Ccs Industrial Use Captured Carbon Dioxide

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ACCELERATING THE UPTAKE OF CCS:

INDUSTRIAL USE OF CAPTURED CARBON DIOXIDE

MARCH 2011


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Disclaimer

This report has been prepared by Parsons Brinckerho in collaboration with the Global CCS Institute

or the beneft o the Global CCS Institute. It is subject to, and in accordance with, the agreement

between the Global CCS Institute and Parsons Brinckerho. This report is based on a desktop review

o available inormation and to the best o the authors knowledge the acts and matters described in

this report reasonably represent the conditions only at the time o printing. The report did not consider

novel technologies which are in the early R&D phase due to their potential extended development

timerames. Parsons Brinckerho and the Global CCS Institute accept no liability or responsibility

whatsoever or any direct or indirect damages resulting rom any use o or reliance upon this report by

any third party.

Acknowledgements

The report was undertaken by Parsons Brinckerho in collaboration with the Global CCS Institute andwith support provided by Edge Environment and KPMG.


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PAGE i

CONTENTS

CONTENTS

Glossary Viii

Executve summary Xi

1. introducton 11.1 Background 1

1.2 Purpose 1

1.3 Scope and context 2

1.3.1 inclusons 3

1.3.2 Exclusons 3

1.4 Dentons used n ths report 3

1.4.1 CO2 reuse 3

1.4.2 CCS 4

1.4.3 Alternatve orms o CCS 4

1.4.4 Captve and noncaptve 4

1.4.5 Bulk CO2 4

1.5 Structure o ths report 4

PART 1 TECHNOLOGY iNVESTiGATiON AND EVALUATiON 7

1. CO2 reuse technologes 81.1 Lst and descrpton o technologes 8

1.2 Frst cut o technologes or detaled nvestgaton and evaluaton 15

2. Descrpton o shortlsted technologes 162.1 CO2 or use n enhanced ol recovery 16

2.1.1 Enhanced gas recovery EGR 19

2.2 CO2 as eedstock or urea yeld boostng 19

2.3 CO2 as a workng ud or enhanced geothermal systems EGS 21

2.4 CO2 as eedstock or polymer processng 23

2.5 CO2 or use n algae cultvaton 252.6 CO2 as eedstock or carbonate mneralsaton 26

2.7 CO2 or use n concrete curng 29

2.8 CO2 or use n bauxte resdue carbonaton 29

2.9 CO2 as a eedstock or lqud uel producton 31

2.10 CO2 or use n enhanced coal bed methane recovery ECBM 35

3. Technology categorsaton 373.1 CO2 eedstock 37

3.2 Permanence o CO2 storage 38

3.3 Technology categorsaton 39


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PAGE ii

CONTENTS

4. Technology comparson 41

4.1 Maturty o reuse technologes 414.2 Potental revenue generaton 44

4.3 Level o nvestment 45

4.4 Addtonal CO2 emssons rom reuse 47

4.5 Reuse technologes applcablty to developng countres 48

4.5.1 Mneral carbonaton producton and CO2 concrete curng 49

4.5.2 Bauxte resdue carbonaton 50

4.5.3 Enhanced coal bed methane ECBM 50

4.5.4 Urea yeld boostng 50

4.5.5 Methanol 51

4.5.6 Formc acd 514.5.7 Engneered geothermal systems 51

4.5.8 Polymers 52

4.5.9 Enhanced ol recovery EOR 52

4.5.10 Algae cultvaton 52

4.5.11 CDM credts 53

5. Technology evaluaton 545.1 Methodology and selecton crtera 54

5.1.1 Technology maturty 54

5.1.2 Scaleup potental 55

5.1.3 Value or money 56

5.1.4 CO2 abatement potental, envronmental and socal benets 57

5.2 Lmtatons o analyss 58

5.2.1 Shortage o normaton 58

5.2.2 Comparablty o normaton 58

5.3 Evaluaton o shortlsted technologes 59

5.3.1 CO2 or use n enhanced ol recovery 59

5.3.2 CO2 as eedstock or urea yeld boostng 60

5.3.3 CO2 as a workng ud or enhanced geothermal systems 61

5.3.4 CO2 as eedstock or polymer processng 62

5.3.5 CO2 or use n algae cultvaton 63

5.3.6 CO2 as eedstock or carbonate mneralsaton 64

5.3.7 CO2 or use n concrete curng 65

5.3.8 CO2 or use n bauxte resdue carbonaton 66

5.3.9 CO2 as a eedstock or lqud uel producton 67

5.3.10 CO2 n enhanced coal bed methane recovery 68

5.4 Summary o evaluaton scores 70


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PAGE iii

CONTENTS

6. Analyss and dscusson 71

6.1 Perormance o technologes aganst objectves 716.1.1 Objectve A: Accelerate cost reductons or conventonal CO2 capture plant 72

6.1.2 Objectve B: Accelerate the uptake o alternatve orms o CCS 74

6.2 Summary o perormance aganst objectves 76

PART 2 ECONOMiC AND COMMERCiAL EVALUATiON 79

1. Context 80

2. The CO2 market 812.1 Demand 81

2.1.1 Current demand 812.1.2 Future demand 82

2.2 Supply 82

2.3 CO2 market prcng 84

2.3.1 Prcng o bulk CO2 84

2.3.2 Future prcng o bulk CO2 84

3. Framework or CCS 853.1 No prcng o CO2 and no regulatory oblgaton 85

3.2 Prcng o CO2 emssons 85

3.2.1 Regulatory oblgatons to capture and store CO2 86

3.2.2 Summary o present poston 87

4. Role o CO2 reuse n acltatng CCS 884.1 Key costs and revenues assocated wth CCS 88

4.1.1 What s a realstc level o revenue to be expected rom the sale oCO2 or reuse? 88

4.1.2 How much does CCS cost now, and how much wll t cost n the uture? 89

4.1.3 What s the carbon prce expected to be nto the uture? 90

4.2 interacton o key costs and revenues 91

4.3 Development scenaros 92

4.3.1 Development scenaro 1 When a strong carbon prce s n place,

what benet wll CO2 reuse provde when the reuse permanently stores CO2? 934.3.2 Development scenaro 2 Can a CO2 reuse technology that does NOT

permanently store CO2 become commercally vable when acarbon prce s n place? 93

4.3.3 Development scenaro 3 Can CO2 reuse technologes accelerate thedemonstraton o ndvdual elements o the CCS chan, n leu o ullyntegrated demonstraton projects? 94

4.3.4 Development scenaro 4 Wll CO2 reuse be commercally vable n aweak carbon prce envronment 95

4.4 Conclusons 95


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PAGE iV

CONTENTS

PART 3 KEY FiNDiNGS, RECOMMENDATiONS AND CONCLUSiONS 97

1. Key ndngs 981.1 Reuse as an economc drver 99

1.2 Reuse as a drver o learnng and acceptance 100

1.3 Recommendatons 100

2. Conclusons 102


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LiST OF TABLES

LiST OF TABLES

Table 1.1 Exstng uses or CO2 9

Table 1.2 Emergng uses or CO2 11

Table 1.3 Current and uture potental CO2 demand o exstng uses 13

Table 1.4 Future potental CO2 demand o emergng uses 14

Table 2.1 Enhanced ol recovery summary 17

Table 2.2 Urea yeld boostng summary 20

Table 2.3 Enhanced geothermal systems summary 22

Table 2.4 Polymer processng summary 24

Table 2.5 Algae cultvaton summary 25

Table 2.6 Carbonate mneralsaton technology summary 27

Table 2.7 CO2 or use n concrete curng summary 29

Table 2.8 Bauxte resdue carbonaton summary 30

Table 2.9 Lqud uel producton summary 33

Table 2.10 Enhanced coal bed methane recovery summary 36

Table 4.1 Technology maturty 42

Table 4.2 Potental cumulatve demand and gross revenue estmates orreuse technologes to 2020 45

Table 4.3 LCA case study descrpton and results 47

Table 5.1 EOR evaluaton summary 59

Table 5.2 Urea yeld boostng evaluaton summary 60

Table 5.3 Enhanced geothermal systems evaluaton summary 61

Table 5.4 Polymer processng evaluaton summary 62

Table 5.5 Algae cultvaton evaluaton summary 63

Table 5.6 Carbonate mneralsaton evaluaton summary 64

Table 5.7 Concrete curng evaluaton summary 65

Table 5.8 Bauxte resdue carbonaton evaluaton summary 66

Table 5.9 Lqud uel producton evaluaton summary 67

Table 5.10 Enhanced coal bed methane evaluaton summary 68Table 5.11 Evaluaton scores 70

Table 6.1 Top ve perormng technologes or each objectve 76


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LiST OF FiGURES

LiST OF FiGURES

Fgure 1.1 Report structure 4

Fgure 1.2 Part 1 and 2 structure 5

Fgure 2.1 Enhanced ol recovery overvew 17

Fgure 2.2 Urea ertlser producton overvew 20

Fgure 2.3 Enhanced geothermal systems overvew 21

Fgure 2.4 Algae cultvaton overvew 25

Fgure 2.5 Calera CMAP process overvew 27

Fgure 2.6 Bauxte resdue carbonaton overvew 30

Fgure 2.7 Renewable methanol producton overvew 32

Fgure 2.8 Formc acd producton overvew 32

Fgure 3.1 Technologes operatng on concentrated CO2 versus dlute CO2 38

Fgure 3.2 Permanent versus nonpermanent storage 39

Fgure 3.3 Technology categorsaton 40

Fgure 4.1 Technology development tmelne 41

Fgure 6.1 Potental to accelerate cost reductons or conventonal capture plant 73

Fgure 6.2 Potental to accelerate alternatve orms o CCS 75

Fgure 2.1 Approxmate proporton o current CO2 demand by end use 82

Fgure 2.2 Current global CO2 supply and demand 83

Fgure 4.1 Plausble CCS experence curve or ntegrated power generaton projects wth CCS 90

