Status: Draft

Norway’s Commercial CCS Projects
CCS Workshop Tokyo November 19, 2007

PresentationbyDr. Per Christer Lund, Science and Technology Counsellor, Norwegian Embassy in Tokyo
on behalf of StatoilHydro2

2007: 20 year Anniversary for Our Common Future

The Kyoto
Protocolratified,
2005
The Kyoto
Protocol,1997
Norway’s Prime
Minister
Gro Harlem
Brundtland in”The Brundtland
Report”, 1987

Rio in 1992** Gro Harlem Brundtland
introduced a CO2-tax ofabout 45 US$/tonin Norway in 1992

CO2-emissions by country:
In these maps territories are re-sized on each map according to the size of the emissions in eachcountry.

Courtesy: www.worldmapper.org

3

4

Oil cost curve, including technological progress:
availability of oil resources as a function of economic priceSource:OECD/IEA 2006

5

We are not runningout of fossil fuelsanytime soon…
but we are runningout of atmosphereNASA:

http://www.solarviews.com/cap/earth/greenlnd.htm

6

Norway’s current CO2 situation• Contribute 0.2% of global CO2emissions (~55 Mt)

MtCO2-equiv/yr• Current “Kyoto commitment” is+1% above 1990 level. Gov.
proposal is -9% of 1990 level.

• Norway introduced CO2-tax in1992 as world’s first.

Gas powerplant
Petroleum industry(mainly offshore)• Norway joins the European quota
scheme from 2008, and the EU
ETS system.
– ~70% of emissions subject toquotas/CO2 tax

Industry

Transportation• Industry:– Current emissions ~19 MtCO2, expected
to increase to 22 MtCO2 within 2010
– Quotas from 2008: 15 MtCO2 !

Household heating
Agriculture / waste

7

The Norwegian Government’s Climate Policy - 1
MtCO2-equiv/yr• Oct. 2006: White Paper from theReference track

Norwegian Commission on Low
Emissions:– Norway has a responsibility to significantly
reduce emissions and contribute to developmentof technology for combating climate change.
– Proposal of a “low emission track”– Proposal of a series of political and industrial
decisions and actions to reach the “low emissiontrack”

CCS from gas power
plants, renewables
Electrification of
offshore installations

Low emission track

CCS from industry, process improvements
Biofuel, low emission transportation
Energy efficiency, alternative heating
Capture of methane gas

www.lavutslipp.no/english.shtml

8The Norwegian Government’s Climate Policy - 2• Prime Minister Jens Stoltenberg’s New Year Address 2007:– “Norway will take a pioneer role for development of technologies for CO2 capture and storage within
7 years – demonstrated at Mongstad”– “This is a large, national project and can be compared to the US Moon Landing project in the 1960’s”• Governments White Paper June 22, 2007:– Global target: limit average temperature hike to 2°C above pre-industrial level– Strengthen Norway’s “Kyoto commitment” from 1% above 1990-level to 9% below 1990 level– Reduce Norway’s carbon emission footprint with 30% within 2020
• Reduction of 13-16 MtonCO2 including forestation– Norway shall be “carbon neutral” within 2050
• Carbon emission reductions may be domestic/offshore reductions or through purchase ofinternational emission credits• However – the target is that 50%-65% of the reduction shall be domesticallywww.lavutslipp.no/english.shtml

9Establishment of Gassnova• Jan 2005: ”Centre for Gas power technology”– Subsidiary of and advisor to Ministry of Petroleum and Energy– Mandate: Facilitate technology development through the CLIMIT R&D&D program• July 2007 : ”Norwegian center for CCS”
– State owned company– Manage the Norwegian government interests and obligations within the area of CCS– Mandate: Full-scale CCS projects and realization; reduce costs associated with CCS; Maximize
government benefits and synergies from CO2 projects

ResearchDemoCommercialization

CLIMIT

6 M€
10 M€

Industry

www.gassnova.noDevelopment

25-35 M€ annual

10

Norwegian CCS
Projects

11

Norway as a ”CO2-laboratory”
Snøhvit LNG train 1, 2007
Snøhvit LNG train 2

Cleaning up

CO2 from

our operations

natural gasYWA

our products

CO2 from electricity
generation

NOR

Cleaning up

Tjeldbergodden – Halten CO2–2,5 mill tonnes/yr. 2012?

Mongstad – 1,3 to 2,1 mill
tonnes/yr, 2014Kårstø – Naturkraft – 1 mill
tonnes/yr, 2011/2012
Sleipner, 1 million
tonnes/yr from 1996

12

CO2 capture installations
CO2-absorber and –stripper
towers at the Snøhvit LNG
plant in Northern Norway

Sleipner field CO2-absorberand –stripper towers arelocated on the T platform

CO2-absorber and –stripper
towers at the Algerian In
Salah gas processing plant

13

Norwegian capture technology – Just Catchand Just Catch Bio• Amine-based capture technology.
• Cooperation between Aker Kværner and 12
industrial partners.

