Carbon Capture

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Carbon Capture StorageThe Economics

• Jacek Podkanski
• International Energy Agency
• World Federation of Scientists Forum and the
  World Energy Council Committee on Cleaner Fossil
  Fuels Systems
• Workshop on Carbon Capture and Storage
• Erice, Sicily, August 24, 2005

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Carbon Capture StorageResearch, Development,
Demonstration and Deployment

• US FutureGen
• EU Hypogen
• Canadian Clean Power Coalition
• Australia
• Germany COORETEC
• UK
• Norway
• France
• Italy
• Japan,

• Carbon Sequestration Leadership Forum
• International Energy Agency
• Intergovernmental Panel on Climate Change (IPCC)
• World Energy Council
• Bilateral Agreements,

National Programs
International Collaboration

• Alstom ExxonMobil
• BP EniTecnologie SpA
• ChevronTexaco
• EPRI Shell International
• RWE AG Total
• Rio Tinto, Schlumberger,

Industry
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Carbon Capture Storage at the International
Energy Agency

• IEA Working Party on Fossil Fuels
• IEA Greenhouse Gas RD Programme
• IEA Clean Coal Centre
• IEA Coal Industry Advisory Board
• Secretariat

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Prospects for CO2 Capture and Storage

• What is CO2 capture storage?
• What are the costs?
• How does the cost-effectiveness of CCS compare to
  other emission reduction options?
• What will it take to bring CO2 capture and
  storage to market?

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What is CO2 capture storage?

• Capturing CO2 from the gas streams emitted during
  electricity production, industrial processes or
  fuel processing
• Transporting the captured CO2 by pipeline or in
  tankers
• Storing CO2 underground in deep saline aquifers,
  depleted oil and gas reservoirs or unminable coal
  seams

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Capture Technology Status

• CO2 capture is a proven technology
• It reduces emissions by 85-95
• But its energy efficiency can be further improved
  and cost must be reduced
• This requires integrated power plant and CO2
  capture designs
• Most of these advanced designs are not yet proven
  on a commercial scale
• Examples new chemical absorbents, oxyfueling,
  hydrogen combined cycles, IGCC, USCSC, chemical
  looping, fuel cells

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Capture - Opportunities

• Fossil fueled power plants
• Biomass fueled power plants
• Certain industrial processes
• Synfuels production
• Natural gas processing

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Storage Technology Status

• Aquifer storage demonstration
• CO2-EOR demonstration
• CO2-EGR pilot
• CO2-ECBM pilot

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Storage - Capacity

• 1,000-10,000 Gt aquifer storage capacity
• 100-120 Gt depleted oil fields/EOR
• 700-800 Gt depleted gas fields/EGR
• 20 Gt ECBM
• Fixation mechanisms reduce risk
• Monitoring is feasible and cheap

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Costs - overview

• Capture (incl. compression)
• Current 5 50 USD/tCO2 av.
• Future 5 - 30 USD/tCO2 av.
• Coal-fired power plants 10 25 USD/tCO2 av.
• Gas-fired power plants 25 30 USD/tCO2 av.
• Transportation 2 20 USD/tCO2 av.
• Injection 2 50 USD/tCO2 av.
• Revenues -55 0 USD/tCO2 av.
• Total -40 100 USD/tCO2 av.

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Capture (electricity)- adds presently 2-3
UScents/kWh- long term 1-2 UScents/kWh

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Costs general comments

• CCS costs competitive with other CO2 abatement
  options
• Coal without CCS has no future in a
  CO2-constrained world
• Electricity from coal or gas-fired power plants
  with carbon capture and storage is still cheaper
  than most renewables (fuel price dependent)
• Efficiency first

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How does the cost-effectiveness of CCS compare to
other emission reduction options?Scenario
analysis

• Scenarios produced using IEAs Energy Technology
  Perspectives (ETP) model
• Based on ETSAP-MARKAL
• Systems engineering/partial equilibrium model
• Global, 15-regions
• Detailed representation of technologies on both
  the demand and supply sides (1500 new techs)

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Model

• Covers carbon capture and storage and competing
  emission mitigation options
• ETP BASE scenario calibrated with WEO Reference
  Scenario
• Detailed scenario analysis and sensitivity
  analysis to map cost-effective CCS potentials and
  uncertainties.

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Global CO2 emissions
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Emission stabilisationMarginal CO2 abatement cost
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CO2 price
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Capture at various CO2 prices
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Share of CCS in total CO2 emissions mitigation
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CO2 capture by process area
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CO2 capture by technology
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IGCC and steam cycles

• Steam cycles and IGCC are competing options for
  coal-based electricity generation with CO2
  capture and storage
• Without synfuel cogeneration in IGCC
  installations the CCS potential declines by 30

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CO2 emissions from electricity generation
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Electricity production mix
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Electricity production by power plants fitted
with CCS, by region
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Fuel market implicationsCCS impact on coal use
at 50/t CO2
CCS impact
2050 50/t CO2 results in 80 or 40 decline in
coal use, depending on availability of CCS
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Overview of sensitivity analysis results
(influence on CO2 captured and stored in 2050)
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Challenges

• RDD gaps
• Public awareness and acceptance
• Legal and regulatory framework
• Long-term policy framework and
• incentives

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RDD gaps

• More proof of storage needed
• CO2 capture demonstration needed
• 0.5-1 bln per demonstration plant
• Present spending 100 MUSD/yr
• A fivefold increase of RDD needed

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Long-term policy framework andincentives

• In addition to the acceleration of RDD funding,
  countries should create a level-playing field for
  CCS alongside other climate change mitigation
  technologies. This includes ensuring that various
  climate change mitigation instruments, including
  market-oriented trading schemes, are adapted to
  include CCS.

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Conclusions

• CCS can play a key role in addressing global
  warming
• mainly through coal plants in coal-rich regions
• but also some natural gas opportunities
• Carbon incentives are needed, but also
• Proven technology
• Acceptable storage

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jacek.podkanski_at_iea.org
Thank you