AGENCE INTERNATIONALE DE L’ENERGIEINTERNATIONAL ENERGY AGENCY

Clean Energy and Sustainable Development

Clean Fossil Energy Opportunities:CO2 Capture and Storage

Dr. Jacek PodkanskiInternational Energy Agency

jacek.podkanski@iea.org

Energy Week 2006The World Bank Group

INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE

What is CO2 capture & storage?

Capturing CO2 from the gas streams emitted during electricity production, industrial processes or fuel processing

Transporting the captured CO2 by pipeline or in tankers

Storing CO2 underground in deep saline aquifers, depleted oil and gas reservoirs or unminable coal seams

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

Global CO2 emissions

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

Emission stabilisationMarginal CO2 abatement cost

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

Capture at various CO2 prices

0

5

10

15

20

25

2000 2010 2020 2030 2040 2050

[Gt

CO

2/yr

]

GLO100

GLO50

GLO25

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

CO2 capture by process area

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

COCO22 emissions from electricity emissions from electricity generationgeneration

0

2

4

6

8

10

12

14

16

18

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050

[Gto

n C

O2]

0$10$25$25$ NoCCS50$50$ NoCCS

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

Electricity production by power plants fitted with CCS, by region

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

Fuel market implications:CCS impact on coal use at 50$/t CO2

0

100

200

300

400

No CO2 policy 50 US$/t CO2,CCS

50 US$/t CO2,no CCS

2000 2050 2050 2050

[EJ/

yr]

CCS impact

2050: 50$/t CO2 results in 80% or 40% decline in coal use, depending on availability of CCS

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

Challenges

RD&D gaps

Public awareness and acceptance

Legal and regulatory framework

Long-term policy framework and

incentives

PROSPECTS FOR

CO2 CAPTURE AND

STORAGE

Energy Technology Scenarios

Carbon Capture & StorageResearch, Development, Demonstration and Deployment

● US● EU● Canada● Australia● Germany ● UK● Norway ● France ● Italy● Japan,…

Carbon Sequestration Leadership Forum

International Energy Agency

Intergovernmental Panel on Climate Change (IPCC)

World Energy Council Bilateral Agreements, …

Alstom ExxonMobilBP EniTecnologie SpAChevronTexacoEPRI Shell InternationalRWE AG TotalRio Tinto, Schlumberger,…

www.ieagreen.org.uk

Programme MembersProgramme Members

1818

Member CountriesMember Countries

13 Industrial Sponsors13 Industrial Sponsors

www.ieagreen.org.uk

Japanese Vision - Development for 21Japanese Vision - Development for 21stst Century Century

www.ieagreen.org.uk

Japanese Roadmap Development – Starting PointJapanese Roadmap Development – Starting Point

www.ieagreen.org.uk

Japanese C3 Initiative toward ZET Coal UtilisationJapanese C3 Initiative toward ZET Coal Utilisation

Coal gasification technology

Fixing technolog

2010

Air-blowing

gasification

Oxygen-blowing

gasification

High-grade coal

gasification

CO2 separation/ recovery

CO2 fixing

Timing of commercialization

Demonstration test

Demonstration testR＆D

Zero-emissionZero-emission

Demonstration test

2015 2020 2025 20302004

Demonstration test

R&D

R&D

Realization of zero-emission

2005

Commercial facility of IGFC

Demonstration test

Gasification furnace for

industrial use

A-IGCC/A-IGFC

46-48% (Transmission-end

efficiency)

>65% (Transmission-end efficiency)

R&D

Assimilation with separation/fixing

technologies

Hydrogen

FC FC FC FC

CO2

Demonstration test of the new separation and recovery

technologies

Deployment to fully-fledged storage

Improvement of heat efficiency

On the assumption that the amount is the same as the current unit price of coal-fired power generation (¥5.9/kWh as calculated on a trial basis by the Federation of Electric Power Companies of Japan)

F/S

A-IGCC／A-IGFC

¥6/kWh* ¥6-¥7/kWh

55% (Transmission-end

efficiency)

Coal gasification technology

Fixing technolog

2010

Air-blowing

gasification

Oxygen-blowing

gasification

High-grade coal

gasification

CO2 separation/ recovery

CO2 fixing

Timing of commercialization

Demonstration test

Demonstration testR＆D

Zero-emissionZero-emission

Demonstration test

2015 2020 2025 20302004

Demonstration test

R&D

R&D

Realization of zero-emission

2005

Commercial facility of IGFC

Demonstration test

Gasification furnace for

industrial use

A-IGCC/A-IGFC

46-48% (Transmission-end

efficiency)

>65% (Transmission-end efficiency)

R&D

Assimilation with separation/fixing

technologies

Hydrogen

FC FC FC FC

CO2

Demonstration test of the new separation and recovery

technologies

Deployment to fully-fledged storage

Improvement of heat efficiency

On the assumption that the amount is the same as the current unit price of coal-fired power generation (¥5.9/kWh as calculated on a trial basis by the Federation of Electric Power Companies of Japan)

