Accelerating the Uptake of Ccs: Industrial Use of Captured Carbon Dioxide March 2011
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ACCELERATING THE UPTAKE OF CCS: INDUSTRIAL USE OF CAPTURED CARBON DIOXIDE MARCH 2011 Disclaimer This report has been prepared by Parsons Brinckerhoff in collaboration with the Global CCS Institute for the benefit of the Global CCS Institute. It is subject to, and in accordance with, the agreement between the Global CCS Institute and Parsons Brinckerhoff. This report is based on a desktop review of available information and to the best of the authors’ knowledge the facts and matters described in this report reasonably represent the conditions only at the time of printing. The report did not consider novel technologies which are in the early R&D phase due to their potential extended development timeframes. Parsons Brinckerhoff and the Global CCS Institute accept no liability or responsibility whatsoever for any direct or indirect damages resulting from any use of or reliance upon this report by any third party. Acknowledgements The report was undertaken by Parsons Brinckerhoff in collaboration with the Global CCS Institute and with support provided by Edge Environment and KPMG. CONTENTS CONTENTS Glossary VIII Executive summary XI 1. Introduction 1 1.1 Background 1 1.2 Purpose 1 1.3 Scope and context 2 1.3.1 Inclusions 3 1.3.2 Exclusions 3 1.4 Definitions used in this report 3 1.4.1 CO2 reuse 3 1.4.2 CCS 4 1.4.3 Alternative forms of CCS 4 1.4.4 Captive and non-captive 4 1.4.5 Bulk CO2 4 1.5 Structure of this report 4 PART 1 TECHNOLOGY INVESTIGATION AND EVALUATION 7 1. CO2 reuse technologies 8 1.1 List and description of technologies 8 1.2 First cut of technologies for detailed investigation and evaluation 15 2. Description of short-listed technologies 16 2.1 CO2 for use in enhanced oil recovery 16 2.1.1 Enhanced gas recovery (EGR) 19 2.2 CO2 as feedstock for urea yield boosting 19 2.3 CO2 as a working fluid for enhanced geothermal systems (EGS) 21 2.4 CO2 as feedstock for polymer processing 23 2.5 CO2 for use in algae cultivation 25 2.6 CO2 as feedstock for carbonate mineralisation 26 2.7 CO2 for use in concrete curing 29 2.8 CO2 for use in bauxite residue carbonation 29 2.9 CO2 as a feedstock for liquid fuel production 31 2.10 CO2 for use in enhanced coal bed methane recovery (ECBM) 35 3. Technology categorisation 37 3.1 CO2 feedstock 37 3.2 Permanence of CO2 storage 38 3.3 Technology categorisation 39 PAGE I CONTENTS 4. Technology comparison 41 4.1 Maturity of reuse technologies 41 4.2 Potential revenue generation 44 4.3 Level of investment 45 4.4 Additional CO2 emissions from reuse 47 4.5 Reuse technologies applicability to developing countries 48 4.5.1 Mineral carbonation production and CO2 concrete curing 49 4.5.2 Bauxite residue carbonation 50 4.5.3 Enhanced coal bed methane (ECBM) 50 4.5.4 Urea yield boosting 50 4.5.5 Methanol 51 4.5.6 Formic acid 51 4.5.7 Engineered geothermal systems 51 4.5.8 Polymers 52 4.5.9 Enhanced oil recovery (EOR) 52 4.5.10 Algae cultivation 52 4.5.11 CDM credits 53 5. Technology evaluation 54 5.1 Methodology and selection criteria 54 5.1.1 Technology maturity 54 5.1.2 Scale-up potential 55 5.1.3 Value for money 56 5.1.4 CO2 abatement potential, environmental and social benefits 57 5.2 Limitations of analysis 58 5.2.1 Shortage of information 58 5.2.2 Comparability of information 58 5.3 Evaluation of short-listed technologies 59 5.3.1 CO2 for use in enhanced oil recovery 59 5.3.2 CO2 as feedstock for urea yield boosting 60 5.3.3 CO2 as a working fluid for enhanced geothermal systems 61 5.3.4 CO2 as feedstock for polymer processing 62 5.3.5 CO2 for use in algae cultivation 63 5.3.6 CO2 as feedstock for carbonate mineralisation 64 5.3.7 CO2 for use in concrete curing 65 5.3.8 CO2 for use in bauxite residue carbonation 66 5.3.9 CO2 as a feedstock for liquid fuel production 67 5.3.10 CO2 in enhanced coal bed methane recovery 68 5.4 Summary of evaluation scores 70 PAGE II CONTENTS 6. Analysis and discussion 71 6.1 Performance of technologies against objectives 71 6.1.1 Objective A: Accelerate cost reductions for conventional CO2 capture plant 72 6.1.2 Objective B: Accelerate the uptake of alternative forms of CCS 74 6.2 Summary of performance against objectives 76 PART 2 ECONOMIC AND COMMERCIAL EVALUATION 79 1. Context 80 2. The CO2 market 81 2.1 Demand 81 2.1.1 Current demand 81 2.1.2 Future demand 82 2.2 Supply 82 2.3 CO2 market pricing 84 2.3.1 Pricing of bulk CO2 84 2.3.2 Future pricing of bulk CO2 84 3. Framework for CCS 85 3.1 No pricing of CO2 and no regulatory obligation 85 3.2 Pricing of CO2 emissions 85 3.2.1 Regulatory obligations to capture and store CO2 86 3.2.2 Summary of present position 87 4. Role of CO2 reuse in facilitating CCS 88 4.1 Key costs and revenues associated with CCS 88 4.1.1 What is a realistic level of revenue to be expected from the sale of CO2 for reuse? 