Ccj24b Layout 1 15/11/2011 10:48 Page 1

CCJ24b_Layout 1 15/11/2011 10:48 Page 1

Toshiba’s pilot programme results Air Liquide’s CPU pilot at CIUDEN plant Pacific Northwest’s post combustion test bed DNV - verifying CO2

Nov / Dec 2011 Issue 24 storage capacity

GCCSI Global Status of CCS 2011 update CCS under the CDM – will recent progress be undone? CCJ24b_Layout 1 15/11/2011 10:48 Page 2 CCJ24b_Layout 1 15/11/2011 10:48 Page 1

Contents Leaders Toshiba’s pilot programme results Toshiba has achieved 2.6GJ/ tonne-CO2 at its 10tonne-CO2/day pilot plant using the flue gas from the Mikawe coal fired power plant 2 Air Liquide’s new pilot carbon capture unit at CIUDEN plant Air Liquide has been selected to supply the CO2 cryogenic purification unit for CIUDEN’s pilot plant in Northwest Spain 7

Nov/Dec 2011 Issue 24 Legal Column The deadline for EU member states to transpose the EU Directive on the Storage of Carbon Capture Journal Carbon Dioxide passed on the 25 June this year. The degree of compliance with this 2nd Floor, 8 Baltic Street East, London EC1Y 0UP deadline, the transposition methods employed and the extent of acceptance of the new www.carboncapturejournal.com law in various member states are important indicators of how CCS is likely to develop Tel +44 (0)207 017 3405 across Europe, says Calum Hughes at Yellow Wood Energy Fax +44 (0)207 251 9179 8 Editor Keith Forward Projects and policy [email protected] GCCSI Global Status of CCS 2011 update Publisher The annual GCCSI report highlights ‘measured’ progress in 2011 with an increase in the Karl Jeffery number of large-scale integrated projects (LSIPs) in operation or under construction and [email protected] a clustering of projects around the advanced stages of development planning 10 Subscriptions [email protected] CCS under the CDM – will recent progress be undone by carbon market dynamics? Advertising and Sponsorship Just as CCS looks set to be included in the Clean Development Mechanism (CDM), some John Finder of the countries with the greatest potential for CDM projects may soon be excluded. By Tel +44 (0)207 017 3413 [email protected] Lodewijk Nell and Andrew Gilder 12

Carbon Capture Journal is your one stop Bellona report on CCS readiness information source for new technical A report from Bellona finds that EU CCS requirements were breached by Slovenia 13 developments, opinion, regulatory and research activity with carbon capture, GCCSI report - CCS ’competitive’ in reducing power sector emissions transport and storage. The GCCSI has released a report that concludes CCS is a competitive power sector emissions abatement tool when compared to other low-carbon technologies 14 Carbon Capture Journal is delivered on print and pdf version to a total of 6000 people, all of whom have requested to receive it, Capture including employees of power companies, oil and gas companies, government, Post combustion test bed development engineering companies, consultants, Pacific Northwest National Laboratory (PNNL) assessment methodology and slip-stream educators, students, and suppliers. testing platform enables the early-stage evaluation of CO2 capture solvents and sorbents 16 Subscriptions: £250 a year for 6 issues. To Statoil selects technology suppliers for Mongstad subscribe, please contact Karl Jeffery on Gassnova and Statoil have chosen suppliers of CO2 capture technology to participate in [email protected] a technology qualification program for full-scale CO2 capture at Mongstad 18 Alternatively you can subscribe online at www.d-e-j.com/store Transport and storage Front cover: Toshiba’s 10t-CO2/day pilot plant at the Mikawa Power Plant, Omuta City, A risk based approach for verification of CO2 storage capacity estimation Fukuoka, Japan There is an increasing need to focus on questions of CO2 storage capacity without compromising the safety or integrity of the storage site. Documentation of safe long term storage of large volumes of CO2 in geological formations is one of these challenges. By Semere Solomon, DNV 20 IPAC-CO2 releases CO2 storage standard The draft of the world’s first standard for geologic storage of carbon dioxide now is available for public review 23 DNV issues first certificate of fitness for CO2 storage DNV has awarded the world’s first certificate of fitness for safe CO2 storage to Shell’s Quest Carbon Capture and Storage project 23 Status of CCS project database The status of 78 large-scale integrated projects data courtesy of the Global CCS Institute 24 Carbon capture journal (Print) ISSN 1757-1995 Nov - Dec 2011 - carbon capture journal 1 Carbon capture journal (Online) ISSN 1757-2509 CCJ24b_Layout 1 15/11/2011 10:49 Page 2

Leaders Toshiba’s pilot programme results

Toshiba has achieved 2.6GJ/ tonne-CO2 at its 10tonne-CO2/day pilot plant using the flue gas from the Mikawe coal fired power plant. By Yukio Ohashi, Takashi Ogawa and Kensuke Suzuki, Toshiba Corporation

Most CCS systems provide a large penalty ter CO2 capture to the performances of thermal power plants performance because of the vast energy taken from the than planned Stack steam for the power generation. They also has been main- require a huge investment and operational tained. costs. Therefore, more economical systems We have are strongly demanded. In early 2011 Toshi- also developed ba had proven a least energy consumption of a novel amine 2.6GJ/t-CO2 or less at our 10t/day pilot solvent called plant. TS-1 (Toshiba Toshiba has been supplying many effi- Solvent 1) by cient steam turbine cycles for thermal and our R&D activ- FGD nuclear power plants all over the world. ities since 2007 Since 2007 we have also been concentrating which will be on the development of a post-combustion described later. CO2 capture system for helping to solve the By using this global environmental problem[1],[2]. TS-1, CO2 cap- We are pushing through the post-com- ture ratio and bustion carbon dioxide capture because it captured CO2 can be employed in rather a short period aof rate exceeded time nd can be applied for both retrofit and the planning new power plants. Toshiba will be able to values of 90 % supply low cost CCS installed thermal pow- and 10t- Figure 1 - the 10t-CO2/day pilot plant at Sigma Power Ariake Co., Ltd. er plants by integrating power generation, CO2/day re- Mikawa Power Plant, Omuta City, Fukuoka, Japan flue gas treatment and CCS system. spectively during continuous Design and construction of the pilot 3,000 hour op- plant eration as shown in Fig.4. Fluctuations of On the other hand the concentrations of We had started the design and engineering of these values degraded substances, such as carbonic acid, a 10t-CO2/day pilot plant in 2008, and in in Fig.4 are had been increasing within the TS-1 solvent. 2008 11 September 2009 completed it according to 12 Engineering & due to those But as shown in Fig.6 the increasing rate is the schedule of Table 1, which works on the 1 Permits of the CO2 much lower than other solvents, such as 2 concentration MEA during 3,000 hours of operation [4]. flue gas from the Mikawa coal fired thermal 3 Material power plant located in Fukuoka, Japan, 4 Procurement, of the flue These results prove that Toshiba’s CO2 5 which is owned by Sigma Power Ariake Manufacturing & gas from the capture system using the TS-1 solvent is a 2009 6 Co.,Ltd. a subsidiary of Toshiba. The specifi- 7 Construction Mikawa promising system which has been realizing cation of the pilot plant is shown in Table 2. 8 Commissioning power plant good performance and not degrading during 9 The appearance is shown in Fig.1. As 10 at the ab- its continuous operations under actual live shown in Fig.2 the flue gas of the power 11 Test Period-1 sorber inlet. flue gas. plant is introduced downstream of the exist- 12 Furthermore 1 Alteration ing FGD and supplied to the absorber via the 2 Test Period-2 the energy additional FGD which removes most of the 3 consumption Mikawa Thermal Power Plant Alteration Location SO2 in the flue gas. At the outlet of the strip- 4 for CO2 re- SIGMA POWER Ariake 5 per the steam contained in the produced gas Test Period-3 covery at the Source Gas Flue Gas of Coal-Fired Boiler 2010 6 is removed by the condenser and almost pure 7 reboiler had Treated Gas Flow Rate 2100Nm3/h CO2 gas can be obtained. 8 Alteration been kept be- 9 CO2 Concentration Approx. 12% 10 Test Period-4 tween 3.2 and CO2 Capture Ratio 90% Demonstration tests of the pilot plant 11 Alteration 3.3 GJ/t-CO2 12 Captured CO2 10t-CO2/day Now it has been operating continuously us- 1 at a CO2 cap- ing the flue gas from the coal-fired power 2011 2 Test Period-5 ture ratio of Impurities SOx, NOx, Dust, etc plant and the cumulative operating time has 3 around 90% Solvent TS-1 Solvent reached 4,308 hours as shown in Fig 3. Dur- Table 1 - procedure of the as shown in ing this period, stable operations and a bet- pilot plant tests Fig.5 [3]. Table 2 - pilot plant specifications

2 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:49 Page 3

Leaders

Figure 4 - performance of the pilot plant

100

90% 90

85 Capture Ratio [%]

2 80 CO

2.8 2.9 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

CO Recovery Energy [GJ/t-CO ] Figure 2 - schematic diagram of the pilot plant with the Mikawa Power Plant 2 2

Improvement of the pilot plant and According to the heat loss tests and Figure 5 - CO2 capture ratio vs. CO2 recovery evaluation tests analysis, it is expected that the consumed en- energy Based on the analysis of these test results, we ergy would be reduced by 0.3 GJ/t-CO2 by had found an improved system structure of reinforcing the thermal insulation at the pi- the pilot plant to reduce the consumed ener- lot plant, which means that the value of 2.3 gy in the through thermodynamic system GJ/t-CO2 would be possible at larger scale simulation. Then we had redesigned and re- commercial plants [4]. 10000 8000 constructed the pilot plant. As shown in It is the first time in the world that the MEA 30wt% Fig.7, the latest test results showed the least consumed energy of much lower than 2.8- 6000 MEA 20wt% energy of 2.6 GJ/t-CO2, far less than 3.0 3.0 GJ/t-CO2 has been proved at a 10t- 4000 GJ/t-CO2, with exceeded values of 90% CO2 CO2/day scale pilot plant using the actual TS-1 Carbonic Acid 2000

capture ratio and 10t-CO2/day captured CO2 flue gas of the coal fired power plant, not on- Concentration [ppm] 0 rate by using our developed solvent TS-1. ly by simulations. 0 500 1000 1500 2000 2500 3000 Operating Time [hr]

5,000 Operating Hours to Date:4308 Hours (as of February 24, 2011) 4,500 Figure 6 - degradation rate of TS-1 solvent 4,000 3,500 Test Period-2 Performance Tests 3,000 Test Period-4 Test Period-1 Performance Tests 2,500 Process Evaluation 2,000 100 1,500 Test Period-5 Performance Tests 95 1,000 90 500 Test Period-3 Absorbent Life TestˋLoad Change Tests 85 0 80 Capture Ratio[%] 2 Cumulative Operating Hours 7 6 5 29 28 1 / 2 14 /5 75

9/1 / / / / 3 CO / 1 /5/9 /6 8 /1 / 10/21 12/10 0 0 11/ 1 1 70 '09 9/ 9/ '10/ '10/3/20 '1 '1 '10/ '10/10 0/ '1 '1 '0 '0 Date '1 2.00 2.20 2.40 2.60 2.80 3.00 CO2Recovery Energy [GJ/t-CO2]

Figure 3 - test schedule and cumulative operating time Figure 7 - improved CO2 recovery energy

Nov - Dec 2011 - carbon capture journal 3 CCJ24b_Layout 1 15/11/2011 10:49 Page 4

Leaders

Figure 10 - comparison of CO2 regeneration energies by thermodynamic simulations

] 2.9 2

2.8

2.7

Figure 8 - scope of R&D activities 2.6

Fundamental research & development [GJ/t-CO Energy Recovery 2.5 vents, we carried out the thermodynamic 2

The scope of our R&D activities is shown in simulations at the CO2 absorption and des- CO Fig.8. In order to screen the solvents, the orption cycle shown in Fig.9 which includes 2.4 TS-1 +A +B +C +D +E +F thermodynamic system simulations and the an absorber, a stripper, and a lean/rich sol- measurement of the fundamental properties vent heat exchanger. We estimated the con- of solvents have been carried out. Then the sumed energy at the stripper under the con- Figure 11 - screening of candidate solvents by bench-scale test and thermodynamic system ditions that the CO2 concentration of the flue CO2 recovery energy simulation to decide the operating condition gas is 12 % and the CO2 capture ratio from have been done for the promising candidate the flue gas is 90 %. solvent. Finally we have designed the pilot Figure 10 shows the results of thermo- plant using these results. For the future, we dynamic system simulation on the lowest have been designing the full scale demon- heats consumed in the stripper for three stration plant using the results of verification amine solutions. The lowest heat consumed test sat the pilot plant. in the stripper for the general 30 weight% (1) Screening of solvents by thermo- mono-ethanolamine (MEA) aqueous solu- dynamic simulation tion is 4.4GJ/t-CO2, which is nearly equal to In order to search for promising sol- the literature value [5]. The value for the

