World CCS: Current Status,
Challenges and Future Directions
John GaleGeneral Manager
IEA Greenhouse Gas R&D Programme
CCS Technical Workshop 2015
Tokyo, JapanOctober 9th 2015

Why are we here?

Consequences of not making
the 2DS

The potential future effects of global climate change include more frequent wildfires,
longer periods of drought in some regions and an increase in the number, durationand intensity of tropical storms. Source: http://climate.nasa.gov/effects/

CCS is one of the key technologies totackle climate change

Carbon capture and storage (CCS) contributes 14% of total emissions reductions
through 2050 relative to the IEA 6DS scenario

Around a dozen projects are at earlier stages ofdevelopment

Source: GCCSI 2014
© OECD/IEA 2013

Important CCS Projects Power Sector
Boundary Dam 3, Canada

NRG Parish, USA Refit of existing coal fired unit
 Operational for 1 year CanSolv amine based PCC
technology
 110MWe 95% capture CO2 sold for EOR

 Refit of existing coal fired unit
 Operational in late 2016
 MHI amine based PCC
technology
 250 MW slip stream
 90% capture CO2 sold for EOR

Important CCS Projects Power Sector• Kemper County Project, USA• Novel IGCC Technology• 524 MW lignite fired – new build• 65% of total emissions captured• Due on stream late 2016

SMR Based H2 Production CCSProjects• Large scale demo projects• AP Port Arthur Project (USA)o Operational - ~1 million tpy CO2 captured for EOR• Shell Quest Project (Canada)o Under construction - ~ 1 million tpy CO2 captured and stored (on-shore) insaline acquifer• Large scale pilot projects• Repsol (Spain)o Operational since 2002, 60k tpy CO2 captured for sale as food grade CO2• AL Port Jerome Project (France)o Under commissioning - ~100k tpy CO2 captured for sale as food grade CO2.

• Japan CCS Tohokamai Project (Japan)o Under construction - ~200k tpy CO2 captured and stored (off-shore) in salineacquifer

Bio Ethanol Based CCS Projects

Decatur CCS projectIndustrial CCS Project 1 Mt CO2 captured and storedin a deep saline aquifer Alstom amine based capture
technology
 Now in non operational mode••••

Includes initial CCS project
Total of 3.6mT/y CO2 captured
CO2 injected into a deep salineaquifer from June 2015
Uses Amine based capture
technology

Key Developments Going
Forward (2015 onwards-2016)• Quest Project start up (October 2015)• Kemper County IGCC project Start up – late 2015
• Gorgon project start up late 2015
• Announcement of UK Competition results (2016)o Peterhead – Gas fired power plant with CCSo White Rose – Oxy fired power plant• FID on Road Project in Netherlands (2016)• NRG Parish operational in late 2016

IEA ETP2015 – Tracking
Energy Progress• CCS not on track for 2DS• positive developments noted (Boundary Dam 3)• CCS deployment has begun in “sweet spots” where policies
and strategic local and commercial interests align• CO2-EOR an enabler in some regions e.g. USA and Canada• “Learning-by-doing” is now also under way for CCS in power
generation and some industry sectors.
• Widespread deployment requires the cost gap be closed bydetermined, parallel action in technology development andmarket creation.
• Improving and using post-combustion technologies is ofparticular importanceUnited States of America• Significant R,D&D activities underway• International collaboration high on agenda• China co-operation agreements• Regulatory process for geological storage
based on existing underground injection
control programme approved in 2010

• EPA developed specific criteria for Class VI wells:
o Extensive site characterization requirementso Well construction standardso Comprehensive monitoring plano Wells Financial responsibility requirements

New regulatory developments• Clean Power Act, August 2015

• Sets out emission performance standards for newand existing power plants• New natural gas power plants can emit no morethan 1,000 pounds (lbs) CO2 per MWh• New coal power plants can emit no more than
1,400 lbs CO2/MWh,o Will require use of carbon capture and storage (CCS)o But not 90% capture as at Boundary Dam 3.
o Probably means that CCS technology underdemonstration in USA at or close to scale needed tomeet these standards

Global Status of CO2-EOR• Principally North America (USA + Canada)• USA
o 136 projects injecting 3.5Mt CO2
o Many projects Operating since mid 1980’s
o 3600km pipeline network – mostly non anthropogenic
CO2
o Regulatory process developed – EPA Class II Wells
o Drivers» Tax incentives for increased oil production» Readily accessible “cheap” CO2» Large numbers of small fields with high ROIP levels» High exploration capacity

USA CO2-EOR Experiences• Commercial technology proven to recover costeffectively additional oil• Robust regulatory process tested for over 20 years• Potential problems with new EPA Class VI wells for CO2 Storage• Limited monitoring under Class II well program• Safety record industry good

• US DOT records on pipeline safety
o Good track record over 20+ years• No associated issues – like CBM or unconventional oil and gas• Not originally as well researched as storage• IEAGHG Weyburn-Midale CO2-EOR monitoring and stage project(2000-2012)

Global estimate for storage• 2009 IEAGHG study gave a global capacity of
140 GtCO2 storage in depleted oil fields• in worlds 10 most prospective basins• Implications:• CO2-EOR will play a role in meeting global CO2storage needs• Depleted gas and deep saline reservoirs provide
the primary storage resource in the longer term
• The key roles it is currently playing are:o de-risking CCS demonstration projects
o and developing pipeline infrastructure for futurestorage operations

