DECC School - CCS. 11 th November Den Gammer, Strategy Manager CCS Andrew Green, Programme Manager CCS

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1 DECC School - CCS 11 th November 2015 Den Gammer, Strategy Manager CCS Andrew Green, Programme Manager CCS 2015 Energy Technologies Institute LLP The information in this document is the property of Energy Technologies Institute LLP and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Energy Technologies Institute LLP This information Energy is given Technologies in good faith based Institute upon the latest LLP information - Subject available to to notes Energy on Technologies page 1Institute LLP, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Energy Technologies Institute LLP or any of its subsidiary or associated companies.

2 The CCS Chain Capture of CO 2 from power stations & major industrial sources Compression and transport to storage sites 1 4 km Storage in deep underground geological formations

3 Capture plants example post combustion capture Sask Power, Canada

4 The saline store and trapping CO2 Cap Rock impervious to CO2 CO2 dense, but buoyant (like oil) Aquifer porous rock layer saturated in brine Pictures Courtesy of CO2CRC

5 Why do CCS in the UK? Large consumption of fossil fuels Storage opportunity offshore away from people UK expertise in geological and offshore sectors Complements our nuclear and renewables fleets security of supply provides clean power on demand 24/7 Can be used with biomass feedstocks creates negative emissions

6 Multiple applications of CCS CO2 could be used to recover oil in UKs offshore oil industry (EOR)

7 Energy Systems Modelling Environment Least cost optimisation, policy neutral Deployment & utilisation of >250 technologies Pathway and supply chain constraints to 2050 Spatial and temporal resolution sufficient for system engineering Probabilistic treatment of key uncertainties

8 CCS reduces system costs in several sectors ( bn ESME v3.1) Net saving ~ 13bn Net saving ~ 20bn Net saving ~ 32bn Transport Fuel / resources Power & conversion Fuel costs are higher, but there is less need for expensive hybrid vehicles, building retrofits, alternative (intermittent) generation capacity & transmission infrastructure, resulting in net savings which grow over time

9 Policy and Regulations International UNFCCC level. Paris COP (December) and 10 O&G Companies call for carbon tax. China and US bilateral (four CCUS projects) China 13 th five year plan, 2030 peak commitment, China Carbon Market starts 2017 S Korea carbon market started. US, Pres Obama and the Clean Power Plan UK Policy Scoping Document Aug 2014 Working towards CfD for CCS Promoting Phase 1, Phase 2 CCS concepts Continuing support for selected Phase 2 projects e.g. Caledonia Clean Energy Engagement with Industry on CCS, and project funding e.g. Tees Valley 22 Plants in construction or operation, 14 already running

10 Capture plants finance headlines Additional Cost for CCS CCGT CCGT/ PC COAL CCS PC COAL CCS Capital Cost /kwnet, Efficiency LHV,% Levelised Cost of Electricity (LCOE), /MWh Levelised cost at 40% Load, /MWh Levelised cost of Fuel Only, /MWh Discounting at 10%, with a 20 year lifetime for gas plant and 30 years for coal plant. Costs are for mature nth of a kind plant and include a contingency of 25%. The plants run with an 85% load factor. Gas at 265/te and coal at 65/te. Carbon at 0/te

11 Cost Reduction Task Force Findings CCS Cost Reduction Task Force Final Report May

12 Investability and Risk Return (Discount Factor,%) LCOE of CCGT w CCS, /MWh

13 The effect of return on costs during CCS rollout (full chain)

14 CCS Scenarios 2030 ETI project to identify how the UK could build CCS to 10GW by 2030 Three different scenarios All scenarios start with build-out from DECC CCS commercialisation projects

15 Innovation Low risk improvements to amine technologies Constructability Solvent properties Improved solvents (not drop in, e.g. biphasic solvents, precipitation system) Ongoing large scale testing

16 Innovation longer term Membranes Precombustion - used for separating H2 from synthesis gas Postcombustion - used for separating CO2 from fluegas Adsorbents Solid used for both post and precombustion separation Oxyfired Systems Net Power Pure oxygen is used to combust methane products only water and CO2 Claims to capture CO2 at no additional expense, when compared to CCGT, so enters power market in its own right.