Fgure 4.2 interacton o key costs and revenues 91


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APPENDiCES

APPENDiCES

Appendx A: CO2 or use n enhanced ol recovery EOR 104

Appendx B: CO2 as a eedstock or urea yeld boostng 108

Appendx C: CO2 as a workng ud or Enhanced Geothermal Systems EGS 111

Appendx D: CO2 as a eedstock or polymer processng 116

Appendx E: CO2 or use n algae cultvaton 121

Appendx F: CO2 as eedstock or carbonate mneralsaton 127

Appendx G: CO2 or concrete curng 133

Appendx H: CO2 or use n bauxte resdue carbonaton 136

Appendx i: CO2 as a eedstock or lqud uel producton 138

Appendx J: Enhanced coal bed methane recovery 142

Appendx K: Evaluaton scores 147

Appendx L: Emergng technologes demonstraton projects and R&D studes 198

Appendx M: Edge Envronment report 215

Appendx N: Reerence lst 254


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PAGE Viii

GLOSSARY

GLOSSARY

%wt Percentage weght

ABLE Alkalnty based on low energy

ASTM Amercan Socety or Testng and Materals

AU$ Australan dollars

bbl Barrel

bn Bllon

CaCO3 Calcum carbonate

CaO Calcum oxde

CAPEX Captal expendture

CARMA Carbon montorng or acton

CCGT Combned cycle gas turbne

CCS Carbon capture and storage

CCUS Carbon capture, use and storage

CDM Clean Development Mechansm

CEH Chemcal Economcs Handbook

CER Certed emssons reductons credts

CMAP Carbonate mneralsaton by aqueous precptaton

CO Carbon monoxde

CO2 Carbon doxde

CR5 Counter rotatng rng recever reactor recuperator

CSA Canadan Standards Assocaton

DOE Department o Energy Unted States

ECBM Enhanced coal bed methane

EGS Enhanced geothermal systems

EJ Exa joule

EOR Enhanced ol recovery

ETS Emsson tradng scheme

EU ETS European Unon Emssons Tradng Scheme

EUR Euro currency

G8 The Group o Eght Forum o senor ocals rom eght member states: France, Germany,italy, Japan, Unted Kngdom, Unted States o Amerca, Canada and Russa

GHG Greenhouse gas


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PAGE iX

GLOSSARY

Gtpa Ggatonne per annum

GW Ggawatt

GWe Ggawatt electrcal

H2 Hydrogen

H2O Water

ha Hectare

HCOOH Formc acd

HDR Hot dry rocks

HFR Hot ractured rocks

iEA internatonal Energy AssocatoniGCC integrated gascaton combned cycle power plant

n inch

iPCC intergovernmental Panel on Clmate Change

K Potassum

kg Klogram

km Klometre

lb Pound

LCA Le cycle assessment

m Metre

MgCO3 Magnesum carbonate

MgO Magnesum oxde

MiT Massachusetts insttute o Technology

mm Mllmetre

MEF Major Economes Forum

MMP Mnmum mscblty pressure

MMV Montorng, measurement and vercaton

MPa Mega pascalsMt Mllon tonnes

Mt/y Mllon tonnes per year

Mtoe Mllon tonne o ol equvalent

Mtpa Mllon tonnes per annum

MW Megawatt

MWe Megawatt electrcal

MWh Mega watt hour


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PAGE X

GLOSSARY

N Ntrogen

NaOH Sodum hydroxde

NETL Natonal Energy Technology Laboratory

NOAK Nth o a knd

NPK Ntrogenphosphoruspotassum ertlser

NRCiRAP Natonal Research Councl o Canada industral Research Assstance Program

NY New York

NZ New Zealand

oC Degrees Celsus

OCAP Organc carbon doxde or assmlaton o plantsOECD Organsaton or Economc Cooperaton and Development

OPEX Operatonal expendture

P Phosphorus

pa per annum

PB Parsons Brnckerhof

PBR Photoboreactor

pH Measure o acdty

psg Pounds per square nch gauge

R&D Research and development

SCCO2 Supercrtcal carbon doxde

SCM Supplementary Cementtous Materal

t tonne

t/d tonnes per day

t/t tonne/tonne

TAP Technology Acton Plan

tCO2 tonnes o carbon doxde

TO2 Ttanum doxdetpa tonnes per annum

tpd tonnes per day

UAN Ureaammonum ntrate

US Unted States

USA Unted States o Amerca

US$ Unted States dollar Monetary values are n US$ unless otherwse stated


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EXECUTiVE SUMMARY

EXECUTiVE SUMMARY

PURPOSE AND CONTEXT

The undamental purpose o ths report s to nvestgate exstng and emergng uses o CO2 and torevew the potental to capture and reuse CO2 or ndustral applcatons n order to accelerate thedevelopment and commercal deployment o CCS. it consders both the nearterm applcaton omature technologes such as enhanced ol recovery EOR and the longer term applcaton o a numbero promsng new technologes that are stll n the ntal stages o ther techncal development.

The global CO2 reuse market currently amounts to approxmately 80 mllon tonnes/year, and s

domnated by EOR demand n North Amerca. EOR accounts or approxmately 50 mllon tonnes odemand annually, o whch around 40 mllon tonnes s suppled annually rom naturally occurrng CO2reservors at prces generally n the order o US$1519/tonne.

The potental supply o anthropogenc CO2 s very much larger than potental demand. it s estmatedthat globally around 500 mllon tonnes o lowcost


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3. Most o the emergng reuse technologes stll have years o development ahead beore they reach the

techncal maturty requred or deployment at commercal scale. Mneralsaton technologes mayultmately provde a complementary orm o CCS to geologcal storage, and can acltate abatement oa small proporton o anthropogenc CO2 emssons. Technologes that reuse CO2 n uel producton mayalso provde ndrect mtgaton through replacement o ossl uels. Whle these are useul attrbutes, nthe nearterm they cannot provde a drver to accelerate the commercal deployment o CCS due to therlengthy development tmerames.

4. CO2 reuse has the potental to be a key component o largescale CCS demonstraton projects n emergngand developng economes, where there s strong demand or energy and constructon materals andless lkelhood o the early adopton o carbon prcng. The man ocus wll be on EOR due to ts maturty,and potental CO2 utlsaton capacty. Carbonate mneralsaton, CO2 concrete curng, bauxte resduecarbonaton, enhanced coal bed methane ECBM, urea yeld boostng and renewable methanol may alsobe o nterest n emergng economes such as Chna and inda. However, as noted n pont 3 above, some

o these technologes are stll n the early stages o development and may not be at the requred maturtyor deployment at commercal scale to concde wth CCS development tmerames.

5. The current market prce US$1519/tonne or bulk CO2 s ndcatve o the upper lmt o prces that canbe expected n the uture. There s lttle prospect o a general longterm strengthenng o the current bulkCO2 market prce or reuse, and there s every prospect o downward pressure on market prces as andwhen restrctons on CO2 emssons are ntroduced. The revenue generated rom reuse wll be nadequateto drve the development o CCS or power, steel and cement plants, all o whch wll requre a strongcarbon prce and/or projectspecc undng. CO2 supply rom lowcost sources, such as natural gasprocessng and ertlser producton, s lkely to domnate any reuse supply growth n the medum term.

6. CO2 reuse has an ntal role to play n supportng the demonstraton phase o CCS development n theabsence o strong carbon prces and n emergng economes. However that ntal role, centred on EOR

due to ts maturty, becomes less mportant as and when the cost o emttng carbon rses, whch mustultmately happen to acltate the wdespreadcommercal deployment o CCS. Furthermore, as noted npont ve above, the lkelhood s that the market prce or bulk CO2 wll all as carbon prces rse wthtghtenng restrctons on emssons.

REPORT STRUCTURE

Ths report s structured as ollows:

iNTRODUCTiON, BACKGROUND AND CONTEXT

PART 3KEY FiNDiNGS, RECOMMENDATiONS AND CONCLUSiON

PART 1CO2 REUSE TECHNOLOGY iNVESTiGATiON

AND EVALUATiON

PART 2ECONOMiC AND COMMERCiALFRAMEWORK FOR CO2 REUSE

EXECUTiVE SUMMARY


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EXECUTiVE SUMMARY

CO2 REUSE TECHNOLOGiES

Part 1 o ths report nvestgates exstng and emergng CO2 reuse technologes and consders thercurrent and uture potental market sze. The technologes are shortlsted based on the applcaton oa threshold o 5Mtpa o global CO2 reuse potental. Ths threshold ocuses the study on technologeswhch are lkely to demand CO2 on a scale commensurate wth the emssons generated rom powerplants and other large ndustral pont sources, a key to ther ablty to contrbute n some orm toacceleratng CCS. The CO2 reuse technologes shortlsted or urther analyss and evaluaton nclude:

CO2 or use n enhanced ol recovery EOR;

Mneralsaton ncludng carbonate mneralsaton / concrete curng / bauxte resdue processng;

CO2 as a eedstock n urea yeld boostng;

Enhanced geothermal systems usng CO2 as a workng ud;

CO2 as a eedstock n polymer processng; Algae producton;

Lqud uels ncludng renewable methanol / ormc acd; and

CO2 or use n enhanced coal bed methane ECBM recovery.

The desktop study o the shortlsted technologes above provded an understandng o thecharacterstcs o each technology and hghlghted the ollowng:

The reuse technologes utlse varyng sources o CO2 rom a concentrated stream o CO2 to adlute stream o CO2, such as untreated ue gas and have varyng abltes to permanently storeCO2. These dferences lead to varyng mpacts when consderng the objectve o acceleratng theuptake o CCS. The shortlsted CO2 reuse technologes are at varyng stages o development and

maturty as shown n the dagram below.

1970 1986 2000 2005 2010 2015 2020 2025

EGSEOR UREA YIELD BOOSTING

POLYMERS

ALGAE

CARBONATE MINERALISATION

CONCRETE CURING

BAUXITE RESIDUE

LIQUID FUELS (METHANOL)

LIQUID FUELS (FORMIC ACID)

ECBM

Note: The lght blue crcle represents the technology at demonstraton scale, whle the dark blue crcle representscommercal operaton o the technology based on clams rom the respectve proponents. Consequently, thepredctons appear optmstc. The arrow extendng rom the dark blue crcle ndcates a more pragmatc tmerameto commercalsaton.


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EXECUTiVE SUMMARY

The shortlsted CO2 reuse technologes all nto the ollowng three broad categores:

1. EOR and urea yeld boostng are proven CO2 reuse technologes already n commercal useand thereore consdered to be mature.

2. Bauxte resdue red mud carbonaton s already n ntal commercal operaton whlerenewable methanol s n the process o beng constructed at a commercal scale. Both othese technologes are very ste specc, and exst due to sutable local condtons.

3. The remanng shortlsted technologes n relatve order o advancement mneral carbonaton,concrete curng, ECBM, EGS, polymers, algae and ormc acd, are promsng technologesthat need to be proven urther through techncal plots and/or demonstraton plants.

