The role of CCS/CCUS in the Climate Action Plan - Dr S. Julio Friedmann


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The role of CCS/CCUS in the Climate Action Plan
Global CCS Institute, delivered at the Global CCS Institute's Third Americas Forum
Feb. 27th, 2014, Washington, DC

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  • Public sentiment fickle – engineers, scientists and others in the technology development space need to weather the changes in public attitudes and continue to develop and mature optionsExamples, wind power, ethanol, coal, natural gas (fracking)China seems to be getting more serious about CCS as evidenced by comments by NDRC that they want to become the leader in CCS Others in the US and elsewhere are also becoming more pragmatic about the that Coal will be with us for some time.
  • ETP2010 identifies the low-carbon energy technologies that can help achieve such a 50% reduction and sets out the policies and other actions that will be necessary. The most important option in both the short and longer-term is improving energy efficiency. Improved energy efficiency in the end-use sectors accounts for 38% of the total emissions reduction in 2050.In addition, decarbonizing the power sector will be critical to achieving deep reductions. Under the BLUE Map scenario the emissions intensity of power generation (g/KWh) falls by almost 90% in 2050 in the BLUE Map scenario compared to the Baseline scenario.[N.B: the relative share contribution of renewables to emission reduction in 2050 is smaller than CCS also because there is already a lot of renewables in the baseline scenario in 2050]
  • DOE is also supporting nearly $10 billion worth of demonstration projects through base program funding and ARRA funding to demonstrate large-scale integrated CCS projects in a number of industries, utilizing a number of different technologies to help with the initial deployment of CCUS at scale and to provide data, knowledge, and experience. Additionally, the Demonstration Program will offer a way to test new technologies being developed in the R&D program as they mature.The DOE is funding, in partnership with industry, several large-scale projects to demonstrate first-generation capture technologies and carbon utilization and storage. These first-gen capture technologies are currently available for various industries but have not been demonstrated for coal-fired power plants at scale. 8 active projects7 commercial5 power plants, 3 industrial 3 IGCC, 4 post-processing (1 post-combustion), 1 oxycombustionFeedstock: 4 coal, 1 petroleum coke, 1 coal/coke, 1 natural gas, 1 ethanol2 polygeneration (urea)Storage: 6 EOR, 2 saline formationsThe next slide will show some of the details of these projects.
  • In November 2010, the U.S. Environmental Protection Agency (EPA) finalized requirements for geologic storage of CO2, including the development of a new class of wells, Class VI, under the authority of the Safe Drinking Water Act’s Underground Injection Control program. These requirements, also known as the Class VI rule, are designed to protect underground sources of drinking water and to ensure safe, permanent CO2 storage. The Class VI rule builds on existing Underground Injection Control program requirements, with extensive tailored requirements that address CO2 injection for long-term storage to ensure that wells used for geologic storage are appropriately sited, constructed, tested, monitored, funded, and closed. The rule also affords owners or operators injection depth flexibility to address injection in various geologic settings in the United States in which geologic storage may occur, including deep saline formations and oil- and gasfields that are transitioned for use as CO2 storage sites. In a separate, yet complimentary, rulemaking under authority of the Clean Air Act, the EPA has finalized reporting requirements under the GHG reporting program for facilities that inject CO2 underground for geologic storage (Subpart RR) and all other facilities that inject CO2 underground (Subpart UU). Information obtained under the GHG reporting program will enable the EPA to track the amount of CO2 received by these facilities. Over the last several years, a number of U.S. States have also begun to implement rules that govern the injection of CO2 within their borders. These U.S. States have enacted elements of legal frameworks for CCS. These elements include comprehensive State frameworks for regulating pore space ownership, eminent domain for CO2 pipelines, facility performance standards, portfolio standards, and a fund for administering State activities on CCS.
