CCS Global Prospects of Carbon Capture and Storage Technologies (CCS) in Emerging Economies Final Report to the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) Part II: Country Study India GIZ-PN 2009.9022.6 Wuppertal, 30 June 2012 This project is part of the International Climate Initiative (ICI). FinalReport CCS global The project on which this report is based was funded by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) through the GIZ (Project Number 2009.9022.6). The sole responsibility for the content of this report lies with the au- thors. The total report consists of 6 parts: Concluding Hypotheses / Zusammenfassende Thesen I. General Status and Prospects of CCS II. Country Study India III. Country Study China IV. Country Study South Africa V. Comparative Assessment of Prospects of CCS in the Analysed Countries Elaborated by Wuppertal Institute Dipl.-Umweltwiss. Andrea Esken Dipl.-Umweltwiss. Samuel Höller Dr. Daniel Vallentin Dr. Peter Viebahn (Project Co-ordinator) With subcontracts to Dr. Pradeep Kumar Dadhich (The Energy and Resources Institute, New Delhi) Prof. Dr. Can Wang (Tsinghua University, Beijing) Prof. Dr. Rosemary Falcon (University of the Witwatersrand, Johannesburg) Dr. Werner Zittel (Ludwig-Bölkow-Systemtechnik, Ottobrunn, Germany) Teresa Gehrs (LinguaConnect, Osnabrück) Assistance by Holger Liptow (GIZ) Christina Deibl, Bianca Falk, Florian Knüfelmann, Geo Kocheril (Wuppertal Institute) Contact Dr. Peter Viebahn Wuppertal Institute for Climate, Environment and Energy Research Group “Future Energy and Mobility Structures” Döppersberg 19 42103 Wuppertal Germany Tel.: +49 202/2492-306 Fax: +49 202/2492-198 E-mail: [email protected] Web: www.wupperinst.org/CCS/ 2 Final Report Part II Table of Contents Table of Contents Table of Contents 3! List of Abbreviations, Units and Symbols 7! List of Tables 12! List of Figures 16! II. ! Country Study India 19! 6! Status and Development of Carbon Capture and Storage in India 20! 6.1! General Energy Situation in India 20! 6.2! Research, Development and Demonstration Projects on CO2 Capture in India 21! 6.2.1! ! CCS Activities 21! 6.2.2! ! Fields of Use 21! 6.2.3! ! Industrial Processes 24! 6.2.4! ! Fuel Production 24! 7! Assessment of India’s Potential for CO2 Storage 25! 7.1! Introduction 25! 7.2! Geological Situation in India 25! 7.3! Estimates of India’s CO2 Storage Potential 28! 7.3.1! ! Overview of Existing Studies 28! 7.3.2! ! Storage Potential Assessments by Formation 28! 7.3.3! ! Summary of Research Results 40! 7.4! Development of Storage Scenarios 42! 8! CCS-Based Development Pathways for India’s Power and Industry Sector 44! 8.1! Introduction 44! 8.2! Current and Projected Coal-Fired Power Plants in India 44! 8.3! Long-Term Coal Development Pathways for the Power Plant Sector 47! 8.3.1! ! Methodological Approach 47! 8.3.2! ! Description of Underlying Basic Scenarios 48! Wuppertal Institute for Climate, Environment and Energy 3 CCS global 8.3.3! ! Comparison of Coal Development Pathways 51! 8.4! CO2 Captured from Coal-Fired Power Plants 55! 8.4.1! ! Capacity of CCS-Based Power Plants depending on Energy Scenarios 55! 8.4.2! ! Calculating the Quantity of CO2 Captured from Power Plants 59! 8.5! CO2 Captured from Industrial Sites 64! 8.5.1! ! Methodological Approach for Developing an Industry Scenario 64! 8.5.2! ! Quantity of CO2 Captured from Industrial Sites 65! 8.6! Conclusions 67! 9! Matching the Supply of CO2 to Storage Capacities 69! 9.1! Introduction 69! 9.2! Overview of Storage Scenarios 69! 9.3! Overview of Coal Development Pathways 70! 9.4! Methodology of Source-Sink Matching 71! 9.4.1! ! Matching Emissions from Power Plants 72! 9.4.2! ! Matching Emissions from Industry 77! 9.5! Overall Results 78! 9.6! Relocating Emission Sources 80! 9.7! Conclusion 82! 10! Assessment of the Reserves, Availability and Price of Coal 85! 10.1! Introduction 85! 10.2! Coal Quality and Coal Washeries 86! 10.2.1! ! Coal Quality 86! 10.2.2! ! Coal Washeries 86! 10.3! Coal Resources and Reserves 87! 10.3.1! ! Reserve Reporting by World Energy Council 87! 10.3.2! ! Resource Reporting by the Indian Ministry of Coal 88! 10.3.3! ! Geological Proven Reserves at Regional Company Level 89! 10.4! Coal Production in India 92! 10.5! Price Development 95! 10.5.1! ! General Aspects 95! 10.5.2! ! Historical Price Development 96! 4 Final Report Part II Table of Contents 10.5.3! ! Present Prices of Domestic Indian Coal 99! 10.5.4! ! Price Difference between Domestic and Imported Coal 103! 10.5.5! ! Structural Changes of Coal Import and Export Markets in Asia 106! 10.5.6! ! Projection of Coal Price Development 108! 10.6! Conclusions 109! 11! Economic Assessment of Carbon Capture and Storage 110! 