F/S

A-IGCC／A-IGFC

¥6/kWh* ¥6-¥7/kWh

55% (Transmission-end

efficiency)

www.ieagreen.org.uk

Japanese R&D ProgrammeJapanese R&D Programme• IGCC Demonstration Project

• Demonstration of 250 MW IGCC (based on oxygen enriched air blown gasifier) to be operational by 2007

• Target efficiency (LHV basis) ~ 48%

• Energy Application for Gas, Liquid and Electricity (EAGLE) Programme• Target to deploy 50 MWe IGFC by 2010 (for distributed electricity)• Target to deploy 600 MWe IGFC by 2020

• Oxy-Combustion Development• International cooperation with Australia

• Hyper-Coal Project (Ultra Clean Coal Project)• International cooperation with Australia• Target to produce coal processed to remove ash and other

undesirable components which will be fired directly in a turbine.

www.ieagreen.org.uk

Australia – Coal21 Action PlanAustralia – Coal21 Action Plan

Pilot Implement

Demo Commercial

Pilot Demo

PilotEval Demo Commercial

Pilot Demo Commercial

2000 2005 2010 2015 2020 2025 2030

Lignite Drying

Black & Brown Coal IGCC with

CO2 Capture

Geological Storage of CO2

OxyfuelCombustion

Ultra-Clean Coal

Demo Commercial

Pilot Implement

Demo Commercial

Pilot Demo

PilotEval Demo Commercial

Pilot Demo Commercial

2000 2005 2010 2015 2020 2025 2030

Lignite Drying

Black & Brown Coal IGCC with

CO2 Capture

Geological Storage of CO2

OxyfuelCombustion

Ultra-Clean Coal

Demo Commercial

www.ieagreen.org.uk

Australian R&D ProgrammeAustralian R&D Programme• Oxy-Combustion Development

• Japanese-Australian cooperation• Pilot Scale study for PC Boiler Retrofit (25 MWe) – Callide A Project

• IGCC Demonstration Plant Programme• Demonstration of IGCC with carbon capture programme• Pilot plant study (16 MW and 65 MW)• 200 MW will be commissioned at Stanwell Power Station by 2010 -

depending on the outcome of the feasibility study• IDGCC for brown coal

• Target to commission 800 MWe IDGCC by 2010• 100 MW IDGCC demonstration project is currently at site selection

and costing stage. Decision to proceed will be made by mid-2006• Ultra Clean Coal Development Programme

• International cooperation with the Japanese (Hyper Coal Project)• A relationship was developed with the Chinese power utilities

www.ieagreen.org.uk

USA Roadmap Development PrincipleUSA Roadmap Development Principle• Short-term: keep existing fleet in

service; prepare for transition to near-zero-emission future

• SO2, NOx, Hg

• Plant optimization and control

• Reduced carbon intensity

• Long-term: add near-zero emission energy plants

• IGCCs to market

• Advanced materials

• Ultra-high efficiency hybrid systems

• CO2 capture and storage

Rev. 071404

www.ieagreen.org.ukRev. 071404

USA Roadmap DevelopmentUSA Roadmap Development

• Global Climate Change Initiative• set a target of 18% GHG emission intensity reduction by

2012 (baseline year 2001)

• Future Gen – “Integrated Sequestration and Hydrogen Research Initiative”• US$ 1 Billion – 10 year programme• Target to demonstration a 275MW polygeneration plant

by 2015

• Turbine of the Future Programme• Development of Gas Turbine firing with H2 rich fuel

www.ieagreen.org.uk

Gasification with Cleanup Separation System

Integration

CarbonSequestration

USA: Overview of the FutureGen USA: Overview of the FutureGen ProgrammeProgramme

Optimized Turbines

Fuel Cells

H2 Production

www.ieagreen.org.ukRev. 071404

USA Roadmap DevelopmentUSA Roadmap Development• Clean Coal Technology –

• “Clean Coal Power Initiative” (2001 – 2011)• US $ 2 Billion over 10 years

• “Power Plant Improvement Initiative” (2001)• Focus on efficiency improvement and emission

reduction

• VISION 21 Programme – “21st Century Power Plant”

