Accelerating The Uptake Of CCS: Industrial Use of Captured CO 2

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1 Accelerating The Uptake Of CCS: Industrial Use of Captured CO 2 IEA GHG Summer School Perth, Western Australia, December Martin Oettinger 1

Reference: Global CCS Institute Report Industrial Use Of Captured CO 2 Purpose The Global CCS Institute commissioned a report to investigate existing and emerging uses for CO 2 and to address the

2 Reference: Global CCS Institute Report Industrial Use Of Captured CO 2 Purpose The Global CCS Institute commissioned a report to investigate existing and emerging uses for CO 2 and to address the question of how, and to what extent, CO 2 reuse technologies can accelerate the uptake of CCS. NOTE: Although mitigation potential is an important factor, this report is not about the mitigation potential of industrial use of CO 2. The presenter gratefully acknowledges the Institute for granting access to the material from this 2011 report in order to prepare this presentation. 2

3 Structure of Report 3

4 Outline of Presentation Existing Industrial Uses and Market of CO 2 Emerging Industrial Uses of CO 2 Shortlisted CO 2 Industrial Uses overview and status CO 2 Market Impact of CO 2 Industrial Re-use on CCS Key Findings 4

5 Existing Industrial Uses of CO 2 Enhanced Oil Recovery 50Mtpa Other Oil and Gas applications Coffee Decaffeination Urea fertiliser production Captive use Pharmaceuticals Food processing, preservation and packaging Horticulture Beverage Carbonation Fire suppression 5

6 Existing Industrial Uses of CO 2 Winemaking Steel Manufacture Pulp and Paper processing Metal Working Water Treatment Electronics Inerting Pneumatics 6

7 Existing Bulk CO 2 market Other liquid CO 2 applications Other Food industry Precipitated calcium carbonate Beverage carbonation Oil and gas (non-eor) CO2- enhanced oil recovery 7

8 Emerging Industrial Uses of CO 2 Enhanced Coal Bed Methane Recovery Enhanced Geothermal (CO 2 working fluid) Power Generation with CO 2 as a working fluid Algal bio-fixation and bio-fuel production Bauxite residue processing Carbonate mineralisation (aggregate prodn) Polymer Processing CO 2 concrete curing 8

9 Emerging Industrial Uses of CO 2 Renewable Methanol Formic Acid Production Power Generation with CO 2 as a working fluid Polymer Processing 9

10 Short-listed Industrial Uses of CO 2 by potential future demand (>5Mtpa) EXISTING USES Enhanced Oil Recovery (EOR) Fertilizer Urea (Captive Use) NEW USES Current non-captive CO 2 demand (Mtpa) Future potential noncaptive CO 2 demand (Mtpa) 30< Demand < < Demand < < Demand < 30 5 < Demand < 30 Future potential non-captive CO 2 demand (Mtpa) Enhanced Coal Bed Methane Recovery (ECBM) Demand >300 Enhanced geothermal systems CO 2 as a working fluid 5< Demand <30 Polymer processing 5< Demand <30 Algal Bio-fixation >300 Mineralisation Calcium carbonate & magnesium carbonate & Sodium Bicarbonate >300 CO 2 Concrete Curing 30< Demand <300 Bauxite Residue Treatment ('Red Mud ) 5 < Demand < 30 Liquid Fuels Renewable Methanol >300 Formic Acid >300 10

11 Concentrated Vs. Dilute CO 2 11

Permanence Of CO 2 Storage CO 2 reuse technologies that involve the use of capture technologies or MMV can provide opportunities for accelerating technology development and public acceptance and

12 Permanence Of CO 2 Storage CO 2 reuse technologies that involve the use of capture technologies or MMV can provide opportunities for accelerating technology development and public acceptance and advance the deployment of CCS. Not Permanent Permanent ( Alternative CCS ) Not Permanent EOR Algae cultivation Urea ECBM Polymers EGS Renewable methanol Mineral carbonation Formic acid Concrete curing Bauxite residue carbonation Mature technology already in commercial use Promising technologies ready for commercialisation Promising technologies at a conceptual stage 12

13 Technology Maturity 13

The Global CO 2 Market There is a very large global surplus of CO 2. CO 2 available from lower cost sources is likely to supply the majority of near-term reuse demand growth.

14 The Global CO 2 Market There is a very large global surplus of CO 2. CO 2 available from lower cost sources is likely to supply the majority of near-term reuse demand growth. Current global CO 2 demand is estimated to be 80 Mtpa - 50Mtpa is used for EOR in North America (40Mtpa from natural CO 2 reservoirs). Demand for bulk CO 2 (2.1%) CO 2 demand is expected to rise to 140 Mtpa by CO 2 supply from large point sources is currently18,000 Mtpa which includes: 500 Mtpa from high concentration sources (low cost e.g. natural gas processing) An extra 2,000 Mtpa is available from low to medium cost sources Remaining supply of CO 2 (96%) Current Demand and Supply for Bulk CO 2 Global supply vastly outweighs demand Note: CO 2 supply is measured by remaining CO 2 available from low to moderate cost point source emitters >0.1 Mtpa 14

15 2020 demand for bulk CO 2 vs. potential supply (Mtpa) Remaining global CO2 available from low to moderate cost point source emitters >0.1Mtpa Current demand for bulk CO2 (non captive)

16 Accelerate Capture Cost Reductions 16

17 Accelerate Alternative Forms of CCS 17

18 Potential Role Of CO 2 Reuse In Advancing Near-medium Term CCS Deployment Potential to provide a moderate revenue stream for near-term CCS project demonstration in favourable locations. Reuse technologies that involve the use of capture technologies or storage involving MMV can provide important learnings and promote public acceptance to advance CCS. Greater potential in emerging economies where there is strong demand for energy and construction materials and slower introduction of carbon pricing. Mature technologies such as EOR will be important. Most of the emerging reuse technologies are still immature and may not be developed in the timeframes required to accelerate the demonstration of CCS. 18

19 Potential Role Of CO 2 Reuse In Advancing CCS Deployment (cont.) Long Term The role of CO 2 reuse is limited because: Current and potential demand for CO 2 reuse is only a few per cent of anthropogenic CO 2 emissions. Bulk CO 2 market prices are likely to fall in the long-term as and when restrictions on CO 2 emissions are introduced. CO 2 reuse has an important initial role in supporting the demonstration phase of CCS. However, this role becomes less important in the long-term and as the cost of emitting carbon rises. 19

20 Key Findings The current and potential demand for CO 2 reuse is only a few per cent of anthropogenic CO 2 emissions Reuse has the potential to provide a moderate revenue stream for near-term CCS demonstration projects EOR will remain the dominant form of CO 2 reuse in the short to medium term due to its maturity and large-scale use of CO 2 ; EOR has a role to play in supporting the large-scale demonstration of CCS Most emerging reuse technologies have years of development ahead before they reach the technical maturity required for deployment at commercial scale 20

21 Key Findings CO 2 reuse has the potential to be a key component of demonstration projects in developing economies, where there is strong demand for energy and construction materials and less likelihood of the early adoption of carbon pricing CO 2 reuse has an initial role to play in supporting the demonstration phase of CCS development in the absence of strong carbon prices and in developing economies; however that initial role becomes less important as and when the cost of emitting carbon rises 21

22 Thank You Questions welcomed 22

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

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,