CO2-EOR in Europe• North Sea• Studies by Norway and UK, Shell and BP have shown CO2EOR be uneconomic in North Seao Large field size, low sweep efficiency
o High recovery rates using other EOR techniqueso Large CO2 volumes to be transported offshore, high infrastructure
costs
o Platform modification costs considered to be high

• Prospects for near offshore CO2-EOR in Danish Oil Fields
explored by Maersk – status unknown• UK Cost Reduction Task Force identified CO2-EOR aspotential cost saving element for future CCS deploymento Tax incentives for brown field CO2-EOR opportunities
o Opportunities were more limited than in USA
o Synergies between CCS and CO2-EOR

European CCS Regulations• OSPAR treaty amended to allow offshore CO2storage in 2007

• Currently export of CO2 prohibited under London
Convention• CO2 for EOR allowed• European CCS Directive 2009

• Transposed in Law of Member States in 2011o As of September 2015 all bar 2 countries havecomplied.

• Directive Reviewed in March 2015
o Fit for purpose not to revise
o Additional guidelines required

EU Trading Scheme• Launched in 2005, the EU ETS is now in its 3rdphase, running from 2013 to 2020.
• Phase 3 changes are:

• A single, EU-wide cap on emissions applies in place of theprevious system of national caps;• Auctioning, not free allocation, is now the default method
for allocating allowances.
• Some more sectors and gases are included;• 300 million allowances set aside in the New Entrants
Reserve to fund the deployment of innovative renewableenergy technologies & CCSo NER 300 programme.

NER 300/400• White Rose Project in UK, only CCS project
supported under NER 300 in July 2014
• New NER 400 programme being discussed for2022 onwards• Could possibly fund CO2 infrastructuredevelopment?

Status of CCS in Europe• United Kingdom• UK Competition £1billion capital funding set asideby Treasury• FEED now studies underway
o Peterhead Gas Fired CCS Power Plant
o White Rose, Oxy fired CCs power plant• Final Investment Decision end of 2015
• UK Gov. will announce decision in early 2016
• https://www.gov.uk/guidance/uk-carbon-captureand-storage-government-funding-and-support

Netherlands• ROAD project currently stalled.
• Rumours are:• That funding shortfall has been resolved?
• That EoN will make a positive announcement atDutch CCS Seminar on October 16th?
• The project team is being reassembled?
• There might be an announcement to go ahead in2016• As its a coal based non storage project there
maybe a public backlash ???

Status of CCS in Norway• Two commercial scale CCS project operating• Sliepner (19 yrs) & Snohvit• Mongstad full scale CCS project cancelled in2014• Gassnova – three industrial CCS projects underconsideration – decision in 2016

Capture Technology Lock In?
• UK CCS Commercialisation programme• Competition – Phase 1 with Government Support• Demonstrate technology and de risk future projects• Phase 2 will be a transition phase between heavily &Phase 3• Early Phase 2 FID’s (pre 2020) may be needed before Phase
1 construction is complete• For later Phase 2 projects (early 2020s) Phase 1 projects areoperating successfully• Phase 3 projects (2025-2030) will be cost competitivein their own right.

Capture Technology Lock in?
• Experience from Boundary Dam 3 shows you needcapture technology at scale to de risk investment• Faster you implement the more you limit technologytake up.
• Early Phase 2 projects in UK likely to use tested
capture technology• If you are an investor which would you chose?
o Amines, or Oxy? or IGGC??

• As you go into later phases you build tried and tested
technology with known costs and cost reduction optionso Modularisation, reduced redundancy, use existing pipelines
infrastructure, CO2-EOR• Leaves new capture technology in catch up mode unless
you scale up quickly – inherent risk

Must go farther and faster2nd Gen and Transformational Technologies

28

DOE R&D Goals
Cost of Electricity Reduction Targets
110COE Relative to Today's Coal with Capture, %1000% Reduction•Large-scale pilot validation• 2nd generation by 2020
• Transformational by 2025

9020%Reduction

8030%Reduction

70

Carbon Capture Program
Objectives:•Demonstration 5 years after eachlarge pilot phase•Meet 20% reduction by advanced
solvents and systems; membranes,and sorbents

60

5040
IGCC orSupercritical PC

2nd-Generation Technology

Transformational
TechnologySOTA

FY20-25 Demo

FY25-30 Demo

•Meet 30% goal through disruptive
research in novel materials, advanced
manufacturing, process intensification,
electro chemical, and other advancedprocesses

29Summary• CCS deployment making steady progress• Demonstration projects underway in power sector
and many industrial sectors
o More in planning• No show stoppers yet, plenty of positives• Cost reduction possibilities for FAOK and Phase 2CCs plants• Need new capture technology for significant
cost• But rapid technology progress and demonstration
at scale needed to avoid technology lock in.

Call for abstracts opened 1st September 2015
Deadline for submission 10th February 2016
Registration opens 6th April 2016
Draft technical programme 1st June 2016Early bird registration closes 13th July 2016www.ghgt.info
LAUSANNE, SWITZERLAND, NOVEMBER 14-18, 2016

arigatou gozaimasu
Contact me at: john.gale@ieaghg.org

Website:www.ieaghg.org

LinkedIn:

www.linkedin.com/groups/IEAGHG-4841998

Twitter:

https://twitter.com/IEAGHG

Facebook:www.facebook.com/pages/IEA-Greenhouse-GasRD-Programme/112541615461568?ref=hl