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Chalmers University of Technology Large scale CCS infrastructure in a European, in a Nordic and in a Swedish perspective Chalmers Energy Conference January 26 th , 2011 Jan Kjärstad, Ricky Ramdani, Pedro M. Gomes Dept of Energy and Environment, Chalmers University of Technology

Large scale CCS infrastructure in a European, in a Nordic ... › en › areas-of-advance › energy › Document… · • CCS may play an important role in mitigating climate change

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Page 1: Large scale CCS infrastructure in a European, in a Nordic ... › en › areas-of-advance › energy › Document… · • CCS may play an important role in mitigating climate change

Chalmers University of Technology

Large scale CCS infrastructure in a European, in a Nordic and in a Swedish perspective

Chalmers Energy ConferenceJanuary 26th, 2011

Jan Kjärstad, Ricky Ramdani, Pedro M. Gomes Dept of Energy and Environment,

Chalmers University of Technology

Page 2: Large scale CCS infrastructure in a European, in a Nordic ... › en › areas-of-advance › energy › Document… · • CCS may play an important role in mitigating climate change

Chalmers University of Technology

Outline of the presentation• The Context – Global GHG emission reduction

requirements• CCS in a global perspective• CCS in a European perspective• Large-scale CCS infrastructure - exemplified through 3

recently finished/ongoing studies– CCS in Sweden– CCS in the Nordic countries– CCS in Europe

Page 3: Large scale CCS infrastructure in a European, in a Nordic ... › en › areas-of-advance › energy › Document… · • CCS may play an important role in mitigating climate change

Chalmers University of Technology

The context – global GHG emission reduction requirements

Source: IPCC Fourth Assessment Report, 2007

More recent research indicates however that stabilisation at 450 ppm may not be enough to limit

the temperature increase to 2°C

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Chalmers University of Technology

CCS in a global perspective

IEA Energy Technology Perspectives 2010 edition

Roughly 9 Gtpain 2050

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Chalmers University of Technology

CCS in an EU perspective – 1• EU is targeting 20-30% GHG emission reductions in 2020 and has suggested

80-95% reductions for industrialised countries in 2050 (relative to 1990).• Breakdown EU GHG emissions 1990/2007 (Ex LULUCF):

– GHG: 5,564/5,045 Mt CO2e– CO2: 4,400/4,187 Mt CO2 (2007: 83% of GHG-emissions)– Transport CO2 : 768/966 Mt CO2 (2007: 23% of CO2 emissions, 19% of GHG emissions)– In other words 80-95% GHG emission reductions in 2050 implies close to no stationary CO2 emissions at all

• Commissions objective: 10-12 large-scale demo plants up and running in 2015 demonstrating the entire chain (capture, transport, storage).

• EU Financial support (up to 50% of total investments)– EEPR programme: € 1 billion shared between 6 coal power plants with CCS– NER 300 programme: Revenues from auctioning of 300 million emission allowances

will be allocated to large-scale CCS demo projects and innovative renewable projects.• The EU CCS directive shall be transferred into national law in all EU member states

by June 25th, 2011. • A European CO2 transport network included in Commissions Com. Nov. 17, 2010:

“Energy Infrastructure Priorities for 2020 and beyond”

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Chalmers University of Technology

CCS in an EU perspective - 2

• CCS in EU will probably start with large-scale demo plants followed by some regional clusters like Rotterdam and UK northwest coast

• McKinsey/ZEP suggest 80-120 CCS plants in 2030 capturing around 400 Mt CO2 per year.

• Cost of CO2-emissions will have to render CCS as a competitive mitigation option.

• CO2 storage potential appear to be sufficient in most member states but;– Significant uncertainties in most estimates– Onshore storage facing opposition and– Offshore potential concentrated to the countries situated around the North Sea

• Recently, several CCS projects have been delayed or abandoned • Still significant barriers/uncertainties, e.g.:

– Capture cost, storage capacity, regulatory framework, public acceptance, emission price

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Chalmers University of Technology

Large-scale CCS infrastructure – 3 recent/ongoing studies

• CCS in Sweden and in the Nordic countries– Swedish Energy Agency (finished) : ”CCS in the Baltic Sea

region”– EU Interreg (ongoing): ”CCS in the Skagerrak/Kattegat

region”.• CCS in Europe:

– Collaboration with EU Commissions Joint Research Centre (JRC) (ongoing): ”Linking techno-economic modelling of Europé’s electricity sector to large-scale CCS infrastructure optimization”.