  • 2nd gen technologies – Ready fo scale up to large scale pilots in 2015/16Transformational Technologies – Need to begin adding transformational technologies to the R&D portfolio starting in 2015
  • The role of CCS/CCUS in the Climate Action Plan - Dr S. Julio Friedmann

    1. 1. Dr. S. Julio Friedmann Deputy Assistant Secretary Office of Clean Coal January 2014 The role of CCS/CCUS in the Climate Action Plan Global CCS Institute – 3rd Americas Forum Feb. 27th, 2014, Washington, DC
    2. 2. We live in a time of energy abundance 2 We’re #1! • In Oil and Gas production • In Innovation We’re #2! • In Coal production & use • In GHG emissions We’re top 10 • In renewable loading • In uranium production Once in a generation opportunity to build
    3. 3. 3 3 Increasing energy demand (2-3x increase) Water scarcity Pollution reduction Greenhouse gas emission reduction Climate change and arctic impacts 40 years of EOR and 15 years of CCS Where are we today?
    4. 4. 4 IEA CCS Roadmap 2013: Key Technologies for Reducing Global CO2 Emissions Source: IEA Roadmap 2013. Note: Numbers in brackets are shares in 2050. For example, 14% is the share of CCS in cumulative emission reductions through 2050, and 17% is the share of CCS in emission reductions in 2050, compared with the 6DS. Most 2050 climate budgets require CCUS from NatGas power
    5. 5. US climate change policy currently consists of a portfolio of federal and state initiatives (in effect unless noted) • Federal renewable fuel standard • Federal vehicle fuel economy standards • Various alternative vehicle tax credits, rebates, and sales targets • Infrastructure tax credits • Fuel tax credits (most expired) • California economywide GHG cap-and-trade • California Low Carbon Fuel Standard (in effect, but suit pending) 5 (in effect unless noted) • Federal renewable tax credits Federal appliance standards • Federal conventional pollutant regulations* • Federal CO2 performance standards (under development) • State renewable portfolio standards • State energy efficiency programs • California economywide GHG cap-and-trade • RGGI cap-and-trade • Other state programs *Not explicitly targeting CO2 emissions, but nonetheless impactful. Note: RGGI = Regional Greenhouse Gas Initiative. Source: US EIA; IHS CERA Power Other On- road trans- port 2011 US CO2 emissions by major sector Key policies targeting transportation CO2 Key policies targeting power CO2 Slide from IHS Forum “International Carbon Policy Trends: Is a role reversal under way”, 19 September 2013 • Houston
    6. 6. President’s Climate Action Plan: Three overarching themes 6 Mitigation (emissions reduction) • ALL OF THE ABOVE • Efficiency, Renewables, Nuclear, Gas • Coal with CCS/CCUS Adaptation and resilience • Smart, reliable grid • Key infrastructure investments International Partnerships • China and Asia • Coordinated intl. efforts Once in a generation opportunity to build
    7. 7. 7 President Obama’s Climate Action Plan focuses on US power sector CO2 emissions 7 • ~20 directives and initiatives to reduce US GHG emissions. • The EPA WILL complete CO2 performance standards for power plants under the Clean Air Act Final ruleDraft rule 2013 2014 2016 20172015 20 Sept. 2013 1 June 2014 1 June 2015 30 June 2016 State implementation plans New presidentElection year CO2 NSPS – New Source Performance Standards* CO2 ESPS – Existing Source Performance Standards 2014–15
    8. 8. CCS is THE key technology for the 2nd era of fossil energy abundance 8 Policy drivers • President’s Climate Action Plan • EPA: NSPS (draft) and ESPS (pending) • State actions (AB32 etc.) Technical findings (2008-present) • IPCC WG1 report: must read policy summary! • Continued GHG accumulations • Challenges will all energy scale-ups Global economic context • G2 world • Investors speak • Return to growth Once in a generation opportunity to build
