CCS Global Final Report
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CCS Global Prospects of Carbon Capture and Storage Technologies (CCS) in Emerging Economies Final Report to the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) Part III: Country Study China GIZ-PN 2009.9022.6 Wuppertal, 30 June 2012 This project is part of the International Climate Initiative (ICI). FinalReport CCS global The project on which this report is based was funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) through the GIZ (Project Number 2009.9022.6). The sole responsibility for the content of this report lies with the au- thors. The total report consists of 6 parts: Concluding Hypotheses / Zusammenfassende Thesen I. General Status and Prospects of CCS II. Country Study India III. Country Study China IV. Country Study South Africa V. Comparative Assessment of Prospects of CCS in the Analysed Countries Elaborated by Wuppertal Institute Dipl.-Umweltwiss. Andrea Esken Dipl.-Umweltwiss. Samuel Höller Dr. Daniel Vallentin Dr. Peter Viebahn (Project Co-ordinator) With subcontracts to Dr. Pradeep Kumar Dadhich (The Energy and Resources Institute, New Delhi) Prof. Dr. Can Wang (Tsinghua University, Beijing) Prof. Dr. Rosemary Falcon (University of the Witwatersrand, Johannesburg) Dr. Werner Zittel (Ludwig-Bölkow-Systemtechnik, Ottobrunn, Germany) Teresa Gehrs (LinguaConnect, Osnabrück) Assistance by Holger Liptow (GIZ) Christina Deibl, Bianca Falk, Florian Knüfelmann, Geo Kocheril (Wuppertal Institute) Contact Dr. Peter Viebahn Wuppertal Institute for Climate, Environment and Energy Research Group “Future Energy and Mobility Structures” Döppersberg 19 42103 Wuppertal Germany Tel.: +49 202/2492-306 Fax: +49 202/2492-198 E-mail: [email protected] Web: www.wupperinst.org/CCS/ 2 Final Report Part III Table of Contents Table of Contents Table of Contents 3! List of Abbreviations, Units and Symbols 7! List of Tables 13! List of Figures 17! III. ! ! Country Study China 20! 16! ! Status and Development of CCS in China 21! 16.1! ! General Energy Situation in China 21! 16.2! ! Research, Development and Demonstration Projects on CO2 Capture in China 22! 16.2.1! CCS Activities 22! 16.2.2! Fields of Use 24! 16.2.3! Industrial Processes 26! 16.2.4! Fuel Production 26! 16.2.5! Storage Projects 27! 17! ! Assessment of China’s Potential for CO2 Storage 33! 17.1! ! Introduction 33! 17.2! ! Geological Situation in China 33! 17.3! ! Overview of Existing Studies on China’s CO2 Storage Potential 34! 17.3.1! Existing Country-Specific Studies 34! 17.3.2! Existing Site-Specific Assessment Studies 42! 17.4! ! Storage Potential Assessments by Formation 43! 17.4.1! Oil fields 45! 17.4.2! CO2-Based Enhanced Oil Recovery 50! 17.4.3! Deep Saline Aquifers 51! 17.4.4! Gas Fields 61! 17.4.5! Coal Seams 62! 17.5! ! Summary of Research Results 63! 17.6! ! Development of Storage Scenarios 63! Wuppertal Institute for Climate, Environment and Energy 3 CCS global 18! ! CCS-Based Development Pathways for China’s Power and Industry Sector 66! 18.1! ! Introduction 66! 18.2! ! Current and Projected Coal-Fired Power Plants in China 66! 18.3! ! Long-Term Coal Development Pathways for the Power Plant Sector 70! 18.3.1! Methodological Approach 70! 18.3.2! Description of Underlying Basic Scenarios 74! 18.3.3! Comparison of Coal Development Pathways 77! 18.4! ! CO2 Captured from Coal-Fired Power Plants 82! 18.4.1! Capacity of CCS-Based Power Plants Depending on Coal Development Pathways 82! 18.4.2! Calculating the Quantity of CO2 to be Captured from Power Plants 86! 18.5! ! CO2 Captured from Industrial Sites 92! 18.5.1! Methodological Approach 92! 18.5.2! Quantity of CO2 Captured from Industrial Sites 93! 18.6! ! Conclusions 95! 19! ! Matching the Supply of CO2 to Storage Capacities 96! 19.1! ! Introduction 96! 19.2! ! Overview of Storage Scenarios 96! 19.3! ! Overview of Coal Development Pathways 97! 19.4! ! Methodology of Source-Sink Matching 98! 19.4.1! Matching Emissions from Power Plants with Storage Sites 100! 19.4.2! Matching Emissions from Industrial Point Sources with Storage Sites 105! 19.5! ! Results of Source-Sink Matching 105! 19.6! ! Conclusion 107! 20! ! Assessment of the Reserves, Availability and Price of Coal 110! 20.1! ! General Aspects 110! 20.2! ! Coal Quality and Coal Washeries 110! 20.2.1! Coal Quality 110! 20.2.2! Coal Washeries 112 ! 4 Final Report Part III Table of Contents 20.3! ! Coal Resources and Reserves 112! 20.3.1! Reserves as Reported by the World Energy Council 113! 20.3.2! Resources as Reported in the Chinese Statistical Yearbook 114! 20.3.3! Chinese Reserve Classification Scheme 115! 20.3.4! Chinese Coal Resource and Depth Distribution 120! 20.3.5! Regional Distribution of Reserves 121! 20.4! ! Coal Production in China 122! 