Notice of National Development and Reform Commission (NDRC) on Promoting Carbon Capture, Utilisation and Storage Pilot and Demonstration

Transcription

1 Notice of National Development and Reform Commission (NDRC) on Promoting Carbon Capture, Utilisation and Storage Pilot and Demonstration Please refer to the original Chinese version as the official document. NDRC Climate [2013] Document No

2 Notice of National Development and Reform Commission (NDRC) on Promoting Carbon Capture, Utilisation and Storage Pilot and Demonstration has been translated from Chinese into English for convenience. The Global CCS Institute does not guarantee the accuracy, authenticity or completeness of any content translated in the English version of the report. 2

3 NOTICE OF NATIONAL DEVELOPMENT AND REFORM COMMISSION (NDRC) ON PROMOTING CARBON CAPTURE, UTILISATION AND STORAGE PILOT AND DEMONSTRATION To Development and Reform Commissions (DRCs) of all provinces, autonomous regions, special zones, municipal cities, and cities specifically designated in State plan, Ministry of Science and Technology (MOST), Ministry of Industry and Information Technology (MIIT), Ministry of Finance (MOF), Ministry of Land and Resource (MLR), Ministry of Environment Protection (MEP), State-owned Assets Supervision and Administration Commission of the State Council (SASAC), National Energy Administration (NEA), Standardisation Administration of the People s Republic of China (SAC), all State-Owned Key Enterprises, all related Industry Associations: Promoting Carbon Capture, Utilisation and Storage Pilot and Demonstration is an important task in the 12th Five Year greenhouse gas control plan. The 12th Five Year Plan GHG Control working program printed by the State Council (SC 2011, No. 4 Document) clearly indicated the need to: develop CCS pilot and demonstration programs in thermal power, coal chemical, cement and steel industries; develop capture, enhanced oil recovery (EOR) and storage integrated demonstration projects; and in the meantime build up human resource, financial security and policy support. To implement relevant working tasks, based on the 12th Five Year Plan GHG Control Working Program Task Assignment printed by the State Council (SC 2012, No. 68 Document), the relevant tasks and working arrangements are as follows: 1. Aim, benefit and working principle Carbon capture, utilisation and storage (CCUS) technology has the potential to achieve a large scale reduction in greenhouse gas emissions. CCUS will be an effective measure to control greenhouse gas emissions in China, given that the Chinese energy system is dominated by coal, and will contribute to decarbonising coal, oil and other energy intensive sectors. CCUS will promote the transition and upgrade of high emission industries such as electricity and coal-to-chemicals while, at the same time, encouraging the development of other associated industries. It has significant value to Chinese medium- and long-term plans to combat climate change and promote the development of low carbon technologies. Currently, R&D in all components of CCUS has achieved significant progress, but there are still a number of challenges: the cost and energy penalty remain high; and the long-term safety and reliability need to be proved. Pilot and demonstration CCUS technologies would not only solve these challenges through development and implementation, but also pave the way for large scale application and commercialisation as an essential stage towards achieving large-scale reduction in greenhouse gas emissions. All regions and departments should strengthen support and guidance for CCUS pilot and demonstration, based on the climate change program in the national 12th Five Year Plan, and the CCUS section of 12 th Five Year Greenhouse Gas Emission Control Working Plan, according to the working principle: proceed from the national conditions in China, think and plan for the long-term, provide positive and active guidance, and progress development in an orderly manner. This principle should be applied to promote the orderly development of CCUS. 3

