CCS in the UK and ETI Andrew Haslett FREng, Chief Engineer€¦ · • Secure CO2 storage is important in the UK and we have sufficient cost - ... UK’s challenging 2050 CO2 target

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CCS in the UK and ETIAndrew Haslett FREng, Chief Engineer


UK Climate Change

• Legally binding targets and process• 85% reduction for energy by 2050 (from

1990)• Carbon budgets for each 5 years set by

independent panel• UK renewables target of 15% energy set by

EU• UK not heavily industrialised, so heating

houses and transport are largest energy uses


What is the ETI?

• The Energy Technologies Institute (ETI) is a public-private partnership between global industries and UK Government

Delivering...

• Targeted development, demonstration and de-risking of new technologies for affordable and secure energy

• Shared risk

• Leverage for Members - funding, expertise and market access

• Accelerated development schedules - in advance of market

Members

Programme Associate


What we do...

System level strategic planning

Technology development & demonstration

Delivering knowledge &

innovation


ETI Invests in projects at 3 levels

Knowledge Building Projects typically ....up to £5m, Up to 2 years

Technology Development projectstypically ....£5-15m, 2-4 yearsTRL 3-5

Technology Demonstration projectsLarge projects delivered primarily by large companies, system integration focustypically ....£15-30m+, 3-5 yearsTRL 5-6+


ETI headlines

49m of projects focussed on knowledge building

1stprogramme associate -Hitachi

2equity holdings –supporting business developments

£212mprojects announced

122partner organisations

15 countries -europe, north america, middle east, asia

9commercial product launches

53 projects across the portfolio

£100mPotential revenue from existing project portfolio


Bioenergy and CCS pivotal to delivering an affordable 2050 UK energy system

Charts and data from ESME v3.2 Director’s Cut runs, August 2013

• Bioenergy with CCS delivers negative emissions

• Bioenergy without CCS is still significant

Case Option Value

£bn/year in 2050

Option Value £bn

NPV to 2050

Option Value

£bn NPV to 2030

No UK biomass 78.4 297.8 60.7

No CCS 80.7 262.7 31.9

Limited vehicle efficiencies

12.4 97.5 36.0

No changes in heating 11.3 50.8 7.3

No nuclear 5.5 30.2 6.1

No imported biofuels 4.6 16.9 2.7

• CCS without bioenergy is still significant

• All other technologies have 2050 option value of less than £15bn per year


2050 Base


2050 No Nuclear


313GW1%

Possible phases of CCS development in the UK

Of CCS deployed by 2030

Of GDP saved per year by having CCS in the mix

CCS by numbers

“Achieving an affordable, secure, low carbon energy mix with renewable and nuclear energy alone will be much more difficult and much more expensive.” Ed Davey, 24 Feb 2014


Phase 1FEED+ £100m investmentCCS Commercialisation

Programme

Underpinning phase 1 onwards:UK CCS Roadmap 2012£185m R&D Programme

CCS Commercialisation

Programme

R&D and Innovation

Electricity Market Reform

Intervention to address key

barriers

International Collaboration


UKSAP -£4MStorage AtlasStorage EconomicsCommercialisationMMV (Landscape)MineralisationH2 storage

CCS System ModellingToolkit - £3M

High H2- £2MTurbine & Engine Safety

NG Aquifer -£2M

Nextgen1 - £23MPre Comb. Coal(deferred)

Nextgen 2 - £22MGas Power

MMV - £5MMarine monitoring

Demonstration

Development

KnowledgeBuilding

ETI CCS Programme


Strategic planning is key to CO2storage development in the UKPipelines and platforms will dominate transport and storage costs

Infrastructure Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6

Timescale 2020-24 2025-29 2030-34 2035-39 2040-44 2045-49

Total Flow, Mte/a 15 40 80 110 110 110

Number of Hubs 2 4 5 6 6 6

Sinks in Use 2 5 10 14 14 16

Number of Wells 10 30 100 130 150 200

No of T/X pipelines 2 6 12 16 16 18

East of England network development is key to reducing emissions and minimising

transport & storage costs

• Similar (but smaller) networks envisaged in the East Irish Sea and Central North Sea


Conclusion

• Systems analysis shows how different technologies can combine to deliver a successful UK energy system out to 2050

