Carbon Capture; Transport and Storage in Europe: A Problematic Energy Bridge to Nowhere?

This paper is a follow up of the SECURE-project, financed by the European Commission to study “Security of Energy Considering its Uncertainties, Risks and Economic Implications”. It addresses the perspectives of, and the obstacles to a CCTS-roll out, as stipulated in some of the scenarios. Our main hypothesis is that given the substantial technical and institutional uncertainties, the lack of a clear political commitment, and the available alternatives of low-carbon technologies, CCTS is unlikely to play an important role in the future energy mix; it is even less likely to be an “energy bridge” into a low-carbon energy futureCarbon Capture, Transport, Storage

An overview of current status of carbon dioxide capture and storage technologies

AbstractGlobal warming and climate change concerns have triggered global efforts to reduce the concentration of atmospheric carbon dioxide (CO2). Carbon dioxide capture and storage (CCS) is considered a crucial strategy for meeting CO2 emission reduction targets. In this paper, various aspects of CCS are reviewed and discussed including the state of the art technologies for CO2 capture, separation, transport, storage, leakage, monitoring, and life cycle analysis. The selection of specific CO2 capture technology heavily depends on the type of CO2 generating plant and fuel used. Among those CO2 separation processes, absorption is the most mature and commonly adopted due to its higher efficiency and lower cost. Pipeline is considered to be the most viable solution for large volume of CO2 transport. Among those geological formations for CO2 storage, enhanced oil recovery is mature and has been practiced for many years but its economical viability for anthropogenic sources needs to be demonstrated. There are growing interests in CO2 storage in saline aquifers due to their enormous potential storage capacity and several projects are in the pipeline for demonstration of its viability. There are multiple hurdles to CCS deployment including the absence of a clear business case for CCS investment and the absence of robust economic incentives to support the additional high capital and operating costs of the whole CCS process

Financing new power plants ‘CCS Ready’ in China–A case study of Shenzhen city

AbstractWe evaluate the benefits of a ‘CCS Ready Hub’ approach, a regional ‘CCS Ready’ strategy, which not only includes a number of new coal-fired power plants but also integrates other existing stationary CO2 emissions sources, potential storage sites and potential transportation opportunities into an overarching simulation model. A dynamic top-down simulation model was built based on economic decision criteria and option pricing theory. The model inputs and assumptions build on spatial sampling and analysis using a geographic information system (GIS) approach, engineering assessment of local projects and outputs of a CCS retrofitting investment evaluation through cost cash flow modelling. A case study of Shenzhen city in the Pearl River Delta area in Guangdong in southern China is presented, based on engineering and cost assessment studies and stakeholder consultations and building on existing geological surveys and infrastructure plans. The simulation results show that financing ‘CCS Ready’ at regional planning level rather than only at the design stage of the individual plant (or project) is preferred since it reduces the overall cost of building integrated CCS systems. On the other hand, we found the value of considering existing stationary CO2 emissions sources in CCS ready design. Therefore, we recommended that making new plants CCS ready or planning a CCS ready hub should consider existing large emissions sources when possible

China and East Asian Energy : Prospects and Issues

In October 2005, the Crawford School (then the Asia Pacific School of Economics and Government) within the Australian National University (ANU) initiated a major research project on China and East Asian Energy. The project is being undertaken under the schools East Asia Forum in conjunction with the China Economy and Business Program. The first conference in the series being organised under the auspices of the China and East Asian Energy Strategies Research Program was hosted in Beijing by the Energy Research Institute and the ANU on 1011 October 2005. It was the first of five annual conferences in the program. This book brings together the key papers presented at that conference.

A new stepwise and piecewise optimization approach for CO2 pipeline

© 2016 . The process of CO2 capture, transportation, enhanced oil recovery (EOR) and storage is one of the best ways for CO2 emission reduction, which is also named as Carbon Capture, Utilization and Storage (CCUS). It has been noted that CO2 transportation cost is an important component of the total investment of CCUS. In this paper, a novel stepwise and piecewise optimization is proposed for CO2 transportation design, which can compute the minimum transportation pipeline levelized cost under the effect of temperature variation. To develop the proposed approach, several models are referred to lay a foundation for the optimization design. The proposed optimal algorithm is validated by using numerical studies, which shows the approach can reduce the levelized cost and improve the optimization performance in comparison with the existing methods

