46052-001:Component A–Work Package 2 Report: CCS Technology Review Adapted to the PRC's Needs

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46052-001:Component A–Work Package 2 Report: CCS Technology Review Adapted to the PRC's Needs Technical Assistance Consultant’s Report Project Number: 46052 March 2015 People’s Republic of China: Roadmap for Carbon Capture and Storage Demonstration and Deployment (Financed by the Carbon Capture and Storage Fund) Component A–Work Package 2 Report: CCS Technology Review adapted to the PRC’s Needs Prepared by Hongguang Jin, Chinese Academy of Sciences Yongchen Song, Dalian University of Technology Lin Gao, Chinese Academy of Sciences For Department of Climate Change, National Development and Reform Commission (Executing Agency) National Center for Climate Change Strategy and International Cooperation (Implementing Agency) This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. (For project preparatory technical assistance: All the views expressed herein may not be incorporated into the proposed project’s design. Road Map for Carbon Capture and Storage (CCS) Demonstration and Deployment in the People’s Republic of China WORK PACKAGE 2 REPORT: CCS Technology Review adapted to the PRC’s Needs Hongguang Jin, Chinese Academy of Sciences Yongchen Song, Dalian University of Technology Lin Gao, Chinese Academy of Sciences March 2015 ADB TA‐8133 (PRC) People’s Republic of China: Road Map for Carbon Capture and Storage Demonstration and Deployment Report of Work Package II CCS Technology Suitable for China Jan 2014 Prepared By Hongguang JIN Yongchen SONG Lin GAO 1 CONTENTS 0. Objectives and Activities of WP2 ..................................................................................... 3 1. Review of CCS Technologies and Demonstration Projects ..................................... 4 1.1 The unique role of CCS for emission reduction .................................................... 4 1.2 State-of-art of CCS technologies and lessons/experiences of ongoing demonstration projects ........................................................................................................ 12 2. Identification of Specific Issues in CCS Development ............................................. 23 2.1 China’s specific national references for CCS in China ...................................... 23 2.2 Applicability of issued CCS roadmaps to China ................................................. 25 CCS development strategy of USA ........................................................................ 30 IEA roadmap – over optimistic and hard to implement .................................... 33 European Union (EU) CCS roadmap – goals ahead, progress backward ... 34 US DOE roadmap –strategically prudent and technically positive ............... 34 2.3 Future challenge of CCS technologies suitable for China................................. 36 3. Energy Penalty and Cost of CO2 Capture Technologies ......................................... 38 3.1 Potential of coal-based technologies in low carbon emission .......................... 38 3.2 Promising technical routes of power generation with CO2 capture in China .. 48 3.3 The role of CCS ready technologies for power sector of China ....................... 55 3.4 Technical threshold, timeline, key milestone and innovation direction of CO2 capture ................................................................................................................................... 60 4. Scale and Deployment Potential of CO2 Utilization Technologies ........................ 62 4.1 Current State of CO2 utilization technologies ...................................................... 62 4.2 Evaluation of Scale and Deployment Potential of CO2 utilization .................... 64 5. Capacity, Risk and Reliability of CO2 Storage Technologies.................................. 69 5.1 Evaluation of current CO2 sequestration technologies ...................................... 69 5.2 Key barriers to CO2 storage in China ................................................................... 78 5.3 Preliminary matching between CO2 sources and sinks in China ..................... 79 5.4 Technical threshold, timeline, key milestone and innovation direction of CO2 storage ................................................................................................................................... 90 6. Key findings and Recommendations ............................................................................ 93 6.1 Key findings .............................................................................................................. 93 6.2 Recommendations .................................................................................................. 94 References ................................................................................................................................... 95 2 0. Objectives and Activities of WP2 Objectives of WP II Develop the tools and evaluate the deployment potential of CCS technologies based on the comparison with other CO2 emission reduction technologies and identify technological options of developing CCS in China. (in ToR) Tasks in ToR doc. 1.1.2 Conduct in-depth situation analysis and evaluate the potential of deploying carbon capture, utilization and storage projects, and determine their roles in the PRC’s CO2 emissions reduction trajectory (weeks 4–12). 1.1.3 Develop the analytical models and tools and evaluate the deployment potential of CCS technologies compared with other CO2 emission-reduction technologies and identify technological options of developing CCS in the PRC (weeks 4–15). Detailed Activities Listed in Inception Report (Appendix I) Detailed Activities Listed in Inception Report 2. Develop tools for, conduct in-depth situation analysis for technologies, and evaluate the potential of deploying CO2 utilization technologies and assess their roles in CO2 emissions reduction 2.1 Identify the potential of CO2 utilization technologies in China 2.2 Analyze the strengths and weaknesses of major CO2 utilization technologies, and conduct a comparison with CO2 sequestration technologies; 2.3 Assess the application capacity of major CO2 utilization technologies in the PRC, the abatement potential, costs and required investments; 2.4 Investigate the feasibility of widely deploying selected utilization technologies in China from various perspectives, such as technology maturity, compatibility with capture technologies, investment and operating and maintenance costs, and socio-economic and environmental impacts, etc; 2.5 Evaluate the emission-reduction potential of key applications in China, and abatement cost curves; 2.6 Summarize the potential role of CO2 utilization technologies. 3. Develop the tools and evaluate the deployment potential of CCS technologies based on the comparison with other CO2 emission reduction technologies and identify technological options of developing CCS in China 3.1 Prepare the models, study and compare techno-economic characteristics of fossil-fuel power generation plants with pre- and post-combustion CCS technologies to different CO2 emission reduction technologies in the power sector, such as renewable and new energy technologies and energy saving technologies, identify the role of CCS technology; 3.2 Compare different pre- and post-combustion CCS technologies, assess the emission reduction potential of various CCS technology mixes in China, compatibility to current energy technologies, penalty on energy and cost etc., and identify their future potential for technological innovation, the cost curve and the abatement cost curve and reduction potential with wider deployment, etc.; 3.3 Evaluate the capacity, reliability, and cost-effective of different sequestration technologies in China, and make the comparison; 3.4 Investigate main carbon emissions from main stationary sources and sequestration capacities of main basins of the China, and make a systematic analysis on source-sink matching based on the pertinent studies and information; 3.5 Identify the optimized options of CCS technologies corresponding to different emission reduction scenarios in China, including appropriate milestones and strategies. 3 1. Review of CCS Technologies and Demonstration Projects 1.1 The unique role of CCS for emission reduction 1.1.1 General description of CO2 capture, transportation and storage, and the course of CCS technology rising as a CO2 sequestration method International authorities such as IPCC confirmed that the climate change was closely related to human activities. Large amount CO2 was emitted while collecting energy by burning fossil fuel. The broken carbon equilibrium of the biosphere and increased concentration of CO2 in the atmosphere led to the climate change. The ways to recover carbon equilibrium include “less emission (emission reduction)” and “more absorption (sink enhancement)”. The ways for emission reduction are classified into two categories: indirectly lower CO2 emission by energy saving, utilizing alternative renewable energy; directly lower CO2 emission by CO2 capture and storage to prevent discharge of CO2 to the atmosphere. In the 70s of last century, deep ocean sequestration was proposed by European and American scholars. In 1972, EOR technology was commercially applied in Texas Oil Field of America. CCS technology was officially mentioned in the Second Assessment Report by IPCC in 1996. In the same year, CCS technology was recognized as one of the methods to protect the environment in the Third Global Conference on Greenhouse Gas Control Technologies in America. In 2001, wide attention was paid to CCS
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