CCS Financing Singapore Tharakan Final

8/7/2019 CCS Financing Singapore Tharakan Final

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Prospects for Carbon Capture

and Storage in Southeast Asia(Indonesia, Philippines, Thailand, Viet Nam)

Asian Development BankAsian Development Bank

Pradeep Tharakan

Climate Change Specialist, Energy Division

Southeast Asia Department


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AT FIRST GLANCE,AT FIRST GLANCE,

PROSPECTS LOOKPROSPECTS LOOKLIMITEDLIMITED


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Per capita emissions and total GHGPer capita emissions and total GHG

emissions from the energy sector are lowemissions from the energy sector are low


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Focus on enhancing energyFocus on enhancing energy

access and energy securityaccess and energy security

World Bank (2010)

World Energy Outlook (2010)


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Very low appetite for increased tariffsVery low appetite for increased tariffs

in the power sectorin the power sector

World Bank (2010)


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RenewablesRenewables vsvs CCSCCS where shouldwhere should

S.E. Asia focus?S.E. Asia focus?

Significant portion of the potential is base load power

geothermal and hydropower


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Growing public opposition to fossilGrowing public opposition to fossil

energy projects and possibly CCSenergy projects and possibly CCS

Coal-slaw, coaliflower, and coalcuts


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Land and Water AvailabilityLand and Water Availability

can be a Local Issuecan be a Local Issue

Southern Companys BarryPower Plant s 500 tpd CCSdemo in a coal-fired powerplant

2600 MW power plant

CCS

on 25 MWslip

stream DOE provided nearly $300

million

Source: MHI (2010)


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ON A CLOSER LOOK,ON A CLOSER LOOK,

HOWEVER, SOMEHOWEVER, SOMEOPPORTUNITIES EMERGEOPPORTUNITIES EMERGE


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GHG emissions from energyGHG emissions from energy

sector are set to rise steeplysector are set to rise steeply

APERC (2010)

Ins

ti

tute of

Energy, Vi

et NAM, 2010


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CCS in relation to high CO2CCS in relation to high CO2

associated with natural gas fieldsassociated with natural gas fields

APEC (2010)

APEC (2010)


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Interest in CCS in S.E.Asia

White Tiger Project


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ADB REGIONAL TA ON CCSADB REGIONAL TA ON CCS

IN S.E. ASIAIN S.E. ASIA $1.3 million

October 2010 October 2011

Focus on INO, PHI, THA and VIE

Financed by GCCSI through the ADBsCCS Fund


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TA ObjectivesTA Objectives

Build awareness

Strengthen capacity to plan for CCS

Develop CCS roadmap

Remove Barriers

Establish Enabling Mechanisms

Identify 2+ demo projects

Learn by doing -- Leave each countrycapable of carrying forward its own CCSactivities


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TA ActivitiesTA Activities

Catalogue existing CCS activities Baseline and projected emissions analysis

Screening of storage sites and source-sink

matching Identify issues: policy, technical, geological,

regulatory, financial, economic, publicacceptance

Identify investment opportunities

Draft road maps

Establish CCS working groups


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ADB Consulting TeamADB Consulting Team

International Expert team

Canada, USA, Australia

CO2 Capture and Transport

Power Generation

CO2 Storage and Enhanced Oil Recovery

CCS Regulation

Project finance Partner with experts and institutes in

each country (e.g. IE, VPI, NIGS, Lemigas)


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TA ScheduleTA Schedule

Consultation / Inception Workshops

Information gathering Sep 2010 - May 2011

Road map development Jan May 2011

Study tour to pilot projects Early Fall 2011

Regional workshop September 2011

Philippines, Thailand November 2010

Viet Nam January 2011

Indonesia April 2011 (longer schedule)


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Outline of AnalysisOutline of Analysis


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COCO22

Sources DataSources Data

Existing and planned

Power industry

Oil & Gas

Refining

Gas Processing

Petrochemicals Fertilizer

Cement


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Data RequestedData Requested

Fuel type + Analysis

CO2

quantity, and concentration insource stream

Contaminants (NOx, SOx, O2, pm)

Service factor and variability


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COCO22

Sink Data CollectionSink Data Collection

Conventional Geological Storage Targets

Depleted Oil & Gas Fields

Deep Saline Aquifers

Emerging Geological Storage Targets

Coalbeds Geothermal Fields

Ophiolites


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Depleted Oil & Gas FieldsDepleted Oil & Gas FieldsMethodology

Use Production data, Reserve data, Pressure,Temperature and Well Numbers to calculateCapacities, Injection Rates & Availability forCO2Storage

Progress

Thailand: Completed. Some fields have capacities

exceeding 100 megatonnes CO2 Philippines: Data being collected

Vietnam: Methodology under discussion

Indonesia: First Meeting planned forApril


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Saline AquifersSaline Aquifers

Methodology Calculate Volume ofSedimentary Basins

Calculate Porosity Volume forStorage from % ofSuitable BasinSediments and theirAverage Porosity

Calculate CO2 Storage Potential using Efficiency Factor

PROGESS

Thailand: 10 of94 Sedimentary Basins being Analyzed

Philippines: Data being collected Vietnam: In Negotiation Stage for Type ofAnalysis

Indonesia: First Meeting planned forApril


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Finance: Key Analysis inFinance: Key Analysis in

ReportReport Financial model, accommodates any arrangement

of revenues, OPEX, CAPEX and capitalization

(grant, debt and equity) and calculates LCOEbased on 0 NPV and set discount rate.

Existing sources ofgrant funding forfirstgeneration projects reviewed along with structuring

issues with traditional energy funding sources. Financing, structuring and incentives required to be

in place forsecond generation plants areexamined.

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Regulatory Issues: KeyRegulatory Issues: Key

Analysis in ReportAnalysis in Report Review existing laws and regulations pertaining to oiland gas, powersector, environment, public disclosureand long-term liability ofindustrial activity.

Ownership ofpore space a crucial issue.

Map relevance ofexisting legal framework to CCS andidentify gaps, modifications required

Engage regulatorsin the

focuscountr

ies

andincrea

seawareness about model regulatory frameworks being

developed in OECD countries and evaluate relevanceto S.E. Asian contexts.

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Thank you

[email protected]

Documents

CCS Financing Singapore Tharakan Final