Supporting Early Carbon Capture Utilisation and Storage Development in Non-Power Industrial Sectors, Shaanxi Province, China AUTHORS Professor Hongguang JIN, Dr

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Supporting Early Carbon Capture Utilisation and Storage Development in Non-Power Industrial Sectors, Shaanxi Province, China AUTHORS Professor Hongguang JIN, Dr Supporting early Carbon Capture Utilisation and Storage development in non-power industrial sectors, Shaanxi Province, China AUTHORS Professor Hongguang JIN, Dr. Lin GAO, Dr. Sheng LI Institute of Engineering Thermophysics, Chinese Academy of Sciences Emiel van Sambeek Azure International Richard Porter University of Leeds Tom Mikunda, Jan Wilco Dijkstra, Heleen de Coninck, Daan Jansen Energy research Centre of the Netherlands Publication date June 2012 Report no. 012 Publisher The Centre for Low Carbon Futures 2012 For citation and reprints, please contact the Centre for Low Carbon Futures. This project is funded by the British Embassy Beijing as part of the China Prosperity SPF Programme. The results of this report are based on the collaborative efforts of the Institute of Engineering Thermophysics, Chinese Academy of Sciences, Azure International, the University of Leeds, the Energy research Centre of the Netherlands and has been lead by the Centre for Low Carbon Futures (CLCF). The project is also grateful for support from the Global CCS Institute. CONTENTS Introduction .............................................................................................................................................01 CHAPTER ONE: GAPS AND BARRIERS TO CARBON CAPTURE UTILISATION AND STORAGE IN NON-POWER INDUSTRIAL SECTORS OF SHAANXI PROVINCE, CHINA 1. Background and Introduction................................................................................................................06 1.1. CCUS and its significance to the Shaanxi Province, China ..........................................................06 1.2. Matching non-power industrial high purity CO2 sources to EOR and other utilisation..................07 1.3. Availability of information ..............................................................................................................08 2. Technical Gaps and Barriers .................................................................................................................09 2.1. Capture and Compression ............................................................................................................09 2.2. Transport.......................................................................................................................................10 2.3. Storage: EOR and ECBM..............................................................................................................13 2.4. Impact of CO2 impurities...............................................................................................................17 3. Economic Gaps and Barriers.................................................................................................................19 3.1. Existing CCUS infrastructure.........................................................................................................19 3.2. Age and lifespan of CO2 sources and sinks .................................................................................20 3.3. Investment needs..........................................................................................................................21 3.4. CO2 taxation .................................................................................................................................21 4. Policy and Regulatory Barriers .............................................................................................................22 4.1. Current CCUS policy .....................................................................................................................22 4.2. Integrating policy and legislation ...................................................................................................23 4.3. Regulation of liabilities...................................................................................................................24 4.4. Incentive provision to promote CCUS ...........................................................................................25 4.5. Cooperation between multiple authorities .....................................................................................26 4.6. Harmonising policies in an international context ...........................................................................28 5. Public Perception and Acceptance.......................................................................................................28 5.1. Health and safety issues ...............................................................................................................28 5.2. Visual impact.................................................................................................................................29 5.3. Financial issues ............................................................................................................................29 6. Recommendations..................................................................................................................................30 References ..............................................................................................................................................31 CHAPTER TWO: INVENTORY OF NON-POWER INDUSTRIAL CO2 SOURCES OF SHAANXI PROVINCE, CHINA Executive Summary................................................................................................................................36 1. Introduction .............................................................................................................................................36 1.1. Introduction to CCUS ....................................................................................................................36 1.2. Objective of this report ..................................................................................................................36 1.3. Methodology and introduction to the outline..................................................................................37 2. Industrial processes with CO2 emissions............................................................................................37 2.1. The impact of CO2 purity on energy/economic penalty ................................................................39 2.2. Definition of high purity CO2 sources in industrial processes .......................................................42 2.2.1. Separation processes providing high purity CO2 sources.........................................................43 2.2.2. Specifications and impurities .....................................................................................................44 2.2.3. Composition and after-treatment ...............................................................................................46 2.3. Description of high purity CO2 sources in industrial processes ....................................................47 2.3.1. Natural gas processing..............................................................................................................47 2.3.2. Coal-to-liquids............................................................................................................................48 2.3.3. Biomass conversion ..................................................................................................................49 2.3.4. Ammonia/fertiliser production ....................................................................................................50 2.3.5. Ethylene production...................................................................................................................51 2.3.6. Refineries ..................................................................................................................................52 2.3.7. Methanol, ethanol and dimethylether production.......................................................................53 2.3.8. Ethylene epoxide production .....................................................................................................54 2.3.9. Hydrogen production process....................................................................................................54 2.3.10.Calcium carbide production process........................................................................................56 2.3.11.Cement production process .....................................................................................................57 2.3.12.Steel production .......................................................................................................................57 2.4. Summary .......................................................................................................................................58 3. High-purity CO2 sources in Shaanxi Province ....................................................................................59 3.1. General description of CO2 emissions in Shaanxi Province .........................................................59 3.2. Classification of industrial sources according to CO2 emissions ..................................................60 3.3. Identification of the main sources of high purity CO2 emissions in Shaanxi Province ..................64 3.4. Detailed description of main sources of high purity CO2 emissions in Shaanxi Province.............65 3.4.1. Ammonia synthesis plants.........................................................................................................66 3.4.2. Methanol plants .........................................................................................................................66
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