Advanced Fossil Energy Technologies: Presentation by Global CCS Institute


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Key Issues in Ensuring Access to Energy, Protecting Energy Security, and Enhancing Environmental Performance

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Advanced Fossil Energy Technologies: Presentation by Global CCS Institute

  1. 1. Victor Der , General Manager - The Americas Atlantic Council – Global CCS Institute Forum 9 September 2013 Advanced Fossil Energy Technologies - Key Issues to Energy Access & Security and Enhancing Environmental Performance - Role of CCS
  2. 2. Fossil Fuel’s Role in Meeting Future Energy Demand in a Carbon-Constrained World  Fossil Energy will continue to be the dominant energy resource used globally - relatively affordable, geographically diverse and abundant => provides energy security  Challenge: Using fossil resources wisely across global economies – affordable & environmentally sustainable  CCS/CCUS - a key role in meeting the challenge WITH:  Properly structured policies, regulatory frameworks and incentives - sustainability and certainty for markets  Continued Technology RD&D investments -- cost and performance improvement  Gain understanding and acceptance –market and public. 2
  3. 3. DRIVERS FOR CCS 3 TECHNOLOGY POLICY & MARKETS UNDERSTANDING & ACCEPTANCE 1. International developments and opportunities in these areas 2. Importance of US Leadership and Collaboration in the global development, demonstration and deployment of CCS 3. Global CCS Institute – Knowledge Sharing; Advising; Creating Favorable Conditions for Global CCS Implementation
  5. 5. CCS TECHNOLOGY – INTERNATIONAL DEVELOPMENTS ASSESSMENT  Individual CCS components broadly understood  Many CCS aspects already technically mature  Safe storage displayed by CCS projects operating over the past decade  Pilot & larger scale test facilities are important contributors to knowledge  Confidence that remaining technical/economic challenges can be met OPPORTUNITIES  Successful demonstration of integrated operation at large scale in power and additional industrial processes is key: o Establishes positive acceptance of CCS as a „proven‟ technology o Pass on „learning by doing‟ cost savings o Build public trust that CO2 storage is safe.  R&D to mature 2nd generation capture technologies as a „game-changer’  Identification of viable storage sites to facilitate CCS deployment post 2020 5
  6. 6. POLICY & MARKETS – INTERNATIONAL DEVELOPMENTS 6 ASSESSMENT  International policy discussions consistently acknowledge importance of CCS - continued progress at UNFCCC, CEM, CSLF and ISO, but …  Industry highlights that national climate and energy policies do not provide long term clarity to support widespread adoption of CCS projects (high capex & long lived)  CCS is often not treated equivalently to other low carbon technologies  National regulations have advanced but critical uncertainties remain (storage)  Existing CCS funding programs for demos mostly exhausted OPPORTUNITIES  Certain governments are considering approaches to re-invigorate funding programs – need urgent support to maintain momentum for demonstrations to 2020  U.S. – Potential support mechanisms (CURC & NEORI – Rockefeller Bill)?  Continued development of low carbon future roadmaps: sustainable policy outcomes and market mechanisms which are technology neutral  Post Kyoto 2020 agreement for decision in 2015
  7. 7. UNDERSTANDING & ACCEPTANCE – INTERNATIONAL DEVELOPMENTS 7 ASSESSMENT  Stakeholder relationship management critical to project delivery  Global awareness and understanding of CCS and CCS energy context is low  CCS communication focused on risks and challenges; not value and opportunity  Persistent views of CCS as experimental, not cost competitive and associated with fossil fuel instead of role in low carbon energy  Building trust with key stakeholders is critical for project acceptance OPPORTUNITIES  Successful global demonstration program is critical to establish public and political confidence in CCS – highlights urgency in progressing CCS demonstration projects  CCS projects are demonstrating improved sharing and use of best practice learning  Encouraging public advocacy of CCS from trusted groups like academics and environmental NGOs to raise awareness and credibility of CCS  Improve access to education materials and experts – particularly on topics like CO2 transportation and storage.
