Upload
daryl
View
23
Download
1
Tags:
Embed Size (px)
DESCRIPTION
Building the CO 2 Value Chain – Is it Possible?. Olav Kårstad Special Advisor CO 2 British – Norwegian Workshop on CCS London 23 rd April 2008. Build new international growth platforms. Maximise value creation from the NCS. Norway. Global prod. avg. Re-fining. LNG. Extra heavy oil. - PowerPoint PPT Presentation
Citation preview
Classification: Internal Status: Draft
Building the CO2 Value Chain – Is it Possible?
Olav Kårstad
Special Advisor CO2
British – Norwegian Workshop on CCS
London 23rd April 2008
Classification: Internal Status: Draft
3
StatoilHydro’s growth challenge is a climate gas emission challengeMore CO2 intensive production in the pipeline – CCS necessary to reach targets
Build new international growth platforms
Maximise value creation from the NCS
Norway Global prod. avg.
Re-fining
LNG Extra heavy oil
GTLExtra heavy oil incl. upgrad.
CO2 emission [kg/tonne product]
4
Data source: IPCC SRCCS (2005) and IPIECA
Large Stationary Sources of CO2 – Global ViewGreater than 100 kt CO2/yr per facility
Coal power
Gas power
Oil power
Cement
Iron/steel
Refin
eriesP
etroch
emical
5
- Global number of CO2-point sources* (green)
- Million tonnes of CO2/yr (black)
4942
1175639
269 470
7495
10539
932 798 646 379
13294
0
2000
4000
6000
8000
10000
12000
14000
Power Cement Refineries Iron & steel Petrochemical Sum total
Number of sources or
millions of tonnes/year
* Larger than 0,1 million tonnes of CO2/yr from one source
Data source: IPCC Special Report on CO2-capture and -storage
This is about 56% of fossil fuel related
CO2
6
StatoilHydro’s CCS projects Part-owner of 3 of 4* large-scale CCS project
* The 4th project is Weyburn – Midale in Canada
7
Sleipner – 11 years of large scale CCS demo
• Started in 1996
• CO2 from natural gas (Approx. 1 mill. tons CO2 annually)
• Stored in saline aquifer – sandstone formation with water
• Driver: CO2-tax (340 NOK/ton – $60/ton), corporate environmental strategy
• Learning and confidence building through a series of large EU-wide R&D programmes
8
Snøhvit LNG; CO2-pipeline reel-out
9
The In Salah gas processing plant with CO2-capture facilities
10
Proof of concept through monitoring and R&D
11
What does it take?Simple economic rules will decide speed and volume of CCS roll-out
Cost of removing/injecting
Time
Cost
Cost of emitting•Low hanging fruits•Direct governm. investment•Technology development•CO2-EOR•Kyoto mechanisms
•Environmental taxes•Under-supply of credits•Emission limitation
12
The low hanging fruits in CO2- capture
13
The low hanging fruits in CO2-transport and -storage
14
CCS low-hanging fruits – “cheap”, already concentrated CO2 more than 200 sites globally with CO2 > 100 000 tonnes/yr
Ammonia plants
Natural gas purification
Coal gasification plants
Hydrogen production
LNG production
15
In Norway two low-hanging fruits has passed the point of profitability due to the high CO2 tax on petroleum activity
•Environmental taxes•Under-supply of credits•Emission limitation
Sleipner Snøhvit LNG
•Low hanging fruits•Direct governm. investment•Technology development•CO2-EOR•Kyoto mechanisms
16
And two “high hanging” CCS-fruits (in connection with gas fired power plants) are planned to be built with state funding
•Environmental taxes•Under-supply of credits•Emission limitation
MongstadKårstø
•Low hanging fruits•Direct governm. investment•Technology development•CO2-EOR•Kyoto mechanisms
17
CO2-EOR – profits from CO2 injection
• Income from extra oil production to pay for CO2 infrastructure
• Onshore applications to happen first
• Free up natural gas resources by using CO2 as injection gas
• Coexistence with storage necessary
• Sensible natural resource exploitation
Graphics : EnCana
CO2
EOR
18
Regulation and acceptance – perception of riskWhat does it all come down to?
TODAY – certain emission TOMORROW – safe storage
19
Summary: Building the CO2 Value Chain – Is it Possible?
• Climate change is happening – CCS one of five important solutions
• Making CCS happen is difficult under any circumstances, but in particular in today’s high cost construction market and uncertain long term cost of emitting CO2 to the atmosphere
• Low-hanging CCS fruits are there to be picked useful to prove storage and CO2-EOR as well as for gaining public enthusiasm
• Power plant CO2-capture A number of demo-projects must proceed to avoid delay in 2. and 3. generation deployment (technology lock-in of long life plants)
• In the shorter time frame carrot and stick incentives are necessary to initiate industrial scale projects without which technology and frameworks will not develop