Co2 Capture and Storage : a Key Carbon Abatement Option.

266 Pages·2008·3.71 MB·English

by  OECD

INTERNATIONAL ENERGY AGENCY
Energy
Technology
Analysis
CO CAPTURE
2
STORAGE
AND
A key carbon
abatement option
Please note that this PDF is subject to specific
restrictions that limit its use and distribution.
The terms and conditions are available online at
www.iea.org/Textbase/about/copyright.asp
CO CAPTURE
2
STORAGE
AND
A key carbon
abatement option
Oil, coal and natural gas will remain the world’s
dominant sources of energy over the next decades,
with resulting carbon dioxide emissions set to increase
to unsustainable levels. However, technologies that
help reduce CO emissions from fossil fuels can reverse
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this trend. CO capture and storage (CCS) is particularly
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promising. CCS takes CO from large stationary sources
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and stores it in deep geological layers to prevent its
release into the atmosphere.
At their Gleneagles summit in 2005, G8 leaders asked
the IEA to advise on alternative energy scenarios and
strategies aimed at a “clean clever and competitive
energy future”, and to work on accelerating the
development and commercialisation of CCS.
CO Capture and Storage: A Key Carbon Abatement
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Option responds to the G8 request. The study
documents progress toward the development of CCS:
(cid:132) C apture, transportation and storage technologies and
their costs
(cid:132) Storage capacity estimates
(cid:132) Regional assessment of CCS potential
(cid:132) Legal and regulatory frameworks
(cid:132) Public awareness and outreach strategies
(cid:132) Financial mechanisms and international mechanisms
The IEA study discusses also the role of CCS in ambitious
new energy scenarios that aim for substantial emissions
reduction. This publication elaborates the potential of
CCS in coal-fuelled electricity generation and estimates
for capture in the industry and fuel transformation
sectors. Finally, it assesses the infrastructure needed to
process and transport large volumes of CO.
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With an updated roadmap of CCS development needs
in the near and long term, this publication equips
decision makers in the public and private sector with
essential information that is needed for accelerating its
demonstration and deployment in a sustainable manner.
(61 2008 01 1 P1) ISBN 978-92-64-04140-0 €100
INTERNATIONAL ENERGY AGENCY
CO CAPTURE
2
STORAGE
AND
A key carbon
abatement option
INTERNATIONAL ENERGY AGENCY
The International Energy Agency (IEA) is an autonomous body which was established in
November 1974 within the framework of the Organisation for Economic Co-operation and
Development (OECD) to implement an international energy programme.
It carries out a comprehensive programme of energy co-operation among twenty-eight of
theOECD thirty member countries. The basic aims of the IEA are:
n
To maintain and improve systems for coping with oil supply disruptions.
n
To promote rational energy policies in a global context through co-operative relations
with non-member countries, industry and international organisations.
n
To operate a permanent information system on the international oil market.
n
To improve the world’s energy supply and demand structure by developing alternative
energy sources and increasing the efficiency of energy use.
n
To promote international collaboration on energy technology.
n
To assist in the integration of environmental and energy policies.
The IEA member countries are: Australia, Austria, Belgium, Canada, Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Japan, Republic of
Korea, Luxembourg, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak Republic,
Spain, Sweden, Switzerland, Turkey, United Kingdom and United States. The European
Commission also participates in the work of the IEA.
ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT
The OECD is a unique forum where the governments ofthirty democracies work together
to address the economic, social and environmental challenges of globalisation. The OECD
is also at the forefront of efforts to understand and to help governments respond to new
developments and concerns, such as corporate governance, the information economy
and the challenges of an ageing population. The Organisation provides a setting where
governments can compare policy experiences, seek answers to common problems, identify
good practice and work to co-ordinate domestic and international policies.
The OECD member countries are: Australia, Austria, Belgium, Canada, Czech Republic,
Denmark, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic
of Korea, Luxembourg, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Slovak
Republic, Spain, Sweden, Switzerland, Turkey, United Kingdom and United States.