  8. 8. Opportunities Created by Large Scale Projects with Advanced FE Technologies  Integrated CCUS projects like Kemper – valuable enablers for CCS along the value chain (learn by doing via demos; drive R&D for better capture technology; create transport infrastructure; build skilled human capital; increase understanding and acceptance of CCS) – Southern Co. a leader in CCS/CCUS  Six of nine operating projects are CO2-EOR and are in North America (U.S. and Canada) - U.S. is a global leader  China a new entrant with 11 projects announced - CCS/CCUS- with emphasis on Utilization aspects of CO2  Advanced FE technology demos can offer platforms for next generation CCS to lower cost and energy of capture especially in fossil power (not just about coal) and energy intensive and process industries (cement, steel, iron, aluminum)  BUT more incentives and support needed 8
  9. 9. ACTIVE LARGE SCALE INTEGRATED PROJECTS 9 Some progress, significant gaps, urgent call to action
  10. 10. Lessons from the Past on Energy and Environment- Successful Deployment of New Technologies  Technology, Policy/Regs and Market/Public Acceptance must move in concert – informing decisions with broad input; creating drivers, opportunities and acceptance  Initial costs always high: advancing the technology and creating demonstration opportunities with incentives and sustainable policies key to successful deployment  Workable approach to phased-in compliance is important to success of acceptance and market penetration  Similarities and differences in compliance experience with criteria emissions and that expected for carbon emissions  Similarities: Initially high cost; RD&D needed for commercial adoption & competitive tech => market choices; initially faced future regulatory uncertainties– timing and emission reduction mandates “debated”  Differences: lacking carbon valuation policy; magnitude of emissions; global nature (sustainable policy frameworks; collaboration and capacity building especially in developing economies); stakes are much higher 10
  11. 11. Technology – Importance of RD&D in Deployment  Creates Shared Knowledge - technology performance and applications:  Cutting-edge Capture R&D in several countries – opportunities for collaboration (e.g., TCM Mongstad International Test Facilities Network - several U.S. pilot test facilities-e.g., NCCC)  Capacity development in non-OECD countries- e.g., CCS demo experience; next generation technology; policy/reg/legal frameworks and general acceptance;  Continued funding for CCS R&D and pilot testing is vital  Technology suppliers - key to assuring technology maturity; change perceptions about CCS being ‘experimental’  Warranties and performance guarantees help projects.  FOAK Demos like Kemper-IGCC/CCS – provide a “learning curve” for future projects – better, faster, cheaper 11
  12. 12. IMPROVED ENVIRONMENTAL PERFORMANCE 0 1 2 3 4 5 SO2 NOX PM 1970 1997 2005 (Projected) 0 5 10 15 20 25 Coal Use for Power Generation in the U.S. Average Emission Rate from U.S. Coal-Fired Power Plants QBtu/yr Emissions (lb/mmBtuCoalBurned) Emissions Per Unit of Coal Burned Have Decreased Significantly
  13. 13. SOX AND NOX TECHNOLOGY- CLEANER AIR AT LOWER COSTS Bef ore CCT $50,000,000 $100,000,000 $150,000,000 $200,000,000 $0 CapitalCostPerPlant SCR Before CCT SCR Af ter CCT CCT Low NOx Burn ers Af ter CCT $75M $40M $10M $100M $200M Savings to Consumers: $5 0 BILLION Savings to Consumers: $2 5 BILLION Scr ub ber s For a Typical 500MW Plant NOx Co ntrol Through 2005 Through 2005
  14. 14. 14 KEY TAKE-AWAY: CCS HAS ESSENTIAL ROLE IN CLIMATE AND ENERGY SECURITY PORTFOLIO STRATEGY  Fossil Fuels continues to be dominant energy source in future  Technology, Policy/Markets and Acceptance must move in harmony and sustainably for successful outcomes  CCS in a clean technologies portfolio with equitable incentives and treatment allows competition – provides added pathway.  Shared Knowledge from more Demos is important to accelerating CCS progress – [GCCSI has mission to help enable]  Encourage CCS capacity building in developing economies – major future emissions due to reliance on fossil energy  Critical funding and incentives for CCS projects can leverage big benefits – potential $2T cost savings with inclusion of CCS  Need CCS to meet GHG targets – stakes are high
  15. 15. Networking capabilityExpert support to Members Comprehensive resources Best practice guidelines and toolkits THE GLOBAL CCS INSTITUTE – WHAT WE CAN DO
  16. 16. GLOBAL STATUS OF CCS: 2013, SEOUL  Annual Global CCS Institute Member event  10-11 October, 2013 with site tours 9 October  Meeting content to be translated to Japanese  Release of annual Global Status of CCS report  Contact for information 16