Managing carbon energy to protect atmosphere, ocean and...

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[email protected] Scottish Carbon Capture & Storage Edinburgh Centre for Carbon Innovation (ECCI), Infirmary Street, Edinburgh EH1 1LZ Telephone +44 (0)131 650 0270 www.sccs.org.uk Managing carbon energy to protect atmosphere, ocean and air quality: CCS Discussion meet+ Royal Society of London 6 October 2017 Stuart HASZELDINE University of Edinburgh Professor of Carbon Capture and Storage GHG problem CO2 capture and storage Project types + future Policy and payment

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[email protected]

Scottish Carbon Capture & StorageEdinburgh Centre for Carbon Innovation (ECCI), Infirmary Street, Edinburgh EH1 1LZ Telephone +44 (0)131 650 0270 www.sccs.org.uk

Managing carbon energy to protect atmosphere, ocean and air quality: CCS

Discussion meet+ Royal Society of London

6 October 2017Stuart HASZELDINE

University of Edinburgh

Professor of Carbon Capture and Storage

GHGproblemCO2captureandstorageProjecttypes+futurePolicyandpayment

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After CoP21 : EFF, CCS, DAC and BECCS

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DirectAirCapture–needstobepricedproperly

CCS– where?

BioEnergyCCS± coal=nichetorecapturecarbon.Conflictwithreplanting,food,andhabitatdestruction

EFFiciency – urgent,quickestandeasiest

EndofCoalEndofoilEndofgas??

NUKE– expensive,unsolvedwaste

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Depth1- 4kmImpermeableSEALOverliesPorousRESERVOIR

CO2 storage is a long way down

10,000to10,000,000yr security

Shaletopseal– noflow

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UK: best CO2 storage

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35%ofEUstorage60- 80Gt CO2MappedbySCCS2009ConfirmedbyETIUKSAPandTCE&BGSin2014www.CO2Stored.co.uk

UKoffshorehasas35%ofCO2storageforEU100– 200yrduration

PorespaceOWNEDbyCrownEstateScotlandMerseycluster

NEcluster

Teescluster

UKstorageCO2charge€10/tonne CO2

=€2– 5Bn/yr revenue

CO2storage200yrindustry

CO2storage2050Offshoreskills&jobs

UKowns35%ofEUCO2storage

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Project types

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CCS exists : decades of injection & monitoring

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CO2-EOR1972,eg ScurryCounty,Texas,Rangeley,Weyburn ….

AquiferSleipner:CO2climatemitigation1996,NorthSea

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CarbonCaptureUtilisation Storage

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Tomatoesingreenhouses– doNOTcountFizzydrinks– doNOTcount

Trees– doNOTcount(unlessBECCS)

CO2needstoberemovedfromairandocean>>1,000years

LifeCycleisallimportant

CO2needsremovedfromairandocean>>1,000years

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CCSglobal:mostlyEnhancedOilrecovery

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EORworks,Good progressto2020,then….STOP.Needtoplan,Now

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CCSChennai,India– newsolventCarbonCleanSolutions

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OperatingOctober201660,000tCO2/yr on10MWcoalfuelledpowerplant

Compare$60-90/tonne CO2Cost(claim)$30(40)/tonne CO2

CO2usedtomakealkalisodaash

•Useofsodaashasatemperature-reducingfluxduringstandardglassmakingreactionNa2CO3 +SiO2 è Na2SiO3 +CO2

•ThusthepotentialcarbonbenefitsareONLYinreducedminingoftrona minerals

•NETCO2INCREASEwww.carboncleansolutions.com

NewsolventclaimsCDRmax,anAminePromotedBufferSalt:25%lesscapitalcost,

7xlesscorrosivethanstandardMEAsolvent61%lesswater,27%lessheatused,longerlife4yrs

CO2 + 2RNH2 � [RNHCO2− + RNH3

+]

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Game changers ?

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Full-scale “Northern Lights”CCS will be done – in Norway after 2022

1.5MtCO2/yrCementFertiliserWaste(fromUK)

Shipping:Gassco

Pipe:Gassnova

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Industry carbon storage: minimum project size

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Startsmall,grownetworkvalue1)StFergus0.5MtCO2/yrAndvacantSAGEgasseparation2) Brewandferment1.5MtCO2/3)Fifeethylene0.6Mt,paper0.44)Ineos chemical&refine1.6,1.3

50,000 Mt CO2storage creates new offshore industry for 100-200yr. £200M1

1

234

100MGBPalreadyspentonevaluationFastestlowcostCO2storageinEurope

10Mt/yrCO2

CO2 gas separation units legacy from production

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East coast CCS network 2019 to 2050:BENEFIT analysis £169Bn, not cost £34Bn

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100,0002016-18

225,0002016-50

Employment

350,0002016-50

GrossValueAdded

BalanceofPayments

WITHCCS

NOCCS

Cost/tonCO2

£18/tonUK

£88/tonpay

toNorway

£97Bnby2050

£5BnUK

£56Bn

CO2stored

1,500MtCO2

100Mt?

