Panel 2. CCS in the Asian Century - Ashok Bhargava, ADB


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Delivered at the Global CCS Institute's Global Status of CCS: 2013 event in Seoul, 10 October 2013.

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Panel 2. CCS in the Asian Century - Ashok Bhargava, ADB

  1. 1. CCS Activities in Developing Asia– Insights and Next Steps Ashok Bhargava Director, Energy Division East Asia Department Seoul, 10 October 2013
  2. 2. ADB CCS Fund  In June 2009, ADB established a CCS Fund with an initial contribution of AUD 21.5 million from the Global CCS Institute, Australia. In 2012, Government of the United Kingdom also pledged £35 million in the fund.  Specific Eligibility Criteria  Accelerate demonstration of CCS technologies  Identify, lower and / or eliminate general or country specific barriers for CCS demonstration  Identify, eliminate or mitigate risks in capture, transport and storage technology demonstration
  3. 3. … in the People’s Republic of China
  4. 4. PRC – Overview of ADB Activities Capacity Development and Policy Advisory Assistance  Key Partner Department of Climate Change, NDRC  Target three major China Huaneng : pre-combustion capture – IGCC capture technologies China Datang : post-combustion capture natural gas plant Dongfang Boiler – Oxy-fuel combustion capture - coal-based power plant Support upstream analytical work, analyze issues, identify costs and risks on real projects
  5. 5. PRC – Overview of ADB Activities Develop CCS Roadmap  Aims to develop a  Includes following major outputs 1. Time bound action plan for demonstration (up to 2020) and deployment (up to 2025) 2. A policy and regulatory framework with an accompanying set of incentives 3. Shortlist and ranking of early-stage CCS demonstration projects 4. key planning tool for the Government to demonstrate and deploy CCS Suitable business models for implementing early-stage projects Establish enabling environment for CCS demonstration and possible deployment.
  6. 6. Next Steps in the PRC ……….. Pilot Project
  7. 7. Next Steps ………. Pilot CCS Project at Tianjin IGCC Power Plant  Capture up to 100,000 tons CO2 / year to partially used for EOR and partially for storage  Due diligence is underway; power and oil company collaboration proving difficult  ADB may provide up to $10 million grant for CapEx and a compensatory mechanism to offset energy penalty  Pilot project likely to be in operation by 2015
  8. 8. Next Steps ………. FEED Studies for a large-scale CCS project  Need to scale-up CCS efforts urgently  Discussions underway to select one of the early-stage projects identified through the ongoing CCS road map work
  9. 9. What have we learned so far in the PRC  Technical readiness  In-country technical capacity exists; large  Weak policy support number of point sources in close proximity to potential storage sites  CCS is not a strategic choice; no national target, incentives or support mechanism in place.  Fragmented institutional setup across CCS chain  Need for public financing  Negligible cooperation between power and oil companies not conducive for CCS  Early projects will need risk sharing or preferably risk bearing by the Government
  10. 10. Moving on to Southeast Asia ………..
  11. 11. Potential for CCS in Southeast Asia • A regional study with focus on Thailand, Vietnam, Indonesia, Philippines completed recently  Study aimed to: i. Establish inventory of CO2 emission sources ii. Estimate storage potential Determine source-sink matches for CCS Identify potential pilot projects Propose Road Map for CCS development Develop “CCS Working Groups” which could provide leadership on CCS iii. iv. v. vi.
  12. 12. Potential for CCS in Southeast Asia - Main Results  Sufficient capture streams are available  Natural gas processing and new power plants are best sources for capture Annual inventory of 200 million tons of CO2 emissions from sources (coal and gas power plants, natural gas processing facilities, future power plants, and smaller sources such as fertilizer plants) Natural gas processing facilities are preferred because of lower incremental cost of capture, storage site proximity, and existing transport infrastructure
  13. 13. Potential for CCS in Southeast Asia - Main Results….contd  Large storage capacity  Large number of oil and gas fields provide adequate storage for early stage projects Estimated storage capacity of 56 giga tons of which about 90% is in saline aquifiers. But due to uncertainties of aquifiers, study concentrated on oil and gas fields 143 oil and gas fields offer more than 3 giga tons of capacity. Since the geology is well understood of these fields, they were ranked for early stage projects.
  14. 14. Potential for CCS in Southeast Asia - Main Results….contd
  15. 15. Next step in Southeast Asia Region – Pilot Project in Indonesia  Collaborative approach Collaboration with JICA, Pertamina, and Institut Teknologi di Bandung Follows on a JICA scoping study ($5 million, 5year) at Gundih gas field in Central Java  Due diligence support • Pilot project financing support ADB to provide due diligence support to PERTAMINA to review preliminary design of surface facilities for test injection, identify legal and regulatory issues and develop regulations and apply for permits as appropriate. ADB may follow with a $10 million grant for capture and test injection from its CCS Fund
  16. 16. What did we learn so far in developing Asia for CCS ………..
  17. 17. Key Issues and Barriers ADB (2011): “… key barriers to CCS are amplified in developing countries ….” CCS is a last resort policy approach Limited public awareness Absence of targeted incentives / concessional financing mechanism Lack of delivery mechanism / business model Energy intensive mitigation approach Lack of incountry experience in planning, construction and operation
  18. 18. Way Forward Demonstration projects in identification stage ADB (2011): CCS is a last “… key barriers to resort policy CCS are amplified in approach developing countries Government Commitment, incl. ….” Limited policy targets, regulatory, fiscal, public awareness and financial support measures Right business models for early Absence of stage demonstration projects targeted incentives / concessional Mechanisms to offset higher costs, and financing energy penalty mechanism Lack of delivery Awareness and support from civil / mechanism business model society Energy intensive mitigation approach Lack of incountry experience in planning, construction and operation Realized demonstration projects
  19. 19. From: ADB Team For further info : Indonesia – PRC –