ACCELERATING THE UPTAKE OF CCS Industrial Use of …€¦ · GLOBAL CCS INSTITUTE EXISTING...

GLOBAL CCS INSTITUTE

ACCELERATING THE UPTAKE OF CCS: Industrial Use of Captured CO2 Martin Oettinger 0


OUTLINE OF PRESENTATION

1. Existing Industrial Uses and Market of CO2

2. Emerging Industrial Uses of CO2

3. Shortlisted CO2 Industrial Uses – overview and status 4. CO2 Market, Costs and Revenues 5. Impact of CO2 Industrial Re-use on CCS 6. Key Findings 7. Further Reference

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EXISTING INDUSTRIAL USES OF CO2

Enhanced Oil Recovery • 50Mtpa • Other Oil and Gas applications

Urea fertiliser production • ‘Captive‘ use

Food processing, preservation and packaging

Beverage Carbonation

Coffee Decaffeination

Pharmaceuticals

Horticulture

Fire suppression


EXISTING INDUSTRIAL USES OF CO2

Winemaking

Pulp and Paper processing

Water Treatment

Inerting

Steel Manufacture

Metal Working

Electronics

Pneumatics


EXISTING BULK CO2 MARKET

Food industry

Beverage carbonation

Oil and gas (non-EOR)

CO2-enhanced oil recovery

Other liquid CO2 applications

Precipitated calcium carbonate Other


EMERGING INDUSTRIAL USES OF CO2

Enhanced Coal Bed Methane Recovery

Enhanced Geothermal Systems (using CO2 as a working fluid)

Power Generation with CO2 as a working fluid

Polymer Processing

Algal bio-fixation and bio-fuel production

Bauxite residue processing

Carbonate mineralisation (aggregate production)

CO2 concrete curing


EMERGING INDUSTRIAL USES OF CO2

‘Renewable’ Methanol

Formic Acid Production

Power Generation with CO2 as a working fluid

Polymer Processing


SHORT-LISTED INDUSTRIAL USES OF CO2 BY POTENTIAL FUTURE DEMAND (>5MTPA)

EXISTING USES Current non-captive CO2 demand (Mtpa)

Future potential non-captive CO2 demand (Mtpa)

Enhanced Oil Recovery (EOR) 30< Demand < 300 30< Demand < 300

Fertilizer – Urea (Captive Use) 5 < Demand < 30 5 < Demand < 30

NEW USES Future potential non-captive CO2 demand (Mtpa)

Enhanced Coal Bed Methane Recovery (ECBM) Demand >300 Enhanced geothermal systems – CO2 as a working fluid 5< Demand <30

Polymer processing 5< Demand <30

Algal Bio-fixation >300

Mineralisation Calcium carbonate & magnesium carbonate & Sodium Bicarbonate >300

CO2 Concrete Curing 30< Demand <300

Bauxite Residue Treatment ('Red Mud’) 5 < Demand < 30

Liquid Fuels

Renewable Methanol >300

Formic Acid >300


CONCENTRATED VS. DILUTE CO2

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PERMANENCE OF CO2 STORAGE

Not Permanent Not Permanent

EOR Urea Algae cultivation

ECBM Polymers

EGS Renewable methanol

Mineral carbonation

Concrete curing

Bauxite residue carbonation

Formic acid

CO2 reuse technologies that involve the use of capture technologies or MMV can provide opportunities for accelerating technology development and public acceptance and advance the deployment of CCS.

Mature technology already in commercial use Promising technologies ready for commercialisation Promising technologies at a conceptual stage

Permanent (‘Alternative CCS’)


TECHNOLOGY MATURITY

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CO2 REUSE TECHNOLOGIES

Short-list technologies based on application of a threshold of 5Mtpa of global CO2 reuse potential

Demonstration scale Commercial operation (based on claims from the respective proponents)


THE GLOBAL CO2 MARKET

► Current global CO2 demand is estimated to be 80 Mtpa - 50Mtpa is used for EOR in North America (40Mtpa from natural CO2 reservoirs).