Figure 12 - vapor liquid equilibrium curves before and after operations

Figure 9 - system configuration for thermodynamic simulations Figure 13 - CO2 recovery energy curves before and after operations

4 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:49 Page 5

MellapakCC™: Your Structured Packing

for CO2 Capture

CT.37e-1

s9OUGETTHEBESTSEPARATIONPERFORMANCEATTHELOWEST Sulzer Chemtech Ltd POSSIBLEPRESSUREDROP 8404 Winterthur, Switzerland Phone +41 52 262 11 22 [email protected] s9OUREDUCETHEPRESSUREDROPINYOUR#/2!BSORBER BYUPTOCOMPAREDTOCONVENTIONALSTRUCTUREDPACKING Sulzer Chemtech USA, Inc. Tulsa, OK 74131, USA s9OUSAVESUBSTANTIALLYONOPERATINGEXPENSES Phone +1 918 446 6672

,ET@SPUTACHILLONGLOBALWARMING CONTACTUSTODAY Sulzer Chemtech Canada Inc. T6B 2X7 Edmonton, Alberta, Canada Phone +1 780 577-7979 &ORMOREINFORMATIONVISITOURPAGESAT www.sulzerchemtech.com CCJ24b_Layout 1 15/11/2011 10:49 Page 6

Leaders

aqueous 2-amino-2-methyl-l-propanol (AMP) solution is about 15% less than that of MEA solution. Furthermore, the value for TS-1 is about 37% less than that of MEA solution. Then seven candidate solvents which are mixtures of TS-1 and an amine-based absorbent were evaluated. As shown in Fig.11 it was found that TS-1 mixed with an absorbent D (Toshiba Solvent 2, TS-2) was the lowest consumed heat in the stripper and its value became about 2.5 GJ/t-CO2. Besides two mixed solvents showed about 2.6 GJ/t- CO2.and other mixed solvents about 2.7 and 2.9 GJ/t-CO2 each

(2) Laboratory-scale tests We have two laboratory loops shown in Fig.8 in order to measure fundamental properties of various kinds of solvent. They are not only liquid properties, such as the density, heat capacity, viscosity, but also VLE(Vapor Liquid Equilibrium), stripping energy of CO2 and mass transfer coefficient. These measured values are used at the screening of the solvents by the thermody- Figure 14 - test results of bench scale test facility namic system simulations, and at the evalu- ations of the degradation effects to solvent’s erformances. Furthermore we evaluate the perform- ture difference between the hot CO2 rich sol- References ance degradations of the solvent comparing vent which entered the stripper and the CO2 [1] Y. Ohashi, T. Ogawa, S. Yamanaka, the used solvent with new one. In Fig.12 the lean solvent entered the lean/rich heat ex- “Carbon Dioxide capture from flue gas of VLEs are compared, while in Fig.13 the changer is 5 K. This condition, 5 K, is same thermal power plant”, Toshiba Review CO2 recovery energies. The degradation ef- as that of TS-1 and is achievable at the 10 t- Vol.63, No.9, p.31-33 (2008) fects by SOx and NOx to the solvent per- CO2/day pilot plant to be described in the [2] T. Ogawa, Y. Ohashi, S. Yamanaka, formances were also investigated using these next chapter. The consumed energy in the K. Miyaike, “Development of carbon diox- loops and the bench-scale test loop. stripper depended strongly on the tempera- ide removal system from the flue gas of coal ture difference. The effect by the increased fired power plant”, Energy Procedia Vol.1, (3) Evaluation of promising solvents temperature differences from 5 K to 10 K is 721-724 (2009) by bench-scale test facility shown in Fig.14 [3]. [3] Y. Ohashi, T. Ogawa, N. Egami, As the next step of the screening by the “Development of carbon dioxide removal thermodynamic system simulations, evalua- For the future CCS system of Toshiba system from the flue gas of coal fired power tions using the bench-scale test facility We have been continuing to search and plant”, Energy Procedia Vol.4, 29-34 (2011) shown in Fig.8 were performed. The test fa- screen the new candidates of the solvent in- [4] Y. Ohashi, T. Ogawa, T. Suzuki, cility realizes a complete absorption/desorp- cluding the derivatives containing the amino “Development of carbon dioxide removal tion process which has the absorber with the group in order to reduce the energy con- system from the flue gas of coal fired power diameter of 160 mm and the height of 6,000 sumption and to enhance the durability and plant”, 1st Post Combustion Capture Con- mm, and the stripper with the diameter of reliability. ference, May 17-19 (2011) 200 mm and the height of 3,600 mm. A flue From the recent concern about the en- [5] M. T. Sander, C. L. Mariz, Energy gas of coal-fired power plant was simulated vironmental effects by the amine solvent, the Convers. Mgmt. 33 (1992) 341. by a mixture of air and CO2 whose concen- prevention of the emissions from the top of tration is 12%. We optimized the space ve- the absorber and stripper is strongly re- locity of the simulated flue gas and the quired. Therefore we are planning to install weight ratio of the solvent to the simulated a test apparatus at our pilot plant this year to flue gas in the absorber. evaluate the quantities of the emitted amines In Fig.14, TS-1 showed the lowest en- and to find effective measures. ergy consumed in the stripper was about 2.7 One of Toshiba’s great advantages is to GJ/t-CO2 with 90 % CO2 removal, which have the pilot plant using the flue gas from a More information was nearly equal to the value, about 2.6 GJ/t- working coal fired power plant. Based on the Yukio Ohashi, Toshiba Corporation CO2, predicted at the thermodynamic sys- fundamental R&D activities, we can verify [email protected] tem simulation. While absorbent D (TS-2) the improved performance and the environ- www.toshiba.co.jp showed lower consumed energy of less than mental effects to realize a future commercial 2.5 GJ/t-CO2 when the minimum tempera- plant integrated with power generation.

6 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:49 Page 7

Leaders Air Liquide’s new pilot carbon capture unit at CIUDEN plant Air Liquide has been selected to supply the CO2 cryogenic purification unit for CIUDEN’s pilot plant in Northwest Spain. By Fred Lockwood, Industrialisation Manager - CO2 Capture Technologies and Nicolas Perrin, Director, Clean Power & CCS, Air Liquide

Concern for environmental problems lies at the heart of Air Liquide’s corporate strategy. COMMERCIAL Air Liquide is participating in the develop- PLANTS ment of Carbon Capture and Storage, partic- Future Demonstration Plant ularly through its expertise in oxycombustion and gas treatment. Using these tech- niques, large quantities of CO2 emissions PLANTS LARGE SCALE from industrial plants can be concentrated, U P purified and stored underground, which Callide C U P avoids large-scale discharge into the atmos- CIUDEN C phere. Air Liquide has recently signed a con- TESTS Dust tract to provide the CPU (CO2 Cryogenic PILOT FIELD Filtration Lacq n o ti Purification Unit) technology for CIUDEN's a n er o n Integrated CCS Technology Development ti e ra G e Plant (TDP) located near Endesa's Compos- n d SaskPower Study e n G 2 tilla power plant (Spain). This pilot forms an t s 1 Updated R&D & Engineering important part of Air Liquide’s CPU tech- Studies STUDIES

nology development for oxycombustion CONCEPTUAL power plants. This article summarises Air 2006 2008 2010 2012 2014 2020 Liquide’s vision for the pilot plant and its place in the roadmap for CPU systems. TM Oxycombustion power plants produce Illustration - Air Liquide’s roadmap for oxycombustion CPU CRYOCAT OXY development flue gases that are at low pressure and that are rich in carbon dioxide. They require units for purifying and compressing the flue gases technology development plant due to the verised Coal (PC) boiler (20MWth) with a to produce pure carbon dioxide that can be possibility to run either a Circulating Flu- range of coal types. Furthermore, CIUDEN’s transported by pipeline or ships to a suitable idized Bed (CFB) boiler (30MWth) or a Pul- technology development plant offers the storage location. Air Liquide is following a comprehensive roadmap (see illustration above) in order to develop this technology CRYOCAP™ OXY for commercial plants. Following an initial period of lab-scale tests and engineering studies, Air Liquide’s CPU development effort entered a phase focused on pilot plants. In 2008, Air Liquide signed a contract to supply the CPU unit for the Callide Oxyfuel project. The objective of this pilot is to test a ‘first generation’ of CPU technologies that could be up-scaled to industrial size. Examples of technologies to be tested are advanced dust filtration systems and centrifugal compressors for flue gas compression. Furthermore, since 2010, Air Liquide has also been testing flue gas drying systems developed specifically for oxycombustion on Total’s CCS project at the Lacq site in France. Air Liquide identified the CIUDEN pilot as a significant opportunity. Of particular importance is the flexibility offered by the CIUDEN’s Test Development Plant near Ponferrada in Northwest Spain

Nov - Dec 2011 - carbon capture journal 7 CCJ24b_Layout 1 15/11/2011 10:49 Page 8

Leaders

possibility to use different flue gas treatment to remove water upstream in order to avoid technology roadmap, testing a range of im- systems. For example, the installed selective freezing. At CIUDEN, Air Liquide will be portant technologies on a wide spectrum of catalytic reduction (SCR) unit for nitrous ox- testing an advanced water removal system oxy-flue gas conditions. Together with the ide removal may be by-passed if required. building on work already completed at the pilot plants at Callide and Lacq it will pro- Air Liquide decided to develop a CPU pilot in Lacq, France. vide a firm foundation for the design and test platform at CIUDEN for the long-term, In summary, the CIUDEN CPU pilot construction of the first industrial scale building on the design of the Callide pilot. will play a key role in Air Liquide’s CPU demonstration units. The objective is to test advanced ‘second generation’ technologies in addition to further testing key ‘first generation’ systems. Examples of technology fields to be studied About the authors and Marketing / Strategy Direction. are: acid gas washing, advanced dust filtra- Nicolas Perrin is presently Director of Nicolas has coauthored over 45 pre- tion and advanced flue gas drying and com- Clean Power & sentations and papers at international con- pression. Start-up of the pilot is planned for CCS at Air Liq- ferences and publications. He is also co- the first half of 2012. uide in charge of inventor of over 10 patents in the field of Acid gas washing is an important tech- coordinating the oxycombustion and active member of the nology since it enables species that may Group’s offer European Technology Platform for Zero form strong acids in presence of liquid wa- and strategy to Emission Fossil Fuel Power Plants (ZEP). ter such as sulphur oxides and hydrogen flu- these markets. Fred Lockwood is Industrialisation oride to be removed from the flue gas. This Nicolas Manager - CO2 mitigates the risk of corrosion in the CPU. A graduated from Capture Tech- part of the CIUDEN pilot will be dedicated School of Mines in Paris and moved in nologies. He has to the study of these systems. various positions within the Air Liquide been working in Advanced Dust filtration Technology is Group since 1989 including in R&D, the field of CO2 used in Air Liquide’s CPU design in order to business development, operations control, capture since mitigate the risk of fouling and abrasion in marketing and strategy through interna- 2004 when he the CPU. The CIUDEN CPU will be a tional positions in France, South East Asia joined Air Liq- unique opportunity to test these systems. and in the US. uide as a CO2 This opens the possibility for clients devel- Nicolas has been in charge of the de- capture engineer. oping oxycombustion demonstration plants velopment of oxycombustion solutions for Previously he worked for Renault to set-up specific test campaigns with coals various industries at Air Liquide since the while studying for his MBA. and flue gas treatment reproducing the flue early 90’s. This includes the applications gas conditions of their future projects. of oxygen in iron and steelmaking, met- Contact: Bernard Pascale, communica- The CPU design uses a cryogenic als, glass, cement and power production. tions director: process in order to separate carbon dioxide From R&D project management Nicolas [email protected] from more volatile compounds such as ni- evolved over the years to R&D Programs www.airliquide.com trogen and oxygen. Therefore, it is important CCS legal and policy – Nov / Dec 2011 The deadline for EU member states to transpose the EU Directive on the Storage of Carbon Dioxide passed on the 25 June this year. The degree of compliance with this deadline, the transposition methods employed and the extent of acceptance of the new law in various member states are important indicators of how CCS is likely to develop across Europe.

