Global Status of CCS: 2016 A focus on CO2 storage and the role of EOR

Christopher Consoli – Global CCS Institute CCOP CCS-M Seminar 6 7-9 June 2016, Hanoi, Vietnam

Reservestoproduc-onra-o:~75

years

The Global CCS Institute

§  We are an international membership organisation.

§  Offices in Washington DC, Brussels, Beijing and Tokyo. Headquarters in Melbourne.

§  Our diverse international membership consists of:

o  governments,

o  global corporations,

o  small companies,

o  research bodies, and

o  non-government organisations.

§  Specialist expertise covers the CCS/CCUS chain.

OUR MISSION To accelerate the

development, demonstration and deployment of CCS

globally.

1 Fact-based, influential

advice and advocacy

2 Authoritative knowledge

sharing

Our Vision for CCS: CCS is an integral part of a low-carbon future

CCS is a vital element of a low-carbon energy future

Source: IEA Energy Technology Perspectives (2015)

A transformation in how we generate and use energy is needed

Gt C

O2 e

mis

sion

s

6DS

2DS

Non-OECD

OECD

~95GtCO2

Power

Industry

~95

GtCO2

Source: IEA, Energy Technology Perspectives (2015).

CCS contributes 13% of cumulative reductions required through 2050 in a 2DS world compared to ‘business as usual’

CCS is critical in a portfolio of low-carbon technologies

Reduction in energy-related CO2 emissions: 450 scenario relative to current policies

Source: Based on IEA data from World Energy Outlook 2015, OECD/IEA; modified by the Global CCS Institute.

Mitigation costs more than double in scenarios with limited availability of CCS

*Percentage increase in total discounted mitigation costs (2015-2100) relative to default technology assumptions – median estimate

+ 7% + 6%

+ 64%

+ 138%

Baseline cost with all mitigation options utilized

Source: IPCC Fifth Assessment Synthesis Report, Summary for Policymakers, November 2014.

Cost increase under limited technology availability scenarios

50

100

150

Perc

enta

ge*

Nuclear phase out Limited solar/wind

Limited bioenergy

No CCS

A significant task within one generation

40 large-scale CCS projects - combined capture capacity of approximately 71 Mtpa*:

•  22 projects in operation or construction (40 Mtpa)

•  6 projects in advanced planning (6 Mtpa)

•  12 projects in earlier stages of planning (25 Mtpa)

OECD Non-OECD

4,000 Mtpa of CO2 captured by CCS by 2040

(IEA 450 Scenario)**

40 Mtpa

Global Status of CCS

*Mtpa = million tonnes per annum

**Source: IEA, Energy Technology Perspectives (2015).

The CCS Industry

Large-scale CCS projects by region or country

North America dominates projects in operation and under construction, China has the most projects in planning

North America 1 1 5 10 17

Early planning Advanced planning Construction Operation Total

China 4 4 - - 8

Europe 3 1 - 2 6

Gulf Cooperation Council - - 1 1 2

Rest of World* 4 - 1 2 7

Total 12 6 7 15 40

* Includes projects in Algeria, Australia, Brazil and Korea.

15 large-scale projects are operational

Source: Large Scale CCS Projects database, Global CCS Institute (2015)

*

* Injection currently suspended

Large-scale projects expected to become operational by 2017

Source: Global Status of CCS: 2015, Global CCS Institute (2015)

2015

EOR

Dedicated Geological

Power Generation

*** Institute estimate

Actual and expected operation dates for projects in operation, construction and advanced planning

Operating 2017 2016

Hydrogen production

Natural gas processing

Chemical production

Iron and steel production

Synthetic natural gas

Fertiliser production

Oil refining

2018 2019 2020

= 1Mtpa of CO2 (areas of circle are proportional to capacity)

Coal-to-liquids

* Injection currently suspended

Boundary Dam

Kemper

Petra Nova

ROAD

SargasTexas

Sinopec Shengli

Illinois Industrial

Yanchang Sinopec

Qilu

Abu Dhabi

ACTL Agrium Coffeyville

Century Plant

Enid Fertilizer

Val Verde

Air Products

Lost Cabin

Lula

Snøhvit Sleipner

Shute Creek

In Salah*

Uthmaniyah

Quest

Gorgon***

ACTL Sturgeon

Petro China Jilin

Great Plains

** Storage options under evaluation

TCEP

CO2-EOR Fundamentals

CO2-EOR (1)