20.4.1! Regional Aspects of Coal Production in China 123! 20.4.2! Productivity 124! 20.5! ! Price Development 124! 20.5.1! General Aspects 124! 20.5.2! Historical Price Development 125! 20.5.3! Present Prices of Domestic Chinese Coal 127! 20.5.4! Price Difference between Domestic and Imported Coal 129! 20.5.5! Projection of Coal Price Development 133! 20.6! ! Conclusion 134! 21! ! Economic Assessment of Carbon Capture and Storage 135! 21.1 ! Introduction 135! 21.2! ! Basic Parameters and Assumptions 135! 21.2.1! Power Plant Types and Plant Performance 135! 21.2.2! Coal Development Pathways for the Expansion of Coal-Fired Power Plant Capacities in China 136! 21.2.3! Levelised Cost of Supercritical Pulverised Coal Plants in China 137! 21.3! ! Impact of CCS on the Cost of Electricity Generated by Coal-Fired Power Plants in China 143! 21.3.1! Levelised Cost of Electricity Generated by Supercritical Coal-Fired Power Plants with and without CCS up to 2050 (without CO2 Penalty) 143! 21.3.2! Levelised Cost of Electricity Generated by Supercritical Power Plants with and without CCS up to 2050 (with CO2 Penalty) 145! 21.3.3! Comparison of CO2 Mitigation Costs of Supercritical Coal-Fired Power Plants in China up to 2050 with and without CO2 Penalty 148! 21.4! ! Conclusions 149 ! Wuppertal Institute for Climate, Environment and Energy 5 CCS global 22! ! Life Cycle Assessment of Carbon Capture and Storage and Environmental Implications of Coal Mining 151! 22.1! ! Introduction 151! 22.2! ! Life Cycle Assessment of CCS 151! 22.2.1! Methodological Approach 151! 22.2.2! Basic Assumptions and Parameters 152! 22.2.3! Results of the Life Cycle Assessment 155! 22.2.4! Conclusions 160! 22.3! ! Further Environmental Implications of Coal Mining outside LCA 161! 22.3.1! Land Consumption 161! 22.3.2! Water Consumption 161! 22.3.3! Other Environmental Impacts of Coal Mining 162! 23! ! Analysis of Stakeholder Positions 165! 23.1! ! Overview 165! 23.2! ! Key Players 165! 23.2.1! National Government 165! 23.2.2! Industry 168! 23.2.3! Oil Industry 171! 23.2.4! Civil Society 172! 23.2.5! Think-Tanks and Advisory Bodies 174! 23.2.6! Science 175! 23.3! ! Survey on the Prospects of CCS in China 179! 23.4! ! Conclusions 182! 24! ! Integrative Assessment of Carbon Capture and Storage 185! 24.1! ! Overall Conclusions on the Prospects of CCS in China 185! 24.2! ! Summary of the Assessment Dimensions in Particular 189! 24.2.1! CO2 Storage Potential 189! 21.4.1! Further Assessment Dimensions 191! 25! ! Annex China 196! 26! ! Literature 203 6 Final Report Part III List of Abbreviations, Units and Symbols List of Abbreviations, Units and Symbols Abbreviations 3E Institute of Energy, Environment and Economy ACCA 21 Administrative Centre for China’s Agenda 21 ADB Asian Development Bank af Annuity factor Al2O3 Aluminium oxide AP Acidification potential APEC Asia-Pacific Economic Cooperation APP Asia-Pacific Partnership ARA Amsterdam, Rotterdam and Antwerp BAFA German Federal Office of Economics and Export Control BAU Business as usual BP British Petroleum CAGS CO2 Geological Storage Project CAPPCCO Chinese Advanced Power Plant Carbon Capture Options CATF Clean Air Task Force CaO Calcium oxide CBM Coalbed methane CCICED China Council for International Cooperation on Environment and Development CCS Carbon (dioxide) capture and storage CCUS Carbon (dioxide) capture, use and storage CEEP Centre for Energy and Environmental Policy CERC Clean Energy Research Centre CIDA Canadian International Development Agency CIPC China Investment Power Corporation CH4 Methane CHDR China Human Development Report CML Centrum voor Milieukunde in Leiden/Netherlands CNPC China National Petroleum Corporation CO Carbon monoxide CO2 Carbon dioxide CO2-EOR CO2-based enhanced oil recovery CO2-eq CO2 equivalents COACH Cooperation Action within CCS China-EU CO2CRC Cooperative Research Centre for Greenhouse Gas Technologies (AUS) CPIC China Power Investment Corporation CRI Coke reactivity index CSIRO Commonwealth Scientific and Industrial Research Organisation CSLF Carbon Sequestration Leadership Forum CTL Coal to liquid CUCBM China United Coalbed Methane Corporation Ltd. Wuppertal Institute for Climate, Environment and Energy 7 CCS global DECC Department of Energy and Climate Change (UK) DCL Direct coal liquefaction DGPC Dongguan Power and Chemical Industry Holding Co. Ltd. DOE U.S. Department of Energy EC EmissionsControl ECBM Enhanced coalbed methane ECUST East China University of Science and Technology EGR Enhanced gas recovery EOR Enhanced oil recovery EP Eutrophication potential EPC Engineering, procurement and construction EREC European Renewable Energy Council ERI Energy Research Institute EU European Union EUA EU emissions allowances EXW Price ex mine FGDS Flue gas desulphurisation