CCS in Europe and USA Iain Wright CO 2 Project Manager, BP Alternative Energy CAS/ETIP IGCC Workshop Beijing, May 23 rd 2007
Agenda CO 2 Capture and geological Storage (CCS) BP s CCS projects: - In Salah (Algeria) - Peterhead hydrogen power (DF-1) - Carson hydrogen power (DF-2) - Kwinana hydrogen power (DF-3) -DF4, 5 etc. Summary 2
BP CCS Technology Program Research Industry / Academic Initiatives Technical Demonstrations Source-sink matching CO2CRC, EUGeocapacity, Coach, US Regional partnerships Public policy support CSLF, ECCP, EU-ZEPP, CDM Assurance framework CO2CRC, CSLF, IMCO2, WRI 3rd Party Demonstrations Sleipner, Weyburn, CO2Remove Industrial Scale Projects DF1 DF2 DF3, 4, 5... 3
Technology Options for GHG Stabilization The Stabilisation Wedge Emission trajectory BAU Emission trajectory to achieve 500ppm 1 GtC Slices of the Stabilisation Wedge 4
Green Power Costs ($/KWhr) Carbon free hydrogen from natural gas is one of the lowest cost low carbon power generation options, broadly comparable with onshore wind costs 0.12 Levelised Cost of Electricty (US$/kWh) 0.1 0.08 0.06 0.04 0.02 0 Coal Gas (CCGT) Sources: Navigant 2004, Arthur D. Little 2001, BP Estimates Hydrogen from Gas With CCS Hydrogen from Coal With CCS Nuclear Onshore Wind - Carbon Intensive Power Offshore Wind - Low Carbon/Carbon Free Energy 5
When will CCS be Deployed? $100 $/t CO 2 CCS costs CO2 Capture Project (CCP2) CCS benefits widespread deployment High Purity CO 2 EOR/EGR EU ETS, CDM, JI $10-25 2008, 2012? When will benefits > costs? Time 6
CCS Opportunities: Low-Hanging Fruit? Natural sources CO 2 Capture Costs (USA) Power Industrial 70 60 SMR Ethanol Ethylene Oxide Ammonia Refineries Cost of CO 2 captured $/ton 50 40 30 Cement Iron & Steel Ethylene 20 Coal fired power (retrofit on installed capacity) Gas / oil fired power 10 500 1,000 1,500 2,000 2,500 3,000 Cumulative CO 2 volume (million tons/year) Source: IEA, Ecofys, BAH, BP team analysis 7
A Business Model for CCS Deployment CO 2 CO 2 Storage Hydro- CH 4 Carbon Pre-combustion syngas of natural manufacture gas (syngas manufacture) H 2 Combined Cycle Power Generation e - Carbon Free Electricity Provides optionality for future to supply H 2 into other sectors H 2 Transportation 8
European Technology Platform ZEP Carbon Reduction Efficiency + CCS 80% Improved efficiency 20% Time Near-term Mid-term Long-term 9
CCS Deployment Roadmap for Europe EU ZEP Deployment Roadmap ZEP CO2 Avoided (millions tonnes/year) 700 600 500 400 300 200 100 0 FP 6 R&D: GRACE, NGCAS SACS, GESTCO CASTOR, ENCAP CACHET, ReMoVe DYNAMIS ZEPs Included in EU ETS European ZEP Policy & Regulatory Framework European Early Mover Funding Mechanisms Enables New Project CO2 Avoidance Cost Enables Enables 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050 Years ZEFFPP Business as Usual 25 New Policy Projects Early Mover Project 10 Early Mover Project 9 Early Mover Project 8 Early Mover Project 7 Early Mover Project 6 Early Mover Project 5 Early Mover Project 4 RWE Germany Mid-Norway Peterhead UK ZEFFPP CO2 Avoidance Cost 80 60 40 20 0 New Project CO2 Avoidance Cost ( /tonne) 10
EU CCS Deployment, CDM and One Wedge CO2 Mitigation vs One Princeton Wedge CO2 Avoided (million tonnes/yr) 4,000 3,000 2,000 1,000 One Princeton Wedge Kyoto Protocol CDM EU ZEP Deployment 0 2000 2010 2020 2030 2040 2050 Years 11
BP s CCS Projects BP s CCS projects: - In Salah (Algeria) - Peterhead hydrogen power (DF-1) - Carson hydrogen power (DF-2) - DF-3, 4, 5 12