    9. 9. 9 Large Scale Integrated Projects World Wide 0 20 40 60 80 100 120 140 0 10 20 30 40 50 60 1972 1982 1986 1996 2000 2004 2008 2010 2013 2014 2015 2016 2017 2018 2019 2020 2022 Operate Execute Define Evaluate Cum. Volume NumberofProjects VolumeCO2(mtpa) Data from Global CCS Institute
    10. 10. 10 The US and international community have deployed over a dozen large CCS projects Large commercial projects Pending commercial projects CO2-EOR DOE Regional Partnerships Intl. research projects Key unit of innovation – global engines of discovery
    11. 11. DOE’s top CCS/CCUS priorities 11 Success of the demos • Serial # 1 in operation 2013-2018 • A deep and rich set of public learning Reimagining the coal and CCS RD&D portfolio • Advanced combustion • Capture and storage: incl. footprint reduction • 2nd generation large pilots International Partnerships • China • Key OECD countries New mode: delivering solutions
    12. 12. 12 DOE CCUS Demonstration Projects CCPI FutureGen ICCS (Area I) Hydrogen Energy California IGCC with EOR $408 Million - DOE $4.0 Billion - Total Summit Texas Clean Energy IGCC with EOR $450 Million - DOE $1.7 Billion - Total NRG Energy Post Combustion with CO2 Capture with EOR $167 Million – DOE $339 Million - Total Air Products CO2 Capture from Steam Methane Reformers with EOR $284 Million - DOE $431 Million - Total Leucadia CO2 Capture from Methanol with EOR $261 Million - DOE $436 Million - Total Archer Daniels Midland CO2 Capture from Ethanol w/ saline storage $141 Million - DOE $208 Million - Total FutureGen 2.0 Oxy-combustion with CO2 capture and saline storage $1.0 Billion - DOE $1.3 Billion - Total Southern Company Services IGCC-Transport Gasifier w/CO2 pipeline $270 Million - DOE $2.67 Billion - Total Focus – Large-scale commercial demonstration of CCUS integrated with coal power generation and industrial sources.
    13. 13. 13 Major Demonstration Projects 13 Recipient Project Location DOE Funding Status Storage Type CO2 Seq. (Metric Tons Per Year) Storage Start Air Products Steam Methane Reformer Hydrogen Production Port Arthur, TX $284M Operations EOR ~925,000 2013 Southern Company Services (Kemper) Integrated Gasification Combined Cycle (IGCC) Kemper County, MS $270M Under Construction EOR ~3,000,000 2014 Archer Daniels Midland Ethanol Fermentation CO2 Decatur, IL $141M Under Construction Saline ~900,000 2014 NRG Energy (Petra Nova ) WA Parish Retrofit Pulverized Coal plant Thompson, TX $167M Financing EOR 1,400,000 2016 Summit Texas Clean Energy Project Integrated Gasification Combined Cycle Polygeneration Penwell, TX $450M Financing EOR 2,200,000 2017 Leucadia Energy, LLC Methanol from Petcoke Gasification Lake Charles, LA $261M Front End Engineering & Design EOR ~4,500,000 2017 FutureGen 2.0 Oxycombustion Pulverized Coal Boiler Retrofit Meredosia, IL / Morgan County, IL $1B Front End Engineering & Design Saline 1,000,000 2017 (est.) Hydrogen Energy California (HECA) Integrated Gasification Combined Cycle Polygeneration Kern County, CA $408M Front End Engineering & Design EOR 2,570,000 2019 (est.)
    14. 14. 14 14
    15. 15. 15
    16. 16. 16 Loan Program Office Project Development Financing LPO Advanced Fossil Energy Solicitation CARBON CAPTURE • From traditional coal or NG generation • Saline formations or EOR ADVANCED RESOURCE DEVELOPMENT • ECBM, UCG, novel oil and gas drilling • Use of co-produced waste gases vs. flaring LOW CARBON POWER SYSTEMS • Oxycombustion, chemical looping • Syngas-, H2, or NG-based fuel cells EFFICIENCY IMPROVEMENTS • CHP and waste-heat recovery • High-T or high-efficiency cycles
    17. 17. 17 A technology pipeline for affordable CCS We need more 2nd generation pilots!
    18. 18. 18 Pathway for Technology Commercialization TRL 2 Successes from FWP, SBIR/STTR, AR PA-E Transfer to Office of Major Demonstrations Scope of Capture Program “Valley of Death” for Technologies We need more 2nd generation pilots!