4 2. Primary working tasks In the short-term, CCUS pilot and demonstration should be promoted as follows. 2.1 Develop pilot and demonstration projects along the CCUS technology chain. Encourage CO 2 capture demonstration from coal-to-chemicals, oil and gas, and other industries with high CO 2 concentration sources; develop pilot and demonstration projects for pre-combustion, post-combustion, oxyfuel and other CO 2 capture pathways; strengthen the techno-economic comparison of different CO 2 capture technical pathways; and solve practical issues for developing a large scale CCUS industry. Strengthen the management of natural CO 2 fields, strictly control gas field development for the purpose of utilising natural CO 2 sources, gradually close down all existing natural CO 2 source fields, promote multiple mechanisms to utilise captured CO 2 to improve the economic performance of pilot and demonstration projects. Strengthen work on CO 2 storage assessment and concentrate CO 2 sources together in clusters. Develop coordination mechanisms for different industries and sectors, enhance matching and linking between CO 2 capture (supply side) and storage (demand side) sources and sinks. Encourage CO 2 EOR (and enhanced gas recovery (EGR)) to support CO 2 storage and, taking into account local conditions, develop small scale CO 2 storage in saline aquifer pilots both onshore and offshore. Promote the pilot and demonstration of CO 2 separation and transportation technologies and projects..2 Develop CCUS demonstration projects and sites. Give priority to integrated and semiintegrated projects with high demonstration value that suit China s national conditions, with low cost, moderate scale, reflecting regional and industrial characteristics and with locallyowned intellectual property. Strengthen medium- and long-term support and guidance for large scale CO 2 capture, EOR/EGR, and integrated storage demonstration projects. Organise a list and database of CCUS key demonstration projects: gradually start the project application, selection and support process; improve the project authorisation and management mechanism; and support a large number of representative CCUS projects. Also, provide a platform for innovation and develop demonstration sites. Introduce different technical pathways, cross sector collaboration and industrial scale integrated demonstration systems with potential for large scale industry application. 2.3 Explore and establish financial incentive mechanisms. Study and explore mechanisms and financial incentives to promote CCUS pilot and demonstration, and implement current tax support policies. Continue to broaden financial sources for CCUS and encourage enterprises to raise money from multiple sources. Gradually explore credit, tariff and land use support for enterprises in CCUS projects. Accelerate the establishment of a CCUS financial security system with government guidance, industry investment and multiple sector engagement in order to promote associated industry development. 2.4 Strengthen strategic research and planning for CCUS development. Strengthen the assessment of the impact of deploying CCUS on China s medium- to long-term development potential, particularly barriers and risks, in order to clearly identify the role and benefits of CCUS in the Chinese greenhouse gas control program. Explore how CCUS may fit in with other medium- to long-term development programs, including climate change, energy development, energy conservation and emissions reduction programs, in a sustainable economy. Based on the understanding of emission characteristics for electricity, coal, coalto-chemicals, oil/petroleum, gas, steel, and cement industries, analyse how these industries 4

5 could participate in CCUS pilot and demonstration. Further identify policy requirements and guidance needed in relation to medium- and long-term plans for CCUS and associated industries. 2.5 Promote CCUS standards and regulation. Based on practical experience of CCUS in China, develop and formulate standards and engineering codes for industrial applications of CCUS at a large scale. Strengthen the impact assessment of CCUS, assess the health, safety and environment impacts, strengthen long-term security, environmental risk assessment and control, build up and improve related safety standards and a system of environmental regulations. Actively engage in, and provide guidance for, formulating CCUS standards and regulations. 2.6 Strengthen capacity building and international collaboration. Strengthen the training for professionals in CO 2 capture, utilisation and storage, project management and other aspects of capacity development. Strengthen knowledge sharing and public perception of CCUS technologies. Strengthen links with major developed and developing country governments, deepen collaboration with international financial organisations and other multilateral institutions, effectively integrate and utilise international funding, experiences and resources. 3. Working organisation and requirement Promoting CCUS pilot and demonstration is a long-term task that requires strong leadership and organisation. NDRC will lead other ministries and institutes to coordinate activities and build a genuine collaborative framework with Chinese national governments, regional governments, industries, enterprises, and research institutes. NDRC will collaborate with other ministries to promote strategic planning, regulation, project calls, public perception, capacity building and international collaboration in CCUS pilot and demonstration. All departments will strengthen collaboration, contribute from their own strengths and actively promote CCUS pilot and demonstration. NDRC will take the lead in establishing a cross-department working coordination mechanism and integrating the use of public resources to strengthen the aggregated impact of policies. Regional development and reform commissions (DRCs) should recognise the importance of promoting CCUS technologies, based on the benefits of greenhouse gas emission control and industry upgrading. In collaboration with finance, energy, industry, science and technology, environment, and land resource departments, DRCs should rapidly identify relevant industries and enterprises and potential policy requirements in order to strengthen support for CCUS pilot and demonstration. Low Carbon Pilot Regions should be pioneers in demonstrating CCUS, linking with regional energy structures and the development of high emission industries, and lead in exploring mechanisms to promote CCUS pilot and demonstration. Thermal power, coal-to-chemicals, steel, cement, and oil and gas sectors, and key enterprises should, based on their specific circumstances, actively control greenhouse gas emissions, exercise social responsibility, promote enterprises technology competitiveness, actively strengthen investment in CCUS pilot and demonstration, and accumulate project construction, operation and management experience. Research institutes should actively engage in pilot and demonstration to solve technical issues, participate in standard and policy formulation, and actively interact with the public to improve public understanding of 5

6 CCUS. Encouraging commercial enterprises, research institutes and the public to share knowledge will benefit the orderly development of CCUS. For your attention. National Development and Reform Commission 27 APRIL