• Material Development Programme• Development of boiler material to achieve

operating steam temperature greater than 750oC

www.ieagreen.org.uk

Vision 21 Programme - StrategyVision 21 Programme - Strategy

www.ieagreen.org.uk

www.ieagreen.org.uk

2050

2020

2015

Pote

ntia

l of

Utili

satio

n on

Tim

e Sc

ale

2010

2005

Risk of R&D

highlow medium

Vision

Steam PP =50%Gas PP >60%

Steam PP =55%Gas pp =65%

Hybrid-Power Plant

Zero-Emission

Power Plant

Capture with

Membranes

Oxyfuel-Demo

IGCCDemo

CO2-Wash

CO2-Reservoirs

CO2/H2-Turbine

Materials

Materials 700°C

Procedures ProtectionSystems

Materials800°C

Min. Leaks

Strategielinie: Effizienz Strategielinie:CO2-Capture/ Storage

2050

2020

2015

Pote

ntia

l of

Utili

satio

n on

Tim

e Sc

ale

2010

2005

Risk of R&D

highlow medium

Vision

Steam PP =50%Gas PP >60%

Steam PP =55%Gas pp =65%

Hybrid-Power Plant

Zero-Emission

Power Plant

Capture with

Membranes

Oxyfuel-Demo

IGCCDemo

CO2-Wash

CO2-Reservoirs

CO2/H2-Turbine

Materials

Materials 700°C

Procedures ProtectionSystems

Materials800°C

Min. Leaks

Strategielinie: Effizienz Strategielinie:CO2-Capture/ Storage

German: COORETEC ProgrammeGerman: COORETEC Programme

www.ieagreen.org.uk

CarbonReduction

Time

`Increased Efficiency`Trajectory

`Zero Emissions`Trajectory

Near-term Mid-term Long-term

Zero emissions will need the most efficient plant

Key issue will be value of CO2

UK: CAT Options are complementaryUK: CAT Options are complementary

www.ieagreen.org.uk

EC: COEC: CO22 Capture and Storage R&D Policy Capture and Storage R&D Policy

A Priority in Long Term Energy R&D in FP6 (2002-2006)

• Capture and sequestration of CO2, associated with cleaner fossil fuel plants.• Targets: reduce the cost of CO2 capture from

50-60 € to 20-30 € per tonne of CO2 captured, whilst aiming at achieving capture rates above 90%, and assess the reliability and long term stability of sequestration.

www.ieagreen.org.uk

Components of FP7Components of FP7

• Continued focus on Carbon Capture and Storage

• Re-introduction of Clean Coal Technology in recognition of the drive for greater efficiency whilst CCS is developed and deployed

• Technology Platform to advise on strategy and direction of these two elements

www.ieagreen.org.uk

European Based R&D ProgrammeEuropean Based R&D Programme• CCS Projects

• Enhanced Capture of CO2 in Large Power Plant (ENCAP) Project – FP6 funded project

• CO2 from Capture and Storage (CASTOR) – FP6 funded project dealing with post-combustion capture

• ISCC (In-situ CO2 Capture Technology for Solid Fuel Gasification) – FP6 funded project

• Vattenfall taking the initiative – 30 MW pilot plant study• Polygeneration of Hydrogen and Electricity

• HYPOGEN Project• Material Development Programme

• Component Test Facility for a 700oC Power Plant (COMTES700) – RFCS funded project – continuation of AD700 programme

INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE

International Energy AgencyWorking Party on Fossil Fuels and IEA Clean Coal Centre

G8 Plan of Action: Cleaner Fossil Fuels

Global databaseGlobal database with complete

information on efficiency of

fossil-based electricity

generation

ReportReport on best practices in

power plant operation

Series of case studiesSeries of case studies on

recently constructed plants

Joint effort of IEA and IEA Clean Coal Centre in collaboration with the World Bank, European Commission, World Energy Council, VGB, EOn

Focus on Russia and +Five Developing Countries

Final Report to the G8 in mid-2008WB/IFIs: Review of deliverables

ReportReport on potential of

upgrades and replacement

ReportReport on potential of future

developments

Global conferenceGlobal conference and three

regional workshops

INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE

International Energy AgencyWorking Party on Fossil Fuels and IEA GHG R&D

Programme

G8 Plan of Action: Carbon Dioxide Capture and StorageWorkshop on Early CCS Opportunities: CO2 Enhanced Oil Recovery, CO2

Separation from Natural Gas

- organised jointly by the IEA’s WPFF and Oil and Gas Advisory Group, Chevron, US

Energy Association, IEA GHG R&D Programme and EOR R&D;

- San Francisco, 22-23 August 2006;

- gathering of professionals from industry and research institutions: information

exchange, preparation of dissemination and popularization conference;

- follow-up publication;

- conferences to disseminate information and popularise early opportunities (2007).

Coordination with the CSLF Involvement of developing countries

INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE

International Energy AgencyWorking Party on Fossil Fuels and IEA GHG R&D

Programme

G8 Plan of Action: Carbon Dioxide Capture and Storage

Study on capture ready plant:

- Engineering and cost study on capture ready plant (GHG R&D

Programme, on going subcontracting process);

- Report on policy instruments and incentives for capture ready

plant (IEA Secretariat);

- Dissemination efforts

Coordination with the CSLFInvolvement of developing countries

INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE

Long-term policy framework andincentives

In addition to the acceleration of RD&D funding, countries should create a level-playing field for CCS alongside other climate change mitigation technologies. This includes ensuring that various climate change mitigation instruments, including market-oriented trading schemes, are adapted to include CCS.

INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE

Conclusions

CCS can play a key role in addressing global warming mainly through coal plants in coal-rich regions – but

efficiency first but also some natural gas opportunities

Carbon incentives are needed, but also: Proven technology – too early to pick up winning

technology Acceptable storage

Capture ready plant ?

AGENCE INTERNATIONALE DE L’ENERGIEINTERNATIONAL ENERGY AGENCY

jacek.podkanski@iea.org

Thank you