Source: SPE-84908, 87864

CO2-EOR (2)

CO2-EOR (3)

CO2 is a commodity and is recycled

CO2-EOR (4)

Anthropogenic CO2 can be securely stored by EOR

CO2-EOR: making early CCS projects – Power

Boundary Dam Carbon Capture and Storage Project §  Operational since 2015 §  Shell Global Cansolv amine based PCC technology §  120 MW actual power generation §  66 km pipeline §  1 MTPA capture capacity, bulk sold for EOR at Weyburn Oil

Kemper County Energy Facility §  Expected operation 2016 §  Integrated gasification combine cycle (IGCC) §  582 MW net electricity generation §  98 km pipeline §  Appx. 3 MTPA sold for EOR to (mainly) Heidelberg Field

Petra Nova Carbon Capture Project §  Expected operation end 2016 §  MHI amine based PCC technology §  250 MW flue gas slip stream §  132 km pipeline §  Appx. 1.4 MTPA sold for EOR to West Ranch Oil Field

Source: SaskPower

Source: Southern Co

Source: NRG

CO2-EOR: making early CCS projects – Industry

Source: Emirates Steel

Uthmaniyah CO2-EOR Demonstration Project §  Pre-combustion capture (natural gas processing) §  Small part to Uthmaniyah production unit (Ghawar oil

field)

Abu Dhabi CCS Project (Phase 1 being Emirates Steel Industries (ESI) CCS Project) §  Industrial separation (Amine). By-product of their direct

reduced iron-making process §  ADNOC reservoirs

Petrobras Lula Oil Field CCS Project §  Pre-combustion capture (natural gas processing) §  Lula Oil Field

Source: Saudi Aramco

Source: PETROBAS

CO2-EOR: providing reality to CCS

Current Projected

§  EOR >100 Mt anthropogenic CO2 cumulatively injected and stored

§  Global CO2 for EOR demand 140-320Gt (ARI,2009) §  Restricted by CO2 availability and reservoir type

But non-EOR projects are coming online

Source: Chevron Australia

Illinois Industrial CCS Project §  Corn-to-ethanol plant §  Appx. 1 MTPA §  Expected operation: 2016

Gorgon CO2 Injection Project §  Natural gas processing (LNG) §  Appx. 3-4 MTPA §  Expected operation: 2017

Quest Project §  Hydrogen Production (Oil sands upgrading) §  Appx. 1 MTPA §  Operational since 2015

Source: ADM

Source: Shell

Volumes of CO2 potentially stored through CO2 EOR

Source: Global CCS Institute 2015

Substantial storage resources are present in most key regions of the world, sufficient to enable CCS

Approximate storage resource (Gt)

Values from various public sources of information, including national to basin-scale studies to assessments of depleted oil and gas fields only. SE Asia only includes Indonesia (South Sumatra), Philippines, Thailand, Viet Nam.

Global Storage Potential

USA 2000-21000

CAN 200-670

BRAZIL

2000

MEX 100

S.AFRICA

160

EU 70

UK 80

NOR 85

INDIA 40-140

AUS 220-70

JAP 140

KOREA 100

SE ASIA ~50

CHINA 1500

Operational

Under construction

Small Scale or Pilot Under Construction, Operational, Completed

The global CCS industry

CO2 injection projects

1.  We cannot hope to tackle the scale of the climate challenge without CCS

2.  It is time to implement effective policies which focus on this outcome

3.  Strong leadership is needed by decision-makers in government and industry to realise the full potential of CCS

Call to action

The Global Status of CCS: 2015

§  The Institute’s key publication

§  Summary Report, Key Findings and other advocacy materials can be found at:

http://status.globalccsinstitute.com/

§  Full report is available online at the Institute’s Members Portal.

Chris Consoli – Senior Adviser, Global CCS Institute chris.consoli@globalccsinstitute.com Twitter: @GlobalCCSChris