Role of Carbon Capture and Storage in a Carbon Constrained World. Gardiner Hill Director Technology

Transcription

1 Role of Carbon Capture and Storage in a Carbon Constrained World Gardiner Hill Director Technology Scottish Oil Club, Edinburgh 15th February 2007

2 Overview: Role of Carbon Capture and Storage (CCS) in a Carbon Constrained World Context CCS in a portfolio game CCS Technology What is being done Projects What is missing? 2

3 Context CCS in a portfolio world 3

4 Energy use grows as a function of GDP Energy demand per capita and GDP per capita ( ): 400 US Primary Energy per capita (GJ) Australia France Russia S. Korea UK Japan Ireland Greece Malaysia Mexico China Brazil India 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 Source: EIA, UN GDP per capita (PPP, $1995) 4

5 Global CO 2 emissions Power sector is responsible for ~40% of global emissions Coal represents ~70% of emissions from power sector Many large stationary point sources (1GW coal plant emits 5 7MtCO 2 p.a.) Large opportunity for CO 2 capture and storage 2000 CO 2 Emissions by Major Sector Other 14% Power Industry CO 2 Emissions by Fuel Oil 11% Transport 24% Power 40% Gas 18% Industry 22% Global CO2 Emissions : 21GtCO 2 p.a. Coal 71% Global Power Emissions : 8.3GtCO 2 p.a. 5

6 CO 2 Reduction Options ($/te) Cost of CO 2 mitigation (above today s economics) 1600 CO 2 reduction costs ($/tco 2 ) Power Generation (Fixed Sources) Transport (Mobile) Onshore Wind Hydrogen for Power (C&S) Nuclear Offshore Wind Wave Solar PV Hybrid Vehicles Biofuels Hydrogen for Tpt. Source: European Commission Report (Jan 2004), DoT, DTi (2003), BP Analysis 6

7 CO 2 capture and storage system Fuels Conversion CO 2 Storage 7

8 What difference could CCS make? There is significant storage capacity; IPCC Special Report on CCS: Storage Oil and Gas Fields GtCO 2 Technical potential likely to exceed 2000GtCO 2 Total CO 2 emissions currently around 24GTCO 2 per year Unmineable Coal GtCO 2 Saline Formations GtCO 2 In each case CCS contributes around a quarter of emissions reductions required 8

9 9 Stabilisation Triangle Gigatons Carbon Emitted per Year Historical emissions (380) Ramp = Delay Stabilization Triangle Flat = Act Now (470) Business As Usual (530) (750) 500 ppm 850 ppm (320) 1.9 (500) (850) (500) (850) (500) Values in parentheses are ppm. Note the identity (a fact about the size of the Earth s atmosphere): 1 ppm = 2.1 GtC.

10 10 7 wedges of the stabilisation triangle Wedges Detail Feasibility Efficiency Fuel Switching Carbon capture and storage Nuclear Wind Solar Natural sinks Double fuel efficiency of 2 billion cars from 30 to 60 mpg Replace 1400 coal electric plants with natural gas powered facilities (Adding an amount in 2054 almost equal to today s world gas usage) Capture AND store emissions from 800 coal electric plants Add double the current global nuclear capacity to replace coalbased electricity Increase wind electricity capacity by 50 times relative to today, for a total of 2 million large windmills Use 40,000 square kms of solar panels to produce hydrogen for fuel cell cars Eliminate tropical deforestation AND create new plantations on non forested land to quintuple current plantation area There are 600 million cars in the world today, Projection is 2 billion by wedge Double the average fuel efficiency of the fleet. 1 wedge bringing one Alaska pipeline on line every year for 50 years; or 1 wedge 50 large LNG tankers docking and discharging every day 1 wedge 3500 In Salah developments (each need to last through to 2054) 400 nuclear plants today, 1 wedge adding 700 more in the next 50 years 1 wedge windmills on an area approx 4 times that of UK 1 wedge solar panels covering area 230 times the area of London (1/12 size of UK) 1 wedge new plantations with a total area 25 times that of the UK

11 CCS Technology 11

12 What is carbon capture and storage? Sky N 2 O 2 Amine Absorption CO 2 Post Combustion Decarbonisation Air Power & Heat CO 2 Precombustion Decarbonisation Oxy firing Reformer + CO 2 Sep Air H 2 Air Power & Heat Power & Heat O 2 Air Separation Unit N 2 O 2 CO 2 N 2 CO 2 Compression & Dehydration Saline reservoir Fossil Fuel

