GREEN TECHNOLOGY FRONTIERS CARBON CAPTURE AND STORAGE (CCS)

BI, JUNE 21, 2012 Anne Strømmen Lycke, Vice President, Gassnova SF 1

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CONTENTS

• CCS for a better climate • CCS technologies • CCS projects world wide • CCS in Norway • Gassnova SF

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• Third World energy consumption will increase

• Access to energy will provide better living conditions

• The world will be dependent on coal, oil and gas for energy production for decades to come

“Climate change waits for no one”

INCREASED GLOBAL ENERGY CONSUMPTION INCREASE IN CO2 EMISSIONS

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• Temperature should not increase by more than two degrees by 2050

• We must succeed in our efforts to capture and store CO2 from both industry and energy production

LIMITING LONG-TERM GLOBAL TEMPERATURE INCREASE

Source :OECD/IEA 2011

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• Combating climate change will not be cheap

• The window of opportunity for achieving the 20C target is starting to close…

CONSEQUENCES OF GREENHOUSE GAS EMISSIONS

Source :OECD/IEA 2011

CCS CAN BECOME A SIGNIFICANT CONTRIBUTION!

Source: IEA

Time

Price of carbon

When? • Govt funding • Public/private

partnership

Cost

/t C

O2

BUT THE PRICE OF CARBON MUST INCREASE – AND THE PRICE OF CCS MUST DECREASE

Source: GCCSI

COST OF ENVIRONMENTALLY FRIENDLY POWER

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COMPARING INDUSTRIES IN EUROPE: CCS COST VS TRADE EXPOSURE

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• 2030 and 2050 range of fuel shares in primary energy consumption compared with 2005 outcome (%)

• Carbon Capture and Storage will have to be applied from around 2030 onwards in the power sector in order to reach the decarbonisation targets

EU ROADMAP 2030/2050 - ENERGY MIX EU DECARBONISATION SCENARIOS

Source: EU

“The future of CCS crucially depends on public acceptance and adequate carbon prices”

Graph 1: EU Decarbonisation scenarios - 2030 and 2050 range of fuel shares in primary energy consumption compared with 2005 outcome (in %)

0%

25%

50%

75%

RES Gas Nuclear Oil Solid fuels0%

25%

50%

75%

RES Gas Nuclear Oil Solid fuels

2005

2030 2050

Source: EU energy roadmap 2050

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• With the development of CCS, coal could continue to play an important role in a sustainable and secure energy supply in the future

EU ROADMAP 2030/2050 - INVESTMENTS IN COAL PLANTS TO 2050

LOW CARBON SUPPLY TECHNOLOGIES SCENARIO

0

5

10

15

20

25

30

2010 2015 2020 2025 2030 2035 2040 2045 2050

Fossil fuel-fired capacity investments in power generation (GW)

Coal w/o CCS

Coal + CCS

Source: EU energy roadmap 2050

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• Gas will be critical for the transformation of the energy system

• With evolving technologies gas might play an increasing role in the future

EU ROADMAP 2030/2050 - INVESTMENTS IN GAS PLANTS TO 2050 LOW CARBON SUPPLY TECHNOLOGIES SCENARIO

0

10

20

30

40

50

60

2010 2015 2020 2025 2030 2035 2040 2045 2050

Fossil fuel-fired capacity investments in power generation (GW)

Gas w/o CCS

Gas + CCS

Source: EU energy roadmap 2050

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CONTENTS

• CCS for a better climate • CCS technologies • CCS projects world wide • CCS in Norway • Gassnova SF

CARBON CAPTURE & STORAGE (CCS)

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• CO2 Capture • Power production, industrial sources,

gas conditioning • Transport

• Pipeline or ship • Geological storage

• Onshore or offshore • Saline aquifers or

depleted oil and gas reservoirs

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Capture

Transport

Storage

TECHNOLOGIES FOR CCS ARE AVAILABLE BUT NEED TESTING AT A LARGE AND INTEGRATED SCALE

Source: McKinsey report “CCS – Assessing the economics”; team analysis – adapeted by Gassnova SF

Several projects are operational (e.g., Weyburn (Canada)). EU has limited EOR potential

