california CCS coalition A Voice for California s CCS Industry SUPPORTING THE DEPLOYMENT OF CCS TECHNOLOGIES THROUGHOUT CALIFORNIA
california CCS coalition Created to represent CCS industry to ensure CCS is part of state s carbon stabilization program. Bring voices to the table throughout the state to demonstrate that CCS is practical, effective and safe. Represent CCS interests in the legislative and regulatory arena, and educate key constituencies and organizations about CCS. Increase awareness of CCS; encourage the deployment of CCS and incentives for CCS development 6/11/2010 2
Coalition board members Sempra Energy Clean Energy Systems Shell Hydrogen Energy California Southern California Edison Chevron Aera Energy Western States Petroleum Association 6/11/2010 3
2050 study Coalition plans began after study confirmed state not likely to attain long-term target of reducing greenhouse gases without investment in new, more efficient and lower-carbon infrastructure, including CCS. "Meeting California's Long-Term Greenhouse Gas Reduction Goals" by San Francisco-based Energy and Environmental Economics, Inc. (E3), is the first comprehensive look at the steps necessary to cut statewide greenhouse gas emissions by the year 2050. 6/11/2010 4
2050 study conclusions Long-term greenhouse gas reduction goals require increased electrification, low-carbon power generation, and zero-emission emission technologies. Increased electrification requires mix of low-carbon power generation utilizing i CCS, as well as wind, solar, biomass and nuclear. Without ALL measures, difficult to reduce statewide emissions to the range of 85 million metric tons of carbon dioxide equivalent by 2050. To move electricity it sector to low carbon future, fossil-fuel fuel based power plants must be replaced by some combination of renewable energy, nuclear power and power generation with carbon capture and storage." 6/11/2010 5
California must dramatically decarbonize all sectors to meet aggressive 2050 GHG reduction goals Meeting California s Long-Term Greenhouse Gas Reduction Goals, E3 Dramatically improve energy efficiency in all sectors Switch energy use to electricity everywhere possible, including transportation Decarbonize the electricity sector using three approaches in combination: Renewable energy Nuclear power Carbon capture and storage 6/11/2010 6
2050 study implications Study confirmed that CCS is viable solution for reducing greenhouse gas emissions Study raised concerns in terms of scale and speed of deployment necessary. Legislative, regulatory and general public awareness lag behind what may be required to ensure successful CCS implementation Critical to avoid legislative or regulatory morass 6/11/2010 7
CCS deployment challenges Regulatory Is it legal Who is responsible? Technical Will it work Cost Stakeholder Commercial Under my house Economics Spend my tax Risk/Reward dollars Industry Structure 6/11/2010 8
Coalition members projects The Northern California CO 2 Reduction Project A collaborative project between WESTCARB and Shell C6 Resources Approx. 6,000 tons of CO 2 would be stored about 11,000 ft. (approx. two miles) underground in a saline formation located in the rural Montezuma Hills of Solano County. The West Coast Regional Carbon Sequestration Partnership (WESTCARB) is the project technical advisor and will conduct research and monitoring of the storage site. Shell, as the WESTCARB member with the requisite operating experience, would be responsible for the construction, operations and other onsite aspects of the project. Monitoring during and after injection are an important t aspect of the project to ensure the CO 2 remains safely stored. Project members are committed to listening i and responding to community concerns and have begun ongoing local engagement.
