Status of CCUS Development in China
Japan CCS Forum 2022

Xiaoliang Yang, PhD
Global CCS InstituteKEY MESSAGES• China cannot achive carbon neutality without CCUS.
• A great momentum has been happening in China, primarily driven by the StateOwned-Enterprieses, since 2021.
• More policy work needs to be done so this momentum can last.
• International engagement and collaboration are very much welcomed in China,
but COVID is making this hard.

2

KEY CLIMATE TARGETS & PROGRESS IN CHINA• Peaking carbon dioxide emissions before 2030 and achieve carbon neutralitybefore 2060.
• Lower carbon intensity by “over 65%” in 2030 from the 2005 level. (50.8% in 2021)• Share of non-fossil fuels in primary energy consumption to “around 25%” in 2030.
(16.6% in 2021)• Increase the installed capacity of wind and solar power to over 1,200 GW by 2030.
(635 GW in 2021)

CCUS IS ESSENTIAL
GLOBAL FOSSIL CO2 EMISSIONS IN 2020

CHINA’S FOSSIL CO2 EMISSIONS BY
SECTORS IN 2019
Buildings
5%

All others(incl. IAS*)
41%
Industry
29%

Electricity &Heat
Generation
55%

China
31%

India
7%

Others2%

EU277%USA
14%

Transport9%(Source: Global Carbon Budget, 2021)(Source: IEA, 2021)

4

CCUS UNDER CHINA’S CARBON NEUTRALITY• CO2 Reductions Required through CCUS

11020

232030

2040

2050

2060
Unit: 100-Million-ton CO2/year

10
Coal PowerCement

64SteelChemical BECCS

DACCS(Source: ACCA21)

5CCUS SOURCE-SINK MATCHING IN CHINA

Emission Source Distribution

Source-Sink Match(Source: Chinese Geological Survey)
6

POLICY SIGNAL IS CLEAR“1+N” Climate Policy Framework
Specifically mentioned CCS
October 2021

Working Guidance

PeakingAction PlanEnergy
Structure

IndustrialTransition

BuildingFinanceTechnologyInnovation

October 2021

March 2022

July 2022

June 2022

May 2022

Aug 2022...

• “...demonstration of major CCUS projects” is included in the 14th Five-Year Plan.

• Key Working Priorities in Peaking Carbon Emission and Achieving Carbon Neutrality: “Conduct R&D of low-cost
CCUS and other technologies, and promote the construction of million-ton integrated CCUS demonstrations.”• Science & Technology Development in Support of Carbon Targets: “Carry out full process CCUS demonstrations
develop CDR technologies.”
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ONE SPECIFIC POLICY INSTRUMENT
Carbon Emission Reduction Facility
People’s Bank of China
Start of operation: Nov 2021
PBOC provides low-cost funds to financial institutions and guide the financial institutions toextend carbon reduction loans at rates close to the loan prime rate of the same maturity.
Foreign banks were recently being added in the scheme. The first two are Deutsche Bank andSociete Generale.
CCUS is included. The other two are energy saving and renewable projects.

8NOW WITH THE MOMENTUM
Huanengannounced China’s 1stmegaton scale coalpower CCUS project.

SINOPECannounced China’s
1st megaton scale
integrated project.

09/2020
China announced
its carbon
neutrality target.

07/2021

08/2021
CNOOC
announced China’s
1st offshore CO2storage project.

09/2021

10/2021
CCUS wasincorporated into
China’s highest
carbon neturality
policy guidance.

9THE MOMENTUM - 2
CNOOC, Shell, & Exxon
announced a joint
study for a large-scale
offshore CCS hub
in Guangdong.

06/2022Sinopec, Baowu Steel,
BASF, & Shellannounced a feasibility
study of developing a
10Mtpa CCUS projectin East China Region.

China’s 1st 1Mtpa
integrated CCUS
project commence fulloperation

07/2022
China’s 1st CCUS
project in steel
sector began toconstruct.

08/2022

10/2022

11/2022

China’s 1st CCUS
project from glass
furnance started fulloperation

1

PROJECT SUMMARY90+
All pilots & demos withdifferent scales & stages

30+

30+
Carbon capture-related

Carbon utilizationrelated

4 Mtpa2 MtpaOperational capture
capacity

Operational injection
capacity

KEY PROJECTSJinjie Coal Power CCUS Project
China National Energy

OGCI Northwest HubCNPC

SINOPEC Qilu-Shengli
Sinopec

Taizhou Coal Power
China National Energy

Yangtze Delta CCUS HubHuneng Longdong Project
Huaneng

Sinopec, Baowu, Shell, BASF

Dayawan Offshore Hub Study
CNOOC, SHELL, ExxonMobil

Enping Offshore CO2 Storage Project
CNOOC
12JINJIE COAL POWER CCUS PROJECT
Owner: China National Energy

Location: Yulin, Shannxi

Status: China’s largest operational coal power CCUS project since July 2021
Technology: Post-combustion + chemical absorption
Scale: 150 Ktpa

Released capture cost: 42 USD/t(Source: presenter)

Various utilization(Source: presenter)(Source: China Energy Engineering Corporation)

13

TAIZHOU COAL POWER CCUS DEMONSTRATION
Owner: China National Energy

Location: Taizhou, Jiangsu

Status: Main construction is expected to be completed by Dec 2022.
Technology: Post-combustion + chemical absorption
Scale: 500 Ktpa
(Source: China National Energy)

Designed capture cost: 33 USD/tSINOPEC QILU-SHENGLI PROJECT
Owner: SINOPEC

Location: Shandong

Status: China’s largest operational 1 Mtpa CCUS project since August 2022
Technology: Coal-gasfication hydrogen
Scale: 1 Mtpa

Utlization: EOR

Tranportation: Trucks for now (100km-pipeline is under construction)(Source: SINOPEC)(Source: SINOPEC)HUANENG LONGDONG PROJECT
Owner: Huaneng

Location: Gansu

Status: China’s to-be largest 1.5 Mtpa coal power
CCUS project / starts construction in Novmber 2022
/ construction complete by the end of 2023
Technology: Post-combusion + chemical solvents
Scale: 1.5 Mtpa
Utlization: EOR + Geological Storage
Transportation: Pipeline
Key Designed Parameters:
Capture cost: <USD35/t CO2;
Regeneration energy consumption: <2.3 GJ/t CO2;
Solvent conumpstion: <1 kg/t CO2(Source: SINOPEC)(Source: Huaneng CERI)

PROJECT – THE OTHER FIRSTS IN 2022
Project OwnerCNOOC
China Building
Materials GroupLongking
Enviroment Group
Baotou SteelTypeScaleStatus300,000 t/yr

Construction

Glass furnace

50,000 t/yr

Operation

Waste-to-Energy

2,000 t/yr

Operation

Steel

500,000 t/yr

Construction

Natural gas production +offshore storage

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WHAT IS NEEDED NEXT
• Define the role of CCUS in China’s long-term climate strategy and NDC.
• Develop more specific policy incentives to create a sustainable businessmodel for CCUS.
• Develop CCUS laws and regulations that are recognized internationally.
• Governments need to support the establishment of transport and storageinfrastructure.
• Encourage technology innovation and support RD&D programs.

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Thankyou
Xiaoliang.yang@globalccsinstitute.com