ASSESSING THE POTENT IAL OF CO2 UTILISATION IN THE UK Final Report ASSESSING THE POTENTIAL OF CO2 UTILISATION IN THE UK Final report By: Sacha Alberici, Paul Noothout, Goher Ur Rehman Mir, Michiel Stork, Frank Wiersma (Ecofys), with technical input from Niall Mac Dowell, Nilay Shah, Paul Fennell (Imperial College London) Date: 26 May 2017 Project number: SISUK17099 Reviewer: Ann Gardiner © Ecofys 2017 by order of: UK Department for Business, Energy & Industrial Strategy (BEIS) Ecofys - A Navigant Company Ecofys UK Ltd. | Registered Office: 100 New Bridge Street | London EC4V 6JA | Company No.: 04180444 T +44 (0)20 74230-970 | F +44 (0)20 74230-971 | E [email protected] | I ecofys.com Acronyms oC Degrees centigrade ACT Accelerated Carbonation Technology AEC Alkaline electrolysis cells (electrolyser) APCr Air pollution control residue BEIS Department for Business, Energy and Industrial Strategy Ca Calcium CaCO 3 Calcium carbonate CaO Calcium oxide Ca(OH) 2 Calcium hydroxide CCS Carbon Capture and Storage CCU Carbon Capture and Utilisation CCUS Carbon Capture Utilisation and Storage CHP Combined heat and power CKD Cement kiln dust Cl 2 Chlorine CNG Compressed natural gas CO Carbon monoxide CO 2 Carbon dioxide CRI Carbon Recycling International d day DECC Department of Energy and Climate Change DME Dimethyl ester EO Ethylene oxide EPA (US) Environmental Protection Agency EU European Union EU ETS EU Emissions Trading Scheme g Gas (used in chemical formulae) GCC Ground calcium carbonate GHG Greenhouse gas Ecofys - A Navigant Company Ecofys UK Ltd. | Registered Office: 100 New Bridge Street | London EC4V 6JA | Company No.: 04180444 T +44 (0)20 74230-970 | F +44 (0)20 74230-971 | E [email protected] | I ecofys.com H2 Hydrogen ha Hectare HCL Hydrochloric acid HVO Hydrotreated vegetable oil IMO International Maritime Organization IRENA International Renewable Energy Agency k Kilo (thousand) tonne l Liquid (used in chemical formulae) LEP Local Enterprise Partnership LPG Liquefied petroleum gas M5-100 Blend level of methanol in gasoline MCI Mitsui Chemicals Inc. MDI Methylene diphenyl diisocyanate Mg Magnesium MgCO 3 Magnesium carbonate MgO Magnesium oxide Mt Mega (million) tonne MTBE Methyl tert-butyl ether MTO Methanol-to-olefins MW Mega watt MWh Mega watt hour Na 2CO 3 Sodium carbonate (soda ash) NaHCO 3 Sodium bicarbonate (baking soda) NaOH Sodium hydroxide NOx Nitrogen oxides PCC Precipitated calcium carbonate PE Polyethylene PEC Polyethylene carbonate PEM Proton exchange membrane (electrolyser) PCHC Polycyclohexane carbonate PM Particulate matter Ecofys - A Navigant Company Ecofys UK Ltd. | Registered Office: 100 New Bridge Street | London EC4V 6JA | Company No.: 04180444 T +44 (0)20 74230-970 | F +44 (0)20 74230-971 | E [email protected] | I ecofys.com PO Propylene oxide PPC Polypropylene carbonate PP Polypropylene ppm Parts per million PPP Polycarbonate polyols s Solid (used in chemical formulae) R&D Research and development RFNBO Renewable liquid and gaseous transport fuel of non-biological origin RTFO Renewable Transport Fuel Obligation SiO 2 Silicon dioxide SOEC Solid oxide electrolysis cells (electrolyser) SOx Sulphur oxides SNG Synthetic natural gas / Substitute natural gas t tonne TDI Toluene diisocyanate TRL Technology readiness level TWh Tera watt hour UK United Kingdom US United States yr Year Ecofys - A Navigant Company Ecofys UK Ltd. | Registered Office: 100 New Bridge Street | London EC4V 6JA | Company No.: 04180444 T +44 (0)20 74230-970 | F +44 (0)20 74230-971 | E [email protected] | I ecofys.com Executive summary E.1 Introduction Carbon capture and utilisation (CCU) in general is considered to involve the capture of carbon dioxide (CO 2) from either a point source (e.g. power station or industrial process), its transport and its subsequent use . CCU can be applied in a broad range of applications either as part of a biological or chemical conversion process for the fabrication or synthesis of new products (e.g. building products, polymers), or in processes where CO 2 acts a solvent or working fluid in industrial processes. 1 CCU is already being deployed in the UK. Projects include Carbon8’s two plants that treat thermal wastes with CO 2 to produce an aggregate, as well as examples of CCU in horticulture. CCU is also widely applied in the food and drink sector, primarily in beverage carbonation, and to a lesser extent in food freezing, chilling and packing applications. Tata Chemical Europe’s sodium bicarbonate plant at Winnington is also a major CO 2 offtaker. It is estimated that the total size of the UK market in 2016 was in the range of 400-500 ktCO 2/yr. There is growing interest to understand the potential for CCU to reduce greenhouse gas (GHG) emissions from energy and industrial related sources, and how it may compliment CO 2 capture and storage (CCS). CCU also potentially creates valuable (low carbon) products and provides opportunities for industrial symbiosis. Furthermore, CCU may also provide both a revenue stream for carbon capture projects and reduce the exposure of industry to increasing carbon prices in the future. There are, however, a number of challenges that make an accurate assessment of the potential for CCU difficult; some of these include: 1. The available evidence on the commercial potential for CCU is limited. 