EU Directives are pieces of European legis- around two years after the Directive comes of environmental law alone) and the vast ma- lation that set out results to be achieved rather into force) and the transposition must be in jority are settled without reference to the than specific rules. It is for each Member conformity with the requirements of the Di- courts; nevertheless, the threat of court sanc- State to decide how the results required by rective. Failure to transpose a Directive in a tions exist. the Directive should best be obtained within conforming manner within the specified With regard to the Directive on the Stor- its territory and to pass national laws to do deadline is an infringement of EU law for age of Carbon Dioxide (the ‘Directive’), the this. This process is known as transposition which the European Commission can, if its UK has not completed its transposition and and the methodological latitude provided for preliminary attempts to resolve the issue fail, is not alone. Of the 27 EU member states on- by the purposive nature of Directives means bring infringement proceedings before the ly two, Spain and Romania, claim to have that the national laws which transpose their European courts. The courts may, in turn, ap- transposed the Directive completely and it is intentions can vary significantly from state ply various penalties and fines on the infring- yet to be seen whether their efforts are con- to state. ing Member State. Infringement proceedings sidered satisfactory by the Commission. 15 A Directive must be transposed by a are not unusual (there were over 450 open in- member states have not communicated any date specified within its text (normally fringement proceedings in 2009 in the area transposition at all to the Commission and the

8 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:49 Page 9

CCS legal column - Calum Hughes

remaining ten (including the UK) have com- been published. Spain is also similar to Ger- the needs of a municated only partial transposition. Accord- many in that its regions have a good deal of restricted ingly, infringement procedures related to fail- autonomy and political strength and that it is number of ure to transpose the Directive were launched only considering onshore storage sites for emitters would by the Commission on 18 July against 25 out CCS purposes. appear to be of the 27 European member states. This is Although this has not led to the large wholly con- less than encouraging. public outcry in Spain that it has in Germany, trary to the re- One possible contributing factor to the Ley 40/2010 is the subject of a challenge in quirements of UK having yet to completely transpose the the Spanish Constitutional Court on the basis the Directive Directive is that it has chosen to carry out the that it may not reflect the correct division of that fair and task in a piecemeal fashion rather than by competencies between Spanish central and open access to producing a single piece of legislation that regional governments. Unlike the German CCS infra- transposes the entire Directive in one fell case, this hiccup in the legal process is not structure swoop. The Carbon Dioxide (Access to In- seen as a threat to eventual passage of the law should be frastructure) Regulations (the ‘TPA Regs’), per se. Nevertheless, following Endesa’s de- made available Calum Hughes, Yellow Wood Energy for example, transposes only the third party cision to suspend the Compostilla project, to third parties access requirements included in Chapter 5 of CCS law in Spain may also be left with noth- on a non-dis- the Directive. ing to govern in the short to medium term. criminatory basis. It is not untenable to argue In addition, wherever possible, the UK’s When considering Directive transposi- that the TPA Regs should be construed as transposing instruments replicate or amend tion methods, Romania is also an interesting non-conforming in this regard. existing legislative frameworks or provi- case. The Directive was transposed into Ro- Even without the risk of infringement sions; again, by way of example, the TPA manian law by Government Emergency Or- proceedings, acceptable transposition of the Regs are closely based upon the existing, and dinance (GEO) 64/2011. However, the GEO Directive is potentially important for all those well tried and tested, regulatory framework is a more or less verbatim version of the text member states that are hosting bids for CCS covering third party access to offshore oil and of the Directive and in practice additional project funding from the NER300 fund. The gas infrastructure. As a result of this transpo- secondary (and possibly primary) legislation Commission decision which sets out the cri- sition methodology there are now, in addition will have to be passed before there is any teria governing the NER300 financing to the CCS related provisions included in the practically applicable CCS law in Romania. process requires that funding awards are con- Energy Act 2008, a number of ‘Storage of How this tactic is received by the Euro- ditional upon ‘all relevant permits in accor- Carbon Dioxide Regulations’ either in force pean Commission when it considers whether dance with relevant requirements under or moving through the legislative process. the purported transposition of the Directive Union law being issued’ within 24 months of into Romanian law is in conformity with its the decision (36 months where storage is in a Progress in Europe requirements will be instructive for other saline aquifer). It is interesting to compare how things have member states considering how to deal with The term ‘relevant permits’ is not fur- progressed in other European states, especial- infringement proceedings at the lowest cost ther defined but it seems clear that a project ly those that are host to attempts to develop and inconvenience. sited in a member state that was not in a po- CCS. In Germany, a single Bill to transpose sition to issue such permits by the stated the entire Directive was laid before parlia- Conforming to the rules deadline because the necessary legal frame- ment in April 2009 but, against a backdrop Conformity checking of those transposition work had not been enacted in a timely man- of significant public protest, the Bundestag, measures that have been put in place by ner would risk losing any funding it had been Germany’s first chamber, failed to reach member states is, I believe, currently under- granted. Whether a significant possibility of agreement upon it and it lapsed. In April this way or shortly to start. One area which might such a situation occurring should constitute year a second Bill was put before Parliament attract scrutiny from the Commission is that grounds for the EC / EIB to refuse funding and this was rejected by the Bundesrat, the of the provisions in the UK TPA Regs which in the first place is a matter of opinion. second chamber, in September. prevent the access by third parties to storage Project developers are often justifiably The Bill is not yet dead as there remains capacity which may be physically available critical of the length of time it takes for the a Conciliation Committee route via which it but which is over-and-above that which has legal and regulatory frameworks which af- may still make law, but this may be a moot been applied for and authorised in a sites’ fect their projects to be developed and the point since RWE has discontinued the Hürth storage permit. risks and additional costs this introduces. De- project and Vattenfall has declared itself ‘pes- The genuine concerns of potential stor- spite a great deal of progress and the timely simistic’ with regard to the future of its Jän- age site operators with respect to the limited enactment of the Directive it appears that schwalde project. Both companies have cited accuracy with which storage reservoir capac- CCS legislation across Europe is becoming the progress of German CCS law and policy ities can be ascertained prior to injection are susceptible to this criticism. Considering the as major factors affecting their decisions. valid and a requirement to provide access to above may shed light on some of the reasons Spain, like Germany, chose to transpose capacity in excess of that which can be rea- why and emphasise there is still a long way the Directive by means of a single new piece sonably proved to be available would clearly to go. of legislation and accordingly ‘Ley’ 40/2010 not be desirable. On the other hand, regula- passed into Spanish law in December 2010. tion that gives a storage operator the ability, The legislation largely replicates the provi- via the permitting system, to restrict the ef- Calum Hughes is Principal Consultant in sions of the Directive and secondary legisla- fective capacity of its storage site to a level CCS Projects, Regulation and Policy at tion is required to make the provisions oper- that is below that which could safely be made energy consultancy Yellow Wood Energy. ational and specify detail; on the transposi- available in order to restrict the capacity of [email protected] tion deadline date in June this had not yet an overall CCS system to that which meets

Nov - Dec 2011 - carbon capture journal 9 CCJ24b_Layout 1 15/11/2011 10:49 Page 10

Projects and Policy GCCSI Global Status of CCS 2011 update

The annual GCCSI report highlights ‘measured’ progress in 2011 with an increase in the number of large-scale integrated projects (LSIPs) in operation or under construction and a clustering of projects around the advanced stages of development planning.

There are eight large-scale projects in operation around the world and a further six under 30 construction, according to the GCCSI’s report, ‘The Global Status of CCS: 2011’. Three 25 of these projects have recently commenced construction. 20 Importantly, these include a second Number of projects power project, Boundary Dam in Canada, in 15 addition to Kemper County in the United

States. The United States also has its first 10 project under construction that will store CO2 in a deep saline formation - the Illinois Indus- 5 trial Carbon Capture and Sequestration (ICCS) project. The total CO2 storage capacity of all 14 Identify Evaluate Define Execute Operate Total

projects in operation or under construction is United States 1 8 9 3 4 25 over 33 million tonnes a year. This is broadly Europe 1 9 9 0 2 21 equivalent to preventing the emissions from Australia and New Zealand 1 5 0 1 0 7 more than six million cars from entering the atmosphere each year. Canada 0 2 4 2 1 9 In the Institute’s annual project survey China 4 2 0 0 0 6 for 2010, ten projects reported that they could Middle East 0 1 2 0 0 3 be in a position in the next 12 months to de- Other Asia 1 1 0 0 0 2 cide on whether to take a final investment de- Africa 0 0 0 0 1 1

cision (FID) and move into construction. Total 8 28 24 6 8 74 Power generation projects are prominent in this group and include Project Pioneer in Canada, the Texas Clean Energy project in the Large scale integrated projects (LSIPs) by asset lifecycle and region/country (Source:Global Status of CCS 2011 ©GCCSI 2011) United States and the ROAD project in Eu- rope. While the prospect of a number of pow- lished industry process and either use CO2 to reason for a project being put on-hold or can- er projects moving to a FID in the next year generate revenue through enhanced oil recov- celled is that it was deemed uneconomic in its is a positive development, this is contrasted ery (EOR) and/or have access to lower cost current form and policy environment. The with other high-emitting industries such as storage sites based on previous resource ex- lack of financial support to continue to the iron and steel and cement, where there is a ploration and existing geologic information next stage of project development, and uncer- paucity of projects being planned at large- sets. Six of the eight operating projects are in tainty regarding carbon abatement policies scale. natural gas processing, while the other two and regulations were critical factors that led In total there are 74 LSIPs recorded in are in synthetic fuel production and fertiliser several project proponents to reprioritise their the report, compared with 77 reported in the production, and five of these projects use investments, either within their CCS portfolio Global Status of CCS: 2010 report. These EOR. or to alternative technologies. CCS projects continue to be concentrated in A number of projects in operation or un- This clearly indicates that substantial, North America, Europe, Australia and China der construction are undertaking CCS in re- timely and stable policy support, including a with few large-scale projects planned in de- sponse to, or anticipation of, longer-term cli- carbon price signal, is needed for CCS to be veloping countries. mate policies and/or potential carbon offset demonstrated and then deployed. This support markets. While this is promising, developing will give industry confidence to continue Factors influencing a project’s success a business case is challenging especially when moving forward and invest in CCS. In turn, As with most industrial projects, building a projects do not have access to either revenue such investment would ensure continuing in- viable business case for a CCS demonstration streams, such as EOR or other opportunities, novation which will ultimately help to drive project is a complex and time consuming or where CO2 capture is not already part of down capital and operating costs. process that requires both the project econom- an established industrial process. Both government and the private sector ics and the risks to be understood prior to a There are 11 LSIPs that are considered have a role in resolving and bringing greater FID. on-hold or cancelled since the Institute’s 2010 transparency to business case issues so that All projects in operation use CO2 sepa- report, with eight in the United States and the demonstration of CCS progresses and as- ration technology as part of an already estab- three in Europe. The most frequently cited sociated learnings and benefits are realised.

