CCS costs for industry:
considerations and collaboration

6/11/2013
Chris Hendriks
Mission, Vision & Values – Facts & Figures
Mission
sustainable energy for everyone

Facts & Figures

Vision
Based on our d...
A selection of organisations that we serve

8

© ECOFYS | 11/12/2013 |
Typical differences power and industry sector
> Industry
– Smaller installations; larger number emission points
– Many dif...
CCS in industry compared to power
> CCS may impact industrial product quality
> Availability of heat or power
– Industry: ...
Economic and market conditions industry
> High risk, short payback periods and high margins
– Higher discount rates than p...
Reference and system boundary
> Reference situation (more) clear
> System boundary considerations
– Import/export of steam...
Collaboration

13

© ECOFYS | 6/11/2013 | Chris Hendriks
Emission concentrations

14

© ECOFYS | 6/11/2013 | Chris Hendriks
Rotterdam area

15

© ECOFYS | 6/11/2013 | Chris Hendriks
16

© ECOFYS | 6/11/2013 | Chris Hendriks
Rotterdam study industrial CCS
> Comparison between centralised and decentralised CCS
– Post-combustion and oxyfuel proces...
Source: Berghout et al., UU
18

© ECOFYS | 6/11/2013 | Chris Hendriks
19

© ECOFYS | 6/11/2013 | Chris Hendriks
Results (preliminary)
> Post-combustion
– Centralised: 70 euro/t
– Decentralised: 86 euro/t
> Oxyfuel
– Centralised: 63 eu...
Complications in coordinated capture
> Timing of the CCS application
> Dependency on other ones operations
> Allocation of...
Combining (industrial) CO2 transport
> Large sources with relative high capture costs and low transport
costs (typical: co...
24

© ECOFYS | 6/11/2013 | Chris Hendriks
25

© ECOFYS | 6/11/2013 | Chris Hendriks
26

© ECOFYS | 6/11/2013 | Chris Hendriks
Conclusions
> Industrial application of CCS considerably different from power
sector; main differences:

– No black and wh...
Thank you!

Chris Hendriks
Ecofys
c.hendriks@ecofys.com
© ECOFYS |

|
33

© ECOFYS | 6/11/2013 | Chris Hendriks
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CCS costs for industry: considerations and collaboration - Chris Hendriks, Ecofys

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A presentation from the 2013 CCS Costs Workshop.

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CCS costs for industry: considerations and collaboration - Chris Hendriks, Ecofys

