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© IEA/UNIDO 2011
Challenges and Opportunities of CO2 Capture & Storage in the Iron and Steel IndustrySteel Institute VDEh AuditoriumDusseldorf, Germany8-9 November 2011
Carbon Capture and Storage in Industrial
Applications
Nathalie TrudeauSustainable Energy Technology and Policy
International Energy Agency
© IEA/UNIDO 2011
Focus on five industrial sectors:
1. High-purity sources (gas processing, H2 production, CtL, ethylene oxide and ammonia production)
2. Cement3. Iron and steel4. Biomass conversion5. Refineries
Jointly account for 75% of today’s total industrial and fuel transformation CO2 emissions
© IEA/UNIDO 2011
Challenge of CO2 emissions from industry
Industry accounts for 25% of total global CO2 emissions Under a baseline scenario, total industrial CO2 emissions
would grow by 120% in the next four decades Emissions from sectors covered in the roadmap would
grow by 83%
Iron and steel31%
Cement27%
High-purity sources
7%
Refineries10%
Other indus-tries25%
2008 - 7.4 Gt CO2
Iron and steel19%
Cement15%
High-purity sources22%
Refineries6%
Other indus-tries37%
2050 - 16.4 Gt CO2
© IEA/UNIDO 2011
ETP BLUE Map Scenario: a portfolio of technologies
© IEA/UNIDO 2011
Potential of CCS in industrial applications
The IEA ETP BLUE Map scenario (2010) charts a cost-effective pathway to cutting CO2 emissions by 50% by 2050:
Role of CCS in the five covered sectors can be very significant:→ CCS could cut emissions by 4 GtCO2 in 2050→ 9% of the global required emission reductions in 2050
© IEA/UNIDO 2011
Varied picture of CCS in industry today
High-purity sectors Ongoing experience of operating large-scale projects in
gas processing: In Salah, Sleipner, Snohvit, Rangely, Weyburn
Gorgon LNG project under construction
Biomass conversion Some ongoing pilot-scale experience in bio-ethanol
sector (USA)
© IEA/UNIDO 2011
Varied picture of CCS in industry today (2)Iron and steel Pilot-scale project experience (SWE) Large demonstration in planning (FRA)
Cement No project experience so far
Refineries Pilot and demonstration scale projects in operation or in
planning (NO, BR, CA, NL…)
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Deployment challenge (1) From 60 projects in 2020 to 1800 projects in 2050
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Deployment challenge (2)
2020 2030 2040 2050
High purity 29 87 154 268
Biomass conversion
5 53 259 544
Cement 10 134 313 495
Iron & steel 14 169 291 411
Refineries 2 24 56 88
TOTAL 60 467 1073 1806
Numbers of projects required per sector under BLUE Map scenario (2010)
© IEA/UNIDO 2011
Deployment challenge (3) Deployment must move rapidly to non-OECD countries
© IEA/UNIDO 2011
Costs (1) The sectors covered will show a wide range of cost of
abatement, from under 30 to over 150 USD/tCO2
Refinery
Iron and steel
Cement
Biomass conversion
High-purity
0 50 100 150 200
Cost of abatement (USD/tCO2 avoided)
© IEA/UNIDO 2011
Costs (2) Additional investment cost: USD 882 billion (2% of
additional capital cost to reach BLUE Map goal) Total additional costs: USD 3 trillion (6,5% of total
additional cost to reach BLUE Map goal)
High-purity sectors
Biomass conversion
Cement Iron and steel
Refineries0
50
100
150
200
250
300
350
Additional investments 2010 - 2050*
USD
billi
on
High-purity sectors
Biomass conversion
Cement Iron and steel
Refineries0
200
400
600
800
1000
1200
1400
Total additional costs 2010 - 2050**
USD
billi
on
© IEA/UNIDO 2011
Recommendations & milestones:
→Technology actions by sector→Recommendations for policy, finance and
international collaboration
© IEA/UNIDO 2011
Technology: High-purity sectors
Compile an inventory of high-purity sector CO2 capture opportunities and estimate related costs
Establish CO2 transportation and storage demonstration projects involving hydrogen, ammonia and ethylene oxide production processes
Realise 29 related production plants with CCS by 2020, and 87 by 2030
© IEA/UNIDO 2011
Technology: Biomass conversion
Further quantify the total amount of biomass that could be produced in a sustainable manner
Continue R&D on key enabling technologies, such as improved biomass gasification processes
Realise six commercial-scale biomass conversion plants combining CO2 compression, transport and storage by 2020, including an industrial-scale biomass gasification demonstration plant
© IEA/UNIDO 2011
Technology: Cement
Conduct R&D for improving the economics and performance of capture techniques under flue gas conditions that are typical for the cement sector