• 2 year project with budget of 6 MUS$• Commercial technology by 2010
• Just Catch Bio: utilizing bio-fuel forregeneration heat for the amine.

• Targets: higher efficiency and lower pricethan available technology.

Just CatchTM

14

StatoilHydro’s CO2-prosjekter
7

CO2 injection capacity
MtCO2/yr

65
4
3
2
1
1996-

2004-

2007-

2011/12-

2014-

15

The Sleipner experience – the starting point• Started in 1996 – 10 year of CO2-injection in October 2006
• Separating and injecting nearly 1 mill. tons CO2 annually• Storing in saline aquifer above natural gas reservoir• Driver: the ~45US$/ton CO2-tax imposed in 1992
• Learning and confidence building through a series of large EU-wide R&D programs

16

Snøhvit LNG – the next milestone• Piped CO2 separated from natural gas in onshore LNG
plant, and re-injecting in sandstone below natural gasreservoir• Storing 700.000 tons CO2 annually from 2007
• Opening of LNG-plant Aug. 2007 – currently testing andflaringSnøhvit

17

CO2-capture at Naturkraft’s gas fired power plant at Kårstø• First large-scale gas power plant in Norway @ 420 MW– Cleanest gas power plant in Europe– NOx < 2 ppm– NH3 < 5 ppm– Started operations November 1st 2007

• CO2 capture from 2011-2012– 1 Mton CO2 / year
– Post-combustion / Chemical absorption– Geological storage

www.naturkraft.no18

Need for integrated CCS value chains:
The StatoilHydro – Shell “Halten CO2 Project”• Announced March 2006 –• 860 MW gas power plant• Capture 85% of CO2 emissions– ~2.5 Mton CO2/yr• Storage:– Initial plan: Transport to the “Draugen” gas fieldfor EOR– Now: deposition in the e.g. “Sleipner” formation• Currently technical/financial evaluations– Will require substantial governmental support• Startup earliest 2009Snøhvit

19

Storage alternatives for the Norwegian North Sea• Pipelines from Mongstad and Kårstø
• Deposition sites:– Utsira (Sleipner)– Johansen formation (south of Troll)MongstadMongstadKårstø

Kårstø
Stavanger20

European CO2 Test Centre Mongstad (TCM)• Gas power plant / combined heatand power
Gjøa
fieldTroll– 400 MWeSub-sea– Heat for refinery

CO2-injeksjon• Test-center for CCS technologies• Capture plant from 2011-2012– 2010:0.1 MtCO2/yr– 2011/12:

1.1 MtCO2/yr– 2014:

1.3 – 2.2 MtCO2/yr

Electric cable
Electric cable

CO2-pipeline

Kollsnes
Naturalga spipeline

MongstadRefinery
2010

2014

Test plant

Full-scale CO2-plant

21

European CO2 Test Centre Mongstad (TCM)

Owner’s know-how• Agreement

Technology company

12. Oct. 2006

how, resources and capital

Projects

Technology
developm.

• Government and industry• Owners contribute with know• Arena for cont technology
development• Development contracts• Vendors participate based oncompetition

VendorVendor

Vendors, patents

Vendor

22

CO2 value chain with revenue streams Æ income is needed!

Kyoto

Additional oil

Mechanisms andif CO2-enhanced oilemission trading schemes

recovery feasible

23The Norwegian CCS roadmap:

Postcombustion

Scale-up and regularity
Energy consumption
Environment

Precombustion

Oxy-fuel

Turbine development

Short term goal

Medium termLong term

2006-20102010-2014> 2015

Demonstration

Full scale
Experience

SargasEuropean CO2 Test Centre- 25 %and NAM- 50 %
Just CatchMongstad- TCM
Amine emission and waste

Full understanding

BIGH2Lab scaleNeglictable effect
Pilot scale

Realised

New technology

New technology
demonstrated

Energy consumption

FCR reformer
lab scale

Energy consumption

Processintegration

Turbine development

ZENG
Pilot scaleHybrideNew technology

Geologicalstorage

Knowledge
Methods
Build trustMembrane

CCP2 demotechnology
BIGCO2
Realised

BIGCLC, ZeroGen og Small
ZEG pilot
Gap analyses
Improved
R&Dprojects
CO2 Storage Kårstø and Mongstad
Development
Implemented
Field
laboratories Commercial
Trust andTesting og Snøhvit/EU projects
Sleipner
acceptance

Demonstrated

24Conclusions:• Norway has been an early mover on the CCSarena• Strong governmental attention since late1980’s• “Brundtland Report” 1987
• CO2 tax from 1992
• Increased focus from 2006/2007• Strong industrial and research engagement• StatoilHydro – storage since 1996
• AkerKværner – capture technology• SINTEF-NTNU – CCS R&D• Mongstad Test Center• Invites international partnership• “Laboratory” for CCS technology
providers