In Salah CO 2 Storage project, Algeria CO 2 storage at Krechba Lisbon S P A I N Cordoba Cartagena Algiers Skikda Tunis Tangiers Amine CO2 Removal MOROCCO Hassi R Mel Proposed ISG Pipeline Hassi Messaoud Hassi Bir Rekaiz REB Processing Facilities Cretaceous Sandstones & M udstones ~900 m etres thick (Regional Aquifer) Carboniferous Mudstones ~950 m etres thick 4 Gas Production W ells 3 CO 2 In je ction W ells ALGERIA Krechba Reg Garet el Befinat In Salah Teg Hassi Moumene Gour Mahmoud Tiguentourine (BP) LIBYA Carboniferous Reservoir ~20 metres thick G a s MAURITANIA MALI In Salah Gas Project The CO 2 Storage Schem e at Krechba W a t e r 02151093 NIGER Climate Change Milestones Industrial Scale Demonstration of CO 2 Geological Storage (Conventional Capture) Storage Formation is very similar to the North Sea (USA & China) Started Storage in August 2004 1mmtpa CO 2 Stored (17mm tonnes total) $100mm Incremental Cost for Storage No commercial benefit Test-bed for CO 2 Monitoring Technologies $30mm Research Project 13
A Business Model for CCS Deployment CO 2 CO 2 Storage In Salah Hydro- CH 4 Carbon Pre-combustion syngas of natural manufacture gas (syngas manufacture) H 2 Combined Cycle Power Generation e - Carbon Free Electricity Provides optionality for future to supply H 2 into other sectors H 2 Transportation 14
H2P Business Requirements Growing Power Market Advantaged fuel, infrastructure, geology Supporting Government Policy Regulatory Framework for CO 2 geological storage 15
Application of CCS to Power Generation 16
Peterhead Hydrogen Power Project, Scotland Climate Change Milestones Project Milestones Europe s largest hydrogen-fired power generation facility First CO 2 EOR project in North Sea 1 st CO 2 storage in an offshore oil field Uses Auto Thermal Reforming technology 475 MW of clean electricity - enough to power about 300,000 homes 1.8 mmtpa CO 2 captured and stored = 500,000 cars off the road Equivalent to the UK s entire installed wind farm capacity 17
Carson Hydrogen Power Project, California California project (DF2) Project Milestones World s largest hydrogenfired power generation facility Uses gasification technology to gasify petcoke a solid fuel generated as a byproduct of the refining process Climate Change Milestones 500 MW of clean electricity ~ 325,000 Southern Californian homes 4 mmtpa CO 2 avoided Pipeline infrastructure to transport the CO 2 to an upstream buyer for EOR and permanent storage Lowest CO 2 emissions in the world for an IGCC plant. 18
BP DF Initiatives Complement Futuregen In Salah DF-1 DF-2 Futuregen Start (Year) 2004 2009 2011 2015? Location Africa Scotland California USA (China/India?) Fuel Type Gas Separation Natural Gas Pet-Coke Coal (type?) Technology Basis Amine Steam Methane Gasification Gasification Reformer Power (MW) N/A 350 500 275 (plug&play R&D) Plant Reliability R&D Must Work Must Work R&D CO2 Stored (mmtpa) 1 1.3 4 1 Storage Formation Gas Field Offshore EOR Onshore EOR Saline? Investment Industry Industry Industry Govt/Industry 80/20 Purpose Primary Demonstrate Storage Green Electricity at Scale Green Electricity at Scale Develop and Test Clean Coal Secondary Test Monitoring Technology Establish Policy Framework Demonstrate H2 with CCS Breakthrough Technology 19
Kwinana Hydrogen Power Project, Australia RIO TINTO Project Milestones IGCC technology to gasify local coal Investment decision: 2011 Onstream: 2015 Climate Change Milestones 500 MW of clean electricity: 15% of Western Australia s power demand 4 mmtpa CO 2 avoided CO2 storage in an offshore deep saline formation 20
Summary BP is Taking Big Steps Towards CCS Deployment What s required: 1. Growing Power Market 2. Advantaged fuel, infrastructure, geology 3. Supporting Government Policy 4. Regulatory Framework for CO 2 geological storage In Salah, Peterhead, Carson and Kwinana demonstrate viability in different settings BP is ready to invest in CCS projects in locations that meet the four requirements (above) 21
Thank You. Questions? 22