Transcript Clean Development Mechanism

Carbon Capture and Storage
Climate Change and Sustainable Development:
Pernille
Holtedahl,
PhD, Norad
New Delhi, April 7-8 , 2006
NORWAY
Outline
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CCS – what is it?
A history
Projects
Storage
CCS in a portfolio
Challenges
International Agenda
The Future
CCS – What is it?
CCS is a process consisting of
• the separation of CO2 from
industrial and energy-related
sources
• transport to a storage location
• long-term isolation from the
atmosphere (IPCC, 2005)
IPCC, 2005
CCS – what is it?
• Suitable for large point sources:
– CO2-emitting industries
– natural gas production
– large fossil fuel/biomass plants
• Electricity sector most promising candidate (IPCC, 2005)
A history of CCS: EOR as a starting point
• Inspired by experience with enhanced oil recovery (EOR)
• Large-scale injection of CO2 for purposes of EOR started in 1972 in
the US (Permian Basin) – thus initially a commercial justification
• Many new projects started in the 1970s as oil prices increased
• Today, more than 70 ongoing CO2 EOR projects and almost 40
Mtonnes CO2 injected each year (OSPAR, 2005)
• Benefit of EOR: additional income stream (USD 30-50/tonne CO2,
with oil prices USD 15-25 (!), Torvanger et al.)
CCS: Current projects - Weyburn
• Weyburn – Canada - 2000
• EOR
• Transport of 95 million cubic feet
per day of 95 % pure CO2 from a
North Dakota coal gasification
facility through a 320 kilometer
pipeline
• 3-5000 t CO2 /day
• Total planned storage:
20,000,000 t CO2
Copyright © EnCana Corporation. All rights reserved
CCS: Current projects – In Salah
• In Salah – Algeria
• CO2 content in gas extracted is too
high for commercial use
• Separation of CO2 from natural
gas in amine contactor towers
• Storage in gas field
• 3-4000 t CO2 /day
• Total planned storage:
17,000,000 t CO2
CCS: Current projects - Sleipner
Courtesy of Statoil ASA
• Sleipner – Norway - 2000
• Gas extracted contains 9 % CO2
and must be reduced to 2.5 % to
satisfy commercial standard
• Motivation for injection/storage:
Norwegian CO2 tax,
• Storage in saline formation (200
m thick, at 800-1000 m depth)
• 3000 t CO2 /day (1 Mt annually)
• Total storage planned :
20,000,000 t CO2
Sleipner
Storage potential
• Utsira formation covers 26 100 km2
• Storage capacity in aquifer estimated
at 42 billion tonnes CO2
• Estimated storage capacity in oil and
gas reservoirs and aquifers in Western
Europe: 833 bn. tonnes CO2
(Torvanger et al. 2005)
• Could theoretically store all of EU’s
emissions for 67 years (ibid).
CCS: the broader picture
• CCS is but one answer to the problem of climate change
• A portfolio approach is the way to go. IPCC estimates inclusion of
CCS in portfolio to lower overall cost of CO2 stabilization by 30 %
• Pacala & Socolow (2004)’s Wedges Model:
– Def: A simple quantification of carbon mitigation as the need for
seven wedges
– A wedge is a strategy to reduce carbon emissions that grows in
50 years from zero to 1.0 GtC/year.
Wedges
Billion of Tons of
Carbon Emitted per
Year
14
14 GtC/y
Seven “wedges”
Historical
emissions
7
Flat path
O
7 GtC/y
1.9 
0
1955
2005
2055
2105
The Wedges Model
• The Carbon Capture Wedge (1
wedge) could consist of CCS at
– 800 GW coal power plants
OR
– 3500 Sleipners @ 1 Mt CO2/year
CCS Challenges
• Leakages
– Uncertainty about magnitude ...
– ... but likely to be very small (0.1% - 1% in different studies)
– intergenerational issue, but fraction retained in appropriate locations
likely to exceed 99 % for over 1000 years (IPCC, 2005)
• Monitoring
• Infrastructure needs: Large and long-term investments required for
transportation and separation
• Lack of rules in Climate Convention and Kyoto Protocol context
CCS Challenges
Costs:
– Capture: varies depending on CO2
concentration (USD 10-60/tonne CO2)
– compression and transport: varies depending
on mode of transport and volume (USD 528/tonne CO2)
– injection and storage: varies depending on type
of resevoir (USD 1-16/tonne CO2)
– Economies of scale apply, and R&D will bring
costs down over time
– EOR income helps: ~USD 30-50/tonne CO2
(Torvanger et al., 2005)
Opportunities for near-term adoption
IPCC, 2005
CCS: future projects
• Gas processing plant at Kårstø
(Norway)
• New technology could reduce the
costs of CO2 capture substantially
• The ambition is to halve the costs
of carbon capture, which means
USD 30/t CO2
• Replication possibilities exist
CCS: future projects
Tjeldbergodden:
• Shell and Statoil have signed an agreement
• would be the world's largest project using CO2 for enhanced oil
recovery (EOR) offshore.
• project consists of a gas-fired power plant and methanol production
facility, providing CO2 to two offshore oil and gas fields.
CCS and the International Agenda
• Intergovernmental Panel on Climate Change (IPCC)
published its report on CCS in Sept 2005
• Carbon Sequestration Leadership Forum (CSLF),
Carbon Sequestration Initiative, various research
efforts (EU, US)
• IPCC guidelines currently in use do not specifically
include CCS, but revision likely to change this
• Not specifically mentioned in Kyoto Protocol
• CDM
CCS and the Clean Development Mechanism (CDM)
• SBSTA meeting in May to discuss guidelines for application of CDM to CCS
projects – based on COP/MOP1 decision
• Various issues to be settled: who is responsible for monitoring (and
potential leakages): Annex 1 or Non-Annex 1 country?
• Norway’s position:
– CCS is a viable option under CDM...
– ...but leakage and liability issues need to be settled
– careful selection of sites is key
– monitoring is key
– Forthcoming 2006 IPCC guidelines for National Greenhouse Gas
Inventories should be used as a basis
The Future
• ”...models indicate that CCS
systems are unlikely to be
deployed on a large scale in the
absence of an explicit policy that
substantially limits greenhouse
gas emissions to the atmosphere”
(IPCC, 2005)
The Future
• Price on CO2 will have to exceed
USD 25-30/t CO2 (or equivalent
limit on emissions). Most current
scenarios predict range of USD 316/t CO2
• Conclusion: A more
comprehensive/ambitious climate
regime needed or projects likely to
be limited to EOR