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Update: Global status of CCS CSLF Policy Group - 2016 Alex Zapantis, General Manager-Asia Pacific, Global CCS Institute October 2016

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Page 1: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

Update: Global status of CCS

CSLF Policy Group - 2016Alex Zapantis, General Manager-Asia Pacific, Global CCS InstituteOctober 2016

Page 2: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

Large-scale CCS projects by region or country

North America dominates projects in operation and under construction, China has the most projects in planning

North America 1 1 5 10 17

Early planning Advanced planning Construction Operation Total

China 4 4 - - 8

Europe 3 1 - 2 6

Gulf Cooperation Council - - 1 1 2

Rest of World* 4 - 1 2 7

Total 12 6 7 15 40

* Includes projects in Algeria, Australia, Brazil and Korea.

Page 3: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

By the end of 2017, CCS Projects will Store 40Mt CO2pa

CCS is making a real contribution to emissions abatement now.

North America 1 1 5 10 17

Early planning Advanced planning Construction Operation Total

China 4 4 - - 8

Europe 3 1 - 2 6

Gulf Cooperation Council - - 1 1 2

Rest of World* 4 - 1 2 7

Total 12 6 7 15 40

* Includes projects in Algeria, Australia, Brazil and Korea.

These 22 projects have the capacity to store 40Mt of CO2 each year. This is approximately equivalent to the emissions abatement from:• 22GW of solar PV (if displacing coal) • total installed solar PV capacity of France, the United Kingdom and

Spain in 2015.

Assumptions: PV 21% capacity factor, coal emissions intensity 1000kg/MWh. Installed PV Capacity from Solar Power Europe Global Solar Market Outlook 2016-2020

Page 4: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

2015

EOR

Dedicated Geological

Power Generation

Large Scale CCS Projects in Operation

15 Large Scale CCS Projects in Operation: ~28Mtpa CO2

Operating 20172016

Hydrogen production

Natural gas processing

Chemicalproduction

Iron and steel production

Synthetic natural gas

Fertiliser production

Oil refining

2018 2019 2020

= 1Mtpa of CO2 (areas of circle are proportional to capacity)

Coal-to-liquids

* Injection currently suspended

Boundary Dam

Coffeyville

Century Plant

Enid Fertilizer

Val Verde

Air Products

Lost Cabin

Lula

SnøhvitSleipner

Shute Creek

In Salah*

Uthmaniyah

Quest

Spectra

Great Plains

White Rose

** Storage options under evaluation

Page 5: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

2015

EOR

Dedicated Geological

Power Generation

7 more projects expected to commence operation in 2016/17: ~40Mtpa CO2

Operating 20172016

Hydrogen production

Natural gas processing

Chemicalproduction

Iron and steel production

Synthetic natural gas

Fertiliser production

Oil refining

2018 2019 2020

= 1Mtpa of CO2 (areas of circle are proportional to capacity)

Coal-to-liquids

* Injection currently suspended

Boundary Dam

Medicine Bow

Kemper

Petra Nova

Illinois Industrial

Abu Dhabi

ACTL Agrium Coffeyville

Century Plant

Enid Fertilizer

Val Verde

Air Products

Lost Cabin

Lula

SnøhvitSleipner

Shute Creek

In Salah*

Uthmaniyah

Quest

Gorgon

ACTL Sturgeon

Great Plains

** Storage options under evaluation

Large Scale CCS Projects in Operation + projects under construction

Page 6: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

2015

EOR

Dedicated Geological

Power Generation

Looking forwards, more power projects are in the pipeline than industrial projects.

Operating 20172016

Hydrogen production

Natural gas processing

Chemicalproduction

Iron and steel production

Synthetic natural gas

Fertiliser production

Oil refining

2018 2019 2020

= 1Mtpa of CO2 (areas of circle are proportional to capacity)

Coal-to-liquids

* Injection currently suspended

Boundary Dam

Medicine Bow

Kemper

Petra Nova ROADSargas Texas

Sinopec Shengli

TCEP

Peterhead HECA**

Illinois Industrial Yanchang

Sinopec Qilu

Abu Dhabi

ACTL Agrium Coffeyville

Century Plant

Enid Fertilizer

Val Verde

Air Products

Lost Cabin

Lula

SnøhvitSleipner

Shute Creek

In Salah*

Uthmaniyah

Quest

ACTL Sturgeon

Petro China Jilin

Great Plains

FutureGen 2.0

Don Valley

White Rose

** Storage options under evaluation

Large Scale CCS Projects in Operation + projects under construction and in planning

Gorgon

Page 7: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

CoP21 – The need for CCS will become more visible

CoP21 was a significant step forwards:

195 countries agreed a higher level of ambition; limiting global warming to1.5 - 2 degrees Celcius

Established bottom-up architecture for emission reduction targets allowing nations to determine their national contributions

Established a process of regular (5 yearly) reviews of national emission reduction targets and an expectation that targets will become more stringent

Gt C

O2

emis

sion

s

6DS

2DS

CCS

Page 8: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

Mitigation costs more than double in scenarios with limited availability of CCS

*Percentage increase in total discounted mitigation costs (2015-2100) relative to default technology assumptions – median estimate

+ 7% + 6%

+ 64%

+ 138%

Baseline cost with all mitigation options utilized

Source: IPCC Fifth Assessment Synthesis Report, Summary for Policymakers, November 2014.

Cost increase under limited technology availability scenarios

50

100

150

Perc

enta

ge*

Nuclear phase out Limited solar/wind

Limited bioenergy

No CCS

Page 9: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

A significant task within one generation

40 large-scale CCS projects -combined capture capacity of approximately 71 Mtpa*:

• 22 projects in operation or construction (40 Mtpa)

• 6 projects in advanced planning (6 Mtpa)

• 12 projects in earlier stages of planning (25 Mtpa)

OECDNon-OECD

~4,000 Mtpa of CO2 captured by CCS by 2040 (IEA 450

Scenario)**

40 Mtpa

Global Status of CCS

*Mtpa = million tonnes per annum

**Source: IEA, Energy Technology Perspectives (2016).

Page 10: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

Renewables – a fantastic success story! What can we learn?

Data source: IEA, World Energy Outlook 2015

Rapid increase in renewable electricity generation

Electricity Generation from Renewable Energy

Page 11: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

Renewables – a fantastic success story – driven by policy

Data source:IEA, World Energy Outlook 2014

Annual Subsidy provided to Renewable Energy (US$ Billion)

Significant and sustained policy support has incentivised massive private sector investment, resulting in rapid deployment and cost reductions arising from competition between suppliers and economies of scale.

Page 12: Update: Global status of CCS - CSLF · Update: Global status of CCS ... *Percentage increase in total discounted mitigation costs ... World Energy Outlook 2014, Global CCS Institute

Renewables – a fantastic success story! Policy parity is required for CCS to play its part in emission reductions.

Data source:IEA, World Energy Outlook 2014, Global CCS Institute

• In the period 2007 to 2016, value of global policy support for renewable energy deployment was around US$800B.

• Total value of policy support for deployment of CCS over all time is around $20B

Annual Subsidy provided to Renewable Energy (US$ Billion