2. Many CCU technologies are at an early stage of development and not yet ready for commercial deployment. 3. There is a lack of robust quantitative data on potential CO 2 markets in the UK, specifically in terms of sectors and geographical location. 4. There is a lack of market research into the “green premium” that consumers would be prepared to pay for CCU products. 5. Many technologies and/or products capture CO 2 for only a short time before re-releasing it. 1 http://c8a.co.uk/about-us/ Ecofys - A Navigant Company Ecofys UK Ltd. | Registered Office: 100 New Bridge Street | London EC4V 6JA | Company No.: 04180444 T +44 (0)20 74230-970 | F +44 (0)20 74230-971 | E [email protected] | I ecofys.com In September 2016, the UK Department for Business, Energy and Industrial Strategy (BEIS) commissioned Ecofys and Imperial College London to assess the potential of CCU in the UK to 2030. The key objectives of this study were to: • Examine and report on the potential of CCU in the UK to help long-term CO 2 abatement. • Identify the most promising applications of CCU in the UK - including an assessment of the Technology Readiness Level (TRL), carbon abatement potential, most promising deployment locations and barriers that may hinder development. • Advise on innovation support. The project was split into three phases. E.2 Phase 1: Evidence review of CCU technologies The first phase consisted of a literature review to build a long list of CCU technologies for consideration in the study. In total, 25 CCU technologies were identified. These technologies were categorised as follows (a selection of technologies are listed for each category) 2: • Chemicals production: Formic acid, polymer processing • CO 2 mineralisation: Carbonate mineralisation, concrete curing, novel cements • CO 2 to fuels carrier: Algae cultivation, synthetic methane, synthetic methanol • Enhanced commodity production: Methanol and urea yield boosting, supercritical CO2 power cycles • Food and drink: Beverage carbonation, food freezing, chilling and packaging, horticulture • Other - industrial applications: Electronics, metal working, supercritical CO 2 The technologies were assessed according to two parameters - Market demand (CO 2) and Technology readiness level (TRL) . The market demand assessment was based on the current (2016) market demand and the estimated 2030 market demand, in the UK and globally (MtCO 2/yr). The 2030 demand estimate took into account the anticipated progression of the technologies (in-line with their TRL) and the extent to which the technologies could be realistically deployed over this time period (with consideration of any key barriers). The technology readiness level assessment was based on the current TRL and the time required to reach proven commercial operation (i.e. TRL 9). The timescale to advance to TRL 9 was estimated based on the time required for other industrial technologies to make the same advance in technology readiness. 2 Note that Enhanced Oil Recovery (EOR) was excluded from the scope of this study. Ecofys - A Navigant Company Ecofys UK Ltd. | Registered Office: 100 New Bridge Street | London EC4V 6JA | Company No.: 04180444 T +44 (0)20 74230-970 | F +44 (0)20 74230-971 | E [email protected] | I ecofys.com The outcome of the technology assessment was presented at a stakeholder workshop held at BEIS on 14 October 2016 and further discussed with BEIS. The following seven technologies were selected for detailed assessment. • Carbonate mineralisation (Carbonation): Based on reacting CO 2 with calcium (Ca) or magnesium (Mg) oxide or silicate to form a solid carbonate mineral structure. These materials can be found both in natural form and in waste streams (the focus of this study), such as fly ash from waste-to-energy plants. The carbonates that are produced are stable over long time scales and therefore can be used as construction materials. • Concrete curing: Carbonation using CO 2 to produce solid calcium carbonate (CaCO 3) can replace traditional energy intensive steam concrete curing methods. This significantly increases the short-term take-up of CO 2 and offers permanent sequestration of the bound CO 2. • Novel cements : Some researchers and a small number of companies are looking to develop cements which use CO 2 as an ingredient. These cements typically utilise magnesium minerals. The CO 2 is locked in the cement as a solid carbonate. • Horticulture: Industrial CO 2 is used to enrich the growing environment and increase the production yield of crops. The CO 2 stream needs to be very pure to ensure that crops are not damaged. Only a limited portion of the CO 2 is absorbed, and therefore temporarily stored, by the crop (around 80% is vented without uptake in the crop).