10 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:49 Page 11

Projects and Policy

CCS in the power sector transport solution, with increasing distance A number of proposals, amendments and re- Power generation projects have significant ad- and in certain circumstances, shipping can be view exercises have already been put in mo- ditional costs and risks from scale-up and the cost competitive and offers greater flexibility tion by regulators and policymakers across first-of-a-kind nature of incorporating capture to serve multiple CO2 sources and sinks. Sig- several jurisdictions to address such issues. technology. Electricity markets do not current- nificant economies of scale can result from Whether or not these activities will sufficient- ly support these costs and risks, even where shared transport infrastructure, but establish- ly address projects’ concerns will be an impor- climate policies and carbon pricing are already ing a network is a large investment that can tant consideration in the forthcoming years. enacted. A major cost for CCS is the energy add considerable risks to early mover projects. Many of the countries and regions that penalty or ‘parasitic load’ involved in apply- These risks need to be understood, in particu- have been acknowledged as leaders in the de- ing the technologies. Going forward a major lar by governments when providing incentives ployment of laws and regulation for CCS have emphasis in pre-, post- and oxyfuel combus- for demonstration. continued in these roles. In the past year, sev- tion capture applied to power stations (and The operating projects demonstrate stor- eral European Union Member States, Aus- other industrial applications) is on research in- age of CO2 in both deep saline formations and tralia, the United States and Canada have all to reducing this cost. through EOR, showing that viable storage is sustained their regulatory momentum and de- Despite these challenges, construction of achievable. The storage challenge ahead is livered a number of new proposals, laws, reg- a post-combustion capture project (Boundary with increasing injection volumes, gaining ulations and initiatives. The importance of ef- Dam in Canada) and an integrated gasification site-specific experience and with continuing fective regulation has also been recognised by combined cycle (IGCC) project (Kemper improvements to the design and methodolo- the many countries that are to become the sec- County) is proceeding. This indicates that the gies of measurement, monitoring and verifica- ond generation of CCS lawmakers. Korea is technology risk for these applications is con- tion of storage in effective and appropriate one such example. While many of these coun- sidered manageable and the technical barriers regulatory environments. tries have yet to pass legislation, or complete are not insurmountable, if other conditions are Information from project proponents in- the design of their regulatory frameworks, it is right, such as allowance for the added cost indicates that storage assessment and characteri- clear that significant actions are being taken to the rate base and other incentives. Both sation requires considerable investment and to facilitate their development. This is particu- these projects received government support can have long lead times of five to 10 years or larly noticeable in a number of developing and will be selling CO2 for EOR, thus tapping more for a greenfield storage site, depending countries that are keen to integrate CCS into into another revenue stream. They are also on the existing available geologic information future climate change mitigation strategies. demonstrating some elements of risk mitiga- about the site. Policymakers need to factor Government funding to support large- tion in the project design, by either having a these lead times into their assessment of a pro- scale CCS demonstration projects has re- relatively low CO2 capture rate from the flue ject’s progress. Projects that have not yet com- mained largely unchanged in 2011. In total, gas stream (in the case of Kemper County) or menced active storage assessment may have a approximately US$23.5bn has been made capturing CO2 from a relatively small power challenge to achieve operation before 2020. available by governments worldwide. Com- unit (in the case of Boundary Dam). As with storage, public engagement is petitive funding programs designed to meas- It is vital these and other planned demon- situation and site specific and on a local level ure and fund the ‘gap’ required to make proj- stration power projects are successful in car- must address all aspects of the project, includ- ects financially viable have been widely rying out CCS on a commercial-scale and oping its possible and potential impacts and ben- adopted by governments internationally. This erating in an integrated mode, in real electrici- efits. Project proponents need to continuously approach will be taken by the European ty wholesale markets and with storage at suf- review their public engagement approach to Union’s NER300 program where 13 CCS ficient scale to provide the confidence and identify and mitigate potential challenges. projects, together with 65 innovative renew- benchmarks critical for future widespread de- able projects, were identified as meeting the ployment. Policy and legal developments criteria to go forward to the next stage with Governments should continue to send strong, decisions on funding allocation expected in Capture, transport and storage issues consistent and sustained policy signals (in- the second half of 2012. The eight operating CCS projects in the natu- cluding incentives, legislation and regulatory In the near-term, government policy and ral gas processing, synthetic fuels and fertilis- frameworks) to support this early stage of tran- funding levels will impact strongly on the rate er production industries attest to the proven sitioning towards commercial deployment. at which demonstration projects progress and nature of the capture technology in these ap- Some project proponents perceive policy un- their overall viability. For this to be done ef- plications. As noted above, while there are certainty as a major risk to project develop- fectively, ongoing cooperation between gov- projects proceeding to construction in the ment and it is of particular concern when government and industry is required to address the power sector, there is a need for more projects ernments articulate policy intent without im- complex challenges in establishing early- to demonstrate the range of possible capture plementation. mover CCS projects. In the long-term, the val- technologies that could be applied. There have In the past year the development of CCS ue of CCS demonstration can only be realised been limited recent developments in iron and laws and regulations has continued, with a and supported through sustained forward look- steel sector demonstrations of capture tech- number of jurisdictions completing frame- ing climate change policies and carbon-price nologies. In the cement sector, capture tech- work legislation and commencing implemen- signals that will underpin the future deploy- nology is still at an early stage. Both these in- tation of secondary regulations and guidance. ment of CCS. dustries are major emitters and further devel- Effective regulatory regimes on a national lev- opments are expected and necessary. el play a significant role in the development Pipeline transport of CO2 is a proven and of CCS projects globally. Notwithstanding well developed technology, but it is the scale these efforts, project proponents have identi- More information of the future CO2 transport requirements that fied a number of issues that in some cases have Download the full report at: will require strong investment support. While yet to be adequately addressed, including reg- www.globalccsinstite.com pipelines are expected to be a cost-effective ulation that is incomplete in nature or delayed.

Nov - Dec 2011 - carbon capture journal 11 CCJ24b_Layout 1 15/11/2011 10:49 Page 12

Projects and Policy CCS under the CDM – will recent progress be undone by carbon market dynamics?

Just as CCS looks set to be included in the Clean Development Mechanism (CDM), some of the countries with the greatest potential for CDM projects may soon be excluded. By Lodewijk Nell and Andrew Gilder

After a struggle of many years, a decision was made at the last United Nations Climate Change Conference, COP16 in Cancun, Mexico last year that “carbon dioxide capture and storage in geological formations is eligible as project activities under the Clean Development Mechanism [CDM], provided that the issues identified in decision 2/CMP.5, paragraph 29, are addressed and resolved in a satisfactory manner”. The Conference requested the Sub- sidiary Body for Scientific and Technologi- cal Advice (SBSTA) to elaborate modalities and procedures in order to enable the inclu- sion of CCS under the CDM by its 35th ses- sion (December 2011) during COP17 in Dur- ban South Africa.

Remaining CCS Issues Map of the world showing the Least Developed Countries (LDCs) The issues identified in decision 2/CMP.5 , include permanence of sequestration, long term liability and the risk of leakage. These issues are not new and addressing them should be achieveable in the required time- from CDM projects located in Least Devel- for the CCS, those non-LDCs with the great- frame. Consequently SBSTA is likely to de- oped Countries (LDCs) from 2013. est potential as CCS destinations (whether vise a workable proposal for dealing with There is concern among those involved this potential resides in the country’s ad- these issues - which will be a positive for with CDM projects in non-LDCs that this is- vanced state of technical know-how or an CCS activities. sue is being neglected in the negotiations, as abundance of pore space), are soon to be ex- Eligibility under the CDM means that other sources of climate funding, such as the cluded from the CDM arena, altogether, by CCS project activities will be entitled to gen- yet to be established Green Climate Fund ap- the largest buyer of carbon credits in the car- erate Certified Emissions Reductions pear to be gaining favour. While developing bon market. (CERs) – the carbon credit associated with countries seek to tap into these “new” On the 8th of November 2011, the UN- the CDM – and to take advantage of other sources of funding, there is a dearth of de- FCCC Secretariat has published the draft CDM benefits such as clean technology fence of the non-LDC CDM space. modalities and procedures: transfer. The irony? Now that we are on the unfccc.int/resource/docs/2011/s However, battlelines already drawn verge of seeing CCS included in the CDM, bsta/eng/4.pdf elsewhere in the negotiations may negate thereby unlocking carbon financial support this progress on CCS and eventually exclude countries like China, India, Ghana, Qatar, United Arab Emirates and South Africa from About the authors Andrew Gilder the CDM altogether. It goes without saying Lodewijk Nell is leads the Carbon that excluding these countries from the CDM Director at Markets and will have the knock-on effect of also remov- EcoMetrix Africa CDM Consultan- ing the lion’s share of developing country and leads the con- cy practice for CCS from the carbon market. sultancy practice IMBEWU Sus- in carbon man- tainability Legal LDC Exclusivity? agement and new Specialists (Pty) This situation will arise because the Euro- energy technolo- Ltd. pean Union (EU) – the largest buyer of gies. CERS in the international market – has indi- www.ecometrix.co.za www.imbewu.co.za cated that it will purchase CERs exclusively

12 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:50 Page 13

Projects and Policy Bellona report on CCS readiness A report from Bellona finds that EU CCS requirements were breached by Slovenia

The Bellona Foundation together with Envi- that it was “CCS ready”. The report reveals Šoštanj, the process rather turned into a “box- ronmental Law Service (ELS) have pub- that these documents submitted by the opera- ticking exercise” based on desk-top research lished a first-of-its-kind report on how CCS tor do not exhaust what can reasonably be ex- and carried out well after the unit was de- feasibility assessments should be carried out: pected under article 33.1 of the CCS Direc- signed.” “CCS readiness at Šoštanj: Ticking boxes or tive, as they lack a number of project-specif- The project promoters claim the unit preparing for the future?“ ic assumptions and data concerning econom- will increase the efficiency of the plant, but It was prepared after a complaint by ic feasibility of the capture, transport and in fact, this one lignite-fired power plant ELS and the Slovenian NGO Focus to the storage. Furthermore, there is a lack of con- alone will create a huge carbon lock-in by European Commission about a construction sideration of local geographical conditions’ swallowing up almost the entire carbon budg- permit for a new 600 MW unit of Šoštanj impact on technical feasibility, in particular et of the country by 2050. The Slovenian Thermal Power Plant in Slovenia. According for building pipelines, etc. Ministry of Economy issued in April 2011 a to the complaint, Slovenian authorities failed The outcomes of The Bellona Founda- damning report about the project, pointing to to meet the requirements of article 33 of the tion and Environmental Law Service’s report a huge risk of it being unprofitable. so-called CCS Directive 2009/31/EC that the show that there is a clear contradiction be- The project is to benefit the financial planned power plant unit be permitted only tween the statements made by the European support from the European Investment Bank after the feasibility of a CCS retrofit has been Investment Bank, the European Bank for Re- in the amount of EUR 550 million and from assessed. construction and Development, which have the European Bank for Reconstruction and The joint Bellona and ELS report sug- pledged financial support for the project and Development in the amount of EUR 100 mil- gests how article 33.1 – requiring the feasi- the operator’s claim that the proposed power lion with a further EUR 100 million syndi- bility of CCS retrofit to be assessed – should plant unit will be CCS ready and that the cri- cated to commercial banks. be interpreted in a meaningful way. It then teria of the Directive were met. applies this methodology to the Šoštanj case Eivind Hoff from The Bellona Founda- Download the report at: through a detailed analysis of the documents tion says: “We conclude that instead of a real www.bellona.org submitted by the project sponsors as evidence preparation for the future CCS application at

WWW.COAL-GEN-EUROPE.COMWWW.COAL-GEN-EURALL-L-GEN-EURGENGEN- EEUROOPE.COMM Owned & ed boducrP byed : 14-1614-16 FEBRFEBRUARYRUARY 22012,012, EXPOPO XXI,XXI, WARSAW,WARRSAAWWW,, POLANDPPOLANDAN COAL:COAL:A : HEREHE TOTOOST STAYSTTAAAYY ed btesenrP b :yed THE REALITYREALITY OF EUROPE’SEUR OPE S’ ENERGYENERGY MIX

Nov - Dec 2011 - carbon capture journal 13 CCJ24b_Layout 1 15/11/2011 10:50 Page 14

Projects and Policy GCCSI report - CCS ’competitive’ in reducing power sector emissions The GCCSI has released a report that concludes CCS is a competitive power sector emissions abatement tool when compared to other low-carbon technologies.

The 'Costs of CCS and other low-carbon 239 technologies' study found that the cost of mitigating or avoiding CO2 emissions for a 203 coal-fired power plant fitted with current 200 176 CCS technology ranges from US$23-92 per 182 tonne of CO2 and is a little higher for natu- 150 ral gas-fired power plants. This is compared 139 to an avoided cost of US$90-176/tonne for 106 offshore wind, US$139-201/tonne for solar 100 92 thermal, and even more for solar PV. 90

Hydropower and onshore wind tech- US$ per tonne 49 67 nologies were found to be among the least- 50 25 cost technologies identified for reducing 16 emissions from the power sector and are ma- 23 0 9 ture technologies that could be broadly de- -8 -7 ployed now. -27 -38 Once these relatively low-cost technol- -50 ogy options are fully exploited – because of limits in their availability – or in countries where these technologies are not an option, CCS becomes very competitive. “Our findings are in line with Interna- tional Energy Agency estimates which say that without CCS, abatement costs in the electricity sector could be higher by more Cost of CO2 avoided than 70 per cent,” said Barry Jones, General NOTE: For all technologies except gas-fired CCS plants, the amount of CO2 avoided is relative to Manager for Policy and Membership at the the emissions of a supercritical pulverised coal plant. For gas-fired CCS, the reference plant is an unabated combined cycle plant. GCCSI. “It’s important to note that costs of new technologies that have not reached full maturity, such as CCS, will become lower into 265 265 the future.” 250 The report concludes that taking the 250 215 220 least-cost path to decarbonising the power 200 200 sector requires a diversified mix of low-car- 185

bon technologies, and excluding CCS MWh MWh 150 139

per 150 146

kwould increase total abatement costs. per

119 However, it warns that comparing the 113 US$

US$ 94 levelised costs of intermittent renewable 100100 86 107 89 natural gas-fired planntatural gas-fired plant technologies such as wind and solar with dis- 60 81 coal-fired plant coal-fired plant 61 67 68 patchable technologies cannot be done easi- 50 50 52 ly given the variability and unpredictability 43 of electricity production of solar and wind 0 plants, which, in turn, affects their true eco- 0 nomic value and profitability.