– Cost effective central, distributed and local energy storage important– Consumer behaviour, market rules, implementation of “Smart” ICT and sound systems

design important to costs and economics

• Bioenergy and CCS are both critical to affordability– Both very flexible in their application to industry, transport, buildings and power– Together they can provide a significant and cost-effective credit for negative emissions,

more valuable than the energy content

• Secure CO2 storage is important in the UK and we have sufficient cost-effective offshore capacity for at least 100 years

• UK is progressing CCS at different points in the R&DD chain


For more information about the ETI visit www.eti.co.uk

For the latest ETI news and announcements email [email protected]

The ETI can also be followed on Twitter at twitter.com/the_ETI

Energy Technologies InstituteHolywell BuildingHolywell ParkLoughboroughLE11 3UZ

For all general enquiries telephone the ETI on 01509 202020.


9 Technology Programme areas

Delivering...New knowledgeTechnology developmentTechnology demonstrationReduced risk

ETI Project Portfolio – total £400m


Some ETI project delivery partners ....Now over 100 organisations in 15 countries


ESME – ETI’s system design tool ....integrating power, heat, transport and infrastructure providing national / regional system designs

ESME example outputs


UK legal target (2050)

0

50

100

150

200

250

300

350

400

450

500

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2010 £/Te CO2

UK Energy System CO2 Reduction(including aviation and shipping)

Efficiency improvementAppliances, heating, buildings, vehicles, industry

Energy storage and distribution

2050 UK system cost first appearances of major technologies, in order of increasing effective carbon price

>£300/Te or >$480/Te Offshore Wind

Light vehicles (fuel cell / electrification)

Nuclear CCS

Marine


Potential implications for the UK...

Efficiency measures waste heat recovery, building insulation, and efficient vehicles make a contribution under all emission reduction scenariosETI targeting through SSH (£100m) and HDV (£40m) projects

Nuclearmature technology and appears economic under most emission reduction scenarios - primarily an issue of deployment (planning / licensing, supply-chain, finance etc) Cost impacts post-Fukushima need clarification –international approach needed

Bioenergymajor potential for negative emissions via CCS and might include a range of conversion routes – H2, SNG, process heatETI investing in science, logistics and value models

SSH – Smart Systems and Heat programme

HDV – Heavy Duty vehicle Efficiency programme

Offshore Renewablesthe marginal power technology and an important hedging optionETI investing in next generation, low cost, deepwater platform and turbine technology demonstrations

CCS a key technology lever given potential wide application in power, hydrogen and SNG (gas) production, and in industry sector ETI investing in separation, storage and system design – for coal, gas and biomass

Natural gas a key 2050 destination fuel for power, space heating, industrial process heat and potentially for heavy duty vehicle transport applicationsETI addressing through SSH and HDV efficiency programmes

Hydrogen potentially important energy vector providing system flexibility (CCS and storage) and light vehicle transport applicationsETI determining energy system flexibility benefits of using H2

Abatement costsUK’s challenging 2050 CO2 target appears affordable with intelligent national energy system design and investment in technology development


White Rose

• FEED contract signed 20 December 2013

• World’s largest Oxyfuel power plant

• Yorkshire / Humber CCS Trunkline


PeterheadFEED contract signed

24 February 2014World’s first commercial scale

gas CCS projectReuse of existing North Sea

infrastructureWider opportunities beyond

project itself


Phase 2• Projects without capital funding from

Government; support through CfDs

• Development Forum March 2014

• Working to strengthen the business case- FIDe process- Learning from global projects- EOR / Wood Review- Industrial CCS (Tees Valley £1m)- Shared infrastructure

DECC Response to Task Force, Oct 2013


CO2Stored and CO2Nomica

To provide insights on storage and its costs.

ETI completed UKSAP atlas at the end of 2011

- sufficient storage for UK needs- widely dispersed storage- aquifers, particularly in SNS are attractive- ETI invests in NG appraisal 2012

CO2Nomica, an ETI model used to evaluate networks where is the best place to start ?how much infrastructure ?what are main cost drivers ?when/where do clusters help ?

