CCS in Kosovo

Addressing barriers to Carbon Capture and Storage in Developing Countries September 6th and 9th 2011 | World Bank Headquarters, Washington D.C., USA

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!Republika e Kosovës

Republika Kosova - Republic of Kosovo

Qeveria - Vlada - Government

Ministria e Zhvillimit Ekonomik - Ministarstvo Ekonomskog Razvoja - Ministry of Economic Development

Ing. Lorik Haxhiu, PhD.

Key facts

•  Kosovo’s has a small 5.2 TWh power system, serving some 400,000 customers.

•  The demand is covered by: (i) domestic production, (ii) imports and (iii) load shedding. Imports range between 8 – 11 %.

•  Average annual electricity demand growth during period 2000 – 2010 was 7.65%

•  About 97% of electricity is generated in thermal power plants based on domestic coal (lignite) and some 3% in small hydro power plants

•  Thermal plants release approximately 7 million t of CO2 each year.

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Options

•  Kosovo is a party to the treaty establishing regional electricity market in Southeast Europe. This treaty comes with obligations implement EC Directives on energy, environment and competition.

•  Kosovo’s ambitions are to become an EU member state in near future and therefore is keen on implementing policy measures to increase share of renewable energy generation, improve energy efficiency and improve environmental performance of the energy sector.

•  Kosovo has put in place incentives (feed in tariffs) for development of generation capacities based on renewable energy sources (mainly small HPPs and wind).

•  When considering size of the country, how densely it is populated, energy potential of renewable sources it is unlikely that renewables will provide ultimate solution for meeting rapidly growing demand. Some estimated indicate that portion of energy coming from RES by 2020 is around 7%.

•  Natural gas is not present in the country while nuclear power is not an option in Kosovo or its closest neighbors.

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Base scenario

However… •  Kosovo has Europe’s third largest lignite deposit (right after Germany and

Poland) with estimated 14 bn to of geological reserves.

•  Studies show that Kosovo’s lignite is the least cost power option in the region

•  Lignite will play an important role in meeting our demand, at least for next 20 years.

•  CCS can be of significant importance to Kosovo power sector

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Existing units

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Unit Boiler Turbine Generator Net efficiency In operation

Project Realized From To

A1 65MW

Babcock (USA)

Westinghouse (USA)

Westinghouse (USA)

24% 24% 1962 2007

A2 125MW

Babcock (Germany)

General Electric (USA)

General Electric (USA)

25% 25% 1964 1998

A3 200MW

Rafako (Poland)

LMZ (USSR)

Elektrotražmaž (USSR)

29% 26% 1970 2017

A4 200MW

Rafako (Poland)

LMZ (USSR) Elektrotražmaž (USSR)

29% 26% 1971 2017

A5 210MW

Rafako (Poland)

LMZ (USSR) Elektrotražmaž (USSR)

29% 26% 1975 2017

Unit Boiler Turbine Generator Net efficiency In operation

Project Realized From To

B1 339MW

Stein (France)

MAN (Germany)

Alstom Atlantic (France)

34% 32% 1983 2030

B2 339MW

Stein (France)

MAN (Germany)

Alstom Atlantic (France)

34% 32% 1984 2030

Installed: 1478 [MW Available: 1000 [MW] In operation: 850 [MW]

Meeting our demand

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5465 5713 5929 6164 6422 6662 6898 7153 7431 7720 8020

-490 -820 -1104 -1339 -1592 -1822

-746

458 742 463 183

-4000

-2000

0

2000

4000

6000

8000

10000

-4000

-2000

0

2000

4000

6000

8000

10000

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

TPP Kosova A TPP Kosova B NKPP BRE HC Zhur Balanci SLK Balanci

GWh

IMPORT EXPORT

Kosova e Re project

The Government has invited private sector investors to invest in the Kosovo Power Project that includes: 1)  build-own-operate a new lignite-fired 2x300 MW power plant called

Kosova e Re Power Plant; 2)  rehabilitate-own- [or –lease-] -operate the 2x340 (derated 2x280) MW

Kosovo B power plant; and 3)  build-own-operate-transfer a new lignite mine called the Sibovc South

Lignite Mine.

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Environmental improvements

With replacement of Kosovo A by new units and rehabilitation of Kosovo B we expect following environmental improvements: -  Coal consumption reduction by 27%

Emissions reductions -  SOx: 80% -  NOx: 84% -  PM: 99% -  CO2: 25%

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KRPP “Capture” Ready

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Climate Change issues and CCS

Climate change issues in Kosovo needs to be addressed in two levels:

1.  High level Policy and Legal Framework ü  Ratification of UNFCCC, begin communication related to Kyoto p. ü  Inventory of GHG ü  Institutional Development and Capacity Building

2.  Assessment of potential for CCS projects and creation of CCS enabling environment 1.  Assessment of CO2 storage sites in Kosovo and nearby 2.  Assess potential for implementation of CCS for individual coal projects 3.  Development of Legal and Regulatory Framework 4.  Institutional Development and Capacity Building

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CCS scenarios

Possible outcomes of Storage site assessment: Ø  Kosovo has suitable CO2 storage site(s)

Ø  Kosovo does not have suitable CO2 storage site but suitable sites for storage are found i.e. in neighboring Albanian oil and natural gas fields

Ø  There is no suitable CO2 Storage site in Kosovo or in neighboring

countries Since there are no two similar lignite deposits / mines / power plant projects, each project would need to be assessed on its own. Trans boundary transport and storage of CO2 would only add to the already complex setup of open cast lignite mining / power plant projects.