Unconventional gas: potential energy market impacts in the European Union

In the interest of effective policymaking, this report seeks to clarify certain controversies and identify key gaps in the evidence-base relating to unconventional gas. The scope of this report is restricted to the economic impact of unconventional gas on energy markets. As such, it principally addresses such issues as the energy mix, energy prices, supplies, consumption, and trade flows. Whilst this study touches on coal bed methane and tight gas, its predominant focus is on shale gas, which the evidence at this time suggests will be the form of unconventional gas with the most growth potential in the short- to medium-term. This report considers the prospects for the indigenous production of shale gas within the EU-27 Member States. It evaluates the available evidence on resource size, extractive technology, resource access and market access. This report also considers the implications for the EU of large-scale unconventional gas production in other parts of the world. This acknowledges the fact that many changes in the dynamics of energy supply can only be understood in the broader global context. It also acknowledges that the EU is a major importer of energy, and that it is therefore heavily affected by developments in global energy markets that are largely out of its control.JRC.F.3-Energy securit

Investment in carbon dioxide capture and storage combined with enhanced water recovery

Carbon dioxide capture and storage combined with enhanced deep saline water recovery (CCS-EWR) is a potential approach to mitigate climate change. However, its investment has been a dilemma due to high costs and various uncertainties. In this study, a trinomial tree modelling-based real options approach is constructed to assess the investment in CCS-EWR retrofitting for direct coal liquefaction in China from the investor perspective. In this approach, the uncertainties in CO2 prices, capital subsidies, water resource fees, the residual lifetime of direct coal liquefaction plants, electricity prices, CO2 and freshwater transport distance, and the amount of certified emission reductions (CERs) are considered. The results show that the critical CER price for CCS-EWR retrofits is 7.15 Chinese yuan per ton (CNY/ton) higher than that (141.95 CNY/ton) for CCS retrofits. However, the exemption from water resource fees for freshwater recovered from saline water and a subsidy of 26% of the capital cost are sufficient to eliminate the negative impact of enhanced deep saline water recovery (EWR) on the investment economy of CCS-EWR. In addition, when the residual lifetime is less than 14 years, CCS-EWR projects are still unable to achieve profitability, even with flexible management and decision making; therefore, investors should abandon CCS-EWR investments. On the whole, the investment feasibility for CCS-EWR technology is not optimistic despite access to preferential policies from the government. It is necessary to establish a carbon market with a high and stable CER price

Shale gas - How does it affect the Gas market?

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International Energy Technology Transfersfor Climate Change Mitigation - What, who, how, why, when, where, how much … and the Implications for International Institutional Architecture

The goal of the paper is to expand and refine the international technology transfer negotiating and analytic agendas and to reframe the issues. The paper presents concepts, indicators, illustrations and data that identify and measure international transfers of energy technologies that can be used to mitigate climate change. Among the questions on that agenda are how much technology transfer there has been to date, and how much will be needed in the future, especially to assist non-Annex I developing countries in their efforts to mitigate climate change. Before the how much questions can be answered, however, there are several prior questions, and hence the many other elements of the subtitle of the paper: what, who, how, why, when, where. These aspects of international technology transfer vary significantly among three existing institutional settings and among the associated analytic paradigms: North-South Official Development Assistance, Global Private International Investment and Trade, and International Public-Private Cooperation Agreements. The principal sections of the paper focus on features of international technology transfers in these institutional settings and on illustrations drawn from the biodiesel industry, especially the use of jatropha tree as the source of the feedstock. The conclusions are summarized as follows: (i) Technologies include intangible know-how and services, as well as tangible goods in the form of production process equipment and finished products. (ii) International transfers of some types of technology are much easier to measure than others. (iii) International technology transfers are highly industry-specific. (iv) Even for individual industries, it is necessary to use multiple indicators of technology transfers. (v) Patterns in the types of technology and methods of transfer vary across the three institutional settings examined in the paper. (vi) All three of the institutional arrangements are probably under-performing and inadequa

Simulation-based techno-economic evaluation for optimal design of CO₂ transport pipeline network

For large volumes of carbon dioxide (CO₂) onshore and offshore transportation, pipeline is considered the preferred method. This paper presents a study of the pipeline network planned in the Humber region of the UK. Steady state process simulation models of the CO₂ transport pipeline network were developed using Aspen HYSYS®. The simulation models were integrated with Aspen Process Economic Analyser® (APEA). In this study, techno-economic evaluations for different options were conducted for the CO₂ compression train and the trunk pipelines respectively. The evaluation results were compared with other published cost models. Optimal options of compression train and trunk pipelines were applied to form an optimal case. The overall cost of CO₂ transport pipeline network was analyzed and compared between the base case and the optimal case. The results show the optimal case has an annual saving of 22.7 M€. For the optimal case, levelized energy and utilities cost is 7.62 €/t-CO₂, levelized capital cost of trunk pipeline is about 8.11 €/t-CO₂ and levelized capital cost of collecting system is 2.62 €/t- CO₂. The overall levelized cost of the optimal case was also compared to the result of another project to gain more insights for CO₂ pipeline network design