DECC, E.ON trained in CO2Nomica, BP to follow


Estimate made of scope and costs of offshore infrastructure


Costs reduce significantly after the first five years

Infrastructure in phase Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6Start Year 2020 2025 2030 2035 2040 2045Total Flow, Mte/a 15 40 80 110 110 110Number of Hubs 2 4 5 6 6 6Sinks in use 2 5 10 14 14 16Number of Wells (smoothed) 15 30 100 130 150 200No of transmission pipelines 2 6 12 16 16 18

£/teCO2


Storage scheme is promising as a load follower

60

110

160

210

260

0 10 20 30 40 50 60 70 80 90 100 110

LCO

E £/

MW

h

Load Factor %

Cost of IGCC+CCS vs CCGT+CCS

CCGT Low (1.9p/kWh) CCGT High (3.5p/kWh) CCGT Medium (2.5p/kWh) Coal IGCC (0.93p/kWh)


CCS Next Gen Capture 2 (Gas) –prototype test rig

• Test rig using Carbon Monolith technology

• Retrofit Technology for existing power plants


CCS Storage site development£2m investment from ETI kick-starting National Grid programme to appraise southern North sea aquifer

• ETI supporting National Grid programme to appraise southern North sea aquifer

• Storage development and qualification is the longest lead time item in the CCS chain and the greatest uncertainty

• Post test evaluations proceeding


CCS – Hydrogen for Power Production To identify the safe limits of H2 use in fuels

• Hydrogen plays key role in ESME scenarios– Flexible power production through H2 production,

intermediate storage and use in turbines.– This project examines limits on safe use of H2 in GTs

and Gas Engines.

• High H2 Project - 0.6m circular duct under test (Phase1)

• Stage Gate in May 2014 reviewing if results warrant scale-up to HRSG configuration.


Building investor confidence - CCS

• Financing CCSIn partnership with EcofinFoundationWorking with banks, insurers, developers, IEA, EIB and GIB to build common understanding of strategies to enable private sector financing of CCS

• Commercial development Contributed to the DECC Cost Reduction Task Force (CRTF) Leading the UK CCS Commercial Development Group (with Ecofin) to follow up on CRTF recommendations and actionsSupporting the UK CCS storage Group developing national strategy


1MW marine tidal turbineDelivery led by Rolls-Royce (UK), operational phase led by Alstom (UK)part of a £12.5m contract from ETIOperational from early 2013 at European Marine Energy Centre (Scotland)


WaveDyn – wave energy modellernow available as commercial product from GL Garrad Hassanpart of a £8m contract from ETI

• Marine energy array performance modelling toolset – commercially available from late 2012

• Developed by GL Garrad Hassan as part of ETI PERAWAT project

• Models validated through tank testing and open-water tests carried out as part of the project in UK, Ireland, Netherlands and France


SMARTide – Simulated Marine Array Resource Testingnow available as commercial product from HR Wallingford part of a £0.5m contract from ETI

• Simulated Marine Array Resource Model

• Commercially available

• Developed by HR Wallingford as part of ETI Tidal Resource Modelling project


11 KV Wet-Mate underwater connectornow available as commercial product from MacArtney (Denmark)£1.4m contract from ETI completed early 2012


Offshore WindThe marginal power technology and an important hedging option – cost reduction is critical

• DECC cost reduction task force has identified routes to achieving £100/MWh by 2020

– Contract and project structures – Financing and risk management– Technology innovation

• ETI has already invested £40m in technology development projects to target further cost reductions

• ETI has launched £30m of new projects to develop next generation, low cost, deepwater floating platform and very long blade turbine technology

• ETI Targeting ~£90/MWh post 2020 through applying these technologies in high wind speed areas off UK west coast

(£100/MWh = 10p/KWh, £90/MWh = 9p/KWh)


Wind Turbine drive train test rig 15MW rig in supply from GE Power Systems (UK) and MTS (USA)£25m contract from ETICommercial test unit being built at UK National Renewable Energy Centre


Wind Turbine drive train test rig15MW rig in supply from GE Power Systems (UK) and MTS (USA)£25m contract from ETICommercial test unit being built at UK National Renewable Energy Centre


Floating Wind Turbine PlatformDesign of an offshore floating platform able to extract energy in higher availability and strength areas in deeper water

• Wave Tank testing complete and no issues identified with the model.


