Promoting Carbon Capture and Storage in Asia

Transcription

1 Promoting Carbon Capture and Storage in Asia Pradeep Tharakan Climate Change Specialist Energy Division, Southeast Asia Department Asian Development Bank

2 Presentation Outline CCS as a mitigation option for Asia ADB s intervention in CCS Findings of ADB s Technical Assistance

3 Energy Sector Emissions to Increase ASEAN Generation Capacity by Country and Fuel Region s primary energy demand increases by 76% ( ) Coal use set to increase (Source: World Energy Outlook 2009, IEA)

4 ADB s Intervention in CCS ADB s Energy Policy 2009 supports the promotion of CCS as a GHG mitigation option wherever appropriate Established a A$ 21.5 million CCS Fund in 2009 in partnership with the Global CCS Institute. The Fund is aimed at capacity building activities, scoping analyses and capital grants to be combined with ADB s lending products. Active participant in key global fora on CCS CSLF, CEM etc Partnerships with IEA, APEC, WRI, Clinton Foundation etc

5 ADB s TA activities People s Republic of China Regional TA including PRC and India South East Asia INO, PHI, THA and VIE

6 TA to People s Republic of China: CCS Demonstration Strategic Analysis and Capacity Strengthening, approved in May 2009 ($1.25 M) NDRC and Greengen Company ADB loan for coal-fired IGCC project - $135 million loan and $5 million grant Lower the barriers to CCS demonstration and develop a pre-feasibility assessment for a CCS pilot project source: ADB

7 TA to People s Republic of China: Carbon Capture and Storage in Natural Gas-Based Power Plants - September 2011 ($1.8M) Evaluate CCS readiness and identify measures and investments needed for making this plant "CCS ready"; (ii) pilot test CO2 capture (post -combustion) from NGCC plant; and (iii) strengthen capacity in relevant areas. It will be implemented over a period of 2 years. Storage options and evaluation is a key component of this TA. 3 x 350 MW NGCC plant near Beijing. Photo courtesy: Datang Corporation

8 Future Projects in China CCS pilot capture and storage up to 120,000 tons of CO2/year from IGCC plant financed by ADB. Project is being designed and will be operational by 2013 Possible $10M grant from the CCS Fund Looking for additional funds $2 million FEED study proposal for oxy fuel combustion and some policy work with NDRC are being finalized for the 2012 program

9 Regional TA to China and India: Demonstration: Analysis of Key Policy Issues and Barriers approved in May 2009 ($350,000). Analyze key issues and barriers, in particular, financing issues for CCS demonstration in developing countries ADB submitted a report to CSLF on financing CCS in emerging economies Key recommendation - set up $5 billion CCS dedicated fund for developing countries

10 Capacity Regional TA Determining the Potential of CCS in Southeast Asia - August 2010 ($1.25 million) INO, PHI, THA and VIE Identify key sources of GHG emissions.. Undertake screening of storage sites Source-Sink mapping Analyze key prerequisites for CCS pilots - policy, technical, geological, regulatory, financial, economic, public acceptance Capacity building activities for governments, private sector and research institutes Develop road maps for pilot and demonstration projects Identify a pilot project and a willing host

11 Key GHG Sources in Thailand Short List of Existing CO 2 Sources in Thailand No. Plants Technology Capacity EstCO2 (Mt/y) 1 A NG Processing 2 B NG Processing 1,842 MMSCFD 852 MMSCFD Distance from sink (km) C PP-CC 678 MW D PP-SPC 660 MW E PP-CC 1,468 MW F PP-CC 1,400 MW G PP-CC 713 MW H PP-CC 700 MW I PP-CC MW J PP-Thermal 1,346 MW K PP-Thermal 2,400 MW Source: TA 7575 Report 9 11

12 Storage Capacity for Thailand s Sedimentary Basins Megatonnes of CO2 1, Saline Aquifer Storage in 10 of Thailand's 90+ Sedimentary Basins = 9 Gigatonnes of CO A B C D E F G H I J Sedimentary Basin Source: TA 7575 Report

13 Selected CO 2 Sources 100 km Radius

14 Megatonnes of CO2 400 Vietnam s Sedimentary Basins Viet Nam Oil & Gas Fields Storage Capacity Gas 250 Oil Oil & Gas Fields Source: TA 7575 Report

15 CCS Scheme in Indonesia Bangko Tengah Steam Coal Power Plant 4 x 600 MW Emissions Projection up to 2018: 11.5 MtCO 2 Muara Jawa Steam Coal Power Plant 2 x 100 MW Emissions Projection up to 2018: 10.6 MtCO 2 ADB TA Focus area: Merbau CO 2 Removal Plant 60 km 60 km South Sumatera Onshore U 320 km 35 km Muara Tawar 2,3,4 Combined Cycle Power Plant 3 x 750 MW Emissions Projection up to 2018: 26.6 MtCO 2 GU U East Kalimantan Onshore 15 km km Jawa Sea Offshore 300 km Indramayu Steam Coal Power Plant 2 x 1000 MW Emissions Projection up to 2018: 65.8 MtCO 2 Subang Gas Processing Plant Emissions Projection up to 2018: 6.2 MtCO 2 Legend: Power Plant Gas Processing Plant Storage Location Pipeline Note: Unscaled Map Source: LEMIGAS

16 CCS Economic Modelling Framework Commonly Used Assumptions Economic factors Financing parameters EOR cost CO2 cost Plant Specific Assumptions Plant technical parameters Capital costs Operating costs Cost of capital Selling prices Results Financial viability Multi-factor sensitivity test Calculations Debt payment schedule Project income statement Cash flow for evaluation Scenario Analysis Tabulation Graphics

17 Conclusions from ADB s Work

18 People s Republic of China Near-term focus on power plants (both pre-combustion and post combustion). Large numbers of high efficiency, large-sized units being built. Aggressive GHG reduction mandates. Interest in being a technology leader. Appetite to look at concessional financing and feed-in tariffs to support CCS. Lot of prep work needed on storage aspects

19 South East Asia Near-term Focus on Gas Processing Facilities. Existing capacity within operators High CO2 fields provide economic incentive Emphasis on coal-fired power plants in the medium term. Lack of familiarity with SC and USC coal-fired plants Increased tariffs are a hard sell APEC (2010)

20 THANK YOU