► CO2 demand is expected to rise to 140 Mtpa by 2020.

► CO2 supply from large point sources is currently18,000 Mtpa which includes:

► 500 Mtpa from high concentration sources (low cost – e.g. natural gas processing)

► An extra 2,000 Mtpa is available from low to medium cost sources

There is a very large global surplus of CO2. CO2 available from lower cost sources is likely to supply the majority of near-term reuse demand growth.

Current Demand and Supply for Bulk CO2

Global supply vastly outweighs demand

Demand for bulk CO2 (2.1%)

Remaining supply of CO2 (96%)

Note: CO2 supply is measured by remaining CO2 available from low to moderate cost point source emitters >0.1 Mtpa


2020 DEMAND FOR BULK CO2 VS. POTENTIAL SUPPLY (MTPA)

2545

80 60 Remaining global CO2 available from low to moderate cost point source emitters >0.1Mtpa Current demand for bulk CO2 (non captive)

Future additional demand (estimated)


COSTS AND REVENUE

CO2 capture costs (per tonne CO2) US$44 to US$103 for various power generation

technologies US$49 for cement and for steel production US$20 for fertiliser production US$19 for natural gas processing

What revenue may be gained from sale of bulk CO2? US$15-19/t (possibly higher with current oil prices)

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INTERACTION OF COSTS AND REVENUE

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ACCELERATE CAPTURE COST REDUCTIONS

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ACCELERATE ALTERNATIVE FORMS OF CCS

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Near-medium Term

POTENTIAL ROLE OF CO2 REUSE IN ADVANCING CCS DEPLOYMENT

Potential to provide a moderate revenue stream for near-term CCS project demonstration in favourable locations. Reuse technologies that involve the use of capture technologies or storage involving MMV can provide important learnings and promote public acceptance to advance CCS. Greater potential in emerging economies where there is strong demand for energy and construction materials and slower introduction of carbon pricing. Mature technologies such as EOR will be important. Most of the emerging reuse technologies are still immature and may not be developed in the timeframes required to accelerate the demonstration of CCS.


POTENTIAL ROLE OF CO2 REUSE IN ADVANCING CCS DEPLOYMENT CONT.

The role of CO2 reuse is limited because: Current and potential demand for CO2 reuse is only a few

per cent of anthropogenic CO2 emissions. Bulk CO2 market prices are likely to fall in the long-term as

and when restrictions on CO2 emissions are introduced.

Long Term

CO2 reuse has an important initial role in supporting the demonstration phase of CCS. However, this role becomes less important in the long-term and as the cost of emitting carbon rises.


KEY FINDINGS

1. The current and potential demand for CO2 reuse is only a few per cent of anthropogenic CO2 emissions

2. Reuse has the potential to provide a moderate revenue stream for near-term CCS demonstration projects

3. EOR will remain the dominant form of CO2 reuse in the short to medium term due to its maturity and large-scale use of CO2. EOR has a role to play in supporting the large-scale demonstration of CCS

4. Most emerging reuse technologies have years of development ahead before they reach the technical maturity required for deployment at commercial scale.

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KEY FINDINGS

5. CO2 reuse has the potential to be a key component of demonstration projects in developing economies, where there is strong demand for energy and construction materials and less likelihood of the early adoption of carbon pricing.

6. CO2 reuse has an initial role to play in supporting the demonstration phase of CCS development in the absence of strong carbon prices and in developing economies. However that initial role becomes less important as and when the cost of emitting carbon rises.

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FURTHER REFERENCE INDUSTRIAL USE OF CAPTURED CO2

Purpose To investigate existing and emerging uses for CO2 and to address the question of how, and to what extent, CO2 reuse technologies can accelerate the uptake of CCS. NOTE: Although mitigation potential is an important factor, this report is not about the mitigation potential of industrial use of CO2.

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STRUCTURE OF REPORT

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