CCS activity in the UK

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Transcription:

CCS activity in the UK Stuart HASZELDINE University of Edinburgh Scottish Carbon Capture & Storage Reasons, Regulation, Electricity Market, Reduction of cost, Research, Commercialisation, Murchison House, West Mains Road, Edinburgh EH9 3LA Telephone +44 (0)131 650 0270 www.sccs.org.uk 1

Reason: Climate is top-level issue 2

Problem Solution Drax 3 Grangemouth s.has zeldin e@e

Opportunity: electricity, power plant 4 Need more electricity for cars and heat Close nuclear and coal, == opportunity for CCS? s.ha szel dine @ed

Ambition for decarbonisation: law 5 By 2050, 80% decarbonisation of 1990 emissions Electricity first 90% by 2030, Committee on Climate Change s.ha szel dine @ed

Regulation 6

Site licensing CCS Directive transposed into Energy Act 2008 Claim of porespace offshore subsea. No commercial storage onshore Hydrocarbons have supremacy No geothermal or gas storage conflicts (yet) CCS licenses : similar to hydrocarbon system exploration, appraisal, injection, decommissioning Four licenses in progress Agreement for leasing CO2 storage UK is (very) ready for CCS 7

Paying for low carbon: Electricity market Energy Bill introduced to Parliament on 29 Nov 2012 Royal Assent expected by end 2013. CCS price July 2013, with first Contracts for Difference available in 2014 CCS projects needing certainty before 2014 will discuss with DECC Base price carbon GBP 17 70, tax CfD (feed-in) higher price, income Capacity payment availability, income Unique method of paying for routine CCS, and low carbon 8

UK Levy cap: How much CCS? DECC announced November 2012 that low carbon electricity spending under the Levy Control Framework will rise to 7.6bn per year in real terms in 2020/21 Enough for 2 x nuclear, AND 4 x CCS (not all of offshore wind) CCS 7.6 Bn /yr NOT UK government Total additional payments for low carbon: wind already built, onshore wind, offshore wind, nuclear, CCS 9

European projects 10

EU CCS projects : New Entrant Reserve 11 Operating costs 200 + 100 M EU -Allowance Sale Value 7-40 each? Co-funding FAIL UK CCS funds 1 Billion UK Govt Capture on coal and gas plant Decisions in Q3 2012 FEED Q2 2013 Operate 2017 7 UK applicants EEPR: 1 billion between 6 projects NER300: ~ 5 billion applied, no awards 2012 NER100? - rapid 2013 process not SCCS interactive project map s.has zeldi ne@

Research projects 12

Cost reduction of CCS Systematic reduction, to be less than GBP 100 / MWhr 13

125m CCS R&D Programme 2011-2015 c 55m Fundamental Research and Understanding - c 13m UK CCS Research Centre - UK Storage atlas - 5m Challenges of Geological Storage (results pending) c 27m Component development and applied research - UK CCSRC PACT facilities - Heriot-Watt: New metering technology - Durham: New monitoring technology - 5m MMV technologies (results pending) - c 43m Pilot scale projects (c1-10mwe) - SSE / Doosan Ferrybridge pilot (post combustion, coal) - Costain pilot (IGCC based) - Inventys / Howden next-generation (adsorbents, gas) - Millenium Generation / Calix (lime based) - FET Group (carbon water exchange) - Aquifer appraisal 14

R&D programme GBP 125 Million Utilisation System 90 projects Storage Transport Monitoring Pre-com Post-com https://www.gov.uk/uk-carbon-capture-and-storage-governmentfunding-and-support#ccs-research-and-development Generation Oxy-capture 15

UKCCSRC Communication and co-ordination of all academic research, industry links 16

PACT Shared facilities for CCS capture and engineering 17

SCCS Regional grouping, full-chain, storage and project development www.sccs.org.uk 18

Commercial projects 19

North Sea - Europe s CO 2 store What the future may hold! 20 Scotland has 50% of EU CO2 offshore storage (and 25% wind, 10% wave, 25% tide) s.has zeldi ne@

Transport if CCS gets to work.. 2030 Clusters of onshore large emitters. Feeding to offshore clusters of storage 21 http://www.sccs.org.uk/features/cns COST of storage depends on : multiple users, pipes, distance, timing, efficiency = 1-2 % s.ha szel dine @ed

Commercialisation Competition Eight initial bidders 2012 Four commercial projects Oct 2012 negotiation a)peterhead Post-combustion gas, Shell and SSE b) Captain IGCC coal, led by Summit Power c)teesside Pre-combustion, led by Progressive Energy d) White Rose Oxyfuel coal, involving Drax, Alstom and National Grid NB. Full consortia members have not been listed Pathway All four shortlisted projects submitted revised bids on 14 Jan 2013 Revised bids are now being evaluated, before decisions on which projects to take further in the Spring 2013 Start operation between 2016 and 2020 b d a c CALL for mix of full-chain projects; 1 Billion capex prize 22

Summary Climate is the primary drive, more electricity with fewer carbon emissions.. 2030.. 2050 Regulation legal permission, and market reform European commercial projects Cost reduction 125 M funding underway Research national and regional Commercial projects competition injection 2017 UK has a co-ordinated comprehensive R & D programme Delivery of full-scale commercial projects still to do 23

www.sccs.org.uk 24

But, electricity delivery is not clear Capacity to generate above need mid-2016, capacity margin 3 % of UK generation 25

Storage : The Pyramid Myth 2009 36 363 Mt 2011 368 1688 Mt 26 Just because you do more work doesn t mean you get less storage! Singkle aquifer, 2009 deliberately UIK activity in CCS research: conservative CLIMIT Oslo 25 Feb 2013. s.ha szel dine @ed

UK offshore storage: 3 types 27 About 90% storage in aquifers 10% in oil and gas fields UK has abundant storage resource EU Directive: CO2 permanently contained s.has zeldi ne@

Water production concept H 2 O CO 2 reservoir Environmental impact? Engineering impact? 28

A slow shale gas emergence The Carboniferous (Namurian Bowland Shale) is most prospective, followed by the Jurassic. BGS estimate that if equivalent to the Barnett Shale of Texas, the Bowland Shale could potentially yield up to 4.7 TCF (approximately 150bcm) shale gas Current drilling DECC has commissioned BGS team to produce detailed maps of Bowland Shale area to firm up resource range But this assumes the same drilling density and productivity. Maybe - 10% of UK gas in 2025 29

Abundant Offshore Infrastructure 30