  1. 1. CCS costs for industry: considerations and collaboration 6/11/2013 Chris Hendriks
  2. 2. Mission, Vision & Values – Facts & Figures Mission sustainable energy for everyone Facts & Figures Vision Based on our deep expertise on energy we develop smart policies and solutions and bring them to life. We know that, if we act now, by 2050 our global energy system can be sustainable, secure, affordable and fully based on renewable sources. We aim to create a sustainable energy system for everyone. Dedication 2 Values Originality © ECOFYS | 11/12/2013 | Impact Trust • Founded in 1984 • Over 250 professionals, 7 offices in 6 countries • Over 500 clients served across 50 countries • Leading experts: the Nobel Peace Prize 2007, awarded to Al Gore and the IPCC, was supported by 10 Ecofys experts • Eneco Shareholder since 2009
  3. 3. A selection of organisations that we serve 8 © ECOFYS | 11/12/2013 |
  4. 4. Typical differences power and industry sector > Industry – Smaller installations; larger number emission points – Many different types of plants, plant lay-outs and level of complexities – Multiple product outputs > Future developments – Increased integration of power, heat and products – Multi-fuel input – multi-output ● Hydrogen, syngas, transport fuels, chemicals, … – Power production will more and more shift into industrial process 9 © ECOFYS | 6/11/2013 | Chris Hendriks
  5. 5. CCS in industry compared to power > CCS may impact industrial product quality > Availability of heat or power – Industry: waste heat or combined heat and power – Power: integration of steam cycle > Mostly retrofit – Integration into running plant – Sufficient area available? – Site specific conditions > Combining multiple point sources 10 © ECOFYS | 6/11/2013 | Chris Hendriks
  6. 6. Economic and market conditions industry > High risk, short payback periods and high margins – Higher discount rates than power sector > Often exposed to global competition – Cement: 100% cost price increase – High-value products (refineries): 10% cost price increase – Iron and steel: 10-15% cost price increase ● 575$/t -> 650 – 675 $/t Hot Rolled Coil (IEAGHG) – Shift industrial activity; carbon leakage > Quote from latest IEAGHG report on CCS in steel industry: > “[…] this study has demonstrated that this option could have significant costs implications on steel production which could affect the commercial viability of the steel plants fitted with CCS.” 11 © ECOFYS | 6/11/2013 | Chris Hendriks
  7. 7. Reference and system boundary > Reference situation (more) clear > System boundary considerations – Import/export of steam, heat and power – Separate CHP (equipped with CCS?) – Reserve (boiler) capacity – Process related emissions (vs energy related) > Base load, intermediate load and peak load – Changing conditions on the power market in Europe 12 © ECOFYS | 6/11/2013 | Chris Hendriks
  8. 8. Collaboration 13 © ECOFYS | 6/11/2013 | Chris Hendriks
  9. 9. Emission concentrations 14 © ECOFYS | 6/11/2013 | Chris Hendriks
  10. 10. Rotterdam area 15 © ECOFYS | 6/11/2013 | Chris Hendriks
  11. 11. 16 © ECOFYS | 6/11/2013 | Chris Hendriks
  12. 12. Rotterdam study industrial CCS > Comparison between centralised and decentralised CCS – Post-combustion and oxyfuel processes – Flue gas conditioning, absorbers, desorbers, compressors, energy plants, ASU Study results published: Techno-economic assessment of CO2 capture network configurations in the industry Berghout et al, forthcoming (GHGT-11) 17 © ECOFYS | 6/11/2013 | Chris Hendriks
  13. 13. Source: Berghout et al., UU 18 © ECOFYS | 6/11/2013 | Chris Hendriks
  14. 14. 19 © ECOFYS | 6/11/2013 | Chris Hendriks
  15. 15. Results (preliminary) > Post-combustion – Centralised: 70 euro/t – Decentralised: 86 euro/t > Oxyfuel – Centralised: 63 euro/t – Decentralised: 80 euro/t > Economy of scale effects > Large-scale CHP plants > Revenues from power to the grid > Centralised: particular interesting for small point sources 20 © ECOFYS | 6/11/2013 | Chris Hendriks
  16. 16. Complications in coordinated capture > Timing of the CCS application > Dependency on other ones operations > Allocation of costs and risks and/or defining tariff structure 22 © ECOFYS | 6/11/2013 | Chris Hendriks
  17. 17. Combining (industrial) CO2 transport > Large sources with relative high capture costs and low transport costs (typical: coal-fired power plant) > Small sources with low capture costs and relative high transport costs (typical: ethanol plants, hydrogen/ammonia plants) > What could collaboration offer to reduce transport costs? 23 © ECOFYS | 6/11/2013 | Chris Hendriks
  18. 18. 24 © ECOFYS | 6/11/2013 | Chris Hendriks
  19. 19. 25 © ECOFYS | 6/11/2013 | Chris Hendriks
  20. 20. 26 © ECOFYS | 6/11/2013 | Chris Hendriks
  21. 21. Conclusions > Industrial application of CCS considerably different from power sector; main differences: – No black and white differences – Large variety in industrial sources – Different commercial and market conditions – Rapid changing power market – System boundary definition, especially for industrial processes > Collaboration between emitters can significantly reduce costs, both for capture and transport & storage – Collaboration is not straightforward ● Capture: independent production operation ● T&S: uncertainty in future flows (who invest in early network?) ● Risks and costs sharing 30 © ECOFYS | 6/11/2013 | Chris Hendriks
  22. 22. Thank you! Chris Hendriks Ecofys c.hendriks@ecofys.com © ECOFYS | |
  23. 23. 33 © ECOFYS | 6/11/2013 | Chris Hendriks
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