The shortlsted CO2 reuse technologes vary sgncantly n potental uture demand and revenueestmates. The estmated cumulatve global demand and gross revenue between now and 2020 orthe shortlsted technologes are lsted below.

CUMULATiVE DEMANDTO 2020

GROSS REVENUETO 2020*

TECHNOLOGY/APPLiCATiON

>500Mt >US$7500M EOR

20Mt to 100Mt Up to US$1500M Urea yeld boostng, mneral carbonaton and ECBM

5Mt to 20Mt Up to US$300M Polymers, renewable methanol, CO2 concrete curng,bauxte resdue carbonaton and algae cultvaton


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EXECUTiVE SUMMARY

revenue generated by emtters n supplyng CO2 to reuse technologes s lkely to experence

downward pressure due to the large longterm CO2 supply surplus. introducton o a carbon prcewll depress the current bulk CO2 market prce due to ncreased need or emtters to dspose other CO2 to avod payng the carbon penalty.

2. Wdespread commercal deployment o CCS wll requre a global carbon prce much larger than theprospectve bulk market prce o CO2 or reuse. Revenue generated rom CO2 reuse, manly rom EOR,s lkely to provde moderate economc support to early demonstraton projects, but n the longer termthe ntroducton o a carbon prce wll be the crtcal drver or the wdespread uptake o CCS acrossthe ull range o statonary CO2 sources. The current estmated cost gap or CCS rom power, steel andcement plants s several tmes larger than the current bulk CO2 market prce, and downward pressureon ths market prce s lkely to eventuate as and when carbon prces ncrease. For ndustral sourceswhere capture costs are low, a modest ntal carbon prce may be enough to trgger the urther nearterm deployment o CCS beyond the current populaton o gasrelated CCS projects.

3. Uncertanty n regulatory acceptance o CO2 reuse abatement credentals presents challenges or theuptake o reuse technologes. investments n CO2 reuse technologes that do not provde permanentstorage o CO2 are ultmately exposed to greater rsks due to the uncertanty o the carbon penaltylablty between the emtter and the end product. At one end o the spectrum the CO2 emtter powerstaton or ndustral source may bear the ull carbon prce/tax despte passng on the CO 2 or reuse.Ths wll make capture or the purpose o reuse commercally unattractve. At the other end o thespectrum the carbon prce s passed on to the end product then there s exposure to rsk that theproduct may not be as commercally compettve.

CO2 REUSE AS A DRiVER OF LEARNiNG AND ACCEPTANCE

Mature orms o CO2 reuse have the potental to materally advance the development o the earler phaseo ntal largescale demonstraton projects, partcularly n the absence o strong carbon prcng. Thesedemonstraton projects play a crtcal role n the development o practcal regulatory regmes, n ganngcommunty acceptance o CCS and n project and cost optmsaton through learnng by dong.

The key ndngs o ths reports analyss o the mpact o CO2 reuse technologes on ntal CCSdemonstraton development are as ollow:

1. CO2 reuse or EOR combned wth measurng, montorng and vercaton MMV can provdelearnngs assocated wth storage and can help oster communty acceptance o storage. The useo CO2 n EOR, when combned wth MMV to track mgraton o the CO2 plume, llumnates thegeologcal detal o the storage reservor and enhances understandng o the actors nuencngsubsurace CO2 mgraton. The WeyburnMdale and Craneld projects are exstng examples o

ths potental.2. CO2 reuse through EOR, and to a lesser extent other reuse technologes, may also provde

opportuntes or capture development and learnng. Whle lowcost sources o concentratedCO2 such as natural gas processng, ertlser plants wll generally provde the most compettvesupply or reuse, there wll also be crcumstances where revenue rom reuse and publc undngare combned to develop demonstraton projects based on capturng CO2 rom power, steel andcement plants. Such demonstraton projects wll provde addtonal or earler opportuntes orcapture learnng, and nonEOR reuse applcatons may also enable capture projects to proceed nlocatons where vable geologcal storage s not mmedately accessble.


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EXECUTiVE SUMMARY

3. CO2 reuse s lkely to be a key component o CCS demonstraton projects n emergng and

developng economes where there s strong demand or energy and constructon materals andless lkelhood o the early adopton o carbon prcng. EOR wll be the key nterest, but carbonatemneralsaton, CO2 concrete curng, bauxte resdue carbonaton, ECBM, urea yeld boostng andrenewable methanol may be o partcular nterest to emergng economes. However, some o thesetechnologes are stll n the early stages o development and may not be at the requred maturty ordeployment at commercal scale to concde wth CCS development tmerames.

RECOMMENDATiONS

Recommendatons or prorty acton are:

1. Map regonal opportuntes or CO2 reuse projects, dentyng the pont sources o CO2, especallyconcentrated sources, algn wth strong demand or products derved rom CO2. By necessty, theevaluaton o technologes and commercal aspects n ths report was undertaken at a global level.Local project opportuntes may present themselves when targetng specc regons, where strongdemand or CO2derved products algns wth pont sources o CO2. The dentcaton o lowcost,hgh concentraton CO2 sources, such as those assocated wth gas processng, coal gascatonand ertlser producton, wll be partcularly mportant n dentyng vable opportuntes,partcularly n emergng economes.

2. Encourage the deployment o CO2EOR outsde o North Amerca and maxmse ts assocatedlearnng and communty acceptance opportuntes. The present study has dented CO2EOR asthe CO2 reuse technology best placed to accelerate conventonal CCS due to ts maturty and largecapacty or CO2 utlsaton and s lkely to be mportant n acltatng early demonstraton projects.The CO2EOR ndustry n North Amerca s mature; however, deployment outsde o North Amerca

has been lmted to date. The adopton o rgorous measurng, montorng and vercaton MMVo the subsurace CO2 plumes generated by EOR s the key to maxmsng the storage learnng andcommunty acceptance benets they can provde.

3. Make CO2 reuse opportuntes more o a ocus n programs that acltate the development olargescale CCS demonstraton projects n emergng and developng economes. The mappngand rankng o pont source CO2 emssons and reuse opportunty algnments should provde avaluable tool n prortsng support and/or undng to acltate the development o largescale CCSdemonstraton projects n developng and emergng economes.


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PAGE 1

iNTRODUCTiON

1. iNTRODUCTiON

1.1 BACKGROUND

in July 2009, the 17 partners o the Major Economes Forum MEF on Energy and Clmate agreed thattranston to a lowcarbon economy provdes an opportunty to promote contnued economc growth aspart o a vgorous response to the dangers created by clmate change.

A number o acton plans were developed wth the ntenton o stmulatng eforts to advance a broadrange o clean energy technologes, ncludng carbon capture and storage CCS. The Carbon Capture,Use and Storage Technology Acton Plan CCUS sought to analyse the emssons reducton potental

o CCS, dscuss barrers to development and deployment o CCS technologes, and descrbe bestpractces and polces that are successully advancng CCS globally. As a result, prorty actons oracceleraton o CCS were recommended both domestcally and nternatonally.

One prorty acton outlned n ths Acton Plan was to:

encourage the use o captured CO2 to generate revenue that can partally ofset the cost o CO2capture, as a transtonal measure to assst the accelerated uptake o CCS.

As an early response to the CCUS Technology Acton Plan the Global CCS insttute, on behal o theGovernment o Australa, the Unted States, and the Unted Kngdom, has undertaken an ndependentassessment o the potental or the use o captured CO2 CO2 reuse to accelerate the uptake o CCS.

1.2 PURPOSE

As noted above n Secton 1.1, one recommendaton o the CCUS Technology Acton Plan was to:

...encourage the use o captured CO2 to generate revenue that can partally ofset the cost o CO2capture, as a transtonal measure to assst the accelerated uptake o CCS.

The purpose o ths report s to nvestgate exstng and emergng uses or CO2 and to address thequeston o how, and to what extent, CO2 reuse technologes can accelerate the uptake o CCS.

The intergovernmental Panel on Clmate Change iPCC Specal Report on CCS 2005 ncluded achapter dedcated to mneralsaton and ndustral uses o CO2. The context o the iPCC report wasconsderaton o ndustral use as a CO2 mtgaton technque, and the ndngs n ths context were notencouragng.

it s mportant to note that ths report s not about the CO2 mtgaton potental o ndustral use o CO2.Although mtgaton potental s a actor n the overall pcture, the prmary queston ths report seeksto answer s how the ndustral use o CO2 mght accelerate the uptake o CCS. it may seem counterntutve that usng CO2 nstead o sequesterng t .e. takng the S out o CCS could accelerate CCS.Ths ssue wll be explored n detal, but to address ths concern up ront, below are three examples ohow the use o CO2 mght drectly or ndrectly accelerate the deployment/uptake o CCS:

1. EOR can provde a revenue supplement or CCS projects n avourable locatons and, whencombned wth MMV, can provde valuable storage learnng as well as underpnnng wdercommunty acceptance o geologcal storage.


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2. Deployment o a greater number o CO2 capture plants may lead to accelerated learnngs and a

aster rate o cost reducton or capture technology.3. Some reuse technologes may also result n permanent carbon sequestraton, such that they may

be regarded as an alternatve orm o CCS.

1.3 SCOPE AND CONTEXT

Part 1 o ths report nvestgates exstng and emergng CO2 reuse technologes ncludng determnngthe current status o the technologes globally. Part 1 also consders the current and uture potentalmarket sze or each reuse technology n order to understand the CO2 utlsaton potental. Technologesare shortlsted based on ther potental to demand CO2 on a scale commensurate wth the emssonsgenerated rom power plants and other large ndustral CO2 sources, a key to ther ablty to contrbuten some orm to acceleratng CCS.

The shortlsted technologes undergo a categorsaton, a hghlevel comparson and a more detaledevaluaton and analyss process. The technology categorsaton outlnes key dferences between theshortlsted technologes whch wll have an mpact on the technologes ablty to accelerate the uptakeo CCS. The technology comparson s a hgh level comparson ocusng on technology maturty, potentalor revenue generaton, level o nvestment requred to acheve commercalsaton, CO2 emssonsrom reuse technologes and applcablty o the technologes to developng countres. The technologyevaluaton bulds on the technology comparson and consders a broad range o actors, ncludng scaleand potental demand, commercal vablty, envronmental and socal ssues such as CO2 equvalentemssons resultng rom the reuse technology. An ntal assessment o the technologes potental to 1accelerate cost reductons or CCS and 2 accelerate alternatve orms o CCS s also undertaken.

