Dr. Per Christer Lund, Counsellor Science and Technology

Norwegian Embassy in Tokyo

Carbon Capture and Storage (CCS)

The Need to Reduce Emissions from Fossil Fuels

“Meeting Our Future Energy Needs: What Role Will Renewables and

Energy Efficiency Play?” Singapore, November 24, 2011

Reduce global warming Adaptation

Countermeasures Reduced needs Direct reduction

Remove CO2 from Supress Improved Capture Substitution

atmosphere effect efficiency point emissions energy sources

Biologic Fertilize Dust into Cons- Power & Under- Ocean Smaller Nuclear Renew-

fixation the oceans the atmo- umption energy ground disposal C/H- power able

biomass sphere supply storage ratio energy

Aquifers Oil fields Gas fields

The motivation for CCS

Definition: “Carbon dioxide (CO2) capture and storage” (CCS) or “carbon sequestration” is a family of methods for capturing and permanently isolating CO2 that otherwise would be emitted to the atmosphere and could contribute to global climate change.

CO2 Capture and Storage - CCS

Source: NTNU/SINTEF

Post-combustion separation

Source: NTNU/SINTEF

Storage of CO2

CCS Potential: up to 20% of needed reductions

Global CCS – projects: mostly on paper..

Source: Global CCS Institute Jan 2010 www.globalccsinstitute.com

Source: Scottish CCS, Nov 2011 www.sccs.org.uk/storage/globalsitesmap.html

Europe: power generation

Source: Global CCS Institute

Challenges in the Carbon Value Chain

Source Capture Transport EOR Storage Control

Complex value chain: Market design and regulations

Cost Confidence

Technology development

Scale up & verify

“First of its kind”

Methods

Demonstration

legislation

Statoil Aker Kværner Statoil SINTEF

Source: Gassnova

10

Too costly?

Objective of contributing to 20% of CO2 reduction by 2050

100 full-scale CCS projects by 2020

2,000 projects by 2050

CAPEX per project (1Mton+)?

TCM/Longannet: >1BUS$; but significant learning curve potential.

Some US$25 billion on the table today in Europe, North Americas and Australia..

OPEX:

• About 30% energy penalty for efficient coal power plant IGCC (Integrated Gasification combined circle)

• US$ 120-180 / ton CO2 captured

• Compression, transport and storage in addition

• This translates to about 10-15 Cent/kWh added electricity cost.

CO2 storage – leakage risks

CO2 value chain with revenue streams income is needed!

CO2 sources Transport CO2 sinksCO2 CO2

CO2 permit market Oil market

Revenues RevenuesKyoto Mechanisms and emission trading schemes

Additional oil if CO2-enhanced oil recovery feasible

13 Four Large CO2 Commercial Projects in Operation

Sleipner, Norway In Salah, Algeria Snøhvit, Norway Weyburn, Canada

Operator: Statoil

1 million tonnes of CO2/year

Operators: BP, Statoil and Sonatrach

0.8-1.2 million tonnes of CO2/year

Operator:Statoil

0.7 million tonnes of CO2/year

Operator: EnCana

1.8 million tonnes of CO2/year

Norway’s CO2 footprint.

Courtesy: www.worldmapper.org

Share of the world’s population: 0,07 % 3 x higher CO2-emission per capita than average: 0,21 % 13 x higher CO2-emission (oil & gas export): 2,73 %

World’s 2nd largest exporter of natural gas World’s 5th largest exporter of oil The petroleum industry is important for Norway:

• One half of total exports • One fourth of GDP • One third of total Government income

World’s largest Sovereign Wealth Fund USD 526 billion

The Norwegian Climate Policy

Political consensus:

•Global target: limit average temperature hike to 2°C above pre-industrial level

•Strengthen Norway’s “Kyoto commitment” from 1% above 1990-level to 9% below 1990 level

•Reduce Norway’s carbon emission footprint with 30% within 2020

•Reduction of 15-17 MtonCO2 including forestation

•Norway shall be “carbon neutral” within 2050

•Carbon emission reductions may be domestic/offshore reductions or through purchase of international emission credits

•However – the target is that 50%-65% of the reduction shall be domestically

White Paper No. 34 (2006-2007) On Norwegian Climate Policy, published on 22 June 2007 Agreement on the White Paper between the government parties and three opposition parties (”Klimaforliket”), signed 17 January 2008

17

How to get there?

Norwegian CCS projects

Mongstad refinery & power plant

0,1 m ton/yr, 2011

1,4 mton/yr, 2016-18

Sleipner NG reinjection

1 million tonnes/yr since 1996

Snøhvit LNG

0,7 mill ton/yr, 2007

The Sleipner experience – the starting point

• Started in 1996 – now 14 year of CO2-injection

• Separating and injecting nearly 1 mill. tons CO2 annually

• Storing in saline aquifer above natural gas reservoir

•Conditions: 100 bar, 10% CO2 down to 2.5% CO2

•Uses an amine system, MDEA

• Driver: the ~45US$/ton CO2-tax imposed in 1992

• Learning and confidence building through a series of large EU-wide R&D programs Source: Statoil

Sleipner reinjection – 1:34

Snøhvit LNG with CCS

• Piped CO2 separated from natural gas (5-8% CO2) in onshore LNG plant, and re-injecting in sandstone below natural gas reservoir

• 145 km subsea pipeline transport.

