell the CO2 to other users

24 Challenges to CO2 Recycle Excess CO2 could be recycled back to the Reformer or to the Synthesis Loop. But there are limitations: Syngas composition will be more carbon rich. As a consequence, MW of the syngas increases therefore reducing the circulation flow rate. There is an optimum amount of CO2 could be added. More than that would reduce Carbon Efficiency of the Synloop. (Need to balance with the Recycle Ratio). o Limitation due to the H2 availability within the Recycle Loop

25 Example Use of CO2 in MeOH Plant Addition of Purge Converter Make Up Gas (MUG) HP Steam MP Steam Methanol Synthesis Reactor CWS CWR Purge Converter CO2 Syngas Compressor Recycled Gas LP Steam BFW Crude Methanol Separator CWS CWR Purge Gas Crude Methanol Separator CWR CWS Crude Cooler Flash Gas to Burner Flash Drum Recycled Water from Purge Scrubber Bottom Crude Methanol to Distillation Unit

26 Example Use of CO2 in MeOH Plant Addition of Parallel Converter CO2 Make Up Gas (MUG) HP Steam MP Steam Parallel Converter Methanol Synthesis Reactor Syngas Compressor BFW Recycled Gas LP Steam Purge Gas Crude Methanol Separator CWR CWS Crude Cooler Flash Gas to Burner Flash Drum Recycled Water from Purge Scrubber Bottom Crude Methanol to Distillation Unit

27 Impact of CO2 Addition to the Operation of the Plant (Figure Courtesy of GBH Enterprise) Relative Production Rate Recycle Ratio CO2 Addition Rate (kmol/h)

28 Concluding Remarks Use of CO2 as raw materials is emerging due to current policy and regulatory framework. Recognising the Pros and Cons of CCU to CCS is important. In the short term, CCU has positive economic effect to any early CCS demonstration projects which could help accelerate CCS deployment even it involves temporary storage.

29 Concluding Remarks We need to understand on how to quantify the reduction potential of CO2 usage in the overall scheme of GHG reduction. LCA is an important tool We need transparent (unbiased) data to fully understand CCU s potential. Market driver should be recognised. Fill in various gaps technical, economics (including market), policy, regulatory development In the long term CCU with potential to reduce CO2 Emissions should be the main focus. CCU presents a challenge as well as opportunities to the Methanol Industry.

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