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The role of CCS/CCUS in the Climate Action Plan Global CCS Institute, delivered at the Global CCS Institute's Third Americas Forum Feb. 27th, 2014, Washington, DC
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Dr. S. Julio Friedmann
Deputy Assistant SecretaryOffice of Clean CoalJanuary 2014
The role of CCS/CCUS in the Climate Action Plan
Global CCS Institute – 3rd Americas Forum
Feb. 27th, 2014, Washington, DC
We live in a time of energy abundance
2
We’re #1! • In Oil and Gas production• In Innovation
We’re #2! • In Coal production & use• In GHG emissions
We’re top 10 • In renewable loading• In uranium production
Once in a generation opportunity to build
3 3
Many energy & environmental challenges face the world
Increasing energy demand (2-3x increase)Water scarcityPollution reduction
Greenhouse gas emission reductionClimate change and arctic impacts
40 years of EOR and 15 years of CCS
Where are we today?
4
IEA CCS Roadmap 2013: Key Technologies for Reducing Global CO2 Emissions
Source: IEA Roadmap 2013. Note: Numbers in brackets are shares in 2050. For example, 14% is the share of CCS in cumulative emission reductions through 2050, and 17% is the share of CCS in emission reductions in 2050, compared with the 6DS.
Most 2050 climate budgets require CCUS from NatGas power
US climate change policy currently consists of a portfolio of federal and state initiatives
(in effect unless noted)
• Federal renewable fuel standard
• Federal vehicle fuel economy standards
• Various alternative vehicle tax credits, rebates, and sales targets
• Infrastructure tax credits
• Fuel tax credits (most expired)
• California economywide GHG cap-and-trade
• California Low Carbon Fuel Standard (in effect, but suit pending)
5
(in effect unless noted)
• Federal renewable tax creditsFederal appliance standards
• Federal conventional pollutant regulations*
• Federal CO2 performance standards (under development)
• State renewable portfolio standards
• State energy efficiency programs
• California economywide GHG cap-and-trade
• RGGI cap-and-trade
• Other state programs
*Not explicitly targeting CO2 emissions, but nonetheless impactful. Note: RGGI = Regional Greenhouse Gas Initiative.
Source: US EIA; IHS CERA
Power
Other
On-road trans-port
2011 US CO2 emissions by major sector
Key policies targeting transportation CO2
Key policies targeting power CO2
Slide from IHS Forum “International Carbon Policy Trends: Is a role reversal under way”, 19 September 2013 • Houston
President’s Climate Action Plan: Three overarching themes
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Mitigation (emissions reduction)• ALL OF THE ABOVE• Efficiency, Renewables, Nuclear, Gas• Coal with CCS/CCUS
Adaptation and resilience• Smart, reliable grid• Key infrastructure investments
International Partnerships• China and Asia• Coordinated intl. efforts
Once in a generation opportunity to build
7
President Obama’s Climate Action Plan focuses onUS power sector CO2 emissions
7
• ~20 directives and initiatives to reduce US GHG emissions.• The EPA WILL complete CO2 performance standards for power plants under
the Clean Air Act
Final ruleDraft rule
2013 2014 2016 20172015
20 Sept. 2013
1 June 2014
1 June 2015
30 June 2016
State implementation plans
New presidentElection year
CO2 NSPS – New Source Performance Standards*
CO2 ESPS – Existing Source Performance Standards
2014–15
CCS is THE key technology for the 2nd era of fossil energy abundance
8
Policy drivers• President’s Climate Action Plan• EPA: NSPS (draft) and ESPS (pending)• State actions (AB32 etc.)