Part 2 o the report bulds on the assessments n Part 1 and consders the broader economc andcommercal ramework or CO2 reuse. An understandng o the key costs and revenues assocatedwth CCS s provded to explore the potental mpact that dferent CO2 reuse technologes can have nacceleratng the uptake o CCS. Part 3 o the report assmlates key ndngs rom throughout the reportto arrve at recommendatons or urther acton.

The descrptons and evaluaton o the technologes presented heren represent only a snapshot ntme, and ther progress n the orthcomng years may lead to dferent conclusons the technologesare reconsdered n the uture. Furthermore, the level o evaluaton has been lmted by the level onormaton avalable about technologes, whch s nevtably ted to ther overall development statusthe publcly avalable normaton about technologes closer to commercalsaton tend to be moreabundant. For example, some promsng CO2 to lquduels technologes were dented, ncludng

catalysed solar reormng and engneered photosynthetc mcroorgansms or drect uel secreton,however the level o normaton avalable about the technologes made urther evaluaton mpractcal.

When consderng the economc and commercal ramework or CO2 reuse, generally a globalperspectve has been taken, wth some consderaton o lkely typcal regonal condtons. However, t snot easble to consder or example the supply/demand balance o each subregon o each soveregnstate around the globe. Because o the global perspectve taken n such analyses, t should be notedthat local condtons superor or the deployment o CO2 reuse may occur, where the demand orproducts derved rom CO2 may be hgh.

The economc and commercal perspectves or early CCS demonstraton project development aredstnctve n that they are centred largely on EOR due to ts maturty, and where, n the absence o


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iNTRODUCTiON

carbon constrants, CO2 or reuse provdes a modest revenue stream. Whle ths report hghlghts the

value o the relatvely welldened potental o EOR to accelerate early CCS demonstraton projectdevelopment, the bulk o the report covers the longerterm opportuntes that could ultmately arserom the ull sute o emergng CO2 reuse technologes.

1.3.1 iNCLUSiONS

Ths report consders technologes that use anthropogenc CO2, where the CO2 s concentrated to somedegree greater than ts atmospherc concentraton. in partcular, the report consders technologes thatutlse CO2 otherwse emtted rom large pont sources, such as power statons, reneres, gas processngplants and ertlser plants. it dferentates between hgh concentraton sources, such as gas processngplants and ertlser plants, whch can be suppled at relatvely low cost


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1.4.2 CCS

The denton o CCS as consdered n ths report s the capture, compresson, transportaton, and longterm storage o CO2 n sutable subterranean geologcal reservors.

1.4.3 ALTERNATiVE FORMS OF CCS

Reuse technologes that also permanently store CO2 are consdered to be an alternatve orm o CCS,reerred to as alternatve CCS. Permanent storage s most smply dened as storage consderedpermanent under an emssons tradng scheme or greenhouse emsson legslaton. Ths s lkely torequre that a product retan ts carbon doxde equvalent content or at least hundreds o years, orhave an extremely slow CO2 release rate.

1.4.4 CAPTiVE AND NON-CAPTiVE

Captve use reers to processes wheren CO2 s only an ntermedate product n a chemcalmanuacturng process, and where t s ultmately consumed n a later process step e.g. ureaprocessng. As CO2 s not a eedstock but an ntermedate product, captve processes ofer noopportunty or provdng addtonal demand or CO2 n the uture.

Noncaptve CO2 use s where the CO2 needs to be sourced external to the process.

1.4.5 BULK CO2

Bulk CO2 s consdered to be unprocessed gaseous CO2, wth a CO2 content typcally n excess o95 per cent.

1.5 STRUCTURE OF THiS REPORT

Ths report s presented accordng to the process outlned n Fgure 1.1

Fgure 1.1 Report structure

iNTRODUCTiON, BACKGROUND AND CONTEXT

PART 3KEY FiNDiNGS, RECOMMENDATiONS AND CONCLUSiON


AND EVALUATiON



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iNTRODUCTiON

Part 1 and part 2 o the report are presented as ollows:

Fgure 1.2 Part 1 and 2 structure

iDENTiFY REUSE TECHNOLOGiES

TECHNOLOGY CATEGORiSATiON

TECHNOLOGY EVALUATiON

iNVESTiGATE SHORT-LiSTEDTECHNOLOGiES

TECHNOLOGY COMPARiSON

TECHNOLOGY ANALYSiS

iNVESTiGATE CO2 MARKET AND PRiCiNG

ROLE OF CO2 REUSE iN FACiLiTATiNGUPTAKE OF CCS

COMMERCiAL FRAMEWORK FOR CCS

CO2 REUSE MARKET SCENARiOS


AND EVALUATiON



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BENEFICIAL USE OF CARBON DIOXIDE TO ACCELERATE THE UPTAKE OF CCS


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PART 1TECHNOLOGY iNVESTiGATiON AND EVALUATiON


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1. CO2 REUSE TECHNOLOGiES

Nearterm CO2 demand or use n EOR wll help to support the development o ntal CCSdemonstraton projects n avourable locatons. However, or any CO2 reuse technologyto have the potental to materally accelerate CCS deployment n the longer term, t musthave the potental to demand large quanttes o CO2, e.g. on a scale commensurate wthcapture rom power generaton and other large ndustral sources.

The ollowng shortlst o ten CO2 reuse technologes could potentally meet thsrequrement: enhanced ol recovery EOR, urea yeld boostng, enhanced geothermal

systems, polymer processng, algae cultvaton, carbonate mneralsaton, CO2 concretecurng, bauxte resdue carbonaton, CO2 as a eedstock or lqud uel producton, andenhanced coal bed methane.

There are already many ndustral uses or CO2, wth the current global noncaptve consumptonestmated to be approxmately 80Mtpa; comprsng 25Mtpa n the lqud and sold orm and theremander n gaseous and supercrtcal orm.1

Ths secton endeavours to account or all o the exstng and emergng CO2 reuse technologes andapplcatons that utlse CO2 as a eedstock or drectly to manuacture an end product, at the tme ocomplng ths report. it s recognsed that new and potentally breakthrough technologes may bedeveloped n the uture.

Ths secton also consders the current and uture potental market sze o both the exstng andemergng CO2 reuse technologes n order to understand the longterm CO2 utlsaton potental and todetermne quanttes are lkely to be commensurate wth the emssons generated rom power plantsor other large ndustral sources. The scale o CO2 utlsaton wll sgncantly afect the mpact thatthese technologes may have n potentally acceleratng the longterm uptake o CCS.

1.1 LiST AND DESCRiPTiON OF TECHNOLOGiES

Table 1.1 and Table 1.2 represent a lst o exstng and emergng potental uses or CO2 respectvely.These lsts are current as at the tme o complng the report. Each may not be entrely exhaustve oall possble applcatons or CO2, but dentes establshed common uses, and n the case o uturepotental technologes, dentes those most publcsed and that upon prelmnary examnaton

appear to be more than just a pe n the sky dea. As tme progresses new technologes are lkely tomateralse and the emergng technologes dented are lkely to be developed and advanced urtherthan acknowledged wthn.

1 Note ths does not nclude the large captve volumes o CO2 generated and subsequently consumed n the same

ndustral process, most notable urea producton, whch globally produces and then consumes an estmated 113Mtpa

o CO2.



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Table 1.1 Exstng uses or CO22

EXiSTiNG USES BRiEF DESCRiPTiON

Enhanced ol recoveryEOR

CO2 s njected nto depleted ol elds. The CO2 acts as a solvent thatreduces the vscosty o the ol, enablng t to ow to the producton well.Once producton s complete, the CO2 can potentally be permanently storedn the reservor.

Urea yeld boostngnoncaptve use only2

When natural gas s used as the eedstock or urea producton, surplusammona s usually produced. A typcal surplus o ammona may be5 per cent to 10 per cent o total ammona producton.

i addtonal CO2 can be obtaned, ths can be compressed and combnedwth the surplus ammona to produce addtonal urea.

A number o projects have been mplemented to capture CO2

rom ammonareormer ue gas or njecton nto the urea producton process.

Other ol and gas ndustryapplcatons

CO2 s used as a ud or the stmulaton/racturng o ol and gas wells. it stypcally trucked to ste and njected as lqud carryng proppng agents sandand other materals whch prop open the pores o the rock to prevent closureater stmulaton.

Beverage carbonaton Carbonaton o beverages wth hghpurty CO2.

Wne makng CO2 s used as a seal gas to prevent oxdaton o the wne durng maturaton.CO2 s also produced durng the ermentaton process, and t s alreadycaptured onste or reuse or ts nert gas propertes.

Food processng,

preservaton and packagng

CO2 s used or varous applcatons n the ood ndustry, ncludng coolng

whle grndng powders such as spces and as an nert atmosphere toprevent ood spolage.

in packagng applcatons, CO2 s used n moded atmosphere packagngMAP wth products such as cheese, poultry, snacks, produce and redmeat, or n controlled atmosphere packagng CAP, where ood productsare packaged n an atmosphere desgned to extend shel le.

Carbon doxde s commonly used n MAP and CAP because o ts ablty tonhbt growth o bactera that cause spolage.

Cofee decafenaton Supercrtcal CO2 s used as the solvent or decafenatng cofee. it spreerred due to ts nert and nontoxc propertes.

Pharmaceutcal processes Use o CO2 n the pharmaceutcal ndustry may overlap wth other uses

dented, as t typcally ncludes nertng, chemcal synthess, supercrtcalud extracton, product transportaton at low temperature, and acdcatono wastewater.

8090 per cent o materal consumpton by mass n the pharmaceutcalndustry s attrbutable to solvent consumpton. US pharmaceutcal solventconsumpton n 1995 was ~80,000tpa, but supercrtcal CO2 was not used nsgncant enough quanttes to be reported.

2 Unless otherwse stated, all reerences made to urea producton wthn the report reer to the ncremental addtonal

producton o urea rom surplus ammona and noncaptve CO2, e.g. the supply o CO2 rom a source external to the

process, not generated and subsequently used wthn the process tsel.


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EXiSTiNG USES BRiEF DESCRiPTiON

Hortculture CO2 s provded to greenhouses to mantan optmal CO2 concentraton andmaxmse plant growth rate. Sources nclude onste cogeneraton schemesas well as ofste ndustral sources connected va ppelne networks.

Pulp and paper processng CO2 s used to reduce pH durng pulp washng operatons.

Water treatment CO2 s used or remneralsaton o water ollowng reverse osmoss and orpH control reducton.

inertng CO2 s used n a wde range o applcatons where the physcal propertes oan nert gas are desrable. Ths ncludes applcatons covered under otheruse categores, such as a weldng sheldng gas and gas used n oodpackagng and n wne producton.