17 ETI PROGRAMME - HIGHLIGHTS

18 ETI CCS Programme Demonstration Development Knowledge Building Storage Appraisal: 4M Capture Economics: 0.5M MMV Landscape: 0.2M Mineralisation: 1.4M (Biomass with CCS: 0.8M) Hydrogen & Storage: 0.3M CCS Devl Scenarios 0.1M Aquifer Brine 0.2M CCS System Modelling Toolkit: 3M High Hydrogen: 2M Turbine & Engine Safety Thermal Power with CCS: 2M + Developing a Phase 2 CCS Project DECC Appraisal: 2.5M Developing future storage options Nextgen1: 3M Pre Combustion Coal Nextgen 2: 2M Post Combustion Gas Aquifer Appraisal: 2M Funding of NG Project MMV: 5M Marine monitoring

19 UK Storage Appraisal Project ETI has delivered, through a 4m investment in the UK Storage Appraisal Project: Realistic, defensible & fully auditable assessment of potential CO 2 storage capacity in the UK Overall estimate of capacity Unique & comprehensive GIS storage database Capacity Security of storage Economics Underlying data Database licensed to The Crown Estate and British Geological Survey Launched in 2013, as CO 2 Stored 1M investment from TCE/BGS Now available free of charge to all stakeholders CO2Nomica Tool to estimate costs of CO 2 network build out scenarios Available to Members

20 NG Aquifer Appraisal Project ETI provided 2M support to the National Grid programme to appraise a Southern North Sea aquifer ( Endurance ) Drilling successfully completed in August 2013 Results confirmed quality and capacity of the store Site will be used for White Rose demonstration project Summary of prior appraisal work and drilling reports available to Members Currently under bespoke confidentiality provisions Reports available on Member Portal from January 2016 Images courtesy National Grid

21 Strategic UK CCS Storage Appraisal Project (DECC Appraisal Project) Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Secure funding Commission project Select 5 stores Appraise 5 stores Disseminate results

22 Selected Portfolio of 5 sites Selected portfolio Regionally distributed Significant capacity (1606 Mt) Diverse types Strong build out from Phase 1 projects Good fit with ETI Scenarios Enables further build out Other key messages: There are many other candidate storage sites around the UK with significant storage potential The UK has lots of storage

23 Measurement, Monitoring & Verification To replace ship launched AUVs ( 45-55k/d) with long range AUVs existing NOC Long Range AUV platform Use a combination of mature technologies in a new system. Perform full scale trials to ensure it works. Launched aim to be proven in time for DECC competition projects Project led by Fugro GEOS, with Sonardyne, National Oceanographic Centre, BGS, Plymouth Marine Labs and University of Southampton

24 System Modelling Toolkit Project 2.5 year, 3m ETI investment Toolkit based on PSE s gproms platform Involvement of CCS domain experts (CO2Deepstore, E.ON, EDF & Rolls-Royce) Comprehensive toolkit enabling full-chain models of CCS systems Power generation (coal, gas) Capture Compression Pipeline Wellhead & injection Steady state and dynamic simulation State of the art physical properties engine (gsaft) Project substantially completed in June 2014 Commercial Product (gccs) launched in July 2014 Further development completed in 2014/15 including Enhanced Oil Recovery Module

25 Hydrogen - a clean energy source Hydrogen Storage & Flexible Turbines Use of salt caverns to store hydrogen Allows intermittent use of clean energy for power, or other users Alternatives to fossil fuels examined Cost effective vs alternatives Insights document completed in further work planned in 2016 High Hydrogen Understanding limits on safe use of hydrogen-rich fuels in power production by GTs and engines. Laboratory test work Large scale test work in Buxton on circular duct and model heat recovery steam generator 25

26 Building investor confidence - CCS Financing CCS In partnership with Ecofin Foundation Working with banks, insurers, developers, IEA, EIB and GIB to build common understanding of strategies to enable private sector financing of CCS Commercial development Contributed to the DECC Cost Reduction Task Force (CRTF) Leading the UK CCS Commercial Development Group (with Ecofin) to follow up on CRTF recommendations and actions Supporting the UK CCS Storage Group developing national strategy

27 Building Confidence -Sharing Knowledge

28 Registered Office Energy Technologies Institute Holywell Building Holywell Park Loughborough LE11 3UZ For all general enquiries telephone the ETI on For more information about the ETI visit For the latest ETI news and announcements The ETI can also be followed on

29 GW Gas a robust place in power generation Electricity Generation Capacity (Historic) DB v3.3 / Optimiser v3.3 H2 GAS Geothermal Plant Wave Power Tidal Stream Tidal Range Severn Barrage Hydro Power Micro Solar PV Large Scale Ground Mounted Solar PV Micro Wind Onshore Wind Offshore Wind Micro CHP H2 Turbine Anaerobic Digestion CHP Plant Incineration of Waste IGCC Biomass with CCS Biomass Fired Generation Nuclear CCGT with CCS CCGT IGCC Coal with CCS IGCC Coal PC Coal with CCS PC Coal OCGT Macro CHP Oil Fired Generation Interconnectors