More information Download the full report at: www.globalccsinstitute.com Levelised cost of electricity of low-carbon technologies and conventional power generation

14 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:50 Page 15

Projects and Policy Policy, company and regulation news

SSE and Shell agree to work on stance, the regulatory regime is important project,” added Dr Reiner. Peterhead project and our laws do not easily support CCS de- The researchers believe that improving www.sse.com velopment, adding to the cost and risk for communications and thinking more careful- A new joint development agreement has companies to pursue CCS. This report highly about the social characteristics of the proj- been signed between Scottish and South- lights this and other issues.” ect at the design stage will reduce the likeli- ern Energy (SSE) and Shell UK Limited hood of opposition. Under certain condi- (Shell) for the development of a CCS proj- Cambridge University research on CCS tions, they found that even many strident en- ect at SSE's gas-fired power station in Pe- communication gaps vironmental activists are willing to support terhead, Scotland. www.communicationnearco2.eu (or at least not oppose) CCS. The agreement will enable the project Research at Cambridge Judge Business “There is no magic formula,” he added, to accelerate a programme of pre-FEED School has identified communication gaps “but taking the extra time needed to bring in studies, with the intention that the project that could hinder the deployment of CCS more-trusted voices such as university sci- will be in a position to begin a full FEED technologies. entists or environmental groups will increase study in the second half of 2012, subject to Dr David Reiner's research team, to- the likelihood that these first projects, and progress with funding proposals submitted gether with colleagues from across Europe, ultimately CCS more generally, will be suc- under the European Union's NER300 has focused on how information about CCS cessful.” process and developments in the UK's CCS is communicated, asking whether key les- The University has recently launched demonstration programme. sons can be learned that will affect the tech- the Cambridge Centre for Carbon Capture The project aims to design and develop nology’s deployment. and Storage, which will facilitate collabora- a full chain, post-combustion CCS facility A key step was to carry out a global re- tive research and act as a focal point for CCS capable of capturing carbon dioxide from a view of CCS communication practices: who research at Cambridge. 385 MegaWatt combined-cycle gas turbine is communicating what aspects of CCS, and unit at Peterhead. It is planned that the CO2 why? “We found that most CCS communi- Alstom to do feasibility study for CCS will then be transported to the Shell-operated cation, which is principally via websites, is at Daqing oil fields Goldeneye gas field in the North Sea using, very good at explaining the technological www.alstom.com as far as possible, existing infrastructure. processes involved. China Datang Corporation (Datang) and "The agreement between SSE and Shell But, in areas that are likely to be of Alstom have signed a feasibility study is an important step forward for the devel- most concern to society, such as costs, poli- agreement for a CCS Demo Project in opment of CCS in Scotland and underlines cy alternatives and wider social implications, Daqing, Heilongjiang province. the strong commitment of these two energy there is scant coverage,” said Dr Reiner. This is another step for both parties in giants to the technology," said Scotland's “Moreover, most of the information about forming the long-term strategic partnership First Minister Alex Salmond. CCS is from sources that are perceived by to develop carbon capture and storage (CCS) "Following the recent disappointment the general public as ‘less trusted’, such as demonstration projects following the sign- over Longannet and the previous UK Gov- business and governments, rather than re- ing of an MOU in September this year. The ernment's abandonment of the earlier Peter- search institutions, established media or agreement was signed in the presence of Mr. head CCS project, it is essential that West- NGOs.” WANG Sen, Vice President of Datang and minster clearly demonstrates its commitment These are serious obstacles believe the Philippe Joubert, Deputy CEO of Alstom. to supporting the commercial development researchers, particularly as their findings in- According to the agreement, Alstom of CCS, not least when the continued com- dicate that environmentalists base their eval- will carry out the study for the 350MW oxy- mitment from industry is so clear." uations about CCS on what role they believe combustion CCS demonstration project lo- it will play in society rather than on whether cated in Daqing, using its know-how and ex- Report suggests CCS feasible in New they think CCS technology works or not. pertise in oxy-firing technology. Zealand This view of environmental activists is based Scheduled for operation in 2015, the www.straterra.co.nz/ccs on data the researchers gathered in Climate Daqing CCS demonstration project is the The New Zealand Carbon Capture and Camps – grassroots movements that advo- first large scale CCS demonstration project Storage (NZCCS) Partnership, alongside cate direct action on climate change – and in China and Asia, capable of capturing Straterra, has released a report entitled Green Party conferences in the UK. Partici- above 1,000,000 metric tonnes of CO2 an- “CCS in New Zealand – Case Studies for pants at both displayed considerable under- nually. Commercial Scale Plant”. standing of the issues involved. On top of the environmental benefits, The NZCCS Partnership commissioned When it comes to the general public, the project also has potential for significant Transfield Worley to investigate the chal- though, the level of understanding of CCS cost reduction in CCS projects. By utilizing lenges facing CCS deployment in New was found to be considerably less. The re- Alstom’s state-of-the-art CCS technology, Zealand. search team investigated the opinions and leveraging extensive experience and expert- The technical report, compiled in 2009, perceptions of CCS by residents in five Eu- ise and adopting localized design and pro- and companion summary conclude that CCS ropean Union member states who live in the curement, the project aims to establish the technologies could work safely and effec- region of planned projects. most cost effective CCS demo plant and set tively in New Zealand. “One major finding was that if the resi- a benchmark for the CCS industry. Straterra CEO Chris Baker welcomed dents felt that the planning process was fair The Daqing CCS demonstration plant the report, stating “CCS needs help to or that their local community had been treat- will be the first large-scale demo project to progress, as do all technologies with low car- ed fairly in the past, this had a direct rela- adopt the oxy-combustion technology, en- bon intensity (including renewables). For in- tionship to their attitudes towards the local riching the CCS technology mix in China.

Nov - Dec 2011 - carbon capture journal 15 CCJ24b_Layout 1 15/11/2011 10:50 Page 16

Capture and Conversion Post combustion test bed development

Pacific Northwest National Laboratory (PNNL) assessment methodology and slip-stream testing platform enables the comprehensive early-stage evaluation of carbon capture solvents and sorbents utilizing a breadth of laboratory experimental capability as well as a testing platform at a nearby 600 MW pulverized coal-fired power plant. By Jim Cabe, Dale King, Charlie Freeman, Pacific Northwest National Laboratory

Global research and development efforts are 1 $# 1

!"# %##

focused on the timely delivery and deploy-

' ( ment of proven carbon capture technologies.

Cost-effective carbon capture materials and " ' ' $$ # unit-processes are a fundamental require- !# &" 0 0 ment for market penetration and facilitating ) )0

T#$" (0#B BD#!( UU$(B'$(0%0$(6 (0#B the continued use of carbon-based energy re- 5('664%6#!(0$#6$(0 331(!50!2(9 A "40$ BD#!(A "40$ )2#$#4G 4E 0("'$#4 )2#$#4G !46"'(00#4(('B%% sources. "('1#2#$%&8 (0$#6$(0 "('1#2#$%&8 (0$#6$(0

#!2D#B(5%'$#4 #E 10(4 !$D2 10(4 !$D2 (!(00'%G "('EE4'6!(G While many new carbon capture tech- "('EE4'6!(G ' ' T#$" (0#B BD#!(

@#6"2(D#$ 4"('$#4 3"#24$0!2(9 A "40$ ' nologies are being developed, it is often un- (('B%&0#W( (0$#6$(0

)2#$#4G 3 E'46$5('64%6#! clear whether they have undergone a thor- 2 X#($#!0336FF4' 6#4' "('1#2#$%&8 (0$#6$(0 !40$#$D($099G 10(4 !$D2 ough, systematic evaluation consistent with "('E4'6!(G

4$#D4D01(!5I0!2( !"!#$%& UU$(B'$(!466('!#2I0!2( their stated Technology Readiness Level $(0$#B$ PG Q XS( 0!2( '()('00#1#2#$%3#04$5('60& $(0$#B$ V PRS( 30#6A !$D2 B09 789 H'4D!$#44E (((

(TRL). To address this issue, PNNL, HH'4D!$#44E ((( @4'1($5($ !"!#$% A 04'11($&042)($ Q '()G 0!2( 04'11($&042)($ Q 0!2( D" $5('6620$1#2#$% 'B( D"!40$ (0$#6$(0G through their Energy Conversion Initiative, !40$(0$#6$(0G ' '

# @ B #04$5('660&

H#24$I0!2(334' 02#" 0$'(69 has incorporated a technology maturity and 78$ $(0$#B$ PG Q RS( 0!2( 3

" C#($#!6(0D'(6($0 E4' HH'4D!$#44E ((( assessment methodology along with the nec- 5 5" 6FF4'!40$#$D($0G 04'1($&042)($ Q '()G 0!2( 4 45 D"!40$ (0$#6$(0G essary supporting laboratory, bench-scale, 7#0!40#$%&)42$#2#$% and engineering-scale level resources to ob- Figure 1 - TRL gate methodology - carbon capture technology development map - sorbents and jectively evaluate materials and processes solvents from the fundamental molecular level, through materials synthesis and scale-up, and up through bench-scale operating condi- ture.1 Rather, it’s in the application of the partners, as well as evaluating and validat- tions using actual slip-stream flue gas from TRL process when things become nebulous. ing those materials that are already commer- a pulverized coal-fired power plant. The fol- While protocols at each respective TRL are cially available. PNNL’s TRL-Gate method- lowing provides a brief review of the descriptive, they are not particularly pre- ology for post-combustion carbon capture methodology, modeling, and experimental scriptive. solid sorbent and solvent technology devel- tools used by PNNL to support the objective This lack of a formal testing and vali- opment is shown in Figure 1. testing and evaluation of novel materials, as dation structure enables researchers to pro- Figure 1 shows the flow of experimen- well as commercially available materials. vide experimental data relevant to them, but tal, modeling, and gate decisions built into makes it difficult to corroborate or compare the TRL-Gate methodology. In this con- From Theory to Product contextually based on what should be, at a struct, TRL-1 corresponds to the observation There is no lack of research and develop- minimum, key performance criteria at each and reporting of basic chemical and physical ment regarding carbon capture technology. respective TRL. properties, and does not necessarily carry a The ongoing body of research has been a Because the environment is resource- corresponding gate decision criterion. part of public and private investment for limited, and time to commercial availability TRL-2, however, corresponds to the more than a decade and recognizes full com- is paramount, an effective technology man- identification a material’s fundamental ther- mercial offerings in the industry. agement process must be employed, which modynamic characteristics. Analysis at this However, specific to the development is not only capable of fostering the develop- level would include equilibrium loading be- of novel technologies, what remains unclear ment of novel technologies, but also profi- havior at sorption partial pressures for the is the efficacy of current technologies to cient at providing clear and tactical direction primary flue gas constituents (CO2, N2, and meet the challenge of moving innovative to research that has yet to begin, or is under H2O). These measurements would allow the carbon capture concepts from theory to consideration. heat of reaction values for each gas to be de- proven operation. It’s not that the TRL Originally developed to provide a pre- termined. Additionally, measurements of process itself is questionable; developed by scriptive methodology for PNNL’s internal heat capacity and thermal stability of the sol- NASA, the process has been effectively assessment of carbon capture materials and vent or sorbent are prescribed. adapted to numerous industries and more re- processes, the “TRL-Gate” methodology, Thermodynamic analyses of the TRL-2 cently by EPRI specifically for CO2 cap- and supporting analytical equipment, has al- data would be performed to determine mini-