EastCoastCCSNetwork

•Lowcoststart•Incrementalinvestment•CCCpathto75MtCO2/yr•UsesTreasurycostcarbonetc•Linkedvaluethrougheconomy

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Net-Poweroxycombustion CO2gasturbine

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Texas:50MWthNETPowernaturalgasdemonstrationplant62%EfficientwithFREECO2WilloperateJan/Feb2018

SaleofelectricitySaleofCO2forEORSaleofH2-refinerySaleofAr highvaluegas

Ifthisworks,itwillchangeeverything

coal

gasCO2+gas

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Energyuse:focusonheat

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Heat

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HEAT from CH4 is 47% CO2 emissionsValuable infrastructure, convert to H2

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Improvingairqualityincities

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Scotland (UK) GHG: path to net-zero 2050

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From:ScottishGHGEmissions2014(http://www.gov.scot/Resource/0050/00503570.pdf)

Millionsto

nnes

CO2eq

iv

1991 2000

50

80

0Forestlife

Biochar soilForestry2017-10.2Mt/yr 2020

Re-Forest+BECCSPeatrestore

Scotland2017:50%alongdecarbonisationroute.Needtoinventandinvestinhowtodothemoredifficultpart

Easyactionshavebeendoneandbanked

CO2-EOR

ENERGY

TRANSPORT

LANDandAGRIC

INDUSTRYRESIDENTIALWASTE

2045

•Electricityisonpathtodecarbonise

•MostGHGemissions(Blue)arenotsodirectlylinkedto

energy•Negativeemissions(green)

canbalanceremainder

EnergyandNETneededtoachievenet-Zero

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MoneyandPolicy

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£or?

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COST v VALUE

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Bajaj$2,000

XC90$66,000

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CCSis10x– 100xtooslow:needpriceormandate

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Nomoregrants

Haszeldineetal2017ProcRoySoc ASubmitted

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PayforCCS:EU-ETS – toomany,toolow

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EU-ETSisNOTENOUGHtofunddevelopmentofCCSDon’tallowoffsets– toocheap.CancelexcessCertificates

PastEU-ETSpriceserraticNOTinvestable

FutureEU-Allowancesover-suppliedEU-ETSpriceslow,NOTinvestable

2006 2016

2016 2035

EU-ETSarepermissionstobehaveasnormalbyemittingCO2ThelowpriceincentivisesEfficiencyacrosseconomyButis10xtoolow,tobuildsomethingnew

$30

$15

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Carbonprices/tonCO2

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CavanaghRingrose 2014EnergyProcedia GHGT-12

Regionalandcorporatecarbonpricesexist,butDONOTproducebehaviourchange– oractiononstorage

CartaxUK$300/tCO2

EU2015

UKGreenDeal$200/tCO2

EU2025?

CCSpowerneed

USAtaxcredits2017(proposed)

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Governmentpolicyleverstomatchneed

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UKcarbontaxoilproduction80%since1980=£300Bn (2009money)

£10Bn /yr averagetaxincome:notinvested

ProducerResource Government

Mitigation

General,Hospitals,Wars….

CannottrusttheGovernmenttore-investmoney

Tax:doesn’tstorecarbonTradingemissionscertificates:doesn’tstorecarbon

Don’tusemoney,uselaw

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Remedy UK policy:Oxburgh Report

2016

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Therearethreefailuretoaddress

1) Expense:createanationalCCScompany,whodevelopthefirstfullchaincapture-transport-storageinfrastructureineachregion.Deliveryat£85/MWhr.Thiscompanyissoldtoinvestorswhenprovenliquidoperations

2) Widerapplication:CCSisessentialonpower,heat,transport

3) AfirmmarketforstorageofCO2iscreated,bymeansofaCertificateonallproducersoffossilcarbonenteringtheUK.ThatcarriesanObligationtostoreanationalpercentageofCO2,starting1%,risingto100%midcentury

www.sccs.org.uk/news/330-oxburgh-report-on-ccs-resets-approach-to-pricing-delivering-infrastructure-

and-enabling-uk-climate-action

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CERTIFICATESCO2storagemarketmandate

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EnvironmentalcertificateALLOCATEDatborder– fuelsandgoods.NOMONEY:competetodevelopCO2storage,atlowcost

CertificatecancelledonPROOFofstorage.Flexibleanddirect

Haszeldine2016 OxfordRevEconomicPolicy,32,304–322

Startat0.25%UKcarbon1Mt/yr,riseto50-80%by2050

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EFFECTIVE technology and policy options

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a) WhatworksLongduration,persistentgoalsKeepingcarbonbudgetswitha5yearratchet.Appetiteofbusinesstobeprofitable:costandvalue

b) Whatdoesn’tworkCarbonmarketsallowingpurchasetopollutePricetoolowtoborrow/build/operateprojects.Exclusivefocusonrenewableelectricity.Lookingatpowerprice,notcarbonvalue

c) WhatneedstobedoneCreatemandateandmarketforcarbonstorageUseenergycarbonstoragetodelivernet-zeroGHG

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Summary:canenergysolveGHG?

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1)ProtectingtheatmosphereandcreatingcleanairagainstexcessCO2meansNamingwhatisdelivered,notthemeansofdeliveryReducingemissions;Balancingtonet-zero;Re-capturingemittedCO2

2)TheUKhasexceptionalaccesstoexcellentCO2storage,offshore

3)COSTisbad:cleanfossilelectricityisnotpossibleinUK+EUmarketpricing

4)VALUEisgood:inrapiddecarbonisation ofheat(H2),industry,transport…..

5)NetZerorequiresCO2storage– developthisnow?

6)ViableCCSprojectssellproducts(CO2-EOR),oravoidtargetedtaxes

7)Generalcarbonpricing/tradingdoesnotwork

8)CO2storagerequiresamarket– Certificates- value- jobs– rapid- cheap

FirstoperationalCO2intothegroundbefore2022(NEScotland+Tees)£200M

SmallpilotsLowentrycommercialcostsRe-useexistingkitKnownprocessesIncrementalnetworkbuildout

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END

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