OIL & GAS
What we can do to keep CCS moving and maintain public / political / investor confidence? Gerard Stienstra Wim Mallon Luuk Buit 12 November 2014
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Contents DNV GL view on CCS Progress on CCS in the Netherlands
Two example projects related to CO2 transport Transport-related knowledge gaps
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DNV GL takes position on CCUS 1. CCUS is key for the oil and gas industry and the power sector to manage risks of stranded assets 2. CCUS is already happening, but needs regulation that provide investment predictability 3. CCUS is critical to secure low-carbon energy in local markets dependent on fossil fuels 4. CCUS is on a cost-race with different applications driving down relative and absolute costs 5. CCUS is an enabling technology for the ongoing energy transition to a low-carbon future
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Mtpat
Expectations on CCS implementation are adjusted over time
Source: Global CCS Institute 2014 5
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CCS developments in the Netherlands The agenda was set around 5 years ago (CATO2, several projects) The plan has been changed - Electrabel added - No gasification of Nuon/Vattenfall plant
- Barendrecht storage demo canceled - ROAD decision postponed
What were the reasons for change in projects? – Company mergers and acquisitions – Public perception played a larger role than foreseen (Barendrecht, NoordNederland) – New players
– Legislation & permitting – Negative investment decision (non-CCS-related) – Lack of incentives – ETS price low 6
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Potential challenges If these barriers would not have been there, new barriers would have emerged: – Technology readiness (uncertainties, lack of experience, first time it is done, chain is not just the sum of individual components) – Uncertainty on long-term risks (can lead to negative decisions because of unacceptable risks) – HSE aspects of CO2 along the chain – Etc. Concluding: if the projects would have materialized, these and many other issues would have surfaced. Successful investigation of many issues in CATO2. CATO2 has become a platform to discuss and investigate newly identified issues.
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Example of question-driven CATO2 research Ongoing research to resolve pipeline transport issues Question: how does CO2 behave when released from high-pressure reservoir?
Jet shape, captured with high-speed and infrared camera
CO2 outflow test in lab DNV GL, Groningen Acknowledgement: CATO2 and Gasunie
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German CO2 transport infrastructure feasible but far from realization German infrastructure study for IZ Klima
Key findings: 1. Additional measures to reduce emissions are strongly needed if we are to achieve our climate targets: 2. By 2050 the gap will grow to 60 million t of CO2 per year. 3. The storage capacities under the German North Sea offer an alternative to onshore storage. 4. The technical feasibility of CO2 transportation to the storage sites under the German North Sea is not a limiting factor. 5. Action must be taken now to create the necessary infrastructure for a widescale introduction of commercial plants by 2030. 9
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Transport-related themes to be addressed in further development of CCS Physical properties are influenced by composition variability and this is not completely understood. Essential for design calculations. Standardization of equipment testing for CO 2 environment is needed. Safety distances are currently calculated with models not validated for CO 2 streams. need to be calculated based on validated models.
Standardization of design and engineering taking into account the dynamics across the chain. Flow measurement for large-scale CO2 transport does not match billing and custody transfer requirements.
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Conclusions We showed conditions for successful large-scale implementation of CCS.
CCS landscape changed over the years No big projects came online Active parties in and outside of the Netherlands Knowledge gaps bridged through research programs Technical feasibility bridged gaps Participating in projects and R&D is a way to move CCS forward
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Thank you for your attention!
ir. Luuk Buit
[email protected] +31 50 700 9772
www.dnvgl.com
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