Steel manuacture CO2 s used n a mnorty o basc oxygen urnaces as a bottom strrng agent.it s also used or dust suppresson.

Metal workng Used or vared purposes, ncludng chllng parts or shrnk ttng, andhardenng o sand cores and moulds.

Supercrtcal CO2 as asolvent

CO2 s useul or hghpressure extracton and as a solvent to solate targetedcompounds, such as ragrances and avours.

Because o ts low crtcal temperature and moderate pressure requrements,natural substances can be treated partcularly gently. it s ganng avour as asolvent n the dry cleanng ndustry or ths reason.

Electroncs Prnted crcut board manuacture uses small quanttes o CO2 n ncheapplcatons, predomnantly as a cleanng ud.

Pneumatcs Pneumatc applcatons or CO2 nclude use as a portable power source orpneumatc hand tools and equpment, as well as a power source orpantball guns and other recreatonal equpment.

Weldng Used as a shroudng gas to prevent oxdaton o the weld metal.

Rergerant gas CO2 s used as the workng ud n rergeraton plant, partcularly or largerndustral ar condtonng and rergeraton systems. it replaces more toxcrergerant gases that also have much greater global warmng potental.

Fre suppressontechnology

When appled to a re, CO2 provdes a heavy blanket o gas that reduces theoxygen level to a pont where combuston cannot occur. CO2 s used n reextngushers, as well as n ndustral re protecton systems.



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Table 1.2 Emergng uses or CO2

EMERGiNG USES BRiEF DESCRiPTiON

Enhanced coal bedmethane recovery ECBM

in CO2ECBM, CO2 s njected nto coal seams, where t preerentallyadsorbs onto the coal, dsplacng and releasng adsorbed methane, whchcan then be recovered at the surace. A key constrant on practcalapplcaton o ths concept has been the decrease n permeablty andnjectvty that accompanes CO2 nduced swellng o the coal.

Ntrogen N2 can also be used or ECBM, but t utlses a dferentmechansm, by reducng the partal pressure o the gaseous methane. Thshas led to the consderaton o drect uegas njecton or CO2, whch wouldutlse both the mechansms o CO2 and N2ECBM.

Enhanced geothermal

systems EGS CO2 as aworkng ud

There are two ways n whch supercrtcal CO2 may be utlsed n EGS

geothermal power generaton.Frstly, t may be used as the crculatng heat exchange ud. The benethere s that the sgncant densty dference between the cold CO2 owngdown the njecton wells and the hot CO2 owng up the producton wellswould elmnate the need or a crculaton pump.

Secondly, ths concept could be extended, and the crculatng CO2 couldalso be used drectly as the workng ud n a supercrtcal CO2 power cycle.There s sgncant nterest n supercrtcal CO2 power cycles because o thepotental or hgh ecency and compact turbo machnery.

Power generaton CO2 asa workng ud

Supercrtcal CO2 power cycles need not be lmted to geothermal powerplants, as the benets o hgh ecency and compact turbo machnery arenot heat sourcespecc.

The nuclear power ndustry s partcularly nterested n supercrtcal CO2power cycles or ths reason.

Polymer processng One example o CO2 as a eedstock or polymer processng nvolves thetransormaton o carbon doxde nto polycarbonates usng propretary zncbased catalyst system. A varety o other process routes and end productshave been proposed.

Chemcal synthessexcludes polymers andlqud uels/hydrocarbons

Carbon and oxygen are both key elements n organc chemstry.Consequently, there are a wde range o chemcals that can at leasttheoretcally utlse CO2 as a eedstock or producton, ncludng organcacds, alcohols, esters, and sugars.

The practcalty o CO2 as a eedstock wll vary sgncantly based on the

current producton routes.

The domnant potental demand, based on current markets, could comerom acetc acd, whch has a current global market o ~6Mtpa. Acetc acdcan be produced by drect catalyss o CO2 and methane.

Algal boxaton The productvty o algal cultvaton systems can be ncreased sgncantlyup to a saturaton pont by the njecton/addton o CO2 to the growthmedum/soluton.



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EMERGiNG USES BRiEF DESCRiPTiON

Mneralsaton

Calcum carbonate andmagnesum carbonate

Mldly concentrated CO2 e.g. power staton ue gas s contacted wthmneralloaded alkalne brne. The CO2 present n the gas precptates out asmneral carbonates lmestone / dolomte equvalent precptates. Theresultng product can be urther processed to orm an aggregate equvalentproduct or the constructon ndustry, and can also potentally dsplace asmall porton o Portland Cement n concrete.

Bakng soda sodumbcarbonate

Ths s a varant o mneralsaton wheren CO2 s contacted wth sodum rchbrne, resultng n the ormaton o sodum bcarbonate NaHCO3.

CO2 concrete curng Ths technology s ocused on precast concrete producton acltes, wherethe waste CO

2rom onste ue gas s permanently stored as unreactve

lmestone wthn the concrete. Ths also lmts the need or heat and steam nthe curng process.

The result s a reducton n emssons o CO2 equvalent to up to 120kg oCO2 per tonne 286 lbs CO2 per US ton o precast concrete.

Bauxte resdue treatmentred mud

The extracton o alumna rom bauxte ore results n a hghly alkalne bauxteresdue slurry known as red mud. Concentrated CO2 can be njected ntothe red mud slurry to partally neutralse the product, mprovng tsmanageablty, reducng ts dsposal costs and lmtng ts potentalenvronmental mpacts. in the neutralsaton process, the CO2 s converted tomneral orm typcally carbonates.

The resultng product remans slghtly alkalne, and has potental as a sol

amendment or acdc sols.Lqud uels

Renewable methanol Electrolyss o water produces H2. The H2 s combned wth captured CO2,compressed and reacted over a catalyst at moderate temperature andpressure ~5MPa, ~225oC to produce methanol and water.

Formc acd Electroreducton o CO2 to produce ormc acd HCOOH and O2. Formcacd s used as a hydrogen carrer, wth hydrogen the prmary uel. Formcacd has been classed as a lqud uel as hydrogen s only released romthe lqud ormc acd as requred.

Genetcally engneeredmcroorgansms or drect

uel secreton

Engneered productspecc photosynthetc organsms crculate n a solutono mcronutrents and bracksh water, producng hydrocarbon products as a

byproduct o metabolsm. Energy nput s drect, unconcentrated solarenergy.

CO2 njecton toconventonal methanolsynthess

The yeld o methanol rom conventonal methanol synthess can bencreased some estmates suggest up to a 20 per cent yeld ncrease by thenjecton o addtonal CO2 upstream o the methanol reormer.

industry consensus s that new plants wll generally have an autothermalreormer, whch tends to produce an excess o hydrogen such that CO2njecton wll not be requred.

Table 1.3 and Table 1.4 provde an estmate o the current and maxmum potental CO2 demand romeach o the exstng and emergng CO2 reuse technologes.



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it should be noted that relable and detaled enduse statstcs on CO2 producton and consumpton are

not readly avalable or many o the specc applcaton, so the gures provded n Table 1.3 and Table1.4 are ndcatve and provde an ndcaton o the order o magntude o the current CO2 consumptonand potental uture CO2 utlsaton.

Consequently, these estmates are only consdered order o magntude estmates. The specc valueshave not been presented heren, rather the range wthn whch the demand o any gven applcaton sthought to all s selected rom the ollowng standard set o demand ranges:

Demand < 1Mtpa

1Mtpa < demand < 5Mtpa



demand >300Mtpa

Table 1.3 Current and uture potental CO2 demand o exstng uses

EXiSTiNG USES CURRENT NON-CAPTiVE CO2

DEMAND (MTPA)

FUTURE POTENTiALNON-CAPTiVE CO2DEMAND (MTPA)

Enhanced ol recovery EOR 30< demand < 300 30< demand < 300

Urea yeld boostng 5 < demand < 30 5 < demand < 30

Other ol and gas ndustry applcatons 1< demand


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Table 1.4 Future potental CO2 demand o emergng uses

EMERGiNG USES FUTURE POTENTiAL NON-CAPTiVECO2 DEMAND (MTPA)

Enhanced coal bed methane recovery ECBM 30


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1.2 FiRST CUT OF TECHNOLOGiES FOR DETAiLED iNVESTiGATiON AND EVALUATiON

A threshold o 5Mtpa global CO2 reuse potental was appled to the lst o reusetechnologes to ocus the report on applcatons wth largemarket potental. TheCO2 utlsaton potental should be o a scale commensurate wth uture CO2 capturerequrements rom power generaton and other large ndustral sources.

Table 1.1 and Table 1.2 denty numerous optons or the use o CO2. However, t s evdent n Table1.3 and Table 1.4 that many o the reuse applcatons and technologes have a lmted demand and nthe context o CO2 volumes assocated wth CCS plants, the demand s mmateral. Whle localsed CO2demand or EOR can make an mportant contrbuton to the development o early CCS demonstratonprojects, or a reuse technology to have any other materal mpact on acceleratng the longterm uptakeo CCS, the CO2 utlsaton potental o the technology should be o a scale commensurate wth CO2capture rom power generaton and other large ndustral sources.

To permt a more comprehensve study on those technologes whch have the most potental, athreshold o 5Mtpa global CO2 reuse potental was appled. On ths bass, the technologes shortlstedor urther analyss and evaluaton are as ollows:

CO2 enhanced ol recovery;

CO2 as a eedstock or urea yeld boostng;

Enhanced geothermal systems usng CO2 as a workng ud;

CO2 as a eedstock n polymer processng;

Algae producton;

Mneralsaton ncludng carbonate mneralsaton / concrete curng / bauxte resdue carbonaton;

Lqud uels ncludng renewable methanol / ormc acd; and

CO2 enhanced coal bed methane ECBM recovery.

Any CO2 reuse applcaton wth a market potental below the 5Mtpa threshold wll not be nvestgatedurther as ts sze s mmateral n the context o CCS.

One excepton that should be noted n relaton to the above shortlst s that beverage carbonaton andood processng and packagng as both have current global consumpton levels o CO2 n excess o5Mtpa. However, they are mature ndustres wth an establshed supply chan, and wth more modestgrowth rates expected nto the uture, the ncremental demand or each wll not necessarly everexceed 5Mtpa, certanly not n the near term. For ths reason, these reuse applcatons were excludedrom the shortlst.

Another technology not explctly lsted above s CO2 enhanced gas recovery EGR, whch s dstnctrom ECBM. Please reer to Secton 2.1 or a bre dscusson on EGR, and how t has been treated orthe purposes o ths study.