US has existing CO2 pipeline network of more than 5000 kilometers

Sleipner (Norway) field has been operational for around 10 years

First projects are coming online now

Chemical looping

Oxy-fuel

Post- combustion

Saline aquifers

CO2-EOR

Transport off- shore

Transport On- shore

Membranes Pre-combustion

CO2- EGR

Depleted oil and gas fields

Stage of development

Concept Lab testing Demonstration Commercial refinements needed Commercial

Potential future breakthrough technologies

R&D

MAIN PROCESSES FOR CO2 CAPTURE

Post Combustion

Pre Combustion

Oxy-fuel

Natural gas reforming

Air separation

CO2 Capture Air

Fuel

CO2 Capture

Natural gas

Water

Conden-sation Air

Natural gas

N2

O2

Air H2

Water

Steam and rest air

Rest air and rest CO2

Power station

Power station

Power station

CO2

CO2

CO2

CO2

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• Most mature technologies – Amines

• Aker Clean Carbon, Fluor, Mitsubishi , Alstom, Cansolv (Shell), Toshiba, Powerspan and others

– Chilled ammonia • Alstom

– Amino Acids • Siemens

• Membranes, Chemical looping

POST-COMBUSTION

AMINE PROCESS

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CONTENTS

• CCS for a better climate • CCS technologies • CCS projects world wide • CCS in Norway • Gassnova SF

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LARGE-SCALE INTEGRATED PROJECTS OVERWIEV FROM GLOBAL CCS INSTITUTE

Nov, 2011

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• NER300 – New Entry Resources – 300 million EU emission

unit allowances (EUAs) – Recommendation from

EIB to EC Feb 2012 – Decision expected Oct

2012 • European Energy Programme

for Recovery (EEPR) • Joint industry collaborations • UK competition • EEA/Norway grants (EØS-

midler)

PLANNED CCS PROJECTS EUROPE OVERVIEW

Source: GCCSI, 2012

ACTIVE CCS PROJECTS WITH CO2 STORAGE

18.06.2012 21

Kilde: GCCSI, nov 2011

• Storage in an

aquifer

– Snøhvit, Norway

– Sleipner, Norway

– In Salah, Algeria

• EOR

– Widespread in

the US

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MEASURED PROGRESS OF LARGE-SCALE INTEGRATED PROJECTS SINCE 2009

Source: GCCS!, May 2012

• Company/Alliance: – SaskPower (facility owner),

Government of Canada, Government of Saskatchewan and private industry

• Size: 110 MW • Capture Technology:

– Post-combustion (amine) • Coal-fired power plant • Enhanced Oil Recovery (EOR) • In operation: 2014 (planned)

Boundary Dam, Canada

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• Company/Alliance: – Southern Company

• Size: 582 MW • Capture technology:

– Pre-combustion • Coal-fired power plant • Enhanced Oil Recovery (EOR) • In operation: 2014 (planned)

KEMPER, MISSISSIPPI, USA

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• Company/Alliance: – Southern Company

• Size: 25 MW (150 kt CO2/y) • Capture technology:

– Post-combustion (amine) • Coal-fired power plant • CO2 stored in geological

formation • In operation: Since June 2011

PLANT BARRY, ALABAMA, USA

Soure: Southern Company

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CONTENTS

• CCS for a better climate • CCS technologies • CCS projects world wide • CCS in Norway • Gassnova SF

• Financial resources

• Technical competence and resources

• Fossil fuels and Norwegian gas export sustainable in the long term

NORWAY PUNCHING ABOVE ITS WEIGHT IN CCS

Photo: StatoilHydro

SLEIPNER: 16 YRS OF SUB SEA BED CO2 STORAGE

CCS FOR A BETTER CLIMATE

R&D and tech. verification

Acceptance in society

Early CCS Demo

Framework conditions

Reduced cost and risk

International deployment

Functioning market

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CONTENTS

• CCS for a better climate • CCS technologies • CCS projects world wide • CCS in Norway • Gassnova SF

CLIMIT: Research and development program – Support for technology development

Asset management

– CCS demo projects – Ensure that the State utilises the resources in the

best possible manner

Advisor to the authorities

GASSNOVA SF THE NORWEGIAN STATE ENTERPRISE FOR CARBON CAPTURE AND STORAGE

ASSET MANAGEMENT • CO2 Technology Centre Mongstad (TCM)