‘Very long blade’ Next generation high performance wind turbine blade development£15.5m contract from ETI with Blade DynamicsIn development for test from 2015

• UK / US based entrepreneurial development team – small business

• Technology and business development support from ETI - project financing, equity investment

Only 49 meters


Fault Current LimiterIn supply from GridON with site test by UK Power Networks£4m contract from ETIInstallation work complete and now on the network and energised


Electricity storageSubstation scale electricity storage as heat £15.5m contract from ETI with Isentropic and Western Power DistributionIn development for UK substation test in 2015

• UK based entrepreneurial development team – small business

• Technology and business development support from ETI - project financing, equity investment


EfficiencyAll future emission reduction scenarios utilise efficiency improvements

• Waste heat recovery• Building insulation• Efficient vehicles• Energy systems management

• ETI targeting through system demonstration and technology development projects

– ‘Smart systems’ £95m+

– Marine and Land Heavy Duty Vehicle efficiency £30m+

• Plus, ongoing ETI projects in building refurbishment , energy management systems and energy storage


High Efficiency SCRIn supply from Caterpillar, Johnson Matthey, Loughborough University£4.5m contract from ETIVisualisation rig operational Q3 2013 at Loughborough (UK)Test cell and vehicle demo in 2016 (Caterpillar, Peterlee, UK)

Image courtesy of LaVisionUK Ltd CAD image of the proposed laser spray visualisation rigs (2 separate stations)


Bioenergy Value Chain Modelling (VCM) Project

Energy Crop Production

Aggregation and Pre-processing

Conversion(and CCS)

Distribution and transfer

• Spatial, decadal model for UK out to 2050• Optimise value chain based on total value (or max

energy, min cost, min GHG emissions)• Test system sensitivities to:

• Technology cost and performance• Resource availability – including imports• Build out rates / planting rates


Ecosystem Land Use Modelling Project (ELUM)

Aim: to develop a spatial model of the UK, which can be used to assess the impact of Direct Land Use Change (DLUC) to biomass production

• Unique “measured and modelled” approach• Extensive field trials in the UK looking at soil carbon

and greenhouse gas emissions • £4 million over 3 years

Outcome: identify the sustainable DLUC transitions, quantify how much biomass can be produced sustainably, and where it should be produced


Fieldwork underpins process modelling

∆ Soil C stock to 1 m(170 land uses)

Soil GHG emissions (12 land uses)

(CO2, CH4, N2O)

Eddy Covariance(9 land uses)

Whole system CO2 exchange

13CO2 isotope tracers(2 experiments on 4 land

uses)

Soil GHG emissions potentials(CO2, CH4, N2O)

(70 land uses)


Assessing the UK biomass potential

Theoretical agricultural land availability

DLUC emissions (ELUM)

Land use Constraints (VCM)

+Potential yields (VCM)

Economic margins (MPR)

Refined prediction of UK biomass production

potential

Validation of theoretical assumptions

• The outputs from several ETI projects will be combined, in order to refine estimates of the availability of suitable land for biomass feedstock production

• Further work will be undertaken to validate input assumptions in a sample of locations across the UK

• This combined assessment will enable us to:

a. review logistics and process siting implications

b. report on the UK bioenergy potential and pathway options out to 2050


GasLikely to replace heavier fossils in ‘hard to electrify’ and backup applications

• Fossil gas likely to remain cost effective and widely available - availability and pricing of US shale gas is driving take-up by some transport operators

• Low CO2 emissions vs heavier liquid fossil fuels is potentially beneficial

– Energy density supports long-distance vehicle applications

– ‘Methane slip’ impact is still uncertain

• Hydrogen from fossil fuels could become an increasingly important energy vector

– Creates system flexibility (with CCS and storage)– Light vehicle transport applications

• ETI investing in enhanced control and safety systems for powerplants using hydrogen rich fuels


For more information about the ETI visit www.eti.co.uk

For the latest ETI news and announcements email [email protected]

The ETI can also be followed on Twitter at twitter.com/the_ETI

Energy Technologies InstituteHolywell BuildingHolywell ParkLoughboroughLE11 3UZ

For all general enquiries telephone the ETI on 01509 202020.

Documents

CCS in the UK and ETI Andrew Haslett FREng, Chief Engineer€¦ · • Secure CO2 storage is important in the UK and we have sufficient cost - ... UK’s challenging 2050 CO2 target