White Rose CCS Project

Transcription

1 White Rose CCS Project 4 July 2014 Peter Emery Production Director, Drax Board Director, Capture Power 1

2 Index Project Snapshot Project Status Timescales White Rose Consortium Local Benefits Summary 2

3 Project Snapshot Located at the Drax Power Station Site, Selby, North Yorkshire A new state of the art 426MWe (gross) Oxy-Power Plant >300 MWe clean power, equivalent to the needs of 630,000 homes 100% of flue-gas treated, 90% CO 2 capture rate 2 MTPA Biomass co-firing leading to zero - or negative - CO 2 emissions CO 2 transported c.a. 100 miles by pipeline to off-shore storage CO 2 to be permanently stored in a deep saline formation Largest Oxy-Combustion CCS Commercialisation Project Worldwide 3

4 Project Status Preferred Bidder in the UK s 1Billion CCS Commercialisation Programme FEED Contract awarded - signed by the UK Government, 20th Dec 2013 FEED underway: detailed risk reduction and planning programme leading to financial close, FID and construction commencement. Continuing work with the UK Government (DECC) towards Project Contract and Contract for Difference (CfD) NER 300 application: Sponsored by UK Government; only CCS project in the NER competition with award decision expected in July Re-engaging with funding community after strong interest shown during the pre-feed phase White Rose on track for a Final Investment Decision end

5 Project Timescales: FEED Phase ~ 2 years (leading to FID) Construction Phase ~ 4 years Operating Phase years 5

6 The White Rose Developers Sponsors Delivery nationalgrid Carbon Ltd 6

7 Delivery Plan OXY-POWER PLANT CO 2 TRANSPORT & STORAGE Full-Chain Integration Carbon Ltd Alstom Drax BOC (Linde) Delivery of Oxy-PP Integration of Oxy-PP O&M of Oxy-PP Trading Services Site and Site Services Fuel Supply Electrical Connection Delivery of ASU O&M of ASU Delivery of Transport & Storage network O&M of Transport & Storage network 7

8 Humber Cluster National Grid Phase 1 coal-fired Oxy-Power Plant in high CO 2 emission region Anchor project for regional T&S infrastructure by National Grid Supports Phase 2&3 projects - Infrastructure sized / enabled for up to 17 MTPA of CO 2 - White Rose capacity c. 2 MTPA The Humber Cluster connects one of the largest concentration of CO 2 emissions in Europe with a very large, proximate and available store in the Southern North Sea The Don Valley CCS Project is co-financed by the European Union s European Energy Programme for Recovery The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein. Right sizing from start supported by UK Government 8

9 Overall Benefits Investment and Jobs Core Humber Cluster projects will boost UK economy by 1.3bn and generate 4000 skilled jobs to 2020 and 400 permanent long term jobs therafter 1 By 2030 Cluster will increase area s economic output by 0.8% per year, attract up to 11billion foreign investment, support 11,000 jobs and create 2000 new jobs 1 UK-based CCS industry: between 3-6.5bn p.a. nationally by the late 2020s, sustaining between 70, ,000 jobs. 2 CO 2 reductions Cost of achieving 2050 targets could be 32bn higher by 2050 without CCS 3 CCS could be major contributor to 4 th Carbon Budget Period targets (c.a. 119 Mt/a) CCS bringing investment, jobs and decarbonising UK power 1 CO 2 sense 2012 The national, regional and local economic benefits of the Yorkshire and Humber CCS cluster 2 AEA, 2010, Future Value of Coal Abatement Technologies in Coal and gas power generation to UK Industry 3 ETI The future Role of CCS in UK decarbonisation, G. Day, IMECHE CCS Conference London October

10 The Future of Clean Power White Rose will show that abated fossil-fuel power stations will be able to generate flexible, reliable and affordable power as mid-merit plants, providing security of supply and grid stability complementing base load nuclear generation and intermittent renewables 10

11 BACK-UP 11

12 Power Station Location Location: Drax Power Station, North Yorkshire, UK 12

13 Project Objectives To demonstrate Oxy-combustion CCS technology as a reliable, flexible, and competitively priced low-carbon technology To help reduce CO 2 emissions in order to meet future environmental legislation and to combat climate change To improve the UK s security of electricity supply by providing a coal-based lowcarbon electricity generation option To generate enough low carbon electricity to meet the energy needs of more than 630,000 homes To act as an anchor project for the development of a CO 2 transportation and storage network in the UK s most energy intensive region Cost competitive & deliverable project to establish commercial future of CCS 13

14 DECC s CCS Roadmap The UK Government's Commitment to CCS Achieving an affordable, secure, low carbon energy mix with renewable and nuclear energy alone will be much more difficult and much more expensive. Ed Davey, 24 February 2014 Phase 1 CCS Commercialisation Programme - 1 billion capital funding - 125m, 4-year R&D programme Phase 2 Projects with no Government capital funding Continuing support through CfDs Phase 3 CCS competing on cost with other low carbon technologies No support from Government Source DECC/OCCS: Maintaining UK Energy Security Cleanly An Update on the Role of CCS within the UK Energy Mix 14

15 Supply Chain Procurement Equipment Heat exchangers Compression systems Materials conveyors Mechanical systems Pumps and valves Piping and pipefitting Structural steel, platforms Handling equipment / tools Oil systems Insulation HVAC Electrical and instrumentation Services General fabrication and machining Mechanical erection Electrical installation Civil works, earth moving, excavation, concrete Scaffolding and equipment hire Site infrastructure Fencing, CCTV, weighbridge Canteen, cleaning, temporary lights and power, small electrical work, plumbing etc. 15

16 Supplier selection Legal health and safety compliance Compliance with client and main contractor EH&S Policy Good safety record Low total cost of ownership Cost reduction initiatives Low change costs Low transaction costs On-time Delivery Conformance to Specifications Technical capability Innovation Proactive Tendering support Post-contract support Terms and Conditions Code of Ethics Financial Health Long-term attitude Safety Cost Performance Compliance 16

17 Contact details Supplier Interest Fill in details in the Supplier Database on the project website Include information on the supply and/or service you can offer and areas of the project where you have an interest All supplier registration details are downloaded monthly and passed on to the 4 key sub-contractors; Alstom, BOC/Linde, Drax and National Grid Carbon Key sub-contractors have agreed to consider all suppliers forwarded and not to run closed supplier lists Any supplier can also register directly as a supplier with any key sub-contractor 17