1. Electric Power Research Institute, Program on Technology so been shown to be effective at characteriz- mum heat and work estimates achievable for Innovation: Post-Combustion CO2 Capture Technology ing products and processes being developed a post-combustion process. The gate criteria Development, Report No. 1016995, Prepared by A.S. Bhown and B. Freeman, Palo Alto, CA, December 2008. by collaborative research and development at the end of TRL-2 is associated with over-

16 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:50 Page 17

Capture and Conversion

all separation and regeneration duties being less than 75% of an equivalent mo- noethanolamine (MEA) baseline projection. Materials that have met the TRL-2 gate decision criteria would then be candidates for initiating TRL-3 testing. Analyses at this level include expanded thermodynamic testing to account for minor flue gas constituents, such as oxygen and sulfur oxides, along with kinetic sorption and desorption measurements and viscosity and volatility measurements for liquid materials. Assessment tools used to analyze this, and the earlier information, include commercial packages such as AspenPlus™, Chem- Cad™ for solvents, and Adsim™ for solid sorbents. The criteria for passing the TRL-3 gate include a revised regeneration energy estimate compared to MEA, along with estimates of process footprint and material scale-up costs. It is noted that the success or failure of a material at a specific TRL level is not based solely on static empirics, nor does it suggest that a material should be eliminated Figure 2 - CO2 solvent (left) and solid sorbent (right) test carts from further consideration if it does not meet all of the threshold criteria. Rather, it drives an informed decision-making process. and stripping column, and can be operated be completed expediently yet comprehen- For example, a material at TRL-3 may in either single-bed or dual-bed mode de- sively. With programs such as the Depart- demonstrate tremendous reversibility and at- pending on desired analytics. The solid sor- ment of Energy’s Carbon Capture Simula- tractive kinetics when compared to MEA, bent cart (right-hand photograph in Figure tion Initiative pulling together solutions from but struggle to meet viscosity targets, there- 2) is configured as a two-bed adsorption test partnerships with national labs, academia, by affecting the pumping energy required. system that can be programmed to operate and industry comes the recognition that the While the material may not be acceptable for in single-bed Temperature Swing Adsorption requisite equipment, expertise, and expense a TRL-4 analysis, future research should re- (TSA), single-bed Vacuum Swing Adsorp- are likely beyond any one organization. flect the effort to reduce this effect. tion (VSA), two-bed TSA, two-bed VSA, or PNNL, by focusing on early stage TRL This may be accomplished through combined TSA-VSA modes. Both of these assessments, is using its structured method- modification at the molecular level, or it may systems have been operated in laboratory en- ology and supporting analytics to screen can- be accomplished via a process modification. vironments and with actual flue gas at a didate materials, thereby accelerating the de- In any event, the application of the TRL- nearby coal-fired power plant. velopment of those that meet the prescrip- Gate process should provide clear and mean- To date, commercially available mate- tive gate criteria, while providing direction ingful direction. Once comparatively base- rials, such as MEA and 13X-zeolite have to those that don’t. While the work to date lined, if acceptable, the materials may initi- been demonstrated in these systems for com- has focused on a methodology for assessing ate evaluation at the TRL-4. missioning purposes. The data and analytics solid sorbents and solvents only, a similar from the runs have been assessed against structure is envisioned for other types of car- From Product to Process publicly available literature, as well as inter- bon capture technologies. TRL-4 and TRL-5 correspond with labora- nally developed models, and compare favor- tory bench-scale testing using simulated and ably to both. actual flue gas. At this level in the TRL-Gate Based on data generated by the cart process, materials that have passed previous systems, more accurate performance data More information gate criteria are assessed in an integrated can be incorporated into the modeling tools Pacific Northwest National Laboratory, system representative of an actual process to represent longer-term material perform- located in Richland, Washington, is one configuration at an appropriate scale. PNNL ance and overall energy consumption. These of ten U.S. Department of Energy (DOE) has developed mobile cart-based systems for projections, as well as general confirmation national laboratories managed by DOE's both liquid and solid sorbents as a means of of system operability, are key gate decision Office of Science. It focusses on problems testing at both of these levels. criteria leading into TRL-6 and higher, in energy, the environment and national The carts were designed for a maxi- which represents pilot and commercial-scale security. mum feed gas (flue gas) flow rate of 30 stan- demonstrations. dard liters per minute, corresponding to ap- Contact proximately 0.5 kg/hr of CO2 when consid- Concluding remarks Jim Cabe ering common flue gas compositions. The Acknowledging that the R&D environment [email protected] liquid solvent cart (left-hand photograph in is resource-limited, the advancement of www.pnl.gov Figure 2) is configured with an absorption promising materials and technologies must

Nov - Dec 2011 - carbon capture journal 17 CCJ24b_Layout 1 15/11/2011 10:50 Page 18

Capture and Conversion Capture news

Statoil selects technology suppliers for Mongstad www.statoil.com Gassnova and Statoil have chosen suppliers of CO2 capture technology to participate in a technology qualification program for full-scale CO2 capture at Mongstad (CCM). Successful results in the technology qualification program should allow for selection of the technology in first half of 2014, Statoil said. The technology qualification program for all companies which have technology that could be used to capture CO2 from the existing combined heat and power plant at Mongstad has been ongoing for several months. It was an open international process where the goal was to select companies for technology qualification for full scale capture of CO2. The Mongstad test plant (Photo: HELGE HANSEN / Statoil) The following companies have been selected to participate in the technology qualification program: Mitsubishi Heavy Indus- tries, LTD., ALSTOM Carbon Capture GmbH, Siemens AG, Aker Clean Carbon and ronment." gies and a series of field trials which will Huaneng-CERI Powerspan Joint Venture. "For CO2 capture technology in gener- provide an understanding of how to monitor The purpose of the technology qualification al, it is also important that the project shows CO2 in the subsurface. program is to qualify at least one technology that CCS can be accomplished elsewhere: The CO2 Capture Project also received and demonstrate that it can be scaled up and therefore it is of great importance that there a CSLF Recognition Award for the second used at the combined heat and power plant is a responsible project implementation that phase of its project (CCP2), which was com- at Mongstad, and that it will meet all HSE takes care of uncertainties in the best possi- pleted in 2009. requirements. ble way, ensuring the best technical solutions The technology qualification program at the lowest possible cost." Summit Power forms carbon capture is divided into three phases: Participation in the technology qualifi- division - Feasibility study to show that the cation program will provide technology sup- www.summitpower.com technology can be used at Mongstad. Com- pliers with an opportunity to demonstrate its Summit Power has formed a new unit panies must demonstrate that technologies technology for a full-scale plant at within the company - Summit Carbon can be scaled up; that they have the neces- Mongstad. Capture. sary operational regularity; and that high Multiple vendors can then bid on a The company has hired Mr. Sasha capture ratios are possible to achieve in rela- FEED (Front End Engineering and Design) Mackler as vice president of the new unit. tion to energy use and costs, for example. based on the concept selected, and the final Mr. Mackler was a founding member of the - Demonstrate that the process will investment decision will be put forward to Bipartisan Policy Center's Energy Project, work and that the emissions will be within the Norwegian Parliament in 2016. which played a key role in drafting recent the specified criteria. This shall include ven- Federal energy laws. dors’ test of chemical and process technolo- CO2 capture project receives CSLF In his new role, Mr. Mackler will help gy so that real emission data can be analysed recognition manage commercial and policy aspects of and evaluated based on the limit set for re- www.co2captureproject.com the company’s carbon capture initiatives. He lease at Mongstad. The CO2 Capture Project (CCP) has re- will focus on carbon capture power projects - Concept Phase for design of full scale ceived recognition from the Carbon Se- and emerging technologies, as well as busi- CO2 capture at Mongstad. questration Leadership Forum (CSLF) ness opportunities for climate-friendly com- “CCM is a very large industrial and for its contribution to the advancement of mercial uses of captured carbon such as en- technological development project, and a CO2 Capture and Storage (CCS). hanced oil production. plant of similar size has never been built be- The CCP is a partnership of several en- Summit is developing several CCS fore," said Kurt Georgsen, vice president in ergy companies, working to develop and test projects, most notably the Texas Clean En- Renewable Energy and responsible for CCS technologies. ergy Project (TCEP), a gasification facility CCM. "For Statoil, it is very important that The CSLF recognised the CCP’s third with 90% carbon capture that will produce the system works as intended and does not phase (CCP3; 2009-2013) which is focussed electric power and fertilizer, as well as cap- represent any danger to people or the envi- on field demonstrations of capture technolo- tured carbon dioxide.

18 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:50 Page 19

Capture and Conversion

SNC-Lavalin joins Sargas CO2 capture UK carbon mineralization research New UK CCS training academy alliance project agreed announced www.sargas.no www.polarcus.com www.ccstlm.com Sargas and Daewoo Shipbuilding & Ma- Polarcus Ltd and Cambridge Carbon CCS TLM and The National Centre for rine Engineering (DSME) have joined Capture Ltd (CCC) will collaborate on a CCS (NCCCS) have launched an acade- with SNC-Lavalin to build CO2 capture research project to develop carbon min- my offering training courses in carbon plants based on Norwegian Sargas tech- eralization technology. capture and storage. nology. The technology could potentially be The academy will develop and run a se- Sargas has patented a system for cap- used to reduce CO2 emissions from ships, ries of short (2-3 day) training courses aimed turing CO2 from flue gas that uses a high gas including emissions from Polarcus’ fleet of at improving knowledge and understanding pressure, which it says improves efficiency 3D seismic vessels. of the CCS business. and reduces space. As part of the agreement Polarcus and The courses on offer will be aimed at The companies have signed an alliance CCC have agreed to jointly fund a 3 year personnel in industry and other key stake- to develop power plant applications with Ph.D. research program at the University of holders who may be involved in CCS in the CCS Project opportunities using the Sargas Sheffield. The program will operate under future, or those who need to have a techni- technology. the “E-Futures Doctoral Training Centre” cal overview about CCS but are not able to DSME will pre-assemble the Sargas de- scheme operated at the university. undertake lengthy periods of training. signed plants in its shipyard in Korea and Cambridge Carbon Capture’s electro- The first course, in London on Jan 11- SNC-Lavalin will manage the projects and ex- chemical technology generates electrical 12, 2012, will feature an introduction to the ecute engineering and local site construction. power from hydrocarbons while capturing theoretical, practical and commercial aspects They are currently working on com- and permanently storing CO2 via a mineral- of the carbon capture and storage industry, mercial carbon capture opportunities in Eu- isation reaction with Ca/Mg silicates or including instruction from trainers with di- rope, North America and MEA (Middle East wastes. It is working with a number of part- rect project experience and covering the full and Africa). ners to develop the technology. value chain, not just capture or storage.

Geophysics for Carbon Storage

CGGVeritas offers a powerful, integrated suite of geophysical solutions that bring real-world answers to the challenges of carbon capture and storage. Our proven experience and high-end technologies in this field facilitate best-in-class site reconnaissance, site selection and validation, and site monitoring in all environments.