    19. 19. What 2nd gen large pilots should deliver 19 2-3 NEW and credible pathways to low-cost CCS • 25-50 MW scale unit performance • Working partnerships for commercialization • Robust economic characterization Rich engineering data and results • Steady state and dynamic performance • Full footprint accounting (products; water) Definitive storage knowledge and tools • Data needs for quantitative risk assessment • Sites to field test technology • Foundation for subsurface mastery
    20. 20. 20 This work performed under the auspices of the U.S. Department of Energy by Lawrence Livermore National Laboratory under Contract DE-AC52-07NA27344 • Many 10’s of billions producible just US; 100’s of billions worldwide • Required to finance first set of projects; required to drive down costs through deployment • Additional domestic supply, revenues; reduced imports BillionBarrels 88.1 47.4 2.3 0 20 40 60 80 100 Technically Recoverable Economically Recoverable* Already Produced/ Proven Domestic Oil Resources ARI, 2008 MillionMetricTons Total U.S. CO2 Demand New Lower-48 CO2 Demand Net Lower-48 From Captured CO2 Emissions 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 12,500 9,700 7,500 2,800* 2,200** Market CO2 demand In the near term, EOR is a critical bridging step that brings near-term benefits to the US
    21. 21. 21 Emergent networks of EOR-anchored projects: Anchors for additional development Ground work for pipeline networks; fast followers; CO2 utilities • Permian basin; Gulf Coast; California; N. Dakota/ Saskatchewan • Central Alberta Basin • Scotland/Central N. Sea • Ordos basin MIT, 2010 Opportunity for govt. fast-tracking and co-development
    22. 22. 22 The future looks bright – we should pursue important new opportunities WATER: Both challenge and opportunity • Water co-production: 8M m3 water for 6M tons CO2. • Water reclamation: lignite drying • Water integration: upgrading municipal water with waste heat UTILIZATION: Part of the work and value • EOR already common; ROZ advancing (Negative C oil demonstration) • CO2-Algae: small volumes, tough economics; improving • Cement and mineralization: small volumes, tough economics; improving Entering commercial realm; now it gets exciting
    23. 23. Co-produced freshwater as utilization 23 Ready to pilot! Seeking partners and possibilities Bourcier et al., 2011
    24. 24. Below 80,000 TDS, costs ~50% of conv. desal. 24 Ready to pilot! Seeking partners and possibilities Bourcier et al., 2011
    25. 25. 25 Longer than expected: ROZ volumes This work performed under the auspices of the U.S. Department of Energy by Lawrence Livermore National Laboratory under Contract DE-AC52-07NA27344 • 2x-3x recovery potential and storage potential (12-18 Gt in ROZ vs. 6.4 for main pay zones, PB) • Possibility for carbon-negative HC Main Pay Zone (MPZ) Transition Zone (TZ) Residual Oil Zone (ROZ) Base of Ultimate OWC Base of Producing OWC 4900 4950 4800 4850 5000 5050 5400 5350 5300 5250 5200 5150 5100 5450 OWC 100 0 Oil Saturation % “State of the Art” “Next Generation” (millions) (millions) CO2 Storage (tonnes) 19 109 Storage Capacity Utilization 13% 76% Oil Recovery (barrels) 64 180 % Carbon Neutral (“Green Oil”) 80% 160% ARI, 2008 ARI, 2008 Sources: MIT, 2010; ARI 2007 and 2010; NETL 2008
    26. 26. 26 Global challenge global progress: new global solutions still required Key unit of innovation – global engines of discovery Uthmaniyah (KSA) Lula (BRA) Quest (CAN) Mongstad (NOR) ESI (UAE) Gorgon (AUS) GreenGen (PRC) We just need more projects and more information
    27. 27. We must harness this age of abundance 27 Know something • Learning opportunity in CCS and clean fossil • Information sharing: partnership as product Do something worthy • Opportunity to invest: in plants, infrastructure, R&D • Opportunity in grand bargains Ask friends for help • Friends in the US • International partners Once in a generation opportunity to build