13 Options for Geological Storage From IPCC Special Report 13

14 14 What Do We Know About the Risks of Geological Storage of CO 2? With appropriate site selection informed by available subsurface information, a monitoring program to detect problems, a regulatory system, and the appropriate use of remediation methods to stop or control CO 2 releases if they arise, the local health, safety and environment risks of geological storage would be comparable to risks of current activities such as natural gas storage, EOR, and deep underground disposal of acid gas.

15 15 Longer Term Issues: Post Injection Storage security increases over time Secondary trapping mechanisms Pressure decline Time frames are site specific Projects can be engineered to enhance trapping Monitoring can demonstrate longer term performance Eventually, a high degree of assurance will be achieved

16 Where are the Geological Storage sites? Map shows rocks categorised as highly prospective for CO 2 storage from the IPCC Special Report on Carbon Dioxide Capture and Storage 16

17 CO 2 storage via EOR. Getting CO 2 Storage started 17

18 18 State of play of CO 2 capture & storage CO 2 Capture & Storage (CCS) is an emerging technology suited to large stationary point sources of CO 2 from power generation, industry and H 2 production. CO 2 Capture Post Combustion Pre Combustion Oxyfuels $ /Tonne CO2 High Purity Sources Already separated Hi Concentration Amines, Membranes, H2 $2 10/t CO2 Transport Pipelines Ships $ Depends distance Geological Storage Enhanced Oil Recovery Saline Aquifer Formations Depleted Oil/Gas Reservoirs Enhanced Coal Bed Methane $1 10/t CO2

19 CO 2 Injection and Storage Activities 50 Acid Gas injection sites in North America 4 New CO 2 -EOR Pilots in Canada Snohvit Sleipner Alberta ECBM Teapot Dome Rangely Burlington Penn West Weyburn Mountaineer West Pearl Queen Frio K-12B RECOPOL CO 2 SINK Sibilla In Salah QinshuiBasin Nagaoka 70 CO2-EOR projects in U.S.A. Key Depleted Oil Field Gorgon ECBM projects EOR projects Gas production Fields Cerro Fortunoso OtwayBasin Saline aquifier LNG 19

20 20 Proposed CCS projects in Europe Halten Mongstad DF1 Karsto Centrica E.ON Scottish & Southern Energy Powerfuel RWE Nuon RWE Siemens GE/Polish Utility Key Pre-Combustion IGCC Post-Combustion Saline Reservoir

21 21 Challenges for CCS Enabling Support Policy from Government: HMG support to enable the generation of low carbon electricity from decarbonised fuels (signalling the need for investment) Public and regulatory acceptance of CCS: Develop protocols with relevant parties to assure safe transportation, storage and monitoring of CO2 Mitigating technical risks: technology risks mitigated through the application of known technologies (where possible) Reducing Costs of CCS: Managing project costs and developing and applying technology to further drive down the cost curve especially for carbon capture

22 What is being done Projects 22

23 BP CCS technology program Research Industry / Academic Initiatives Technical Demonstrations Source sink matching CO2CRC, EUGeocapacity, Coach, US Regional partnerships Public policy support CSLF, ECCP, EU ZEPP, CDM Assurance framework CO2CRC, CSLF, IMCO2, WRI 3rd Party Demonstrations Sleipner, Weyburn, CO2Remove Industrial Scale Projects DF1 DF2 DF3, 4,

24 CO 2 Capture Project (CCP) 24

25 European Technology Platform ZEP Carbon Reduction Efficiency + CCS 80% Improved efficiency 20% Time Near-term Mid-term Long-term 25

26 26 Projects putting technology into practice In Salah CO 2 capture from natural gas treatment plant 1.1 million tonnes/year re injection into brine beneath producing gas horizon Commenced August 2004 Peterhead Hydrogen Power Decarbonisation of natural gas for carbon free electricity 1.8 million tonnes/year CO 2 will be captured, transported to Miller and injected for EOR Anticipating 2011 start up with 2007/8 stage gate Carson Hydrogen Power Decarbonisation of Pet coke for carbon free electricity 4 million tonnes/year CO 2 will be captured, transported and injected into Ca oil fields for EOR