88 4.1.2 How much does CCS cost now, and how much will it cost in the future? 89 4.1.3 What is the carbon price expected to be into the future? 90 4.2 Interaction of key costs and revenues 91 4.3 Development scenarios 92 4.3.1 Development scenario 1 – When a strong carbon price is in place, what benefit will CO2 reuse provide when the reuse permanently stores CO2? 93 4.3.2 Development scenario 2 – Can a CO2 reuse technology that does NOT permanently store CO2 become commercially viable when a carbon price is in place? 93 4.3.3 Development scenario 3 – Can CO2 reuse technologies accelerate the demonstration of individual elements of the CCS chain, in lieu of fully integrated demonstration projects? 94 4.3.4 Development scenario 4 – Will CO2 reuse be commercially viable in a weak carbon price environment 95 4.4 Conclusions 95 PAGE III CONTENTS PART 3 KEY FINDINGS, RECOMMENDATIONS AND CONCLUSIONS 97 1. Key findings 98 1.1 Reuse as an economic driver 99 1.2 Reuse as a driver of learning and acceptance 100 1.3 Recommendations 100 2. Conclusions 102 PAGE IV LIST OF TABLES LIST OF TABLES Table 1.1 Existing uses for CO2 9 Table 1.2 Emerging uses for CO2 11 Table 1.3 Current and future potential CO2 demand of existing uses 13 Table 1.4 Future potential CO2 demand of emerging uses 14 Table 2.1 Enhanced oil recovery summary 17 Table 2.2 Urea yield boosting summary 20 Table 2.3 Enhanced geothermal systems summary 22 Table 2.4 Polymer processing summary 24 Table 2.5 Algae cultivation summary 25 Table 2.6 Carbonate mineralisation technology summary 27 Table 2.7 CO2 for use in concrete curing summary 29 Table 2.8 Bauxite residue carbonation summary 30 Table 2.9 Liquid fuel production summary 33 Table 2.10 Enhanced coal bed methane recovery summary 36 Table 4.1 Technology maturity 42 Table 4.2 Potential cumulative demand and gross revenue estimates for reuse technologies to 2020 45 Table 4.3 LCA case study description and results 47 Table 5.1 EOR evaluation summary 59 Table 5.2 Urea yield boosting evaluation summary 60 Table 5.3 Enhanced geothermal systems evaluation summary 61 Table 5.4 Polymer processing evaluation summary 62 Table 5.5 Algae cultivation evaluation summary 63 Table 5.6 Carbonate mineralisation evaluation summary 64 Table 5.7 Concrete curing evaluation summary 65 Table 5.8 Bauxite residue carbonation evaluation summary 66 Table 5.9 Liquid fuel production evaluation summary 67 Table 5.10 Enhanced coal bed methane evaluation summary 68 Table 5.11 Evaluation scores 70 Table 6.1 Top five performing technologies for each objective 76 PAGE V LIST OF FIGURES LIST OF FIGURES Figure 1.1 Report structure 4 Figure 1.2 Part 1 and 2 structure 5 Figure 2.1 Enhanced oil recovery overview 17 Figure 2.2 Urea fertiliser production overview 20 Figure 2.3 Enhanced geothermal systems overview 21 Figure 2.4 Algae cultivation overview 25 Figure 2.5 Calera CMAP process overview 27 Figure 2.6 Bauxite residue carbonation overview 30 Figure 2.7 Renewable methanol production overview 32 Figure 2.8 Formic acid production overview 32 Figure 3.1 Technologies operating on concentrated CO2 versus dilute CO2 38 Figure 3.2 Permanent versus non-permanent storage 39 Figure 3.3 Technology categorisation 40 Figure 4.1 Technology development timeline 41 Figure 6.1 Potential to accelerate cost reductions for conventional capture plant 73 Figure 6.2 Potential to accelerate alternative forms of CCS 75 Figure 2.1 Approximate proportion of current CO2 demand by end use 82 Figure 2.2 Current global CO2 supply and demand 83 Figure 4.1 Plausible CCS experience curve for integrated power generation projects with CCS 90 Figure 4.2 Interaction of key costs and revenues 91 PAGE VI APPENDICES APPENDICES Appendix A: CO2 for use in enhanced oil recovery (EOR) 104 Appendix B: CO2 as a feedstock for urea yield boosting 108 Appendix C: CO2 as a working fluid for Enhanced Geothermal Systems (EGS) 111 Appendix D: CO2 as a feedstock for polymer processing 116 Appendix E: CO2 for use in algae cultivation 121 Appendix F: CO2 as feedstock for carbonate mineralisation 127 Appendix G: CO2 for concrete curing 133 Appendix H: CO2 for use in bauxite residue carbonation 136 Appendix I: CO2 as a feedstock for liquid fuel production 138 Appendix J: Enhanced coal bed methane recovery 142 Appendix K: Evaluation scores 147 Appendix L: Emerging technologies – demonstration projects and R&D studies 198 Appendix M: Edge Environment report 215 Appendix N: Reference list 254 PAGE VII GLOSSARY GLOSSARY %wt Percentage weight ABLE Alkalinity based on low energy ASTM American Society for Testing and Materials AU$ Australian dollars bbl Barrel bn Billion CaCO3 Calcium carbonate CaO Calcium oxide CAPEX Capital expenditure CARMA Carbon monitoring for action CCGT Combined cycle gas turbine CCS Carbon