• CCS started April 2008 – capacity 700,000 ton/yr

Technology Center Mongstad – 3:09

TCM - Status Nov. 2011

• Total CAPEX budget: 5.7 billion NOK (1 billion US$)

• Start-up:

• Q1 2012: Amine-based technology (Aker Clean Carbon)

• Mid 2012: Chilled ammonia-based technology (Alstom)

• Progress per November 2011

• 85 % complete

• 4 300 000 man hours

• 4.5 billion NOK (770 M$) expensed

• 1 200 people involved

75% 20% 2,5% 2,5%

Conclusions

• Carbon Capture and Storage is recognized as an important tool for combating climate change.

• Key technologies are available, but some major challenges:

• Large and costly plants

• High energy penalty – reducing energy efficiency

• Confidence in permanent storage

• A large number of project proposals world-wide, however very few actual large-scale pilots

• Norway is a frontrunner on CCS projects and demonstrations:

• The Sleipner CO2 storage project since 1996

• The Snøvit CO2 storage project since 2008

• The European CO2 Technology Centre Mongstad

• Norway is actively seeking international collaboration on research and demonstration projects and technology transfer on CCS.

Asia is regarded as one of the most interesting regions for CCS:

• Huge potential for CCS on coal-power plants

• Huge potential for CCS and EOR from CO2-rich gas fields

Additional slides

25

The Norwegian CO2 Capture Research Structure

The Gas Technology Fund

2 billion NOK (350 mill. $)

The Technology Research Programme CLIMIT

~30 MUS$ / yr Industry

Project Support

Research Innovation Demonstration Commercialization

Norwegian CCS R&D clusters

BIGCO2, BIGCLC and BIGH2 – In short

Co-ordinator SINTEF Energy Research

R&D providers • SINTEF, NTNU

• CICERO

• University of Oslo

• Deutsche Luft und Raumfahrt – DLR

• Technische Universität Munchen-TUM

• Co-operation with Sandia Nat. Labs Livermore

Funding (includes storage and EOR): • Approx 65/35 % funded by Research Council of Norway/Industry

• 2001- 2006: Total of approx. 13 M€

• 2007 – 2011: 98 MNOK-12M€ (BIGCO2)

• 2007 – 2011: 107 MNOK- 13M€ (BIGH2)

• 2006 – 2012: 50 MNOK- 6M€ (BIGCLC)

Industrial consortium • Aker Clean Carbon

• GE Global Research (Münich-DE)

• Statkraft

• StatoilHydro

• ALSTOM (Zürich-CH)

• SHELL

• ConocoPhillips

• TOTAL

SUCCESS

Vision

• To provide a sound scientific base for CO2 injection, storage and monitoring, to fill gaps in strategic knowledge, and provide a system for learning and development of new competency

• Budget 160 MNOK over 8 yrs

Partners:

• Christian Michelsen Research (CMR)

• Institute for Energy Technology (IFE)

• Norwegian Institute for Water Research (NIVA)

• Norwegian Geotechnical Institute (NGI)

• Unifob (CIPR)

• University of Bergen (UiB)

• University of Oslo (UiO)

• University Centre in Svalbard (UNIS) - UNIS CO2 LAB Research topics:

• Quantification and modelling of reactions and flow in storages

• Integrity and retention capacity of sealing materials

• Relation between flow, reactions and geomechanical response

• Flow and reaction in faults and fractures

• Test, calibrate and develop new monitoring techniques

• Ecological impact of CO2 exposure - marine monitoring methods

• Extensive high quality education for CO2 storage

Priorities in Norway’s international climate policy

Carbon capture and storage (CCS) as an important technology for emissions reductions

• CCS in industry and power generation has the potential of reducing emissions as much as 20-28 per cent of the necessary CO2 global emissions reductions

• Norway has gained valuable experience of CCS through the Sleipner Field since 1996, storing 1 million tons of CO2 under ground each year

• To help develop larger scale technologies, Government has introduced a combination of financial support and regulation.

• Careful site selection and site monitoring are important to ensure safe storage

International agreements

Norway presses for inclusion of CCS in the Clean Development Mechanism

• Political breakthrough in Cancun; procedures and modalities to be developed (UN FCCC)

Supports the EU CCS financing scheme:

• Period 2009-2014

• Norway’s contribution 160 M€

• Focus on large-scale projects; Poland prioritized country.

Int. agreements:

• OSPAR and London-conventions on CO2 storage

• North Sea Basin Task Force: storage in the North Sea

CCS bilateral projects

China: bilateral MoU on environment cooperation.

• Increased focus on climate issues

• UNDP-led project on regional climate action plans in China

• Pledged 9.3 MUS$ support to NZEC (Near Zero Emission Coal) – partners with EU and UK.

South Africa:

• Support of CCS-center

• 200,000 US$ per year over 5 years (2009 – 2013)

• Sasol (chemical company) signed up as partner in Technology Center Mongstad

Support to international organizations

Carbon Sequestration Leadership Forum (CSLF)

• 23 countries; including the largest emitters

• Norway support to CSLF Capacity building fund 0,85 MUS$

• Norway leads the Technical Group

Member of the Global CCS Institute

EU’s Zero Emission Platform (ZEP)

• Stakeholders include industry/commerce; government and NGOs

• Norway is active member

International Energy Agency (IEA)

• Hosts Greenhouse Gas International Summer School at Svalbard

• Support 85,000 US$ (2010)

Support to global CCS funds

World Bank CCS Trust Fund:

• Established 2009

• Norway as largest contributor: 6 MUS$

• Added another 3 MUS$ in 2010

• 12 developing countries getting support

UN Industrial Development Organization

• Global CCS Industrial Roadmap

• Norway’s support 0.3 MUS$

• Focus on large emission points for industry in developing countries

ADB CCS Capacity fund:

• Norwegian support of 6 MUS$