Carbon Capture and Storage Botswana s Perspective

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1 Carbon Capture and Storage Botswana s Perspective Ministry of Minerals Energy and 7 th September 2011 World Bank Washington DC; USA Carbon Capture and Storage: Perspective for the Southern African Region

2 Energy and Outline Introduction Background Electricity Demand, Supply and Industrial Production Botswana s Perspective Approach CCS Pilot Project Challenges Initiatives Geological Suitability Summary 2

3 Energy and Introduction - Background Botswana is a land locked & a sparsely populated country (~1.9 million) with an area of 582, 000 km 2. Economically, Botswana is an upper middle income country with her economy mainly driven by diamond mining (contributing ~40% to the GDP). In her quest to diversify the economy, Botswana has identified a number of strategies for growth, e.g.: To attain the capacity to supply SADC region with coal and coalbed methane based (CBM) electricity To create a range of support industries and activities from these resources.

4 Electricity Demand, Supply and Industrial Production Currently Botswana imports 80% of its electricity from Eskom of South Africa & other Southern African Power Pool (SAPP) countries. However, supply from Eskom is being steadily reduced which will subsequently come to no supply in Irrespective of this, Botswana still comes up with various strategies / Initiatives, e.g., Upgrading of diamond plants, New copper mines, The high electrification targets The desired diversification to non mining sectors. Botswana electricity consuption by sector Government 10% Mining Mining Commercial 25% 39% Domestic Commercial Domestic Government 26%

5 Electricity Demand, Supply and Industrial Production However, all of this will Ultimately increase electricity demand. Botswana's Balloning energy deficit in the absence of actions MW Demand Eskom supply Current Morupule A Deficit % Demand The country has to fill these supply gaps in the short term & ensure reliable supply from 2013 when Eskom stops its exports to the country More so that these energy deficits would not only hurt growth and diversification, but also will pose a threat to economic shrinkage.

6 Electricity Demand, Supply and Industrial Production Therefore, Botswana has to resort to various power generation options to meet her growing demand (see Table). Botswana Power Generation Alternatives and Feasibility Option Availiability Comments Morupule Mine 90 MW net Disel Units 160 MW Short term gap fill & costly CBM 250 MW Exploration on-going. However technical and financial short-falls. Still a dream? New Coal Plants Up to 3000 MStill at planning stages? The Challenge is there are no readily available electricity sources in the Southern Africa Power Pool (SAPP) for Botswana to replace the substantial imports from Eskom in the medium-term.

7 Electricity Demand, Supply and Industrial Production Turning to domestic solutions, Botswana s energy resource options include: Solar Prospective coalbed methane (CBM) Coal. However, Solar energy on a large scale is a technology with high costs and deployment challenges and more suitable for long term

8 Electricity Demand, Supply and Industrial production CBM ~190 TCF) still remain largely unexplored & thus not yet available for base-load generation. Coal is extensive, estimated at ~ 200 billion tonnes, but mostly undeveloped because of South Africa s already well developed and competitive coal mining industry. However, with such large resources, Botswana is likely to depend on coal for power generation into the foreseeable future, and as such; Making it necessary to explore clean coal technologies including CCS as a measure to reduce CO2 emissions at the same time.

9 Botswana s Perspective - Approach Botswana s approach is therefore to develop a domestic energy portfolio including: low-carbon (e.g., CBM and possible coal gasification) No-carbon (e.g., CSP) technologies. Carbon capture & storage (CCS), All of which will: Support Economic diversification Have the potential to make demonstrative impact on the countries in the region in mitigating climate change.

10 Botswana s Perspective CCS Pilot Project The purpose of the proposed feasibility study is to assess the opportunities for CCS in Botswana which if feasible will lead to development of: A pilot CCS project in Botswana Funded by IBRD (World Bank) under the Morupule B Generation And Transmission Project.

11 Botswana s Perspective - Challenges However, in Botswana, most concerns stem from the lack of knowledge, principally based on: The cautious approach to the environment, particularly to pollution of underground water and soils. Responsibility for monitoring the captured and stored carbon, i.e., who is to monitor, what to monitor, methodologies for monitoring.

12 Botswana s Perspective Initiatives Therefore, stakeholders in Botswana need be informed about CCS, i.e.: By building general awareness and knowledge on mitigation options with global relevance, Botswana as part of Southern Africa should have access to similar quality of information on CCS as developed and emerging economies Provision of regulatory capacity building with relevant stakeholders

13 Botswana s Perspective - Geological Suitability? Detailed investigations will need to be undertaken to expose where the potential is, e.g., Conducting geological storage assessments, i.e., Is the geology suitable for CCS? Botswana has prospective sedimentary basins, with: The Karoo Supergroup (with av. thickness not exceeding m) covering ~70% of the country, but is poorly exposed. Key crucial elements Is there sufficient underground porous reservoir space (capacity & injectivity) at sufficient depths with; Appropriate containment (cap rock to avoid leakage) Is there sufficient data to analyze these parameters and/or are they freely available? Deeper Karoo ~1500m N Thick Basalt Cover (600m) CBM ~800m Kms Kalahari Karoo Basin outline (Redrawn after Smith, 1984)

14 Energy and Summary It is partly through such further geological investigations and a wide consultative process that stakeholders will be informed about how best to proceed, if at all, with CCS in Botswana. In addition, given the current lack of regulatory and limited human capacity to regulate CCS, the regulatory capacity will therefore have to be enhanced THANK YOU!