Coalition members projects Kimberlina Test Facility 20 MWt Pressurized Oxy-Combustion Clean Energy Systems Adapted from rocket technology Online Feb 2005 2,000 hrs & 500 starts Multi-Fuel: Nat Gas, simulated syngas & liquid fuels with sulfur Working on projects in the 50 MW range in California and Europe Partnered with AES Corporation, Sempra Energy, Siemens, and others, with CEC and DOE funding 10
Coalition members projects Hydrogen Energy and Southern California Edison Generate low carbon, base-load electricity to meet California s increasing power demand and GHG policy goals Produce hydrogen to provide a clean burning fuel that will be used to generate 400 gross MW of base-load power Capture 90% CO2 -- 2 million tons annually -- for sequestration and enhanced oil recovery in nearby oil fields Operate with feedstock flexibility by utilizing a range of fuels from western bituminous coal to petroleum coke to produce hydrogen Sited away from populated areas in Kern County, CA (9 miles west of Bakersfield), in close proximity it to water, gas and transmission infrastructure, and CO2 sink
HECA can be catalyst for low carbon power hub network in central california HECA enables a CCS sink with close to 3 GW of natural gas generation in close proximity Development of a network to enable dispatchable CCS power as technology comes down cost curve ID PLANT NAME MW A MIDSUN COGEN 26 B MIDWAY-SUNSET COGEN 234 C SUNRISE 572 HECA infrastructure is a platform for CCS technology D CHALK CLIFF COGEN 47 development and deployment Utlizing other feedstocks (gas, biomass) E TEXACO N MIDWAY COGEN 11 F CHEVRON CYMRIC COGEN 26 G MCKITTRICK COGEN 47 H S BELRIDGE COGEN 60 I LA PALOMA 1,200 Usage of large scale hydrogen J CHEVRON - TAFT COGEN 13 K MONARCH - BERRY COGEN 18 6/11/2010 fuel cells M MIDSET COGEN 39 12 L BERRY COGEN 37 N ELK HILLS 567 O NAVY 35R, OCCIDENTAL COGEN 47 Usage of large scale hydrogen
The central valley s oil and gas fields are ideal for geologic g sequestration of CO2 Elk Hills is well characterized Part of Strategic Petroleum Reserve 1912-19981998 7 potential storage horizons, each with shale seals EOR & sequestration are well understood 40 years industry experience with CO 2 EOR Oxy is acknowledged leader in EOR operations Sequestration demonstration projects ongoing throughout nation and globally CO 2 transportation and injection regulations are well-establishedestablished 6/11/2010 13
Can CCS deployment help meet GHG reduction goals? Over 1 billion tons of CO 2 storage capacity available in local Californian oilfields and approx 57 billion barrels of stranded oil resource (DOE 2005) 14
Can CCS deployment help meet GHG reduction goals? Preliminary estimates suggest California has an abundance of sequestration resource Current WESTCARB estimates at 300 Gt capacity, mostly in Central Valley. This is 10,000 times more than CA s point source emissions These estimates are preliminary, conservative and likely l underestimates. t Similar resource in WY, UT, NM, CO, MT each
CCS coalition policy objectives Federal climate legislation with inclusion of early mover CCS incentives as currently structured in proposed bills. PUC approvals of IOU participation and power purchase agreements California low carbon power policy via (1) loading order for low carbon/clean fossil or (2) low carbon portfolio standard or (3) incentives for lower GHG emissions performance Favorable treatment of captured CO2 in all pending and future policy making, including federal EPA rulemakings, CARB rulemakings.
CCS coalition agenda Support public policies to promote deployment of CCS as part of California's greenhouse gas reduction plans, including CCS used in conjunction with enhanced oil recovery, as well as a mitigation technology for reducing CO2 from stationary sources. Support appropriate accounting protocols for CCS use as a carbon abatement strategy. Support appropriate regulatory frameworks for CCS deployment relative to respective geologic formations: Support current DOGGER regulatory authority for use of CO2 in EOR operations. Support development of regulatory framework for injection into saline formations within the state.
CCS coalition agenda Support public policies to facilitate regulatory approval of transportation corridors for CO2 pipelines. Support public policies to promote low-carbon power production and to establish a clear definition for "low-carbon power. Support policies to encourage low-carbon power purchases by electric utilities in furtherance of state mandates and public policies. Build awareness and inform policy makers, news media and the public about CCS Participate in CCS-related activities and forums statewide: Participate in AB 32 implementation activities. Participate in California CCS Review Panel activities. Participate in regulatory agency actions implementing legislation impacting CCS.
california CCS coalition A Voice for California s CCS Industry SUPPORTING THE DEPLOYMENT OF CCS TECHNOLOGIES THROUGHOUT CALIFORNIA