Carbon Capture, Utilization and Storage: Decarbonisation ...

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Carbon Capture, Utilization and Storage: Decarbonisation Pathways for Singapore Mark Schenkel

Transcript of Carbon Capture, Utilization and Storage: Decarbonisation ...

Page 1: Carbon Capture, Utilization and Storage: Decarbonisation ...

Carbon Capture, Utilization and Storage: Decarbonisation Pathways for Singapore

Mark Schenkel

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CONTENT PAGE

• Climate change and the urgency to decarbonize economic activities

• The role of Carbon Capture, Utilization and Storage (CCUS) in decarbonizing industries

• CCUS pathways in Singapore

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Cl imate change and the

urgency to decarbon ize

economic act iv i t ies

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Credit: @ed_hawkins

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Credit: NASA Worldview

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The ro le of CCUS in

decarbon iz ing indust r ies

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Governments, industries and NGOs are increasingly interested in CCUS

CCUS is on the radar of many organizations leading climate change action

We also consulted for corporates, public-private partnerships such as EIT

Climate-KIC and newly formed, dedicated consortia such as PORTHOS in

Rotterdam that aim to establish world-scale CCUS projects.

In recent years we executed work for European, American and Asian

governments.

CCUS is part of many techno-economic analyses we do for industries and

utilities, for example the low-carbon roadmaps for the European steel

manufacturers or the Dutch chemical industry.

Many multinational companies have extensive R&D programs to develop

and implement CCUS technologies for abatement or valorization of carbon

emissions

The European Union and many European countries are investigating how

CCUS can contribute to a low-carbon, circular and prosperous economy.

Utilities explore CCUS to increase the license-to-operate of their assets in a

carbon constrained society.

Interest in CCUS is on the rise, globallyGuidehouse sees strong uptake of public and private interest

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Carbon sourceCarbon Capture

methodology

Utilization or

Sequestration?

Weathering of mineral rocks like olivine

Example route

Algae cultivation to produce fuels

Carbon Capture and Storage (CCS)

Bio-Energy Carbon Capture and Storage (BECCS)

CO2 to fuels, such as synthetic methanol

AtmospherePassive

Utilization

Industry Sequestration

Biological

Technological

Direct Air Capture (DAC) to horticulture

Credit: Guidehouse, adopted from collaboration with EIT Climate-KIC

CCUS is an umbrella term for many technologies

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CCUS competes against other decarbonization optionsPolicy support required – as do other solutions!

200

400

300

0

-100

100

500

US$/tCO2

Energy efficiency (11 measures)

Circulair feedstock (5 measures)

Circulair products (7 measures)

Decarbonizing heat supply (6 measures)

Electrification (16 measures)

CCS (6 measures incl. blue H2)

23 MtCO2e

Key message: CCS measures are on the lower end of the marginal abatement cost curve for Dutch industry to meet its

2030 GHG emissions reduction target

Credit: Navigant, a Guidehouse company, for Dutch Klimaatakkoord (climate accord)

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Global CCS projects in operation or under serious considerationincreases after years of stagnation to 43 projects worldwide, mostlyfor enhanced oil recovery.• In light of the Paris Agreement, various countries look to reduce industrial emissions with CCS

• The EU launched a fund to stimulate CCUS investments, together with specific incentives from nationalgovernments; US Tax Incentives

• In the EU, 2–4 projects are scheduled to come online and developed around CO2 storage hubs

• Some of them rely on CO2 shipping routes to Norway, and offshore transport

“Projects of Common Interest” in the European UnionNorwegian transport and storage model

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Credit: nova Institute, 2019. Hitchhiker’s Guide to Carbon Capture and Utilisation

Most scalable CCU solutions avoid resource extraction elsewhere and thereby reduce emissions

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CCUS pathways

in S ingapore

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1. Identify & analyse

suitable CCUS

technologies that could

be implemented in

Singapore

2. Help agencies

prioritise near-term (5-

10 years)

implementation and

research, development

and demonstration

(RD&D) pathways up

to 2050 for Singapore.