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DESCRiPTiON OF SHORT-LiSTED TECHNOLOGiES

2. DESCRiPTiON OF SHORT-LiSTED TECHNOLOGiES

The ollowng secton provdes an overvew o each o the shortlsted CO2 reuse technologes. Theovervew ncludes a general descrpton and the status o the technology, the requred CO2 source andthe degree o CO2 utlsaton. it also dentes the proponents currently nvolved, the end products, anyundng support provded and general barrers and benets o the reuse technology.

Further detaled normaton o each CO2 reuse technology can be ound n Appendces A to J asndcated below:

CO2 or use n enhanced ol recovery EOR Appendx A.

CO2 as eedstock or urea yeld boostng Appendx B.

CO2 as a workng ud or enhanced geothermal systems Appendx C.

CO2 as eedstock or polymer processng Appendx D.

CO2 or use n algae cultvaton Appendx E.

CO2 as eedstock or carbonate mneralsaton Appendx F.

CO2 or use n concrete curng Appendx G.

CO2 or use n bauxte resdue carbonaton Appendx H.

CO2 as eedstock or lqud uel producton Appendx i.

CO2 or use n enhanced coal bed methane recovery Appendx J.

A lst o demonstraton projects and R&D studes or emergng CO2 reuse technologes are located nAppendx L. Ths lst s based on a desktop study only and s by no means exhaustve.

2.1 CO2 FOR USE iN ENHANCED OiL RECOVERY

Enhanced ol recovery EOR s the method by whch depleted ol elds are njected wth compressedCO2, to extract reserves whch are otherwse naccessble. CO2EOR was rst deployed n the 1970sand s consdered a commercally mature technology. Generally EOR reles on the solvent propertes oCO2 to dssolve n and decrease the vscosty o the ol mscble CO2 oodng as shown n Fgure 2.1below. However, mmscble CO2 oodng may be utlsed or heavy crude ol, wth the mechansm orol recovery more assocated wth gravty dsplacement.


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Fgure 2.1 Enhanced ol recovery overvew

iNPUTS PROCESS OUTPUTS

CARBON

DiOXiDERECOVERED OiL

CO2 iNJECTED iNTO

DEPLETED OiL AND

GAS FiELD

OiL SWELLS AND

BECOMES LESS

ViSCOUS

CO2 PARTiALLY DiSSOLVES

iN TRAPPED OiL RESERVES

MiSABLE OiL iS DRiVEN

TOWARDS PRODUCTiON

WELLS

EXCESS CO2 iS

SEQUESTERED

DEPLETED

OiL AND

GAS FiELD

DiSSOLVED CO2

(RELEASED/

RECAPTURED AT

SURFACE)

Table 2.1 Enhanced ol recovery summary

CRiTERiA DESCRiPTiON

GENERAL DESCRiPTiON

Technology Enhanced ol recovery

Proponents Ol companes have poneered EOR n the USA usng CO2 rom naturallyoccurrng CO2 reservors. Addtonal anthropogenc CO2 supply or EOR savalable rom companes employng capture on an ndustral plant e.g.syngas, natural gas sweetenng, coal power, ertlser, or cement productonwth access to transport nrastructure wthn range o sutable ol elds.Exstng demonstraton sze or greater EOR projects, nclude:

Andarko Petroleum Corporaton Salt Creek, USA, Chevron RangelyWebber EOR, USA, Chnese Government Daqng EOR, Chna, EnCanaWeyburn, Canada, Penn West Energy Trust Pembna Cardum EOR, USA

Descrpton CO2 s njected nto ol reservors to enable recovery o addtonal ol notrecovered by prmary producton or water oodng. The CO2 acts as solvent,decreasng ol vscosty. CO2 s separated rom the ol at the surace or

renjecton. Large volumes o CO2 can be stored n the reservor uponcompleton o the EOR actvtes.

Products Crude ol

CO2 utlsaton per tonne oproduct output

CO2 njecton per ol dsplacement rate s very dependent on reservorscharacterstcs e.g. sze, pressure, temperature, etc. The Weyburn, Canadaproject njects around 0.5 tCO2 per ncremental barrel ol dsplacedEnhanced Ol Recovery insttute, 2007. As stated, ths vares dramatcallyand would need to be examned on a stebyste bass.

CO2 source Commercal scale CO2EOR njecton, such as that occurrng n West Texas,predomnantly use naturally occurrng CO2 reservors, though CO2 capturedrom ndustral sources can also be used, as t s at Weyburn.


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Technology status ncludesproject status

CO2EOR s a proven technology wth many projects n operaton ncludng:

The Rangely project n the US has been usng CO2 or EOR snce 1986,sourcng the CO2 rom the LaBarge eld n Wyomng. 2325 Mt have beenstored snce 1986, nearly all o whch s consdered to be dssolved asaqueous CO2 and bcarbonate.

At Weyburn, about 2.8 Mt a year o CO2 s captured rom a coal gascatonplant, transported to Saskatchewan, and njected t nto declnng ol eldsiEA 2010.

Recent projects supported under the Amercan Recovery and investmentAct allow or capture and storage o 4.5M tonnes o CO2 annually rom amethanol plant n Lousana and 1M tonnes o CO2 per year rom exstng

steammethane reormers n Port Arthur, Texas. in both cases, ths CO2 wllbe used or enhanced ol recovery n the West Hastngs oleld startng nAprl 2014.

Fundng/support Whle the majorty o EOR projects progress wth ndustry undng alone,a large proporton o proposed CCS projects n North Amerca rely on EORrevenue as well as publc undng.

The DOE s sponsorng a range o studes and projects nvolvng theapplcaton o EOR to CCS development.

General benets increased ol revenue through CO2 storage. Return on nvestment through olproducton should assst ndustral CCS rollout n the short term, and EOR slkely to materally assst the development o early CCS demonstratonprojects. Combned wth MMV, EOR also has the potental to enhanceunderstandng o subsurace CO2 mgraton and to oster communtyacceptance o geologcal storage.

General barrers EOR s not techncally easble n all depleted or depletng olelds, and thecaptal cost o mplementng EOR may be prohbtve n many stuatons,so ts deployment wll be restrcted to avourable locatons. That stll leavessubstantal scope or the expanson o EOR, however, partcularly t canattract revenue rom emsson mtgaton credts as well as rom olproducton.

Reer to Appendx A or urther detals o CO2 or Enhanced Ol Recovery EOR.


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2.1.1 ENHANCED GAS RECOVERY (EGR)

A technology whch s analogous to CO2EOR s CO2 enhanced gas recovery EGR. EGR reers toncremental gas recovery rom depleted conventonal gas reservors. EGR dfers rom EOR n that themechansm or the enhanced gas recovery n theory reles on physcal dsplacement upwards o thelghter natural gas by the heaver CO2, wth mnmal mxng. Ths s n contrast to EOR, whch typcallyreles on mscble mxng o ol and CO2 to decrease ol vscosty.

EGR s dstnct rom ECBM and has receved lmted attenton compared to CO2EOR. Ths s due to tslevel o mmaturty n comparson to ECBM and due to the lmted normaton avalable. To date onlyone plot experment has been conducted by Gaz De France n the North Sea at the K12B eld n theofshore Netherlands, whch has been termnated.

Currently, EGR does not present tsel as a lucratve opportunty due to the relatvely hgh ntal recovery

characterstc o gas reservors typcally more than two thrds o the gas n place. The economcs oEGR are not strong, or the technology would be urther developed. Specc case study smulatons orEGR have suggested a breakeven CO2 prce o US$8/t wth a wellhead natural gas prce o US$2.85/GJ, clearly ndcatng that revenue rom reuse would be very modest.

For the purpose o the current study, EGR s consdered to be part o EOR as a shortlsted tem. SnceEGR s so mmature n comparson to ECBM and due to lmted normaton avalable, the technologyanalyss throughout the report wll ocus on CO2 or EOR. However, the potental or EGR may mproven the uture as world natural gas prces rse, and t should not be dsmssed rom uture consderaton.Furthermore, by ther nature, ormer gas reservors have demonstrated a capacty to retan gas, whchmakes them an obvous target as a CO2 sequestraton ste and the potental complmentary revenuerom ncremental natural gas recovery wll not go unnotced.

in summary, EGR s undeveloped, has very margnal economcs at current gas prces andconsequently has not been consdered as a separate shortlsted technology. However, EGR canefectvely be consdered as part o EOR as a shortlsted tem. in partcular, natural gas prces rsento the uture, the economcs and characterstcs o EGR may look very smlar to EOR.

2.2 CO2 AS FEEDSTOCK FOR UREA YiELD BOOSTiNG

Urea accounts or almost 50 per cent o the worlds ntrogen ertlser producton. it s produced bycombnaton o ammona and carbon doxde at hgh pressure and temperature. Normally, CO2 ssourced rom the process o reormng natural gas or a smlar eedstock to produce ammona. in thsregard, urea producton can predomnantly be consdered a captve use o CO2 .e. CO2 s producedand then used wthn the same ndustral process.

However, when natural gas s the eedstock or urea producton, there s typcally a small surplus oammona approxmately 5 to 10 per cent, whch could be reacted wth externally suppled noncaptve CO2 to produce addtonal urea. Reormer ue gas capture plants have been nstalled atseveral urea producton acltes to capture CO2 or ths purpose, partcularly by Mtsubsh Heavyindustres, and the technology can be consdered mature.


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Fgure 2.2 Urea ertlser producton overvew


AMMONiA UREA

GRANULE

A MiXTURE OF COMPRESSED

CO2 AND AMMONiA iS REACTED

AT HiGH PRESSURE

PRESSURE iS REDUCED AND

THE MiXTURE HEATED

SOME OF THE AMMONiA AND

CO2 FLASH OFF, UNCONSUMED

REACTANTS ARE ABSORBED TO

WATER SOLUTiON

A MiXTURE OF UREA,

AMMONiUM CARBONATE,

EXCESS AMMONiA AND WATER

iS PRODUCED

AMMONiUM CARBONATE iS

DECOMPOSED TO AMMONiA

AND CO2

THE UREA SOLUTiON iS

HEATED UNDER VACUUM,

SOME OF THE WATER iS

EVAPORATED

THE MOLTEN UREA iS

GRANULATED

CARBON

DiOXiDE VALUE ADD

BY-PRODUCTS

Table 2.2 Urea yeld boostng summary


GENERAL DESCRiPTiON

Technology Boostng yelds o conventonal ertlser producton acltes

Proponents Multnatonal ndustral scale ertlser producton rms

Descrpton Urea producton plants usng natural gas as a eedstock tend to produce asmall surplus o ammona. Captured CO2 can be reacted wth surplusammona to orm urea.

