The status of Carbon Capture and Storage within the UK

Transcription

1 The status of Carbon Capture and Storage within the UK Energy Institute 13 th October Hazel Clyne Pale Blue Dot Management Consultants for the Energy Transition

2 2 Pale Blue Dot Energy Emerging energy systems Oil and Gas Energy Transition CCS Management Consultants for the Energy Transition Strategic support Market assessments Technology development and innovation Adapting to new markets Energy transition projects Circular economy We help organisations of all sizes to create opportunities and mitigate risks arising from major changes in the energy markets.

3 3 Contents CCS: what, how and why? A brief history: UK project activity to date DECC CCS Commercialisation Programme Other project highlights Summary

4 4 CCS in Summary Capture Transport Storage

5 5 Carbon Budget 8 Deg Without Carbon Capture and Storage 80% of these proven reserves must stay in the 6 Deg ground 4 Deg 2 Deg Celsius Limit ~38 GtCO2 per year % gas 22% oil GtCO2 65% coal The total proven fossil fuel reserves would release 886 GtCO2 from GtCO2 left from GtCO2 from 2000 to 2010 Unburnable Carbon Are the world s financial markets carrying a carbon bubble? - Carbon Tracker

6 6 Why CCS? - Without it, 80% of proven reserves must stay in the ground - The only technology that can fully address decarbonisation of large scale industrial emissions - Supports cost effective way of enabling low carbon energy products such as H2 - If combined with biomass firing for power generation, this has the potential to result in negative emissions And why CCS in the UK? - Without CCS, costs of meeting the UK s 2050 emissions targets* could double from 1% to 2% of GDP** by 2050 * 80% CO2 reduction vs 1990 baseline ** based on modelling from the Energy Technologies Institute (ETI)

7 Project concept development activity to date UK CCS Timeline 2007 to Present 7 CCS status: pre-commercial due to slow policy evolution on carbon pricing You are here

8 Project concept development activity to date BP DF1 CCS Project Pre Demo1 8 March BP DF1 Announced May BP Abandons DF1 FEED Study #1

9 Project concept development activity to date Hatfield/ Don Valley CCS Project now Pre Demo1+ 9 October 2009 Hatfield wins EU funding October Hatfield project halted FEED Study #2

10 10 Storage map Longannet to Goldeneye (Platform) [pre-2009: to Brae] Kingsnorth to Hewett (Platform) Demo 1 Offshore FEEDs

11 Project concept development activity to date Kingsnorth CCS Project Demo1 11 March Kingsnorth awarded FEED funding October 2010 Kingsnorth cancelled FEED Study #3

12 Project concept development activity to date Longannet CCS Project Demo1 12 March 2010 Longannet awarded FEED funding October 2011 Longannet Cancelled FEED Study #4

13 Project concept development activity to date Demo 2 Preferred Bidders Announced Mar 2013 Demo 2 13 Nov 2013 White Rose awarded FEED funding Feb 2014 Peterhead awarded FEED funding Note: 238m from NER300 EU funding FEED Study #5 FEED Study #6

14 14 Storage map Peterhead CCS: Peterhead to Goldeneye (Shell Platform) White Rose: Drax to 42/25 (NGC Platform) Demo 2 Offshore FEEDs

15 15 DECC CCS Commercialisation Competition Peterhead Carbon Capture Project Power generation Capture, Integration CO2 Conditioning Onshore Transportation and compression Process & capture plants Offshore CO2 Transportation, Injection & Storage Existing offshore facility & wells Existing offshore pipeline Storage Reservoir Goldeneye depleted gas field Project overview Existing Peterhead gas power station post combustion capture on 330MW Up to 10Mt CO2 captured over years Transportation via existing Goldeneye pipeline offshore Storage in Goldeneye depleted gas condensate field Existing offshore infrastructure

16 16 DECC CCS Commercialisation Competition White Rose Capture, Integration CO2 Conditioning Onshore Transportation and Pumping Offshore CO2 Transportation, Injection & Storage Process & capture plants New offshore facility & wells New build offshore pipeline Storage Reservoir saline aquifer Project overview New build coal power station w/potential to co-fire biomass oxyfuel capture on 448MW 2Mt CO2 captured per year Transportation via new pipeline to southern north sea Storage in saline aquifer formation New build offshore infrastructure

17 17 DECC CCS Commercialisation Competition White Rose 25 th September 2015 Drax pulls out of White Rose Project Drax have withdrawn citing reasons regarding uncertainty over government policy on low carbon power Drax site and power plant infrastructure still available for White Rose Project Capture Power Ltd still committed to delivering the project

18 DECC CCS Commercialisation Programme Notional Phase 1 Project Schedule 18 Procurement for Phase 1 projects will be used to shape policy encourage Phase 2 projects

19 19 ETI scenarios CCS key role in UK decarbonisation 10GW CCS capacity by 2030 ETI modelled 3 scenarios to achieve this ambition Priority areas to address: storage appraisal; early investment for Phase 2 projects Carbon capture and storage Building the UK carbon capture and storage sector by 2030 Scenarios and actions - ETI

20 Strategic UK CCS Storage Appraisal Project Project overview 20 Project aim: Provide confidence to CCS developers Provide 5 high quality storage sites with storage development plans, ready to undertake a FEED study Progress the appraisal process and schedule Progress UK CO2 storage Create tangible storage options for Phase 2 projects Delivered by: Show that developable storage capacity exists

21 Strategic UK CCS Storage Appraisal Project Selected Portfolio of 5 sites 21 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 There are many other candidate storage sites around the UK with significant storage potential The UK has lots of storage

22 Other project highlights Caledonia Clean Energy Project MW pre-combustion capture on new build coal power station Up to 4Mt/yr CO2 captured Re-use of existing pipeline systems St Fergus CO2 Hub Aspen Storage Hub Injection into proven saline formation under a depleted gas field 78km offshore Atlantic pipeline Caledonia IGCC Northern UK Emissions Cluster UK coal Future CO2 Import to Peterhead Harbour o On the power side: Scottish and UK governments committed 4.2m of funding for research to progress Caledonia Clean Energy Project

23 Other project highlights Teesside Collective 23 CCS can be applied to industrial processes as well as power stations, for example: Steel Works Cement Works Hydrogen manufacturer Ammonia Plastics

24 24 CCS vs Oil and Gas Opportunities Re-use pipelines? Re-use platforms? Re-use data? Enhanced Oil Recovery? For oil & gas companies to use CCS to fully monetise their reserves and avoid stranded asset risk Similarities Subsurface technology Gas transportation Energy Differences Purpose to reduce emissions Waste disposal projects Different risk/ reward pattern Different kinds of investors Oil companies so far have not been interested

25 25 Summary - UK CCS Landscape 2015 Positives The UK has already completed four CCS FEED programmes, (but has not reached Investment Decision on any of them.) Two further FEED programmes are now underway making a total of six. UK has a capable commercial mechanism for driving CCS for power generation through the EMR. UK has a well funded excellent CCS R&D programme. Deltas Government procurement process has resulted in major attrition of investor interest in UK CCS. Oil companies (with exception of Shell) have not stepped up to play in CCS. All major power utilities have stepped back from CCS. More industrial players required. More projects in the funnel required to deliver 10GW by 2030.