The status of Carbon Capture and Storage within the UK Energy Institute 13th October
Hazel Clyne Pale Blue Dot Energy
[email protected] @hazel.clyne
Management Consultants for the Energy Transition
2
Pale Blue Dot Energy Management Consultants for the Energy Transition
Oil and Gas
Energy Transition Emerging energy systems
CCS
Strategic support Market assessments Technology development and innovation Adapting to new markets Energy transition projects Circular economy
We help organisations of all sizes to create opportunities and mitigate risks arising from major changes in the energy markets. 13th October 2015
The status of Carbon Capture and Storage within the UK
3
Contents
13th October 2015
CCS: what, how and why? A brief history: UK project activity to date DECC CCS Commercialisation Programme Other project highlights Summary
The status of Carbon Capture and Storage within the UK
4
CCS in Summary Capture
13th October 2015
Transport
Storage
The status of Carbon Capture and Storage within the UK
5
Carbon Budget 8 Deg 6 Deg
Without Carbon Capture and Storage 80% of these proven reserves must stay in the ground
4 Deg
~38 GtCO2 per year
2 Deg Celsius Limit 886 GtCO2 from 2000 565 GtCO2 left from 2011 321GtCO2 from 2000 to 2010 “Unburnable Carbon – Are the world’s financial markets carrying a carbon bubble?” - Carbon Tracker
13th October 2015
The status of Carbon Capture and Storage within the UK
13% gas
2795 22% oil GtCO2 65% coal The total proven fossil fuel reserves would release
6
Why CCS? -
-
-
Without it, 80% of proven reserves must stay in the ground The only technology that can fully address decarbonisation of large scale industrial emissions Supports cost effective way of enabling low carbon energy products such as H2 If combined with biomass firing for power generation, this has the potential to result in negative emissions
And why CCS in the UK? -
Without CCS, costs of meeting the UK’s 2050 emissions targets* could double from 1% to 2% of GDP** by 2050
* 80% CO2 reduction vs 1990 baseline ** based on modelling from the Energy Technologies Institute (ETI) 13th October 2015
The status of Carbon Capture and Storage within the UK
7
Project concept development activity to date
UK CCS Timeline 2007 to Present CCS status: pre-commercial due to slow policy evolution on carbon pricing You are here
13th October 2015
The status of Carbon Capture and Storage within the UK
8
Project concept development activity to date
BP – DF1 CCS Project - 2006-2007 – Pre Demo1 March 2006
- BP DF1 Announced
May 2007
- BP Abandons DF1
FEED Study #1 13th October 2015
The status of Carbon Capture and Storage within the UK
9
Project concept development activity to date
Hatfield/ Don Valley CCS Project - 2007-now – Pre Demo1+ October 2009 – Hatfield wins EU funding
October 2012 - Hatfield project halted
FEED Study #2 13th October 2015
The status of Carbon Capture and Storage within the UK
10
Storage map
Longannet to Goldeneye (Platform) [pre-2009: to Brae]
Kingsnorth to Hewett (Platform)
Demo 1 Offshore FEEDs 13th October 2015
The status of Carbon Capture and Storage within the UK
11
Project concept development activity to date
Kingsnorth CCS Project - 2008-2010 – Demo1 March 2010 - Kingsnorth awarded FEED October 2010 – Kingsnorth cancelled funding
FEED Study #3 13th October 2015
The status of Carbon Capture and Storage within the UK
12
Project concept development activity to date
Longannet CCS Project - 2008-2011 – Demo1 March 2010 – Longannet awarded FEED funding
October 2011 – Longannet Cancelled
FEED Study #4 13th October 2015
The status of Carbon Capture and Storage within the UK
13
Project concept development activity to date
Demo 2 Preferred Bidders Announced – Mar 2013 – Demo 2 Nov 2013 – White Rose awarded FEED funding
Feb 2014 – Peterhead awarded FEED funding
Note: £238m from NER300 EU funding
FEED Study #5 13th October 2015
The status of Carbon Capture and Storage within the UK
FEED Study #6
14
Storage map
Peterhead CCS: Peterhead to Goldeneye (Shell Platform) White Rose: Drax to 42/25 (NGC Platform)
Demo 2 Offshore FEEDs 13th October 2015
The status of Carbon Capture and Storage within the UK
15
DECC CCS Commercialisation Competition
Peterhead Carbon Capture Project Power generation
Capture, Integration CO2 Conditioning Onshore Transportation and compression
Offshore CO2 Transportation, Injection & Storage
Existing offshore facility & wells Process & capture plants Existing offshore pipeline
Storage Reservoir – Goldeneye depleted gas field
Project overview Existing Peterhead gas power station – post combustion capture on 330MW Up to 10Mt CO2 captured over 10-15 years Transportation via existing Goldeneye pipeline offshore Storage in Goldeneye depleted gas condensate field Existing offshore infrastructure 13th October 2015