Urea s one o the most common types o sold ntrogen ertlsers. The nalproduct s typcally a granulated sold. Once appled to agrcultural land, ureareacts wth water to release the CO2 and ammona. The CO2 returns toatmosphere and the ammona decomposes urther supplyng ntrogen tothe crops.

Urea can also be used to produce UreaAmmonum Ntrate UAN, one othe most common orms o lqud ertlser.

Products Urea


For every tonne o urea produced, 0.7350.75 tonnes o CO2 wll typcally beconsumed.

CO2 source The CO2 source or urea yeld boostng s typcally CO2 captured onste romreormer ue gas.


Urea has been produced on an ndustral scale or over 40 years. CO2capture plants or urea yeld boostng have been nstalled snce late 1990s.The technology s relatvely mature.


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PAGE 21



Fundng/support None

General benets None dented

General barrers None dented

Reer to Appendx B or urther detals o CO2 or urea yeld boostng.

2.3 CO2 AS A WORKiNG FLUiD FOR ENHANCED GEOTHERMAL SYSTEMS (EGS)

Enhanced geothermal systems EGS, also known as hot ractured rocks HFR or hot dry rocks HDR,s an emergng geothermal technology whereby subsurace hot rocks that are not naturally sutable or

geothermal energy extracton can be made so through engneerng procedures. The requrement orsgncant engneerng work pror to heat extracton dstngushes EGS rom conventonal geothermalapplcatons. A new approach to ths concept s currently beng pursued whereby supercrtcal CO2s crculated as the heat exchange ud or workng ud nstead o water or brne to recover thegeothermal heat rom the reservor. it can also be used as the workng ud o the power cycle n asupercrtcal CO2 turbne.

Fgure 2.3 Enhanced geothermal systems overvew


CARBON

DiOXiDE

(SUPER-

CRiTiCAL)

CO2 iS PRESSURiSED AND

iNJECTED TO THE DEPTHS OF 4-5

KM, iNTO GEOLOGiCAL

STRUCTURES (HOT DRY ROCKS)

CO2 FLOWS iNTO THE FiSSURES

CREATiNG A RESERVOiR OF VERY

HOT (200 300 C) GEOTHERMAL

FLUiD THAT iS CONTiNUOUSLY

HEATED

AT THE SURFACE THE HOT

SUPERCRiTiCAL FLUiD iS EiTHER:- EXPANDED THROUGH A TURBiNE

- USED TO HEAT A SECOND

WORKiNG FLUiD WHiCH iS THEN

EXPANDED THROUGH A TURBiNE

THE FORCE GENERATED BY

CO2 iNJECTiON, OR BY PRiOR

WATER iNJECTiON CREATES

FiSSURES iN THE HOT DRY

ROCK

MOST OF THE FLUiD E XPANDS

BACK TO THE SURFACE, WiTH

SOME SEQUESTERED iNTO

THE GEOLOGiCAL FORMATiON

COOLED SUPERCRiTiCAL CO2

iS PUMPED TO HiGHERPRESSURE AND REiNJECTED

BACK iNTO THE RESERVOiR

ELECTRiCiTY


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PAGE 22


Table 2.3 Enhanced geothermal systems summary


Technology Supercrtcal CO2 as workng ud n enhanced geothermal systems EGS

Proponents GreenFre Energy / Enhanced Energy Resources Jont Venture

Geodynamcs Lmted

Symmyx Technologes

Descrpton Supercrtcal CO2 s crculated as the heat exchange ud or workng udnstead o water or brne to recover the geothermal heat rom the reservor.The CO2 may also be used drectly as the power cycle workng ud n asupercrtcal CO2 turbne beore beng sent back to the reservor.

Products Geothermal energy or use n electrcty generatonCO2 utlsaton per tonne oproduct output

Based on long term reservor pressursaton/ud loss studespotentalcapablty to contnuously sequester 24 tonnes o CO2 per day per MWe byud dfuson nto the rock mass surroundng the HDR reservor. However,ths wll be ste specc.

CO2 source CO2 n a pure, dehydrated state ndustral grade, sutable or compresson


Status o EGS Plot projects are currently ether operatonal or underdevelopment n Australa, the Unted States, and Germany. However EGSusng supercrtcal CO2 s at a very early stage o development and s yet tobe tested at demonstraton scale.

1 Jont venture o GreenFre Energy wth Enhanced Ol Resources plan to

buld a 2MW CO2 based demonstraton plant near the ArzonaNew Mexcoborder. Drllng o wells to access hot rock s proposed to commencen 2010. The proposed locaton s projected to yeld enough heat to generate800 MW o power wth potental to absorb much o the CO2 generated by sxlarge coalred plants n the regon.

2 Geodynamcs Lmted innamncka Deeps Jont Venture wth OrgnEnergy: a 1 MW power plant has been constructed at Habanero. Electrctygeneraton s expected to occur by early 2012 ollowng the successulcompleton o Habanero 4 and Habanero 5 reservors. Ths wll be the rstenhanced geothermal system n Australa.

Due to make nal nvestment decson on proposed $300 mllon, 25MWgeothermal demonstraton plant n the Cooper Basn by early 2013, ater12 months o successul operaton o the Habanero closed loop. Ths stwo years later than prevously stated.

Testng the use o supercrtcal CO2 as the workng ud n geothermalsystems s projected to commence n 2013.

Fundng/support U.S. Department o Energy recent award o US$338 mllon n ederalstmulus unds or geothermal energy research.


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General benets The sgncant densty dference between the cold SCCO2 n the njectonwell and the hot SCCO2 n the producton wells provde a large buoyant drvethermal sphonng and markedly reduce the crculatng pumpng powerrequrements o a waterbased Hot Dry Rock HDR system.

inablty o SCCO2 to dssolve and transport mneral speces rom thegeothermal reservor to the surace would elmnate scalng n the suraceequpment ppng and heat exchangers.

HDR reservors wth temperatures > 375C the crtcal temperature orwater could be developed wthout problems assocated wth slcadssoluton.

Much larger ow rates can be acheved wth CO2 than can be acheved wth

water due the lower vscosty o CO2.

General barrers EGS or power generaton s stll relatvely novel technology and remans tobe proved on a large scale.

The letme o HDR geothermal system may be dcult to prove.

There are a number o sgncant ssues that need to be resolved. Thesenclude the geochemstry o supercrtcal CO2, the corrosve condtons thatarse wth CO2 n contact wth reservor water, and long term efects n termso reservor connectvty, the source o CO2, the long term retenton o CO2,and desgn and optmsaton o power generaton systems to work wthsupercrtcal CO2.

CO2 has a lower specc heat capacty than water, and so greater ows are

requred to acheve the same heat extracton.Potental barrers to mplementaton nclude access to CO2 at an acceptablecost, proxmty o the EGS to the electrcty grd, and access to coolng water.

Smlar ssues related to long term responsblty or the resultant reservor,ncludng the lablty or uture CO2 leakage.

There s concern n the Geothermal ndustry that carbon capture/CCS s atranstonary technology and avalablty o CO2 n the very long term s rasedas a concern.

Reer to Appendx C or urther detals o EGS technology usng supercrtcal CO2 as the workng ud.

2.4 CO2 AS FEEDSTOCK FOR POLYMER PROCESSiNG

A new approach to polymer processng s to combne tradtonal eedstocks wth CO2 to synthessepolymers and hgh value chemcals. The technology transorms carbon doxde nto polycarbonatessuch as polypropylene carbonate and polyethylene carbonate, usng a zncbased catalyst n a reactonwth epoxde molecules.


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PAGE 24


Table 2.4 Polymer processng summary


GENERAL DESCRiPTiON

Technology CO2 as eedstock or polymer producton

Proponents Novomer

Descrpton Novomers technology uses carbon doxde as a eedstock to synthessechemcals and materals or a number o every day applcatons.

The technology transorms carbon doxde nto polycarbonates usng apropretary zncbased catalyst system. The chemcals and materalsproduced contan up to 50 per cent carbon doxde or carbon monoxde.

Products Polymer coatngs, plastc bags, lamnates / coatngs, suractants or EOR,automotve and medcal components.


Novomers plastcs are made rom 50 per cent ossl uelsand 50 per cent CO2.

For each tonne o Novomers plastcs manuactured, up to one hal tonne oCO2 can be sequestered.

CO2 source CO2 wll be sourced rom a waste stream, e.g. rom ethanol ermentaton,reormers, natural gas wells, ue gas rom coalred power plants, etc.

The CO2 sourced rom ndustral emssons s lkely to requre some degreeo purcaton.

Technology status ncludesproject status Novomer has been producng CO2 based plastc materal on a plot scale atKodak Specalty Chemcals aclty n Rochester, NY, snce December 2009.Plot scale plant s based on a patented technology developed by CornellUnversty.

Fundng/support in March 2010, Novomer was awarded US$2.1 mllon n the rst phase oa potental US$25 mllon ederal stmulus grant or sustanable materalsproducton rom the U.S. Department o Energy DOE.

Novomer s preparng an applcaton or a ollowon Phase two award or a24month, approxmately US$23 mllon project. Ths s subject to urtherDOE evaluaton and approval.

General benets The use o carbon doxde and carbon monoxde as eedstock, nstead o thecornbased eedstock used by other bodegradable plastcs, means that the

producton o plastc wll not compete wth ood producton.Tradtonal chemcal ndustry nrastructure can be used to manuacturethe plastc.

General barrers Technology s stll at a relatvely early stage t has only been demonstratedat a small scale usng a batch reactor.

Reer to Appendx D or urther detals o usng CO2 as a eedstock or polymer producton.


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2.5 CO2 FOR USE iN ALGAE CULTiVATiON

The njecton o CO2 may mprove the economcs o algal growth systems, makng t a potental volumeuser o concentrated CO2 streams. As wth CO2 supplemented atmospheres n ndustral greenhouses,bubblng CO2 through algal cultvaton systems can greatly ncrease productvty and yeld up to asaturaton pont. There s currently sgncant nterest n the potental o algae to produce ol mostlywth a vew to lqud transport uel substtutes at a prce that s compettve wth crude ol.

