Status of carbon capture and storage technologies Conclusions from a new STV prestudy

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Status of carbon capture and storage technologies Conclusions from a new STV prestudy Sebastian Teir Presented at the Clean coal-seminar, arranged by Fortum and STV, 4.3.2009, Espoo

Contents of the prestudy on CCS Why do we need CCS? Technology overview Capture, transportation and storage of CO 2 Examples of demonstration projects Costs, performance and maturity of CCS CCS in climate and energy policy Steps towards implementation of CCS Conclusions and recommendations for application of CCS in Finland 2

Actions towards mitigation of climate change needed Urgent need to mitigate greenhouse gas (GHG) emissions The global use of fossil fuels continues rising Most of the GHG emissions energy related 50-80 % cuts in global CO 2 emissions by 2050 compared to 2000 level needed to limit the long-term mean temperature rise to 2 C (IPCC, 2007) Benefits of limiting the temperature rise to 2 C outweighs the costs (Stern, 2007) 3

Means for reduction of CO 2 emissions No single technology enough for reducing greenhouse gas emissions, all are needed (IPCC, 2005) Conserving energy and improving energy efficiency (e.g. CHP) Switch from coal to gas Switch fossil to nuclear Switch fossil to renewable energy Application of CCS [IPCC, 2005] 4

Carbon capture and storage (CCS) Suitable for large stationary CO 2 sources CO 2 capture technology known from industry, needs upscaling CO 2 is compressed (or liquified) for transportation and storage CO 2 is stored in isolation from the atmosphere [CO2CRC] 5

CO 2 capture technology alternatives Post-combustion capture Separation of CO 2 from flue gases Pre-combustion capture Separation of CO 2 from fuel gases Oxyfuel combustion Facilitation of separation by combustion in O 2 and recycled CO 2 Capture from industrial applications Ammonia production, fuel refineries etc. 6

[Vattenfall, www.kjell-design.com] 7

[Vattenfall, www.kjell-design.com] 8

[Vattenfall, www.kjell-design.com] 9

CO 2 absorbtion process 40-60 C 100-140 C [CO2CRC] 10

Post-combustion capture (absorption process) Used in industrial CO 2 production, but in smaller scale Based on solvents Simplest of the capture alternatives to apply to existing power plants ( retrofit ) High energy (steam) requirements for the regeneration of the solvent Lowers the efficiency of the power plant with 10-15 %-units (including power requirements for compression) Several small-scale pilot plants in operation, some of these at existing power plants (for instance Esbjerg, Denmark) New solvents in development seem promising for reducing the energy requirements 11

Comparison of capture technologies Post-combustion + Closest to commercial-scale application + Suitable for retrofit applications + Indifferent of CO 2 source - Large drop in plant efficiency - Requires large amounts of chemicals Pre-combustion + Moderate drop in plant efficiency + Potential for development - Issues related to IGCC technology Oxy-fuel + Moderate drop in plant efficiency + Potential for development - Requires oxygen production and handling Choice of technology case-specific 12

Transportation of carbon dioxide Long experience from transportation of CO 2 in pipelines 3100 km of CO 2 pipelines in use in the U.S. Transported as a supercritical liquid at 80-190 bar Shipment with tanker ships also possible Requires liquefication of CO 2 (7 bar, -54 C) Only a few ships available today 10 000 12 000 t CO 2 per ship 13

Options for storage of CO 2 Storage of CO 2 in geological formations (geological storage) Storage of CO 2 as solid carbonate minerals (mineral carbonation) Storage of CO 2 dispersed in the ocean or as a liquid on the bottom of the ocean (ocean storage) 14

[IPCC, 2005] 15

Estimation of European geological storage capacity (units in Gt CO 2 ) EU GeoCapacity project s preliminary results: Optimistic estimation for Europe s capacity about 350 Gt CO 2 16

Mineral carbonation (concept in research phase) MO + CO 2 MCO 3 + heat Metal (calcium or magnesium) oxide bearing (silicate) minerals or by products react with CO 2 and form a solid carbonate [IPCC, 2005] 17