– A world class industrial scale centre for testing of carbon capture technology

• Full-scale CCS at Mongstad – Realisation of a complete value chain for CO2

capture, transport and storage • Norwegian CCS Study

– Assessment of potential full scale CCS-projects in Norway beyond Mongstad

Mongstad

CO2 TECHNOLOGY CENTRE MONGSTAD AMBITIONS

• Verify CO2 capture technology owned by vendors

• Reduce cost and risk • Development of market • International deployment

Photo 20 April 2012

• Two technologies - Aker Clean Carbon - Alstom

• Two flue gas sources • 100 000 tonnes CO2/y

75.12% 20% 2.44% 2.44%

CO2 TECHNOLOGY CENTRE MONGSTAD (TCM)

TCM opening 7th May 2012

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FULL-SCALE CCS AT MONGSTAD

• 2006: Agreement between Norwegian state and Statoil • Full-scale CO2 capture from a combined heat and power (CHP) plant • Storting Report No. 9 (2010-2011)“Fullskala CO2-håndtering” • Phase 1: Technology qualification programme

– A thorough review of various technologies with regards to HSE, energy efficiency, scale-up etc

– Close cooperation with the technology suppliers – There must be no new environmental problems as a result of CO2

technologies that are developed – Basis for concept selection 2014

• Phase 2: Pre engineering – New competition open for all qualified technology suppliers – Basis for investment decision 2016

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• Five technology suppliers have been selected to participate in the technology qualification programme – Amine technologies:

• Aker Clean Carbon, Mitsubishi, Powerspan /Huaneng Clean Research Institute

– Chilled ammonia technology: • Alstom

– Amino acid salt technology: • Siemens

FULL-SCALE CCS AT MONGSTAD POST-COMBUSTION TECHNOLOGY

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• Solution for transportation and storage of CO2 should be ready in time for start-up of the planned full-scale facility

• At the Norwegian continental shelf

• CO2 transported by pipeline

• CO2 stored in saline aquifer

TRANSPORT AND STORAGE

CO2 FROM MONGSTAD

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PROCESS FOR ESTABLISHING CO2 TRANSPORT AND STORAGE

Nomination of potential storage

locations Five locations nominated within

the deadline 4. October 2011

Announcement of areas

OED is considering announcing areas for exploration of subsea

reservoirs for storage of CO2 - based on the nomination and NPD’s «storage atlas»

Establish partnership Organize the partnership

for engineering, execution and operation similar to the petroleum

industry

CCS TECHNOLOGY DEVELOPMENT

Research

Development

Demonstration

Pre-commercial

Commercial

- CLIMIT-programme (Gassnova and NFR) • From 2005 • Government funding • Whole chain – Capture-Transport-Storage • Fossil fuel, industrial use • € 22 mill per year € 40 mill activity

- CO2 Technology Centre Mongstad – TCM • In operation May / 2012 • Appr. 6 MNOK

- CCS from CHP at Mongstad

-Nomination of areas for storage of CO2

Research

Development

Demonstration

Pre-commercial

Commercial

Area Capture Transport Storage Main challenge Cost Assurance

Focus areas

Post-combustion Pre combustion

Oxyfuel Disruptive technology

Pipeline Ship

CO2 impurities Procedures

Injection Simulation Monitoring Procedures

CLIMIT - TECHNOLOGY CHALLENGES

Objective: Controlled surface migration experiments: • Determine the sensitivity of monitoring systems

• Test & calibrate migration models

• Asses monitoring systems

• Inform public about injection of CO2

EXAMPLE CLIMIT PROJECT: CO2 FIELD LABORATORY

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• Expertise in CSS • Adviser to the Ministry

– We always provide independent and professional advice, based on our overall expertise

• Knowledge sharing

ADVISE AND INFORMATION

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• CCS is required to combat climate change • CCS can be competitive with technology developments and reduction in

costs • Regulatory framework and economic incentives are required

IN CONCLUSION

Thank you for your attention

www.gassnova.no

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