Technical findings (2008-present)• IPCC WG1 report: must read policy summary!• Continued GHG accumulations• Challenges will all energy scale-ups
Global economic context• G2 world• Investors speak• Return to growth
Once in a generation opportunity to build
9
Large Scale Integrated Projects World Wide
1972
1982
1986
1996
2000
2004
2008
2010
2013
2014
2015
2016
2017
2018
2019
2020
2022
0
10
20
30
40
50
60
0
20
40
60
80
100
120
140
Operate Execute DefineEvaluate Cum. Volume
Num
ber
of
Pro
ject
sV
olume C
O2 (m
tpa)
Data from Global CCS Institute
10
The US and international community have deployed over a dozen large CCS projects
Large commercial projects
Pending commercial projects
CO2-EOR
DOE Regional Partnerships Intl. research projects
Key unit of innovation – global engines of discovery
DOE’s top CCS/CCUS priorities
11
Success of the demos• Serial # 1 in operation 2013-2018• A deep and rich set of public learning
Reimagining the coal and CCS RD&D portfolio• Advanced combustion• Capture and storage: incl. footprint reduction• 2nd generation large pilots
International Partnerships• China• Key OECD countries
New mode: delivering solutions
12
DOE CCUS Demonstration Projects
CCPI
FutureGen
ICCS (Area I)
Hydrogen Energy CaliforniaIGCC with EOR
$408 Million - DOE$4.0 Billion - Total
Summit Texas Clean EnergyIGCC with EOR
$450 Million - DOE$1.7 Billion - Total
NRG EnergyPost Combustion with CO2
Capture with EOR$167 Million – DOE$339 Million - Total
Air ProductsCO2 Capture from Steam
Methane Reformers with EOR$284 Million - DOE $431 Million - Total
LeucadiaCO2 Capture from Methanol
with EOR$261 Million - DOE $436 Million - Total
Archer Daniels MidlandCO2 Capture from Ethanol w/ saline storage
$141 Million - DOE $208 Million - Total
FutureGen 2.0Oxy-combustion with CO2 capture
and saline storage$1.0 Billion - DOE
$1.3 Billion - Total
Southern Company ServicesIGCC-Transport Gasifier w/CO2 pipeline
$270 Million - DOE$2.67 Billion - Total
Focus – Large-scale commercial demonstration of CCUS integrated with coal power generation and industrial sources.
13
Major Demonstration Projects
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Recipient Project Location DOE Funding Status Storage Type
CO2 Seq.(Metric Tons Per Year)
StorageStart
Air ProductsSteam Methane Reformer
HydrogenProduction
Port Arthur, TX $284M Operations EOR ~925,000 2013
Southern Company Services
(Kemper)
Integrated Gasification Combined Cycle (IGCC)
Kemper County, MS $270M Under
Construction EOR ~3,000,000 2014
Archer Daniels Midland
Ethanol FermentationCO2
Decatur, IL $141M Under Construction Saline ~900,000 2014
NRG Energy (Petra Nova )
WA Parish
Retrofit Pulverized Coal plant Thompson, TX $167M Financing EOR 1,400,000 2016
SummitTexas Clean Energy
Project
Integrated Gasification Combined CyclePolygeneration
Penwell, TX $450M Financing EOR 2,200,000 2017
Leucadia Energy, LLC Methanol from Petcoke Gasification Lake Charles, LA $261M
Front End Engineering &
DesignEOR ~4,500,000 2017
FutureGen 2.0Oxycombustion
Pulverized Coal Boiler Retrofit
Meredosia, IL / Morgan County, IL $1B
Front End Engineering &
DesignSaline 1,000,000 2017
(est.)
Hydrogen Energy California (HECA)
Integrated Gasification Combined Cycle Polygeneration
Kern County, CA $408MFront End
Engineering & Design
EOR 2,570,000 2019 (est.)
1414
15
16
Loan Program Office Project Development Financing
LPO Advanced Fossil Energy Solicitation
CARBON CAPTURE• From traditional coal or NG generation• Saline formations or EOR
ADVANCED RESOURCE DEVELOPMENT• ECBM, UCG, novel oil and gas drilling• Use of co-produced waste gases vs. flaring
LOW CARBON POWER SYSTEMS• Oxycombustion, chemical looping• Syngas-, H2, or NG-based fuel cells
EFFICIENCY IMPROVEMENTS• CHP and waste-heat recovery• High-T or high-efficiency cycles
17
A technology pipeline for affordable CCS
We need more 2nd generation pilots!
18
Pathway for Technology CommercializationTRL 2 Successes
from FWP, SBIR/STTR, ARPA-E
Transfer to Office of Major Demonstrations
Scope of Capture Program
“Valley of Death” for Technologies
We need more 2nd generation pilots!
