RETROFITTING CCS TO COAL: ENHANCING AUSTRALIA’S ENERGY SECURITY RETROFITTING CCS TO COAL: ENHANCING AUSTRALIA’S ENERGY SECURITY any representation about the content and suitability Disclaimer of this information for any particular purpose. The document is not intended to comprise advice, and is This report was completed on 2 March 2017 and provided “as is” without express or implied therefore the Report does not take into account warranty. Readers should form their own conclusion events or circumstances arising after that time. The as to its applicability and suitability. The authors Report’s authors take no responsibility to update the reserve the right to alter or amend this document Report. without prior notice. The Report’s modelling considers only a single set of Authors: Geoff Bongers, Gamma Energy Technology input assumptions which should not be considered Stephanie Byrom, Gamma Energy Technology entirely exhaustive. Modelling inherently requires Tania Constable, CO2CRC Limited assumptions about future behaviours and market interactions, which may result in forecasts that deviate from actual events. There will usually be About CO2CRC Limited: differences between estimated and actual results, CO2CRC Limited is Australia’s leading CCS research because events and circumstances frequently do not organisation, having invested $100m in CCS research occur as expected, and those differences may be over the past decade. CO2CRC is the first organisation material. The authors of the Report take no in Australia to have demonstrated CCS end-to-end, responsibility for the modelling presented to be and has successfully stored more than 80,000 tonnes considered as a definitive account. of CO2 at its renowned Otway Research Facility in The authors of the Report highlight that the Report, Victoria. CO2CRC engages the world’s leading does not constitute investment advice or a researchers to collaborate on benchtop and in-field recommendation to you on your future course of research in Australia, delivering improvements and action. The authors provide no assurance that the cost efficiencies in CCS to industry. scenarios modelled will be accepted by any relevant www.co2crc.com.au authority or third party. About Gamma Energy Technology: Conclusions in the report are based, in part, on the Gamma Energy Technology is an independent assumptions stated and on information which is energy consulting service, offering a range of publicly available. No listed author, company or technical and support services, including but not supporter of this report, nor any member or limited to power generation technology. employee thereof undertakes responsibility in any way whatsoever to any person in respect of errors in Gamma Energy Technology are proud to contribute this Report arising from information that may be to the ongoing discussions on energy in Australia as later be proven to be incorrect. we seek to solve the trilemma of energy supply - to assure energy system security and affordability so In the preparation of this Report the authors have that emissions reduction targets are delivered. considered and relied upon information sourced www.gamma-energy-technology.com.au from a range of sources believed after due enquiry to be reliable and accurate. The authors have no reason to believe that any information supplied, or Acknowledgements obtained from public sources, was false or that any material information has been withheld. The authors would like to thank EPRI for their support as an extension to the APGT and for their The authors do not imply and it should not be advice and data. Confidential soundings were taken construed that they have verified any of the from Industry. We would like to thank ACALET and information provided, or that the author’s enquiries CarbonNet for their advice for this report. The CCS could have identified any matter which a more transport and storage chapter from the APGT has extensive examination might disclose. been recreated for this document. The authors While every effort is made by the authors to ensure acknowledge chapter authors Prof. D. Wiley and Dr that the facts and opinions contained in this M.Ho (University of Sydney), Dr P. Neal and Dr G document are accurate, the authors do not make Fimbres Weihs (UNSW) and peer reviewers named in the Chapter. RETROFITTING CCS TO COAL: ENHANCING AUSTRALIA’S ENERGY SECURITY Table of Contents Key Messages ..........................................................................................................................................v Executive Briefing .................................................................................................................................. vi International Climate Change Commitments................................................................................................. vi Diversity of Electricity Supply....................................................................................................................... vii New Technologies Will Cost More ................................................................................................................ vii CCS is Not Experimental ................................................................................................................................ ix Enhancing Energy Security ............................................................................................................................. ix Retrofit Costs are Comparable with Solar PV ................................................................................................. ix Benefits to Other Industries........................................................................................................................... x Jobs in Regions ............................................................................................................................................... xi Planning for a Sustainable Energy Future ...................................................................................................... xi Conclusion ..................................................................................................................................................... xi 1.0 Introduction ................................................................................................................................... 1 1.1. What is Post-Combustion Capture and Retrofitting ............................................................................. 1 1.2. Plant equipment and layout................................................................................................................. 3 1.3. Integration of PCC into existing Coal Plant ........................................................................................... 4 2.0 Case studies ................................................................................................................................... 6 2.1. Key CCS projects to date in Australia ................................................................................................ 6 2.2. Opportunities for Australia ............................................................................................................... 7 2.3. Key International Commercial CCS projects to date ......................................................................... 8 2.3.1. SaskPower Boundary Dam, Canada - CCS Project ........................................................................... 8 2.3.2. Petra Nova, USA - Carbon Capture Project .................................................................................. 10 3.0 PCC Retrofit ................................................................................................................................. 12 3.1. Brown Coal PCC Retrofit Cost and Performance ............................................................................. 12 3.2. Brown Coal PCC Retrofit Cost of Electricity ..................................................................................... 13 3.3. Black Coal PCC Retrofit Cost and Performance ............................................................................... 16 3.4. Black Coal PCC Retrofit Cost of Electricity ....................................................................................... 17 3.5. Retrofit Summary ............................................................................................................................ 20 Appendix 1 – CO2 Transport and Storage Case Studies ............................................................................. 22 Tables and Figures List of Figures Figure 1: PCC simplified process ......................................................................................................................... 2 Figure 2: Chemical solvent scrubbing process .................................................................................................... 2 Figure 3: MEA PCC unit (excluding flue gas desulphurisation and selective catalytic reduction and cooling towers) ............................................................................................................................................................... 3 Figure 4: Typical pulverised coal plant layout before and after PCC retrofit ...................................................... 4 Figure 5: Schematic of turbine and feedwater heater circuit for plant without CO2 capture ............................. 5 Page iii RETROFITTING CCS TO COAL: ENHANCING AUSTRALIA’S ENERGY SECURITY Figure 6: Schematic