Page 8: Large scale CCS infrastructure in a European, in a Nordic ... › en › areas-of-advance › energy › Document… · • CCS may play an important role in mitigating climate change

Chalmers University of Technology

Chalmers Methodology• Modelling of Europe’s electricity sector provides CO2 captured by fuel

and by country (power sector only – different methodology for industry).• The CO2 is allocated to capture plants assumed to replace existing plants

(blocks) based on plant (block) age.• Compression to 70 bars included in capture cost• Four pipeline modes; Collecting pipelines, Bulk Pipelines, Reservoir

Pipelines, Injection Pipelines (the latter based on reservoir injectivity).• All pipelines designed based on plateau capacity• Operating pipe pressure onshore 86-120 bar, offshore based on distance. • Cost calculations:

– Based on IEA (2007) and actual pipeline design cost adjusted by latest update of IHS Downstream Capital Cost Index

– Annuitized over 20 years with 8% discount rate

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Chalmers University of Technology

Overview Baltic Sea study – Sources and SinksSources (red fossil, green biogenic) Sinks

(Norwegian/UK sinks not shown)

Source: Chalmers Energy Infrastructure Database

Swedish sources mainly biogenic – no incentives

for CCS

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Chalmers University of Technology

Baltic Sea – Bay of Bothnia cluster• Industry only – 80% overall

capture• 18 sources, from 60 kton to 3.8

Mtpa!!• Plateau volume 14.8 Mtpa• Storage in aquifers in Barents Sea• Special focus on ramp-up:• Bulk pipe at 25, 50, 75% reaching

100% capacity in year 10• Versus 4 smaller pipelines each

carrying 25% and built over 10 years.

• Bulk pipeline most competitive -Specific cost: € 8.8 - € 10.3 per ton*

Sweden Finland

Norway

Barents Sea

* Improved cost data (IEA 2007 instead of IEA 2004) indicates that specific cost should be raised by a factor 2

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Chalmers University of Technology

Baltic Sea – Western Finland and around Gävle

• 20 sources from 94 kton to 1.9 Mtpa, plateau volume 16.5 Mtpa• Storage in aquifers in Norwegian Sea (Åre or Tilje formation) or Baltic Sea• 3 cases; pipeline to Norwegian Sea and Baltic Sea, boat to Baltic Sea• Volumes ramped up over 5-10 years (25, 50, 75 and 100% of plateau capacity)• Bulk pipeline most cost efficient, specific cost with 100% utilisation from year 1 ranging

from € 9.2/ton (Norwegian Sea) to € 10.0 per ton with storage in Barents Sea.• Boat transport from central hubs incl liquefaction and intermediate storage: € 13.7/ton

Norway

SwedenSweden Finland

Estonia

Latvia

* Improved pipeline cost data (IEA 2007 instead of IEA 2004) indicates that specific cost should be raised by a factor 2

Baltic Sea

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Chalmers University of Technology

EU Interreg study – CCS in Skagerrak/Kattegat-region

Attract industry with a long-term solution for CO2-emissions

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Chalmers University of Technology

CCS in the Skagerrak/Kattegat region• The first EU-financed intraregional CCS study comprising

sources in Denmark, Norway, Sweden• Roughly 13 Mt CO2 emitted annually from large stationary

sources in the region• Capture potential ~ 10 Mtpa – representing 25% of combined

national reduction targets in 2020• The project is led by Tel-Tek, Norway with Chalmers as lead

partner and will:– Analyze capture in detail at 7 sites– Design transport systems; boat and pipeline– Investigate storage possibilities in the region– Analyze legal framework/legal preconditions for CCS in the region

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Chalmers University of Technology

Example of a network in the region

Promising storagestructures identified

Possibly boat transport during early build-up

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Chalmers University of Technology

CCS in the European Power SectorModelling of EU’s power sector providing annual CO2-flow JRC providing corresponding optimized

transport network

• Two scenarios capturing and transporting 15 and 24 Gt respectively between 2020-50• Total cum investments for the transport system ranging from €13.7 to € 25.7 billions*•Total pipeline length ranging from 10,300 km to 14,900 km*

* Assuming no storage in onshore aquifers cum investments rise to € 31.2 billions (15 Gt stored)

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Chalmers University of Technology

CCS in the European power sector – next steps

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Chalmers will look in detail at some individual schemesproviding feedback to JRC’smodel in an iterative process

and develop a methodology for design of CCS infrastructure

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Chalmers University of Technology

Conclusions• CCS may play an important role in mitigating climate change –

Globally, in Europe and in the Nordic countries.• CCS may also play an important role in Sweden

– incentivising CCS from biogenic sources will contribute to neutralising parts of emissions from the transport sector

• The interest for CCS in Sweden is growing, also politically• There is a lot of CCS related activity but still significant

uncertainties remain• Chalmers has been a leading institution for research on capture

for many years and is developing several important tools to investigate the role of CCS within the energy system.

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Chalmers University of Technology

Thank You

[email protected]