The European Commission takes part in the work of the OECD.
© OECD/IEA, 2008
International Energy Agency (IEA),
Head of Communication and Information Office,
9 rue de la Fédération, 75739 Paris Cedex 15, France.
Please note that this publication is subject
to specific restrictions that limit its use and distribution.
The terms and conditions are available online at
http://www.iea.org/Textbase/about/copyright.asp
FOREWORD 3
FOREWORD
Recent IEA analysis confi rms that, without policy changes, CO -intensive coal and other fossil
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fuels will play a growing role in meeting our future energy needs. The successful deployment
of CO capture and storage (CCS) will allow countries to continue using these resources while
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simultaneously achieving deep reductions in greenhouse gas emissions. Of course CCS is not
a magic bullet, but it can be an important part of a broad portfolio of options, which include
energy effi ciency, renewables and nuclear energy, for improving energy security and tackling
climate change. The energy challenges we face are great; all of these technologies have a role
to play in achieving a more sustainable future.
The 2004 IEA publication Prospects for CO Capture and Storage provided the fi rst detailed
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global assessment of the role of CCS in climate change mitigation, and included our best
attempts to analyse the cost, performance and policy implications of this important technology.
Since that publication, there has been an explosion of interest in CCS at every level, resulting
in international treaty amendments, new policies and regulations related to CCS, major national
and regional demonstration projects, and private sector research and deployment of various
aspects of the technology. As a result, today we have better information about the cost and
performance of CCS—including the individual components: CO capture, transport and storage.
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We have used this improved data to analyse the contribution of CCS in future climate change
mitigation scenarios.
While these developments are to be commended, there remain signifi cant challenges if CCS
is to be successfully commercialised. These include the lack of appropriate long-term policy
frameworks and suffi cient fi nancial incentives to justify investment, particularly for the critical
early demonstration projects. This publication takes a look at the many approaches for CCS
commercialisation that are currently being tested in a number of different countries, and
makes recommendations for a roadmap that attempts to address the technical, fi nancing and
legal/regulatory challenges.
I am delighted that the IEA continues to play a leading role in promoting the development and
deployment of CO capture and storage, and hope that this latest publication helps to foster the
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rapid uptake of this key CO abatement option.
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Nobuo Tanaka
Executive Director
This publication has been produced under the authority of the Executive Director of the 8
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of individual IEA member countries. E
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ACKNOWLEDGEMENTS 5
ACKNOWLEDGEMENTS
This publication was prepared by the International Energy Agency’s Energy Technology Offi ce
(ETO), in close association with the Economic Analysis Division (EAD) and the Long-term Co-
operation and Policy Analysis Offi ce (LTO). Neil Hirst, Director of the ETO, provided invaluable
leadership and inspiration throughout the project. Peter Taylor, Acting Head of the Energy
Technology Policy Division from November 2007, provided key resources and guidance; Antonio
Pfl üger, Head of the Energy Technology Collaboration Division, and Pieter Boot, Director of the
LTO, offered important guidance and input.
Kamel Bennaceur was the project leader for the development of the study. The other main authors
were Dolf Gielen, Tom Kerr and Cecilia Tam. Many other IEA colleagues have provided important
contributions, in particular Ingrid Barnsley, Sankar Bhattacharya, Fatih Birol, Rick Bradley, Robert
Dixon, Jason Elliott, Rebecca Gaghen, Jean Yves Garnier, Dagmar Graczyk, Didier Houssin, Steven
Lee, Jim Murphy, Andrea Nour, Cedric Philibert, Roberta Quadrelli, Brian Ricketts, Ulrik Stridbaek,
Peter Taylor, Nathalie Trudeau, and Nancy Turck.
A number of consultants have contributed to different parts of the publication: Niclas Mattsson
(Chalmers University of Technology, Sweden) and Uwe Remme (IER University Stuttgart, Germany)
helped in the Energy Technology Perspectives model analysis. John Newman (France) contributed
to the analysis of CCS in industry.