Objectives Outputs

Evaluate potential CCSU pathways that would help agencies prioritise near-term (5-10yrs), implementation

and research, development and demonstration (RD&D) pathways up to 2050 for Singapore.Goal:

Update of the CO2 emissions profile of the energy and chemical sectors in Singapore

Analysis of the CO2 abatement potential and cost of key CCUS technologies

Development of marginal abatement cost curves (MACCs)

Identifying technical and commercial barriers for implementation, and enablers, recommend technologies

Guidehouse was retained to explore role CCUS Singapore Decarbonization Pathways for Energy and Chemicals Sectors

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38.8

0.1

21.9

9.3

1.0

6.6

0

5

10

15

20

25

30

35

40

Oil refining

MtCO2

Total HydrogenPower

generation

Steam

cracking

Ethylene

oxide

39 million tonnes CO2 / year is emitted in Singapore’s

E&C sectors, at varying concentrations…

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Options and costs for CO2 capture in Singapore’s industrial and power sectors were studied, together with regional options for geological storage and CO2

utilization.

.

Sources: Bains et al, CO2 Capture from the Industry Sector, 2017; ADB, 2013. Prospects for Carbon Capture and Storage in Southeast Asia; Navigant team analysis

.

Capture and concentration… Storage

28.0

23.0

0

5

10

15

20

25

30

12.2

Vietnam

GtCO2

10.3

PhilippinesThailand Indonesia Malaysia

11.3

Depleted oil & gas

Mined coal seams

Saline aquifers

Total

• Largest share of emissions has

a low CO2 concentration

(e.g. NG power)

• Small part of emissions (1.6

MtCO2) can be captured at

costs of below $50/tCO2

• No domestic geological

storage potential

• Defined storage potential in

the region is around 85 GtCO2

20

40

100

60

0

80

6.6 4.6

85

0.5 0.2MtCO2

35

14

4.61.0

100

28

21.2

58 58 58

US$/tonne of CO2

100

0.1

41

Ethylene oxide

Ethylene

Coal

Hydrogen

Natural gas

Refinery - FCC

Fuel oil

Refinery - Process heaters

Refinery - Utilities

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1 2 3 4 5 6 7 8 9

1,5

0,0

2,0

0,5

1,0

2,5

3,0

3,5

TRL

Concrete curing

tCO2/tonne

Supercritical CO2

Aggregates

Oxalic acid

Formaldehyde

Synthetic methanol as fuel

Synthetic kerosene

Acetic acid

Propylene glycolAmmonium carbamate

Other industrial applications

Mineralization

Chemicals production

Fuels

250

Global demand [mil tonne CO2]CCU application category

Source: Navigant/Guidehouse analysis

Using CO2 to produce fuels and building materials is

generally more advanced compared to chemicals

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Low-cost hydrogen may bring CCU options closer to

economic reality. But where in hydrogen use case

merit order sits CCU?

48

46

1

1

69

83

499

316

0 100 200 300 400 500 600 700

2050

Net abatement cost synthetic methanol [US$/tCO2]

2025

447

617

CAPEX HydrogenO&M Energy

48

45

1

1

68

91

392

206

2025

3442050

509

EnhancedDecarbonizationScenario

Long-TermDecarbonizationScenario

Lower cost scenarios in Singapore show promise… …but competing hydrogen use cases

• Direct use in existing chemical and refining cluster

• Transport• Higher-value chemicals• Markets abroad• Other

Opportunity to prioritize and focus government stimulus for a strong and resilient energy and chemicals sector

Example

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Companies and universities worldwide are actively working to resolve thesebarriers and reduce cost. Singapore can play a role with its excellent RD&Dcapabilities to bring CCUS further.

To increase the probability of realising most of these CCU technologies at industrial scale in Singapore, economicsneed to improve and technical barriers should be resolved through RD&D and availability of low-carbon hydrogen:

For the lower TRL technologies, technological breakthroughs are requiredto scale and improve efficiency.

o Specific funding and RD&D support to help scale CCU technologies and boost their efficiency.

For higher TRL technologies, further cost reductions related to hydrogen feedstock or a level playing field are required to compete with incumbent production methods and overcome commercial barriers.

o Supporting the development of low-carbon hydrogen and renewable energy production pilots to reduce production costs.

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Mark SchenkelManaging Consultant

[email protected]+31 6 1521 2720

(formerly Navigant)

THANK YOU