27 In Salah gas project, Algeria CO 2 storage at Krechba Lisbon S P A I N Cordoba Cartagena Algiers Skikda Tunis Tangiers Amine CO2 Removal MOROCCO Hassi R Mel Proposed ISG Pipeline Hassi Messaoud Hassi Bir Rekaiz REB Processing Facilities Cretaceous Sandstones & M udstones ~900 m etres thick (Regional Aquifer) Carboniferous Mudstones ~950 m etres thick 4 Gas Production W ells 3 CO 2 In je ction W ells ALGERIA Krechba Reg Garet el Befinat In Salah Teg Hassi Moumene Gour Mahmoud Tiguentourine (BP) LIBYA Carboniferous Reservoir ~20 metres thick G a s G a s G a s G a s G a s MAURITANIA MALI In Salah Gas Project The CO 2 Storage Schem e at Krechba W a t e r W a t e r W a t e r W a t e r W a t e r NIGER Climate Change Milestones Industrial Scale Demonstration of CO 2 Geological Storage (Conventional Capture) Storage Formation is very similar to the North Sea (USA & China) Started Storage in August mmtpa CO 2 Stored (17mm tonnes total) $100mm Incremental Cost for Storage No commercial benefit Test bed for CO 2 Monitoring Technologies $30mm Research Project 27

28 Peterhead Hydrogen Power Project, Scotland Climate Change Milestones Project Milestones Europe s largest hydrogen fired power generation facility Largest CO 2 EOR project in North Sea 1 st CO 2 storage in an offshore oil field Uses Auto Thermal reforming technology 475 MW of clean electricity enough to power about 300,000 homes Capture 1.8 million tpa of CO 2 and sent via pipeline to Miller field for use in CO 2 EOR and permanent storage equivalent of removing 500,000 cars from the road This one project is almost equivalent to the UK s entire wind farm capacity combined 28

29 Carson Hydrogen Power Project, California California project (DF2) Project Milestones World s largest hydrogenfired power generation facility Uses gasification technology to gasify petcoke a solid fuel generated as a byproduct of the refining process Climate Change Milestones 500 MW of clean electricity enough to power about 325,000 Southern Californian homes Capture 4 million tpa of CO 2 and invest in pipeline infrastructure to transport the CO 2 to an upstream buyer for EOR and permanent storage the lowest CO 2 emissions in the world for an IGCC plant. 29

30 What is missing? 30

31 What is missing? Regulations Policy CCS is already competitive with renewables so only needs the same level of policy support as currently provided to renewables Large Scale Demonstration to build confidence and gain broader public acceptance Create a policy and regulatory framework that is Stable, Predictable and Long term EU ETS would be a good start if there was certainty about it being in existence long term beyond 2012 but currently not sufficient to make CCS happen Recognise and value the Co benefits that CCS offers. Energy diversity Energy security UK Leadership and New Industry/skills Extend life for UKCS Improved air quality (Developing world) 31

32 International CCS relevant legislation No regulations currently exist to cover the injection of CO 2 underground for long term storage In many countries it is unclear which agency has jurisdiction Key issue is the long term aspect of CO 2 storage DF1 can be permitted under current Petroleum Act due to EOR aspect 32

33 Policy $/T CO 2 Technology Costs Capture & Storage CCS $ When is Crossover?? Role of Policy? Creating Value Hi Purity CO 2 EOR/Storage Market Price of CO 2 Emissions EU ET $10 25 or CDM? EOR/EGR Now 2020 There is existing policy supporting technology R&D There is no policy in place to enable economic deployment of CCS Technology We are moving closer with the process that the UK and EU are following but much more needs to be done and time is of the essence 33

34 34 In Summary CCS is one of a portfolio of technologies critical to society in order to reduce CO 2 Emissions CCS is a substantial lever and the cost is competitive with renewable and nuclear energy CCS technology is available today and represents a material opportunity within base load power generation big global market for new builds China and India as well as renewal in EU and USA Increased security of energy supply as consequence BUT: Widespread deployment is dependent on environmental policies that create markets for CCS technologies Commercially workable regulations are required to create a clear and stable business environment.

35 Thank you 35