Fgure 2.4 Algae cultvaton overvew


SUNLiGHT

WATER ( OR

WASTEWATER)

CARBON

DiOXiDE

LiPiDS (USED FOR

PRODUCTiON OF BiO

CHEMiCALS/

PHARMACEUTiCALS)

PROTEiN (USED AS

ANiMAL FEED)

BiOMASS (USED AS

SOLiD FUELS,

ORGANiC

FERTiLiSER ETC.)

CARBOHYDRATES

(USED iN

PRODUCTiON OF

BiOETHANOL/POWER

GENERATiON)

OXYGEN

ALGAE ARE GROWN iN

EiTHER OPEN SYSTEMS

(E.G. PONDS) OR CLOSED

SYSTEMS (E.G. TUBULAR

BiO-REACTORS)

ALGAE ARE HARVESTED

ALGAE ARE DEWATERED

AND WASTEWATER iS

RECYCLED

ALGAE ARE

TRANSPORTED TO THE

END-USER

Table 2.5 Algae cultvaton summary


GENERAL DESCRiPTiON

Technology CO2

absorpton by mcroalgae to generate bomass.

Proponents Algenol, US

Solazyme, US

MDB Energy, AU

Descrpton Bubblng CO2 through algal cultvaton systems can greatly ncreaseproducton yelds o algae. There has been sgncant nterest n the last ewdecades n the potental o algae to produce ol at a prce that s compettvewth crude ol.


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Products The algal bomass produced can be processed n numerous ways to extracteconomc value, dependng on the desred output product/s. Commonly, thenatural ol racton some speces are capable o producng 70%wt olcontent s sought as a eedstock or bodesel producton, ood products,chemcals, nutraceutcals or or crackng nto smaller base unts beorereormng to a wde range o other products.


Typcally, ~1.8 tonnes o CO2 wll be utlsed per tonne o algal bomass dryproduced, though ths vares wth algae speces.

CO2 source CO2 used n algae cultvaton can be taken rom a range o sources. One othe man sources nvestgated or largescale producton s power plant uegases. Algae cultvaton systems are bologcal systems and so havesenstvtes to certan components and mpurtes. The source CO2 would

typcally go through some cleanup processes to remove any components,whch may have a detrmental efect on the algae. Food grade CO2 could beconsdered the deal source.


There are currently no closed algal cultvaton systems or bomass/bouelproducton operatng on a large scale, though there are many around theworld emergng at plot or demonstraton scale, and t s no longer just alaboratory experment. Several large global companes ncludng BP,Chevron, Vrgn and Royal Dutch Shell have nvested research undng ntovarous systems and are currently carryng out easblty studes.

Fundng/support Several multbllon dollar programs now exst drven by ol majors, wth largemultdscplnary research collaboratons now underway at a number ounverstes n the US, Australa, NZ, Japan, Chna, South Arca and Europe.

Support has been granted by the Mexcan government and Presdency, orthe aorementoned project by Algenol and BoFelds n the Sonora Desert.

General benets Has hgh potental or large scale reuse o CO2

Algal ol can be njected nto exstng crude ol reneres.

Use o algae derved energy carrers bouel, bogas results n dsplacemento ossl equvalents.

General barrers Captal ntensty o cultvaton systems s currently a lmtng actor.

Requres large amounts o nutrents smlar to exstng agrcultural systems,most o whch are currently CO2 ntensve n producton, though n a captvesystem these can be managed more efectvely and recycled.

Reer to Appendx E or urther detals o algae cultvaton usng CO2.

2.6 CO2 AS FEEDSTOCK FOR CARBONATE MiNERALiSATiON

Carbon mneralsaton s the converson o CO2 to sold norganc carbonates usng chemcal reactons.in ths process, alkalne and alkalneearth oxdes, such as magnesum oxde MgO and calcumoxde CaO, whch are present n naturally occurrng slcate rocks such as serpentne and olvneor n natural brnes, are chemcally reacted wth CO2 to produce compounds such as magnesumcarbonate MgCO3 and calcum carbonate CaCO3, commonly known as lmestone. The carbonatesthat are produced are stable over long tme scales and thereore can be used or constructon, mnereclamaton, or dsposed o wthout the need or montorng or the concern o potental CO2 leaks thatcould pose saety or envronmental rsks.


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PAGE 27


Fgure 2.5 Calera CMAP process overvew

iNPUTS CMAP PROCESS OUTPUTS

FLY ASH

CONCENTRATED

PUMPABLE

SUSPENSiON

(AGGREGATE)

FRESH WATER

BRiNES

WASTE

WATER

CO2 iNFLUE GAS

CLEAN CARBON-REDUCED/

FREE FLUE GAS

RAW FLUE GAS CONTACTED

WiTH WATER AND SOLiD

MiNERALS iN ABSORBER

REACTOR

CARBONiC ACiD CONVERTED

TO CARBONATE iONS

MiNERAL CARBONATES

PRECiPiTATED AS SLURRY

CO2 ABSORBED AND

DiSSOLVED FORMiNG

CARBONiC ACiD

DiVALENT CATiONS REACT

WiTH CARBONiC ACiD TO

FORM MiNERAL

CARBONATES

SLURRY SEPARATED AND

DEWATERED

Table 2.6 Carbonate mneralsaton technology summary


GENERAL DESCRiPTiON

Technology 1. Calera Process carbonate mneralsaton2. Skymne technology

The numberng scheme above wll be retaned throughout the table todferentate between the two technologes.

Proponents 1. Calera

2. Skyonc Corporaton Texas

Descrpton 1. Moderately concentrated CO2 e.g. power staton ue gas s contactedwth mneralloaded alkalne brne. The CO2 present n the gasprecptates out as mneral carbonates lmestone / dolomte equvalentprecptates.

2. Skyoncs SkyMne technology removes CO2 rom ndustral waste

streams through cogeneraton o saleable carbonate and/orbcarbonate materals.

Products 1. Aggregate and supplementary cementtous materal SCM, whch canbe used to make concrete, asphalt, and other buldng applcatons.

2. The mneralsed carbon doxde bakng soda wll be used n severalndustral applcatons and tested as eedstock or boalgae uels.


1. Approx. 0.5t CO2 per tonne o mneral carbonate produced

2. Not speced

CO2 source 1. Relatvely low concentraton CO2 source s requred. Drect use o powerstaton ue gas s possble.

2. industral waste streams, e.g. cement plants.


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1. Calera: Contnuous plotscale plant operatonal producng average5t/day o SCM n Moss Landng Calorna; Demonstraton plant s underconstructon wll use a 10MW slpstream rom the 1.5GW DynergyMoss Landng gasred power plant.

2. Phase 1 o CaptolSkyMne demonstraton aclty has been ntatedat Captol Aggregates, Ltd cement plant n San Antono, Texas, USA.Ths ncludes modellng, smulaton, desgn, costng, and procurementactvtes. Constructon o a commercalscale aclty s antcpated bythe thrd quarter o 2010. The CaptolSkyMne plant s targeted tocapture 75,000 metrc tonnes o CO2 rom ue gas and mneralsecarbon emssons to produce 143,000 metrc tonnes o bakng soda.

Fundng/support 1. Calera endorsed by the US DOE; 23 September 2009 and awarded

a grant or the expanson o the Moss Landng aclty to ademonstraton scale.

2. Skyonc receved a $3 mllon Carbon Capture and Sequestraton romindustral Sources and innovatve Concepts or Benecal CO2 Usegrant admnstered by the Department o Energy and the NatonalEnergy Technology Laboratory DOE/NETL. Prvate nvestors arecontrbutng the balance o Phase i unds. in md2010, Skyonc wllhave the opportunty to apply or a Phase 2 grant rom DOE/NETL tosupport plant constructon.

General benets The Calera process has the ollowng benets:

One o the by products s resh water that could be used as potablewater, rrgaton water, or an ndustral water supply, whch may allevate

the water dect n some regons. The process utlses y ash and waste water.

The technology does not requre CO2 separaton or compresson.

SCM can enhance the strength o concrete and supplant a porton o thecement n concrete blends.

Both the Calera process and Skymne technology have the ollowng benets:

Technology can be retrotted to statonary emtters.

The process s scalable.

The process captures and/or removes other emssons ncludng sulphurdoxde, partculate matter, mercury and other metals.

General barrers General barrers to the Calera process:

The technology has the potental to be rejected by the cement ndustryas t produces a product that s already produced n the manuacture ocement, and would requre a carbon prce as an ncentve or cementmanuacturers.

The success o the CMAP technology s hghly dependent on theavalablty o sutable subsurace waters brne to provde the requstehardness and alkalnty requred and wthn abundant supply.

Reer to Appendx F or urther detals o usng CO2 as a eedstock or mneralsaton.


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2.7 CO2 FOR USE iN CONCRETE CURiNG

Canadan company Carbon Sense Solutons inc. CSS s seekng to use a pont source o CO2 to lmtthe need or heat and steam curng o precast concrete products. instead o the tradtonal energyntensve steam curng technologes, the proposed CSS concrete curng process consumes carbondoxde rom onste ue gases and local combuston sources to cure precast concrete products, wthclamed equal materal perormance to the tradtonal curng process.

Table 2.7 CO2 or use n concrete curng summary


GENERAL DESCRiPTiON

Technology Concrete Curng

Proponents Carbon Sense Solutons inc. CSS

Descrpton Pont source emsson o CO2 used to lmt the need or heat and steam nthe curng process n the producton o precast concrete products.

Products Precast concrete products.


Estmated at less than 120kg CO2/t precast concrete produced.

CO2 source CO2 captured rom ndustral sources, deally rom sources wthn closeproxmty to the concrete plant.


Technology s currently movng towards a smallscale demonstraton.it remans to be proven.

Fundng/support No external undng or support receved.

General benets Producers wll benet rom energy and water reductons resultng n costsavngs and ecency gans. The proponent clams the process s easlyretrotted, requrng targeted modcatons to exstng plant machnery wthmnmal dsrupton to exstng processes. it s also clamed that the use o CO2results n an accelerated curng process wth lower temperatures requred.

General barrers The concrete sector operates wthn a hghly compettve commodty marketwth lmted captal to nvest n new technologes. The change n productonmethod curng process must not compromse materal perormance as themateral perormance s governed by ndustry standards e.g. ASTM, CSA.

Reer to Appendx G or urther detals o usng CO2 or concrete curng.

2.8 CO2 FOR USE iN BAUXiTE RESiDUE CARBONATiON

The extracton o alumna rom bauxte ore results n a hghly alkalne bauxte resdue slurry knownas red mud, wth a pH o approxmately 13. The bauxte resdue contans a mxture o mnerals andsome alkalne lquor NaOH rom the Bayer extracton process. At Kwnana n

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