What 2nd gen large pilots should deliver
19
2-3 NEW and credible pathways to low-cost CCS• 25-50 MW scale unit performance• Working partnerships for commercialization• Robust economic characterization
Rich engineering data and results• Steady state and dynamic performance• Full footprint accounting (products; water)
Definitive storage knowledge and tools• Data needs for quantitative risk assessment• Sites to field test technology• Foundation for subsurface mastery
20This work performed under the auspices of the U.S. Department of Energy by Lawrence
Livermore National Laboratory under Contract DE-AC52-07NA27344
• Many 10’s of billions producible just US; 100’s of billions worldwide
• Required to finance first set of projects; required to drive down costs through deployment
• Additional domestic supply, revenues; reduced imports B
illio
n B
arre
ls
88.1
47.4
2.30
20
40
60
80
100
TechnicallyRecoverable
EconomicallyRecoverable*
AlreadyProduced/
Proven
Domestic Oil Resources
ARI, 2008
Mill
ion
Met
ric T
ons
Total U.S.CO2 Demand
NewLower-48
CO2 Demand
Net Lower-48From CapturedCO2 Emissions
0
2,000
4,000
6,000
8,000
10,000
12,000
14,00012,500
9,700
7,500
2,800* 2,200**
Market CO2 demand
In the near term, EOR is a critical bridging step that brings near-term benefits to the US
21
Emergent networks of EOR-anchored projects: Anchors for additional development
Ground work for pipeline networks; fast followers; CO2 utilities
• Permian basin; Gulf Coast; California; N.
Dakota/ Saskatchewan• Central Alberta Basin
• Scotland/Central N. Sea• Ordos basin
MIT, 2010
Opportunity for govt. fast-tracking and co-development
22
The future looks bright – we should pursue important new opportunities
WATER: Both challenge and opportunity
• Water co-production: 8M m3 water for 6M tons CO2.
• Water reclamation: lignite drying
• Water integration: upgrading municipal water with waste heat
UTILIZATION: Part of the work and value
• EOR already common; ROZ advancing (Negative C oil demonstration)
• CO2-Algae: small volumes, tough economics; improving
• Cement and mineralization: small volumes, tough economics; improving
Entering commercial realm; now it gets exciting
Co-produced freshwater as utilization
23
Ready to pilot! Seeking partners and possibilities
Bourcier et al., 2011
Below 80,000 TDS, costs ~50% of conv. desal.
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Ready to pilot! Seeking partners and possibilities
Bourcier et al., 2011
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Longer than expected: ROZ volumes
This work performed under the auspices of the U.S. Department of Energy by Lawrence Livermore National Laboratory under Contract DE-AC52-07NA27344
• 2x-3x recovery potential and storage potential (12-18 Gt in ROZ vs. 6.4 for main pay zones,
PB)
• Possibility for carbon-negative HC
Main Pay Zone (MPZ)
Transition Zone (TZ)
Residual Oil Zone (ROZ)
Base of Ultimate OWC
Base of Producing OWC
4900
4950
4800
4850
5000
5050
5400
5350
5300
5250
5200
5150
5100
5450
OWC
100 0Oil Saturation %
“State of the Art” “Next Generation”
(millions) (millions)
CO2 Storage (tonnes) 19 109
Storage Capacity Utilization 13% 76%
Oil Recovery (barrels) 64 180
% Carbon Neutral (“Green Oil”) 80% 160%
ARI, 2008
ARI, 2008
Sources: MIT, 2010; ARI 2007 and 2010; NETL 2008
26
Global challenge global progress: new global solutions still required
Key unit of innovation – global engines of discovery
Uthmaniyah (KSA)
Lula (BRA)
Quest (CAN) Mongstad (NOR)
ESI (UAE)
Gorgon (AUS)
GreenGen (PRC)
We just need more projects and more information
We must harness this age of abundance
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Know something• Learning opportunity in CCS and clean fossil• Information sharing: partnership as product
Do something worthy• Opportunity to invest: in plants, infrastructure, R&D• Opportunity in grand bargains
Ask friends for help• Friends in the US• International partners
Once in a generation opportunity to build