Overview about the RWE CCS- Strategy and the IGCC-CCS Project. Wadden Sea Forum Climate House Bremerhaven

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1 Overview about the RWE CCS- Strategy and the IGCC-CCS Project Wadden Sea Forum Climate House Bremerhaven Siegfried Vennekate RWE Dea ( - Project Coordinator) Outline Introduction: What is CCS and Why? Situation World and Germany RWE s Mitigation Strategy PCC and IGCC Power Plant Pipeline planning and experience Storage evaluation & mechanism R&D Activities Preconditions for timely Realization 1

2 Climate Change - a huge challenge for the energy industry Worlds- -Emissions [Bn. Tons ] 30 -Emissions per person [Tons per residence and per year] Reduction of worlds CO2- Emissions for at least 50% Equitably = almost equal CO2- Emissions per person * EU USA Others Annex I China Indien Others Non-Annex I Sources: UNFCCC, US Census Bureau, RWE Coal is the worlds main Energy Resource and has a nearly worldwide Availability Allocation of fossile energy resources in Bn. t BCU North-America Europe 24,2 8,6 9,5 3,5 GUS 6,5 138,3 63,0 40, Asien- Pazifik 203,2 42,0 South-America 16,8 20,1 7,6 79,3 Africa 22,9 15,3 143,4 Middle East 284,9 8,9 15,4 Coal 1 Total: Oil Total: Gas Total: 1 cm Diameter = 100 bn. t BCU 726,5 bn. t BCU 232,6 bn. t BCU 196,3 bn. t BCU 1 ) Lignite- and Blackcoal 2 ) Resources economical extraction from coal prices at >80 /t BCU Courtessy: BMWi Energiedata, October

3 Many Scientists with high international Reputation support CCS-Technology without CCS, global climate protection might be hardly possible Dr Edenhofer, Co-Chairman of Work Group III of the International Panel Climate Change (IPCC), whoever ignores CCS, does not act in a liable way regarding climate protection Dr Matthes, Coordinator Energie und Klimaschutz Öko-Institut, ambitious international climate protection without CCS is not possible Prof Dr Schellnhuber, Director of the Potsdam- Institutes für Klimafolgenforschung, if we face the challenge of climate change, every measure, every technology we can achive has to be taken and has to be brought to an applicable and commercially reasonable state... Dr. Pachauri, Vorsitzender des Weltklimarates (IPCC), Courtessy for Graphics: Deutscher Bundestag, Öko-Institut, PIK, IPCC Allocation of -Emissions Regions with highest - Emissions Geol. Suitable Potential high Storagepotential Medium Storagepotential Well applicable Storage Potential is allocated worldwide. Courtessy: IEA GHG 3

4 CCS - an essential pillar for climate protection 62 Bn. tons /a Baseline-Scenario for 2050 = 100% -24% More efficient consumption of fuel -21% Renewables CCS could cover 20% of the worlds needed CO2- Mitigation -12% More efficiency in usage of power -10% Usage of CCS in Power generation CCS Industry, -9% Conversion -7% Raise efficiency in Powerplants, Fuelswitch -6% Nuclear power -6% Electrification -5% Other 14 Bn. tons /a 450 ppm-scenario for Stabilization In Germany Coal will play a mayor Role in Energy Production for the next decades Percentage from different types of Resources regarding german Power Production today and tomorrow % Lignite 20% Blackcoal Nuclear Power 23% 5% Others Renewables 15% Gas 13% Renewables fossile Energy* < 40% > 60% Kernenergie 14 % * Including the fuel switch from nuclear power to other alternative energy resources 4

5 -Abatement Cost 2020 for Power Technologies from a global economic view in /t CCS Lignite Biomass (solid) CCS Blackcoal Biomass (gas) Wind Onshore CCS Gas Wind Offshore Courtessy: McKinsey & Company, Costs and Potentials in Abatement of Green House Gas in Germany, Section Energy, Berlin September 2007, Pg 48 and 55 Photovoltaik GeothermicPhotovoltaik (Open Space) (Buildings) The basic political Parameters for Energy Production became massiv declined The Triangle of Energy Politics Economics Frameset Increasing Demand on Energy Scarcity of resources Energy- Politics Increasing Prices for Energy Expanding dependancy from Import Availability Ecology Climate Change Sustainable Energy Politics is always engaged to the triangle of conflict: Economics Availability - Ecology 5