The status of Carbon Capture and Storage within the UK
16
DECC CCS Commercialisation Competition
White Rose Capture, Integration CO2 Conditioning
Onshore Transportation and Pumping
Offshore CO2 Transportation, Injection & Storage
Process & capture plants
New offshore facility & wells
New build offshore pipeline
Storage Reservoir – saline aquifer
Project overview New build coal power station w/potential to co-fire biomass – oxyfuel capture on 448MW 2Mt CO2 captured per year Transportation via new pipeline to southern north sea Storage in saline aquifer formation New build offshore infrastructure 13th October 2015
The status of Carbon Capture and Storage within the UK
17
DECC CCS Commercialisation Competition
White Rose
13th October 2015
25th September 2015 – Drax pulls out of White Rose Project Drax have withdrawn citing reasons regarding uncertainty over government policy on low carbon power Drax site and power plant infrastructure still available for White Rose Project Capture Power Ltd still committed to delivering the project
The status of Carbon Capture and Storage within the UK
18
DECC CCS Commercialisation Programme
Notional Phase 1 Project Schedule
Procurement for Phase 1 projects will be used to shape policy encourage Phase 2 projects
13th October 2015
The status of Carbon Capture and Storage within the UK
19
ETI scenarios
CCS key role in UK decarbonisation 10GW CCS capacity by 2030 ETI modelled 3 scenarios to achieve this ambition Priority areas to address: storage appraisal; early investment for Phase 2 projects
“Carbon capture and storage Building the UK carbon capture and storage sector by 2030 – Scenarios and actions” - ETI 13th October 2015
The status of Carbon Capture and Storage within the UK
20
Strategic UK CCS Storage Appraisal Project
Project overview Project aim: Provide confidence to CCS developers
Progress the appraisal process and schedule
Provide 5 high quality storage sites with storage development plans, ready to undertake a FEED study Create tangible storage options for Phase 2 projects
Progress UK CO2 storage
Delivered by:
Show that developable storage capacity exists
13th October 2015
The status of Carbon Capture and Storage within the UK
21
Strategic UK CCS Storage Appraisal Project
Selected Portfolio of 5 sites Selected portfolio
•
Regionally distributed
•
Significant capacity (1606 Mt)
•
Diverse types
•
Strong build out from Phase 1 projects
•
Good fit with ETI Scenarios
•
Enables further build out
There are many other candidate storage sites around the UK with significant storage potential “The UK has lots of storage” 13th October 2015
The status of Carbon Capture and Storage within the UK
22
Other project highlights
Caledonia Clean Energy Project • 570MW pre-combustion capture on new build coal power station • Up to 4Mt/yr CO2 captured • Re-use of existing pipeline systems St Fergus CO2 Hub
Aspen Storage Hub Injection into proven saline formation under a depleted gas field
78km offshore
Atlantic pipeline
Caledonia IGCC Northern UK Emissions Cluster
UK coal
Future CO2 Import to Peterhead Harbour
o On the power side: Scottish and UK governments committed £4.2m of funding for research to progress Caledonia Clean Energy Project 13th October 2015
The status of Carbon Capture and Storage within the UK
23
Other project highlights
Teesside Collective CCS can be applied to industrial processes as well as power stations, for example: • Steel Works • Cement Works • Hydrogen manufacturer • Ammonia • Plastics
13th October 2015
The status of Carbon Capture and Storage within the UK
24
CCS vs Oil and Gas Opportunities Re-use pipelines?
Re-use platforms? Re-use data? Enhanced Oil Recovery? For oil & gas companies to use CCS to fully monetise their reserves and avoid stranded asset risk Similarities Subsurface technology Gas transportation Energy
Differences
Purpose to reduce emissions Waste disposal projects Different risk/ reward pattern Different kinds of investors Oil companies so far have not been interested
13th October 2015
The status of Carbon Capture and Storage within the UK
25
Summary - UK CCS Landscape – 2015 Positives
Deltas
The UK has already completed four CCS FEED programmes, (but has not reached Investment Decision on any of them.)
13th October 2015
Two further FEED programmes are now underway making a total of six. UK has a capable commercial mechanism for driving CCS for power generation through the EMR. UK has a well funded excellent CCS R&D programme.
Government procurement process has resulted in major attrition of investor interest in UK CCS. Oil companies (with exception of Shell) have not stepped up to play in CCS. All major power utilities have stepped back from CCS. More industrial players required. More projects in the funnel required to deliver 10GW by 2030.
The status of Carbon Capture and Storage within the UK