Simone Brinkmann and Gillian Balitrand helped to prepare the manuscript. The manuscript was
edited by Rob Wright and Deborah Glassmann.
Production and distribution assistance was provided by the IEA Communication and Information
Offi ce: Rebecca Gaghen, Jane Barbière, Muriel Custodio, Corinne Hayworth, Bertrand Sadin,
Sophie Schlondorff and Sylvie Stephan added signifi cantly to the material presented.
Special thanks go to Nobuo Tanaka (IEA Executive Director, France) and Claude Mandil (former
IEA Executive Director, France) for their encouragement, support and suggestions.
This work was guided by the IEA Committee on Energy Research and Technology (CERT). Its
members and the IEA Energy Advisors provided important guidance that helped to improve
substantially the policy relevance of this document. The Standing-Group on Long-Term Co-operation,
the End-Use Working Party, the Renewable Energy Working Party, the Fossil Fuel Working Party
and the Buildings Co-ordination Group all provided valuable comments and suggestions.
The global energy technology model used for this study has been developed in close collaboration
with the IEA ETSAP Implementing Agreement. The IEA GHG Implementing Agreement also played
a critical role in review and comment.
Also, the secondment of Kamel Bennaceur by Schlumberger and the secondment of Steven Lee
by the United States Department of Energy are greatfully acknowledged.
Expert Reviewers
A number of reviewers provided valuable feedback and input to the analysis presented in this book:
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Mette Gravdahl Agerup, Norwegian Ministry of Petroleum and Resources; Stefan Bachu, Energy 2
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Resources Conservation Board, Canada; Anni Bartlett, CO CRC, Australia; Brendan Beck, IEA E
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6 CO2 CAPTURE AND STORAGE: A Key Carbon Abatement Option
GHG R&D Programme; Tim Bertels, Shell; Frank Bevc; Olav Bolland, NTNU; Didier Bonjoly, BRGM
France; Scott Brockett, European Commission DG Environment; Dubravka Bulut, Natural Resources
Canada; Isabel Cabrita, INETI, Portugal; Marjeta Car, Slovenia; David Coleman, Shell; Rachel
Crisp, UK Business Enterprise and Regulatory Reform (BERR); Peter Cook, CO CRC, Australia;
2
Paulo Cunha, Petrobras; Jostein Dahl Karlsen, IEA Working Party on Fossil Fuels and Norwegian
Ministry of Petroleum and Resources; John Davison, IEA GHG R&D Programme; Tim Dixon, IEA
GHG R&D Programme; James Dooley, Pacifi c Northwest Laboratories (USDOE); Sarah Forbes,
World Resources Institute; John Gale, IEA GHG R&D Programme; Jesus Garcia, Iberdrola; Philippe
Geiger, Ministère de l’écologie, de l’énergie, du développement durable et de l’aménagement du
territoire, France; Malti Goel, Department of Science & Technology, India; Timothy Grant, US Dept.
of Energy NETL; Daniel Grobler, Sasol; Ian Havercroft, University College London; Ian Hayhow,
Natural Resources, Canada; Wolfgang Heidug, Shell; Larry Hegan, Natural Resources Canada;
Arne Höll, Federal Ministry of Economics and Technology (BMWI Bund), Germany; Olav Kaarstad,
StatoilHydro; Karl Kellner, European Commission Directorate-General For Energy And Transport
(DG TREN); John Kessels, IEA Clean Coal Centre; Kazuaki Komoto, Ministry of Economy, Trade and
Industry (METI), Japan; Christian Lelong, BHP Billiton; Arthur Lee, ChevronTexaco; John Litynski,
US Department of Energy NETL; Manuel Lopez Ruiz, Spain; Barbara McKee, US Department of
Energy; Roberto Martinez Orio, GME, Spain; Antonio Moreno-Torres Galvez, Spain; Frank Mourits,
IEA GHG Weyburn; George Peridas, NRDC; Sean Plasynski, US Department of Energy NETL;
Alexandrina Platonova, The World Bank; Jacek Podkanski, European Investment Bank; Fedora
Quattrocchi, Italy; Andrea Ramirez, Utrecht University; Edward Rubin, Carnegie-Mellon University;
Nasu Ryo, METI, Japan; Harry Schreurs, SenterNovem; Sabine Semke, Forschungszentrum Jülich,
Germany; Beatriz Sinobas Ocejo, Ministerio de Industria, Turismo y Commercio, Spain; Bill Spence,
Shell; Per Gunnar Stavland, Statoil Hydro; Annet Stones, Shell; Lars Sjunnesson, E.ON, Derek
Taylor, European Commission DG TREN; Chiara Trabucchi, Industrial Economics, Inc.; Piotr Tulej,
European Commission, DG Environment; Jan Vandereijk, Shell; Luke Warren, World Coal Institute;
Rosemary Whitbread, UK Health & Safety Executive; Elzbieta Wroblewska, Polish Government;
Shinichi Yasuda, Japan METI; Clement Yoong, Australian Ministry for Industry, Tourism and
Resources.