Safer, Smarter, Better Get to Know Our SeisAble Beneﬁts cggveritas.com/CCS

Nov - Dec 2011 - carbon capture journal 19 CCJ24b_Layout 1 15/11/2011 10:50 Page 20

Transport and Storage A risk based approach for verification of CO2 storage capacity estimation

There is an increasing need to focus on questions of CO2 storage capacity without compromising the safety or integrity of the storage site. Documentation of safe long term storage of large volumes of CO2 in geological formations is one of these challenges. By Semere Solomon, DNV Governments around the world are dependent flooding for either recovery or pressure main- on reliable estimates of CO2 storage capacity tenance purposes and could be in hydrody- in order to get insight on the viability of geo- namic contact with aquifers. Also not all the Asset Planned logical storage in their respective jurisdictions. previously hydrocarbon-saturated pore space On the other hand, industry needs reliable es- will become available for CO2 because some Asset Specification timates for business decisions regarding site residual water may be trapped in the pore Including overall owner acceptance criteria, selection and development. space due to capillarity, viscous fingering and performance requirements and verification Moreover project developers have to gravity effects (Bach et al. 2007). demonstrate that the storage site has the in- Another known assumption is that CO2 Risk Assessment tended storage capacity while securing safety will be injected into depleted oil and gas reser- (no harm to life, human health and the envi- voirs until the reservoir pressure reaches the Including identification of hazards and ranking of hazards based on risk evaluation ronment) and that the CO2 is permanently original pressure. In some cases reservoir de- stored (climate benefit of the project). pletion may damage the integrity of the cap Definition of Verification Involvement To build confidence among stakeholders rock, in which case the pressure cannot be (regulators and the public) a transparent pro- brought back to the initial reservoir pressure Including detailing of acceptance criteria and cedure for verifying the storage capacity esti- and the capacity would be lower (Bach et al. performance requirements mates is deemed necessary. In this article the 2007). main focus will be details on the procedures Deep saline aquifer: For assessing the Verification Plan for verification of storage capacity estimates CO2 storage capacity in saline aquifers the Including list of verification activities which is founded on the DNV’s principles of same methods are used. Moreover, a number the risk based verification (RBV) concept. of analytical models are developed by many workers which are based either on the static Verification Execution Existing methods and challenges or dynamic approach. Again all the analytical The methods available for estimating subsur- methods are based on a number of assump- Including reporting of compliance or non- compliance face volumes to date are widely and routinely tions. The most common include: simple applied in oil and gas, ground water, under- aquifer geometry, constant reservoir charac- Asset Completed ground natural gas storage, and underground teristics and different assumptions about trap- waste/fluid disposal-related estimations. In ping mechanisms as well as the derivation of general, these methods can be divided into two effective storage coefficient values. categories: static and dynamic. The static According to Bachu et al. (2007) some Figure 1 - the DNV risk verification chain models are the volumetric model and the com- of the barriers to CO2 storage capacity esti- pressibility model; the dynamic models are de- mates, among others include: cline curve analyses, material balance, and • Lack of consistent methodologies and the desired scale and to any stage in the proj- reservoir simulation (see for details, USDOE guidelines for capacity estimations; ect phase as illustrated in the CO2QUAL- 2008). • Proper documentation regarding data; STORE Guideline (2010). Oil and gas reservoirs: In the case of oil • Constraints and methodologies used; and gas reservoirs, the fundamental assump- • Proper reporting procedures and prac- Risk Based Verification concept tion is that the volume previously occupied by tices. RBV procedure for CO2 storage capacity esti- the produced hydrocarbons becomes, by and These are the main challenges today for mates is founded on the Det Norske Veritas large, available for CO2 storage and the ca- CO2 storage capacity estimation. The various (DNV) offshore service specification for risk- pacities are calculated on the basis of reser- assumptions will further add more uncertainty based verification, state-of-the-art methodolo- voir properties such as original oil or gas in to the estimated capacities. Today both indus- gies within Verification and validation, and place, recovery factor, temperature, pressure, try and governments are facing these chal- recognized methods for CO2 storage capacity rock volume and porosity, as well as in situ lenges. To overcome these challenges it is con- estimation. The risk based verification concept CO2 characteristics such as phase behavior sidered rational to use an RBV approach for is described in DNV-OSS-300 (Det Norske and density. CO2 storage capacity estimation. This ap- Veritas 2004) and is presented in Fig. 1. This assumption is generally valid for proach focuses on the risk and associated un- Verification constitutes a systematic and reservoirs that are not in hydrodynamic con- certainty involved in the estimation and is be- independent examination of the various life- tact with an aquifer, or that are not flooded lieved to contribute in making reasonable de- cycle phases of an asset (in this case CO2 stor- during secondary and tertiary oil recovery. cisions and building the confidence among age capacity) and provision of objective evi- However, many reservoirs are subjected to stakeholders. This approach can be applied to dence that the specified requirements have

20 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:50 Page 21

Transport and Storage

been fulfilled. The examination shall be based • Storage site description: A full picture 1. Review of reservoir geometry on information which can be proved true, about the storage site physical geometry, avail- based on facts obtained through observation, able data, geological and reservoir constraints, measurement, test or other means. storage integrity related issues such as pres- 2. Review of reservoir data and validation Thus, the overall general steps for CO2 ence of faults and abandoned wellbores in- storage capacity estimation (CSCE) that can cluding the seal characteristics in the storage be applied at the desired scale(s) and any proj- complex should be provided. To define a stor- 3. Review of potential storage area & leak pathways ect stage is presented in Fig. 2 and provides age capacity potential, we need to specify the the framework for the verification plan. The boundaries of the reservoir, including mapping following is addressed in the procedure: of potential leak pathways. 4. Review of the pressure build-up • A generalized procedure for CSCE con- • The capacity estimation goal: Specifies stitutes the framework in which the verifica- what one wants to achieve with the estimated 5. Review of estimated effective storage volume tion is performed. This framework is based on capacities. The goal has a major impact on the recognized methods for CSCE. level of detail and on the method of calcula-

• Description of detailed topics in the tion required. 6. Validation of the estimated capacity verification procedure such as CO2 storage ca- • Acceptance criteria or performance re- pacity specification, risk assessment and defi- quirements for the storage site for which the nition of verification involvement by three capacity to be estimated. 7. Documentation and reporting risk-based verification levels. • Determination of overall verification • Development and execution of the ver- plan. Figure 2 - general steps in CO2 storage ification plan that includes a description of 3. Risk assessment: The risk assessment is a capacity estimation verification how the different steps in the general frame- means to determine the required level of veri- work for CSCE will be verified for the differ- fication. The risk assessment includes the appropriate when the owner (or other parties) ent levels of verification. identification of hazards, frequencies of oc- performs a large degree of verification or qual- If the validation results show that the es- currence, consequences and risk drivers. It al- ity assurance work. timated storage capacity is not reliable for the so includes ranking of hazards based on risk With regard to CO2 storage capacity ver- evaluation goal then one has to return to step evaluation. ification, the Low category of verification may 2 and perform the sequence again, i.e. it is an The risk can be defined on a general lev- apply in the following example situations: iterative procedure. Generally, validation re- el, for different phases or for detailed elements • The storage site for which the estima- sults indicate how to improve the estimated of the capacity estimation. Risks with CSCE tion of capacity to be made is well character- results. are that it fails to give expected results because ized with sufficient data coverage. It is recommended to document every ac- of aspects such as: • The reservoir quality is good (e.g. relation taken in each step of the evaluation of the The calculation was based on several as- tively uniform porosity/permeability, good storage capacity estimation process. This is sumptions (realistic or unrealistic) connectivity, few/no flow barriers, no real lim- particularly useful when the estimation made The storage site for which its capacity to iting high risk leak paths that must be avoided is based on large uncertainty due to poor data be estimated has inherent complexity but over- which significantly constrains capacity ). quality, and when several important parame- simplification or lack of data may lead to er- If the verification of the asset/reserve is ters that need to be included in the calculation roneous estimations. These simplifications done as part of the CO2 storage capacity esti- of the capacity are not considered. At the end, may distort the results to an extent that these mation steps described above by experienced a report summarizing all the necessary details become neither meaningful nor useful in the personnel no independent verification is re- about the CSCE should be prepared. decision making process. quired. Consequences of such failure can be the Medium is the level of verification ap- Verification of CO2 storage capacity following: plied where the risks to the asset are average. estimates • Incorrect decisions This is the level of verification which is cus- This section describes important and detailed • Delay in making decisions tomary and is applied to the majority of assets. aspects related to the verification procedure. • Loss of time, resource and money For CO2 storage capacity verification, this cat- This includes planning, capacity specification, 4. Definition of verification involvement: egory of verification may apply in the follow- risk assessment, determination of verification The level of verification involvement should ing example situations: level and the verification plan of the DNV risk be differentiated according to the risk to the • When there is mismatch between theo- based verification concepts for CSCE. asset or elements or phases thereof. If the risk retical capacity estimates and estimates de- 1. Storage capacity/reserve planned: This is to the asset is higher, the level of verification rived through simulation because of the need the starting point for the CO2 storage poten- involvement is higher. Conversely, if the risk for multiple distributed wells to meet system tial evaluation project and is the decision of to the asset is lower, the level of verification capacity requirements or the need for reduced the owner. It may comprise a general descrip- activities can be reduced, without any reduc- injection volumes. tion of the project in the form of functionality, tion in their effectiveness. • Limited data coverage and low level of safety, capacity, economics etc. There are three levels of verification of site characterization 2. Storage capacity specification: Storage ca- assets, categorized as low, medium and high. • The verification of the capacity esti- pacity specification has been identified as a Low is the level of verification applied where mates may require independent verification. separate element to focus on the need to ad- the risks to the asset are lower than average. High is the level of verification applied dress objectives, acceptance criteria and per- For example it has benign contents, it is locat- where the risks to the asset is higher than aver- formance requirements to the storage site. ed in congenial environment conditions, or the age. For example, the site is characterized by a At least the following need to be speci- contractors are well experienced in the evalu- highly complex geology, available data is in- fied at this step: ation of similar assets. The level may also be sufficient to characterize the site, it is evaluat-

Nov - Dec 2011 - carbon capture journal 21 CCJ24b_Layout 1 15/11/2011 10:50 Page 22

Transport and Storage

ed using new methods which may be innova- Verification activity Level tive or the contractors are not well experienced L M H in performing the tasks in similar assets. This 1. Review of reservoir geometry level may also be appropriate when the owner x Is the reservoir physically defined X X X chooses to have a small technical involvement x What are the dimensions in terms of length, widt X or perform little own verification. x How deep is the reservoir? X X For CSCE verification, the High catego- 2. Review of reservoir data and validation ry of verification may apply in the following x Are the porosity and permeability of the storage X example situations: x Is the reservoir homogeneous or not? X • When capacity has initially been as- x What are the reservoir temperature and pressure X X sessed to be sufficient, but either pressure is 3. Review of potential storage area and leak pathways increasing faster than predicted, unexpected x Do stratigraphic pinchouts exist and mapped? X compartmentalization of reservoir is observed x Do high pearmeability streaks exist and mapped? X X X or pressure constraints are reduced (e.g., due x Do bounding faults exist and are mapped? 4. Review of the pressure build-up (PBU) to fracturing). How is the PBU determined? X • New containment risks are observed x x What is the PBU development in the reservoir dom X X (or level of existing containment risks in- injection period? creased) that may constrain ability to utilize x Does the PBU have the potential for creation X X capacity. reactivation of unidentified faults? • The owner of the asset is not involved 5. Review of estimated effective storage volume in the estimation and uses contractors for the x Is the total available storage volume calculated X evaluation work. the potential leak pathways? Independent verification is strongly rec- x How is the storage capacity determined? X ommended for High level verification. x Is pressure build-up taken into account in the c X X 5. Develop verification plan: This section de- 6. Validate and verify estimated capacity (verificati scribes how to develop the verification plan x Are the estimations confirmed by dynamic modelli X including a list of verification activities. The x Is the data used site specific? X verification plan is developed based on com- x Have the results been discussed with the client X pliance with the general framework for CSCE agreed and documented? shown in Fig. 2 and the determined verifica- 7. Documentation and reporting Has all the work been properly documented? X tion level for the estimation. x

A questionnaire based approach is pro- x +DVWKHRZQHUUHYLHZHGWKHUHSRUWDQGDJUHHGZLWKWKHUHSRUW¶V X posed for the verification in each step. Each findings? question indicates the levels of verification, x Is the documentation unambiguous? X i.e. the question is addressed. ‘L’, ‘M’ and ‘H’ to denote low level, medium level and high Table 1 - typical verification plan for CSCE with a list of selected verification activities level verification, respectively. Typical verification plan is shown in Table 1. For simplici- ty examples from the general framework for oping a framework which is founded on the Det Norske Veritas AS, 2004. Risk Based CSCE, a few lists of verification activities are DNV’s principles of the risk based verifica- Verification. DNV-OSS-300. selected for illustration purposes. tion concept that can be applied to the desired USDOE 2008. Methodology for Devel- 6. Verification execution: Verification execu- scale as well as stage of the project as present- opment of Geological Storage Estimates for tion is document review, independent analy- ed in the CO2QUALSTORE guideline. In the Carbon Dioxide: Appendix B, in Capacity and ses, inspection, monitoring (cross-validation), absence of standardized methods of CO2 stor- Fairways Subgroup of the Geologic Working site visits, process audits, technical audits, test- age capacity estimation a risk based verifica- Group of the DOE Regional Carbon Seques- ing, etc. according to the verification plan. In- tion approach is both necessary and rational to tration Partnerships. U.S. Department of En- formation arising from execution should be build confidence among the stakeholders. Ap- ergy. 18p. used to identify continuous improvements to plication of the protocol will address uncer- the verification plan. The purpose of the veri- tainty and risks associated with investment de- About the author fication activities is to confirm compliance or cision making, safety and environmental is- Semere Solomon is a Geologist with a non-compliance with the capacity specifica- sues and thus can facilitate decision making PhD and 13 years of broad professional tion or other regulatory requirements. and provides confidence and trust to the stake- experience in different field areas in ap- 7. Asset evaluation completed: Asset evalua- holders. plied geosciences (e.g. reservoir geology, tion completed is the end point of any lifecy- structural geology & rock mechanics and cle phase or phases, which complies with the References hydrogeology). At DNV Semere is cur- relevant planned resource estimation and the Bachu, S., et al. 2007, CO2 storage ca- rently working as a Principal Specialist in capacity specification and other regulatory re- pacity estimation: Methodology and gaps. In- underground storage of CO2 in issues requirements on integrity and safety of storage ternational Journal of Greenhouse Gas Con- lated to storage capacity, wellbore integri- sites. trol, I: p. 430-443. ty, reservoir geomechanics including CO2QUALSTORE 2010, Guideline for overall storage integrity. Conclusion Selection and Qualification of Sites and Proj- [email protected] This article provides the procedures for verifi- ects for CO2 Geological Storage, DNV Report www.dnv.com cation of storage capacity estimates by devel- No.: 2009-1425.