Ocean storage (practically abandoned alternative) [IPCC, 2005] 18

Maturity of CCS technology Capture of CO 2 From certain industrial processes already commercial technology From power plant processes still at pilot testing stage (largest application 30 MW th ) Transportation and geological storage of CO 2 Technically possible, but requires a regulatory framework for large-scale deployment 19

CCS large-scale ongoing demonstration projects Sleipner Vest, natural gas production 1 Mt/a CO 2 Weyburn-Midale, EOR 3 Mt/a CO 2 In Salah, natural gas production 1 Mt/a CO 2 Snøhvit, LNG production 0.7 Mt/a CO 2 20

Demonstration and large pilot applications in Northern Europe 21

Cost of CCS applications Energy requirements for capture and compression 75 % of the whole CCS chain Cost estimations vary largely and are case dependent Recent rise in material prices McKinsey & Co estimates for 2020: Capture: 25-32 /t CO 2 Transportation: 4-6 /t Storage: 4-12 /t Transportation costs likely to be much higher in Finland [McKinsey & Co, 2008] 22

Impact on power plant performance CO 2 capture and compression requires energy Increased energy requirements 10 40 % more fuel required Power generation costs up by 20 90 % Optimal performance for 80 90 % capture efficiency [IPCC, 2005] 23

CCS in EU:s climate and energy policy Targets by 2020: 20 % less greenhouse gas emissions 20 % less energy consumption by increased efficiency 20 % of energy use covered by renewable energy 10% share for biofuels in petrol and diesel Promotion of safe use of CCS A directive for geological storage of CO 2 is being prepared 300 million EUA reserved for support of 12 large-scale CCS demonstration projects (and RES projects) in EU CCS part of ETS from year 2013 onward No recognition yet for bioenergy+ccs 24

Steps towards implementation of CCS Risk management Development in site selection methods Development in measuring, monitoring and verification of injected and stored CO 2 Financing of CCS projects 20-40 billion euro in investments required for 20 large-scale CCS demonstration projects (IEA) Funding mechanisms available in e.g. Canada, Norway, U.S., Australia and EU Regulation framework e.g. Directive on geological storage and ETS Public acceptance and awareness 25

Carbon dioxide emissions in Finland Main part of carbon dioxide emissions from combustion of fossil fuels Largest singular emission sources Steel plants Oil refineries Coal power plants Annual variations large Dependent on hydro power availability 2020-targets: GHG emissions ETS: -21 % (EU total) Non-ETS: -16 % Renewable energy: 28.5 % 38 % Only annual emissions over 1 Mt CO 2 shown (data from year 2007) 26

Possibilities for CCS in Finland Opportunity for Finnish industry for export and development of technology Annual investments 50-200 bil. during 2020-2050 Preliminary scenario calculations for year 2030 indicate that CCS could be competitive in Finland in certain applications when EUA price > 40 /t CO 2 Improved economy of CCS by application to CHP plants instead of condensing power plants Early opportunities for CCS application at refineries Recognition of bioenergy+ccs in ETS important for negative emissions 27

Possibilities for CCS in Finland No suitable geological formations for storage identified Closest verified sites in Barents sea and North sea Closest theoretically potential sites in the Southern part of the Baltic sea and Latvia Mineral carbonation a domestic alternative, but technology still needs development 28

CCS activities in Finland A fewco 2 production facilities Largest: 0.4 Mt/a CO 2 in Porvoo refinery Meri-Pori CCS project (Fortum and TVO) Development of a capture-ready power plant concept (PVO etc.) Oxyfuel CFB combustion research (Foster Wheeler and VTT) Oxyfuel concepts (VTT etc.) Application of CCS in Finland (VTT and GSF) Mineral carbonation research (Åbo Akademi, TKK etc.) 29

VTT: CCS Finland project (2008-2010) Identify and evaluate the most applicable and feasible route/routes to application of CCS in Finland Assess the development of Finland s future energy structure Determine the most cost-efficient CCS technologies Several case studies of potential or planned CCS applications Collaboration with GSF, ZEP, IEA GHG, etc. Many industrial partners Roadmap for implementation of CCS in Finnish conditions 30

Thank you! VTT creates business from technology 31