6 Three equitable Columns of sustainable Power Generation > Renewable Energy is not concerned to price fluctuations on international Energy markets > Inexhaustable Resource > Economics and reliability are increasing Onshore-facilities including grid connection > Lignite is the most important Energy resource in Germany > Lignite is proved in economic competition, base-loadable and stable regarding prices > Available for a very long range > Requirement for fuel mass very low due to high energy density > Source markets politically stable Outreach: > 200 years > Very low influence on Power Generation Costs (3-5%) Availability until: geological > 400 years commercial producible > 200 years approved + developed ~ 40 years Energy density uranium 1 kg natural uranium l petroleum kg black coal Courtessy: BGR, Deutsches Atomforum; dena RWE s Mitigation Strategy for Power Plants Horizon 1: Modernisation to increase efficiency In realisation: 6,500 MW capacity, 6.8 bn. investment Power plant portfolio: continuous renewal Horizon 2: Further efficiency increase WTA prototype First dry lignitefired power plant Efficiency >50% Nearly -free 700 C test plants 700 C demo plant IGCC demo plant PCC demo plant Horizon 3: Nearly -free 450 MW low- IGCC power plant incl. storage scrubbing incl. storage for conventional power plants 6

7 Pilot Plant Niederaussem PCC: Key Figures -capture rate 90 % app. 7.2 t per day Height: app. 40 m Skid mounted design Commissioning: July 2009 Budget RWE Power: 9 Mio. 40% Funding by the Federal Ministry of Economics and Technology RWE Demo-Power Plant with -Capture &Storage in Hürth-Knapsack near Cologne Gas Treatment Capture Gasification WTA-Coal-Drying Gas- and Steam Turbine Generator Base Technology: IGCC (Integrated Gasification Combined Cycle) Electric Power: 450 MW gross, 315 MW net, Capture Rate: ~ 90% of -Storage: ~ 2,6 Mm. t/a in DSF North Germany (Sum: 100 Mill. t over 40 years) -Pipeline: ~ 600 km from Power Plant to Storage Investment: ~ 2,2 Billion Commissioning: By end 2015 with optimal Framework (Legal and Puplic) RWE Power has ist expertise in Gasification- and Power Plant Construction. RWE Dea has ist expertise in Gas Storage and Pipeline Transportation. 7

8 IGCC-CCS: Project planning and tasks within the RWE Group RWE Power RWE Dea Production Transportation Storage Goldenberg/Hürth near Cologne is the most economically viable location for the IGCC- Power station transportation by pipeline is the most suitable alternative in terms of economy, ecology and safety Saline formations in northern Germany are the most suitable storage for Pipeline Experiences in EOR in the USA -Pipeline-Experiences: Since early 70s in the USA is used for enhanced oil recovery. 5 MM. t/a, 330 km, 14 inch, 130 bar Therefore approx. 35 MM t are transported safely through the states. Over 3000 km of pipelines are already installed. 10 MM. t/a, 660 km, 24 inch, 130 bar 7 MM. t/a, 350 km, 20 inch, 130 bar 19 MM. t/a, 800 km, 30 inch, 130 bar Pipelines are the most secure option to transport over distance. 8

9 Deep Saline Formations: Selection Criteria and Assessed Potential > Depth = m > No faults in area, halite or clay as seal prefered > Capacity Factor: Anticlines 30% Synclines/Flat areas 20% > Prefered System: Anticline/Syncline - Combination > Single local Capacity 100 Mt > Pore Volume Injected % of the hydraulic system > Intermediate result of potential approx. 3.8 Gt storage in NW- Germany (Study area onshore) NL Areas under Evaluation DK Study Area CZ PL Carbon Storage Mechanisms Capillary bonding 20km Dissolution 100% 90% 80% 70% Free Mineral. 60% 50% 40% Capillary bonding 30% Free Mineralization Safety Time 20% 10% Dissolution 0% can 200m be stored2mm underground 2nmover the long term! 9

10 Worldwide storage projects Snøhvit (Snow White) Mountaineer Ketzin CCS projects in operation with RWE stake Life Cycle of an Industrial Storage Site Screening Characterization Exploration RWE Dea RIG T160 Extension of existing Storage site Appraisal Application Abandonment Operation Site Development Breitbrunn Gas Storage 10

11 Legal and Regulative Preconditions for timely Realization of the IGCC CCS Project Establishment of legal framework CCS framework dir. EU Commission End of 2008 EU - CCS framework Draft CCS framework dir. EU Parliament est. In parallel: development of national legislation EU - CCS framework granted Late 2010/Early 2011 Binding legal framework Establishment of funding instruments EU directive CCS in EU-ETS National Implementation? Development National funding instruments Clarity about CCS funding instruments to make sure that CCS becomes an economic option and to help industries with safety on investment RWE is leading the way in CCS technology with enormous challenges There is an urgent need for a legal framework on CCS Storage in Germany Thank you for your attention! Any questions? 11