Investigate the potential economic savings of sharing process equipment or capture-related support infrastructure through the co-location of cement and power plants
Demonstrate a full-scale post-combustion capture plant in the cement industry between 2015 and 2020
© IEA/UNIDO 2011
Technology: Iron and steel
Stimulate further research into the most cost-effective and energy-efficient capture techniques to use for iron and steel production
Equip 75% of the new iron and steel production through large scale blast furnaces and direct reduction iron units in OECD countries with CCS by 2030, and 50% in non-OECD member countries
© IEA/UNIDO 2011
Technology: Refineries
Assess the potential for using waste heat from various refinery processes for reducing the energy penalty by CO2 capture
Implement CCS as soon as possible on hydrogen production facilities that emit high-purity CO2
Develop an industrial scale oxyfuelled fluid catalytic converter demonstration project by 2020
© IEA/UNIDO 2011
Actions for policy
Challenge: a varied picture, many sectors, no one-size-fits-all policy possible
Need for national analysis of industry-CCS options AND policies
Governments and industry should raise awareness of CCS as a mitigation option
Governments to develop incentive policy mechanisms to suit maturity of technology from pilot/demo projects to fully commercial deployment
© IEA/UNIDO 2011
Actions for finance
Include CCS in CDM Create international financial mechanisms for
demonstrating CCS in developing countries Raise awareness of industrial CCS in financing
community, incl. international development banks Start developing financing products suited for
industrial CCS Consider aspects of CCS-readiness for industrial
CCS projects
© IEA/UNIDO 2011
Actions for international collaboration
Continue to investigate sector-specific approaches for trade-sensitive sectors
Ratify London Protocol amendments to enable cross-border transport of CO2
Develop capacity-building and education programmes for universities and schools
Collect and register emissions data Disseminate best practice among industry,
governments and stakeholders
© IEA/UNIDO 2011
Business opportunities for industry-CCS Industrial projects in conjunction with EOR - a
“market pull” for CO2 capture deployment Industrial agglomerations and clusters - several
CO2 sources to be matched with a suitable sink or reutilisation opportunity, reducing costs
Innovation and CCS supply chain – in a forward looking view CCS deployment results in positive spill-overs to all the CO2 capture, transport and storage supply chain providers
© IEA/UNIDO 2011
Key messages
CCS is not only about electric power: it can be a cost-effective option to reduce emissions in industry
CCS could reduce up to 4 GtCO2 emissions from industrial sources by 2050, equaling 9% of total required reductions in 2050
Sectors will vary in speed and cost of deployment Total additional costs could amount to USD 3 trillion
between 2010-2050 Variety of incentive mechanisms needed for varying
maturity of technology
© IEA/UNIDO 2011
The next ten years are crucial
Improve data on emissions, technologies and costs Governments need to ensure adequate funding for CCS
demonstration projects in industrial applications Governments and financiers need to ensure funding
mechanisms are in place to support demonstration and deployment of CCS in developing countries
Public research and development programmes are required to bring more information in the public domain
Global assessments of CO2 sources and potential reservoirs are needed
© IEA/UNIDO 2011
Back-up slides
© IEA/UNIDO 2011
Deployment in high-purity sectors From 29 projects in 2020 to 268 projects in 2050 750 Mt of CO2 captured in 2050 Additional investment cost 56bn USD (268 projects) Could represent an early opportunity sector
© IEA/UNIDO 2011
Deployment in biomass conversion From 5 projects in 2020 to 544 projects in 2050 1.7 Gt of CO2 captured in 2050 Total additional investment cost USD 212bn
© IEA/UNIDO 2011
Deployment in the cement sector From 10 projects in 2020 to 495 projects in 2050 500 Mt of CO2 captured in 2050 Additional investment cost USD 300bn
© IEA/UNIDO 2011
Deployment in iron and steel From 14 projects in 2020 to 411 projects in 2050 900 Mt of CO2 captured in 2050 Additional investment cost USD 260bn
© IEA/UNIDO 2011
Deployment in refineries From 2 projects in 2020 to 88 projects in 2050 165 Mt of CO2 captured in 2050 Additional investment cost USD 57bn