22 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:50 Page 23

Transport and Storage Transport and storage news

IPAC-CO2 releases CO2 storage and construction management firm. standard Leading the work from its Aberdeen of- www.ipac-co2.com fice, Wood Group will design concepts of the The draft of the world’s first standard for offshore surface facilities as well as sched- geologic storage of carbon dioxide now is uling and cost estimating for offshore available for public review. pipeline and subsea facilities, it said. Feedback can be provided online "This project is one of a number we are through the CSA Standards public review considering in our quest to assist the UK system on a clause by clause basis. Government to meet its obligation to cut car- CSA Standards, a leading developer of bon emissions by 20 per cent by 2020," said standards, codes and personnel certification Russell Cooper, National Grid Carbon, CCS programs since 1919, and the International Technical Lead. Performance Assessment Centre for Geolog- Operations at Thunderbird Energy’s Gordon ic Storage of Carbon Dioxide (IPAC-CO2) Work commences at Thunderbird Creek gas field began work on June 16, 2010 on the new Energy’s Gordon Creek gas field standard. www.thunderbirdenergy.com A Technical Committee (TC) compris- The U.S. Southwest Regional Partnership tainment. DNV assembled a panel of seven ing almost three dozen experts from Canada on Carbon Sequestration's CCS storage CCS experts from academia and research in- and the United States began reviewing the project Phase III has started. stitutions to perform the review over a two- seed document IPAC-CO2 had prepared to Drilling and workover operations have week period. form the basis of the standard on November begun at Thunderbird Energy's Gordon “Through developing guidelines and 24. Creek natural gas field. standards for CCS in collaboration with gov- Rick Chalaturnyk, a geotechnical engi- The field activities will include a 3D ernments and industry, DNV has taken an in- neering professor and holder of the Founda- seismic shoot to gain further understanding strumental role towards paving the way for tion CMB Endowed Chair in Reservoir Geo- of the structure that is believed to host the safe and cost-effective deployment of CCS,” mechanics at the University of Alberta in Ed- previously discovered CO2 at Gordon said Jørg Aarnes, Principal Consultant, DNV. monton, is the chair of the TC. Creek. “But while regulations, guidelines and stan- Sara Forbes, who leads the CCS work The project will also be re-working the dards may help clarify the rules of the game, at the World Resources Institute (WRI) in existing injection well at Gordon Creek in the main challenge is demonstrating compli- Washington, D.C., is the vice-chair of the order to conduct a high rate combine CO2- ance with these rules. The expert panel vali- TC. Water injectivity test. dation of the Quest storage development Upon completion, the new standard A program of 50 new wells and 5 plan is a first of its kind in the world and pro- will provide essential guidelines for regula- workovers of existing wells will be carried vides independent assurance to stakeholders tors, industry and others around the world out in 2011 and 2012. that CO2 storage will be safely and respon- involved with scientific and commercial sibly managed.” CCS projects. DNV issues first certificate of fitness CCS operators must perform extensive The new standard will be submitted to for CO2 storage analysis and data collection to assess, validate the Standards Council of Canada and ANSI www.dnv.com and provide assurance to regulators and stake- in the United States for bi-lateral recognition DNV has awarded the world’s first certifi- holders that a particular set of geological for- making it the world’s first formally recog- cate of fitness for safe CO2 storage to mations is suitable for CO2 storage. Evidence nized CCS standard in this area. Shell’s Quest Carbon Capture and Stor- must be provided to show that injected vol- The new standard will provide the ba- age project. umes of purified CO2 will be isolated and re- sis for development of the international stan- The proposed Quest project will cap- tained in the geological formations and that dards by the International Organization for ture and permanently store underground any associated risk to the environment is care- Standardization (ISO). more than one million tonnes of CO2 per fully managed through a tailored monitoring year from its Scotford Upgrader, located and verification program. John Wood Group to conduct UK CO2 near Fort Saskatchewan, Alberta. Validation of CO2 storage sites is a sig- storage study DNV, together with industry and gov- nificant challenge because it requires a thor- www.woodgroup.com ernments, has recently developed recom- ough understanding of the local geology and John Wood Group has been appointed by mended guidelines and best practices for the behaviour that carbon dioxide exhibits the UK National Grid to perform study CO2 geological storage selection and risk as- when injected deep underground. Based on work in relation to development options sessment, and were commissioned by Shell the conclusions of the expert panel DNV cer- for underground carbon dioxide storage to coordinate a comprehensive review to as- tified that Shell’s Storage Development Plan in the U.K. sector of the southern North sess the suitability of the Quest project’s un- is fit for purpose based upon a number of dif- Sea. derground storage formation to safely and ferent metrics, such as: sufficient storage ca- The work will be undertaken by Wood permanently store injected CO2. pacity, long-term containment, proper risk Group's subsidiaries Wood Group Kenny, a The review also assessed the project’s management plans, and a measurement, specialist subsea engineering and manage- measurement, monitoring and verification monitoring and verification program capa- ment contractor and Wood Group Mustang, program to validate that it would provide the ble of continuously demonstrating contain- an engineering, design, project management, necessary rigor to demonstrate effective con- ment.

Nov - Dec 2011 - carbon capture journal 23 CCJ24b_Layout 1 15/11/2011 10:50 Page 24

Status of CCS project database The status of 78 large-scale integrated projects data courtesy of the Global CCS Institute For the full list, with the latest data as it becomes available, please see the pdf version online at www.carboncapturejournal.com or download a spreadsheet at www.globalccsinstitute.com/resources/data

Asset Stat Lifecycle Project Name Description Country Distr Stage

Century Plant (formerly Occidental Petroleum, in partnership with Sandridge Energy, is operating a gas processing plant in West Operate Occidental Gas Processing Texas that at present can capture 5 Mtpa of carbon dioxide for use in enhanced oil recovery. Capture UNITED STATES Texas Plant) capacity will be increased to 8.5 Mtpa in 2012.

Since 1982, the Enid Fertilizer plant has sent around 680,000 tonnes per annum of carbon dioxide to be Operate Enid Fertilizer UNITED STATES Oklahom used in enhanced oil recovery operations in Oklahoma.

Great Plains Synfuel Plant About 3 million tonnes per annum of carbon dioxide is captured from the Great Plains Synfuel plant in North Operate Dakota. Since 2000 the carbon dioxide has been transported by pipeline into Canada for enhanced oil CANADA Saskatch and Weyburn-Midale Project recovery in the Weyburn and Midale Oil Fields.

In Salah is a fully operational onshore gas field in Algeria. Since 2004, 1 million tonnes per annum of carbon Wilaya d Operate In Salah CO2 Storage dioxide are separated from produced gas and reinjected into the producing hydrocarbon reservoir zones for ALGERIA Ouargla storage in a deep saline formation.

Shute Creek Gas Processing Around 7 million tonnes per annum of carbon dioxide are recovered from ExxonMobil’s Shute Creek gas Operate processing plant in Wyoming, and transported by pipeline to various oil fields for enhanced oil recovery. This UNITED STATES Wyoming Facility project has been operational since 1986.

Sleipner is an operational offshore gas field with carbon dioxide injection. The carbon dioxide is separated Operate Sleipner CO2 Injection from produced gas and reinjected into a deep saline formation above the hydrocarbon reservoir zone. This NORWAY North Se project has been in operation since 1996.

The Snøhvit offshore gas field and related CCS activities have been in operation since 2007. Carbon dioxide Operate Snøhvit CO2 Injection separated from the gas produced at an onshore liquid natural gas plant is reinjected into a deep saline NORWAY Barents formation below the reservoir zones.

Val Verde Natural Gas Plants This operating enhanced oil recovery project uses carbon dioxide sourced from the Mitchell, Gray Ranch, Operate UNITED STATES Texas (formerly Sharon Ridge) Puckett, Pikes Peak and Terrell gas processing plants and transported via the Val Verde and CRC pipelines.

ADM Illinois Industrial The project will capture around 1 million tonnes per annum of carbon dioxide from ethanol production. Execute Carbon Capture and Carbon dioxide will be stored approximately 2.1 km underground in the Mount Simon Sandstone, a deep UNITED STATES Illinois Sequestration Project saline formation.

Agrium CO2 Capture with Agrium's fertiliser plant in Alberta is being retrofitted with a carbon dioxide capture unit. Around 585,000 Execute tonnes per annum of carbon dioxide will be captured and transported via the Alberta Carbon Trunk Line CANADA Alberta ACTL (ACTL) for enhanced oil recovery.

Boundary Dam Integrated Carbon Capture and SaskPower is currently retrofitting a coal-based power generator with carbon capture technology near Execute Estevan, Saskatchewan. When fully operational in 2014, this project will capture around 1 million tonnes per CANADA Saskatch Sequestration annum of carbon dioxide. Demonstration Project

This component of a larger gas production and LNG processing project will inject 3.4 to 4 million tonnes of Gorgon Carbon Dioxide Western Execute carbon dioxide per annum into a deep saline formation. Construction is under way after a final investment AUSTRALIA Australia Injection Project decision was made in September 2009.

Kemper County IGCC Mississippi Power (Southern Company) is constructing an air-blown 582 MW IGCC plant using a coal-based Execute Project (formerly Plant transport gasifier. Up to 3.5 million tonnes per annum of carbon dioxide will be captured at the plant and UNITED STATES Mississip Ratcliffe) used for enhanced oil recovery.

This project will retrofit the Lost Cabin natural gas processing plant in Wyoming with CCS facilities, capturing Execute Lost Cabin Gas Plant UNITED STATES Wyoming around 1 million tonnes per annum of carbon dioxide to be used for enhanced oil recovery.

Air Products Steam Methane This project proposes to capture more than 1 million tonnes per year of carbon dioxide from two steam Define methane reformers to be transported via Denbury's Midwest pipeline to the Hastings and Oyster Bayou oil UNITED STATES Texas Reformer EOR Project fields for enhanced oil recovery.

24 carbon capture journal - Nov - Dec 2011 CCJ24b_Layout 1 15/11/2011 10:50 Page 25

Status of CCS project database

State / Volume Operation Facility Transport Transport try Capture Type Storage Type Project URL District CO2 Date Details Length Type

Natural Gas Onshore to Enhanced Oil TATES Texas 8.5 Mtpa 2010 Pre-Combustion 256 km Processing onshore pipeline Recovery http://www.oxy.com/

Fertiliser Onshore to Enhanced Oil TATES Oklahoma 0.68 Mtpa 1982 Pre-Combustion 192 km Production onshore pipeline Recovery http://www.kochfertilizer.com/

Synthetic Onshore to Enhanced Oil Saskatchewan 3 Mtpa 2000 Pre-Combustion 315 km Natural Gas onshore pipeline Recovery http://www.cenovus.com/

Wilaya de Natural Gas Onshore to Onshore Saline 1 Mtpa 2004 Pre-Combustion 14 km Ouargla Processing onshore pipeline Formations http://www.insalahco2.com/

Natural Gas Onshore to Enhanced Oil TATES Wyoming 7 Mtpa 1986 Pre-Combustion 190 km Processing onshore pipeline Recovery http://www.exxonmobil.com

Minimal Natural Gas Offshore