11.1! Introduction 110! 11.2! Basic Parameters and Assumptions 110! 11.2.1! ! Power Plant Types and Plant Performance 110! 11.2.2! ! Coal Development Pathways for the Expansion of Coal-Fired Power Plant Capacities in India 111! 11.2.3! ! Costs of Supercritical Pulverised Coal Plants in India 111! 11.2.4! ! Costs of CO2 Transportation and Storage 113! 11.2.5! ! Learning Rates 113! 11.2.6! ! Fuel Costs 114! 11.2.7! ! CO2 Discharge of Coal-Fired Power Plants with and without CCS 116! 11.2.8! ! CO2 Penalty 116! 11.3! Levelised Cost of Electricity by Supercritical Coal-Fired Power Plants in India with and without CCS up to 2050 (without CO2 Penalty) 117! 11.4! Levelised Cost of Electricity by Supercritical Coal-Fired Power Plants in India with and without CCS up to 2050 (with CO2 Penalty) 118! 11.5! Comparison of CO2 Mitigation Costs of Supercritical Coal-Fired Power Plants in India up to 2050 with and without CO2 Penalty 121! 11.6! Conclusions 122! 12! Life Cycle Assessment of Carbon Capture and Storage and Environmental Implications of Coal Mining 124! 12.1! Introduction 124! 12.2! Life Cycle Assessment of CCS 124! 12.1.1! ! Methodological Approach 124! 12.1.2! ! Basic Assumptions and Parameters 125! 12.1.3! ! Results of the Life Cycle Assessment 128! 12.1.4! ! Conclusions 133! 12.2! Further Environmental Implications of Coal Mining outside LCA 134! 12.2.1! ! Land Consumption 134! Wuppertal Institute for Climate, Environment and Energy 5 CCS global 12.2.2! ! Water Consumption 135! 12.2.3! ! Other Environmental Impacts of Coal Mining 135! 13! Analysis of Stakeholder Positions 139! 13.1! Approach of Analysis 139! 13.2! Positions and Role of Key Stakeholders in the Indian CCS Debate 140! 13.2.1! ! National Government 140! 13.2.2! ! Industry 143! 13.2.3! ! Civil Society 145! 13.2.4! ! Advisory Bodies and Think-Tanks 146! 13.2.5! ! Science 148! 13.2.6! ! Summary of Positions of Key Stakeholders on CCS in India 149! 13.3! Survey on the Prospects of CCS in India 152! 14! Integrative Assessment of Carbon Capture and Storage 156! 14.1! Overall Conclusions on the Prospects of CCS in India 156! 14.2! Summary of the Assessment Dimensions in Particular 160! 14.2.1! ! CO2 Storage Potential 160! 14.2.2! ! Further Assessment Dimensions 162! 15! Annex India 167! 16! Literature 170! 6 Final Report Part II List of Abbreviations, Units and Symbols List of Abbreviations, Units and Symbols Abbreviations af Annuity factor AMD Acid mine drainage AP Acidification potential ARA Amsterdam, Rotterdam, Antwerp BAFA German Federal Office of Economics and Export Control BAU Business as usual BGS British Geological Survey BHEL Bharat Heavy Electricals Ltd. BMU German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety BP British Petroleum CAR Ceramic autothermal recovery CBM Coalbed methane CCS Carbon (dioxide) capture and storage CEA Central Electricity Authority CIL Coal India Ltd. CIMFR Central Institute for Mining and Fuel Research CH4 Methane CIF Cost, Insurance and Freight CO Carbon monoxide CO2 Carbon dioxide CO2-eq CO2 equivalents CO2-EOR CO2-based enhanced oil recovery COE Cost of electricity CPA Central Plant Asia and China CSE Centre for Science and Environment CSLF Carbon Sequestration Leadership Forum C-TEMPO Center for Techno-Economic Mineral Policy Options CTL Coal to liquid DEFRA Department of Environment, Food and Rural Affairs (UK) DFID Department for International Development DGH Directorate General of Hydrocarbons DST Department of Science and Technology DTI Department of Trade and Industry ECBM Enhanced coalbed methane EGR Enhanced gas recovery EOR Enhanced oil recovery EP Eutrophication potential EREC European Renewable Energy Council EU European Union FGD Flue gas desulphurisation Wuppertal Institute for Climate, Environment and Energy 7 CCS global FOB Free on board FOR Free on rail FVF Formation volume factor FWAETP Fresh water aquatic ecotoxicity potential GDP Gross domestic product GHG Greenhouse gas GHGT International Conference on Greenhouse Gas Technologies GIS Geographic information system GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH GSI Geological Survey of India GWP Global-warming potential H2S Hydrogen sulphides HTP Human toxicity potential ICOSAR Indian CO2 Sequestration Applied Research Network IEA International Energy Agency IEAGHG International Energy Agency Greenhouse Gas programme IGCC Integrated gasification combined cycle IIT Indian Institute of Technology, Bombay IMG Inter-ministerial working group IPCC Intergovernmental Panel on Climate Change IRADe Integrated Research and Action for Development ISO International Organization for Standardization LCA Life cycle assessment LCI Life cycle inventory LCIA Life cyce impact assessment LCOE Levelised