Comments and questions are welcome and should be addressed to:
Tom Kerr
Energy Technology Offi ce
International Energy Agency
9, Rue de la Fédération
75739 Paris Cedex 15
France
Email: [email protected]
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TABLE OF CONTENTS 7
TABLE OF CONTENTS
Foreword 3
Acknowledgements 5
Table of Contents 7
List of Figures 10
List of Tables 12
Executive Summary 15
1. Introduction 21
The Political Context 22
The Purpose and Scope of this Study 22
The Structure of the Publication 23
2. Scenarios for CO Capture and Storage 25
2
The Scenarios in this Study 26
Results 28
CO Capture in Electricity Generation 31
2
CO Capture in Industry and Fuel Transformation 39
2
Regional Use of CCS 42
CO Storage 43
2
3. CO Capture Technologies 45
2
CO Emissions and Capture Opportunities 46
2
CO Capture in Electricity and Heat Generation 47
2
Post-Combustion Capture 48
Pre-Combustion Capture 51
Oxyfueling 51
CO Capture in the Electricity Sector 53
2
Advanced Coal Technologies 54
Cost of Power Plant with CO Capture 60
2
CO Capture in Industry 66
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Iron and Steel 67
Cement Industry 69
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Chemical and Petrochemical Industry 70 20
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Pulp and Paper 71 E
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8 CO2 CAPTURE AND STORAGE: A Key Carbon Abatement Option
Fossil Fuel Production and Transformation 72
Sour Gas 72
Heavy Oil and Tar Sands 73
Refineries 74
Hydrogen (H ) Production 75
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Gasification and Hydrocarbon Synfuel Production 77
4. CO Transport and Storage 81
2
CO Transportation 81
2
CO Transportation Options 81
2
Cost of CO Pipeline Transportation 83
2
CO Transportation by Ship 84
2
CO Geological Storage 85
2
Geological Storage Mechanisms and Capacity Estimates 85
Cost of CO Storage 89
2
Enhanced Oil Recovery and CO Injection 91
2
Carbon Sequestration with Enhanced Gas Recovery (CSEGR) 97
CO Storage in Depleted Oil and Gas Fields 98
2
CO Enhanced Coal-Bed Methane (ECBM) Recovery 99
2
Other Storage Options 107
5. Financial, Legal, Regulatory and Public Acceptance Issues 111
Introduction 112
Financing CCS 112
Financing CCS Demonstration Projects 113
Financing CO Transport 115
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Legal and Regulatory Issues 122
Legal Issues Associated with CO Transport 123
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Jurisdiction: Assigning Regulatory Responsibility for CCS 124
Site Selection, Monitoring and Verification 125
Risks Associated with CCS 125
Site Selection 126
Monitoring and Verification 127
Long-Term Liability 129
International Marine Environment Protection Instruments: Recent
Developments 132
The London Protocol 132
OSPAR Convention 133
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Public Awareness and Support 134 00
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Building Public Awareness and Support: Lessons Learned 134 E
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