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Complex Geology

Kosovo’s complex and varied geology has resulted in a wide range of minerals being present in mineable quantities. These mineable reserves have enabled mining exploitation of lignite, lead zinc silver, nickel, chrome, aluminium, magnesium and, of course, a wide variety of construction materials.

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Key principal mineralization

Principal styles of mineralization in Kosova are:

–  CDR lead-zinc-silver related to Tertiary intrusions into Triassic and Cretaceous carbonates;

–  Nickel and Chromite related to the Jurassic ophiolite successions;

–  Bauxite in the Cretaceous succession;

–  Epithermal mineralization related to the Tertiary intrusions and volcanics;

–  Lignite in the Miocene sedimentary basins, and

–  Various industrial mineral deposits that are important to the economy of Kosovo.

Technical Programs

To ensure that Kosovo’s mineral potential is adequately promoted and developed, the ICMM has undertaken numerous technical programs, where most important are viewed to be:

•  GeoScientific Maps •  Explosives Security System •  Kosova Quarry Plan •  Geochemical Survey •  Airborne Geophysical Survey •  Geographical Information System

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GeoScientific Maps

ICMM Geoscientific map technical program resulted with a series of 1:200,000 scale maps that show following features: • Geological Map of Kosova. • Tectonic Map of Kosova. • Map of Minerals of Kosova. • Hydrogeological Map of Kosova. • Map of Mineral – And Thermal water of Kosova. • Morpho-Orographical Structure of Kosova. • Soil Map of Kosova. • Satellite Imagery Map of Kosova.

December 3, 2008 Mines and Money London 2008 - Kosovo Breakfast Seminar - Mining Opportunities in Kosovo 15

1. Magnetic Data In overview, the magnetic data (MAG) respond to both at-surface and concealed magnetic rocks at all depths (a wavelength dependence). The variation in magnetic texture can be used to assist in identifying different rock types, because the magnetic signature mirrors mineral texture and fabrics or fracturing style of the source rock.

2. Electromagnetic data The electromagnetic (EM) data comprise coupling ratios, which are converted to provide a measure of the bulk subsurface conductivity. The bulk conductivity in near-surface materials is largely dependent on geology (i.e. mineralogy) and the electrical conductivity of pore fluids. The system provides sensitivity to conductivity changes to depths of (typically) between 60 and 100 m.

3. Radiometric data The radiometric data (RAD) respond to about 30 – 50 cm of the radiometric content of the surface material and reflect the lithological variation and the background response of natural radioactivity. Three individual natural radionuclide elements Potassium (K-40), Thorium (Th-232) and Uranium (U-238) may be examined.

Airborne Geophysical Survey

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GeoDatabase Kosovo (GDK)

Starting in 2003, the ICMM has developed the GeoDatabase Kosovo (GDK) information management system. The information system can only be described as “state of the art”, and is a system of which Kosovo is justly proud. The system among many other issues, deals with the following issues and can be accessed on line: •  Mining Law administrative issues (handling of exploration and exploitation

licences,blasting permits, processing plant operation permits, persons and companies).

•  Document handling (‘paperless office’) – all relevant documents have to be visible onscreen.

•  Storage of all mineral relevant information (eg, deposits and occurrences). •  Management of factual geoscientific data (boreholes, samples, geochemical

analyses, geophysical data, contaminated sites). •  Preparation of geoscientific maps – interactive digital geological maps, soil maps

andminerals maps.

December 3, 2008 Mines and Money London 2008 - Kosovo Breakfast Seminar - Mining Opportunities in Kosovo 17

December 3, 2008 Mines and Money London 2008 - Kosovo Breakfast Seminar - Mining Opportunities in Kosovo 18

Use the GIS View & print docs

sst_in_uta

sst_hat_san_arb

gfbb_ueber_uta

sst_in_gfb

sst_in_f lstk

sst_hat_vrw_zst

sst_in_bsg

sst_hat_sstbeschr

sstID_sstSST_nameSST_NrDat_ersterhDat_ersterfHochRechtsHNsst_basisbeschr

sst_beschrID_sstbeschrbeschr_kurzNtzng_istNtzng_plnschaedenbseerh_daterf_datfotobeschr_langsan_bed

BSA_GebieteID_BSGBSG_Name

vrw_zstID_vrw_zstvrw_zst_bemerDat_erhDat_erf

rf_flstkID_rf_flstkflstkflstk_bemerNameOrtPLZStrTel

gfbID_GFBGFB_NameGFB_Bemerkgfb_gueltGFB_erhGFB_erf

UTAID_UTAUTA_NameUTA_AbmessUTA_Beschr_kurzHNminHNmaxUTA_erhUTA_erfUTA_beschr_lang

san_arbID_san_arbsan_arb_erhsan_arb_erfsan_arb_beschrsan_arb_vonsan_arb_bis

Map printing

www-application: interactive maps

Report &docs

Pers.&comp.

Depo-sits

Library Licen-ses

Sam-ples

Mines Farms Drill holes

Client Server Application

Use the GIS

Administration tools

Data base

Conclusions

•  CCS is of great importance for future utilization of large lignite deposits for power generation

•  Assessment of CO2 storage potential is a necessary.

•  Kosovo’s deeper subsurface has not been explored well. No oil or gas deep drilling data available.

•  Legal and regulatory framework for geological exploration activities is in place

•  Kosovo must commit to Climate Change issues and develop human capacities in this sector.

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Ministry of Economic Development The LPTAP Project Office 24 Maji Street No. 15 10000 Prishtinë, Republic of Kosovo T: + 381 38 213 770 F: + 381 38 213 772 E-mail: info@lignitepower.com URL: www.lignitepower.com

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