Pradeep Tharakan

Climate Change Specialist

Energy Division, Southeast Asia Department

Asian Development Bank

Promoting Carbon Capture

and Storage in Asia

Presentation Outline

• CCS as a mitigation option for Asia

• ADB’s intervention in CCS

• Findings of ADB’s Technical Assistance

Energy Sector Emissions to Increase

• Region’s primary energy demand increases by 76% (2007-2030)

• Coal use set to increase (Source: World Energy Outlook 2009, IEA)

ASEAN Generation Capacity by Country and Fuel

ADB’s Intervention in CCS• ADB’s Energy Policy 2009 supports the promotion of

CCS as a GHG mitigation option wherever appropriate

• Established a A$ 21.5 million CCS Fund in 2009 in partnership with the Global CCS Institute.

• The Fund is aimed at capacity building activities, scoping analyses and capital grants to be combined with ADB’s lending products.

• Active participant in key global fora on CCS – CSLF, CEM etc

• Partnerships with IEA, APEC, WRI, Clinton Foundation etc

ADB’s TA activities

• People’s Republic of China

• Regional TA including PRC and India

• South East Asia – INO, PHI, THA and VIE

source: ADB

• TA to People’s Republic of

China: CCS

Demonstration – Strategic

Analysis and Capacity

Strengthening, approved

in May 2009 ($1.25 M) –

NDRC and Greengen

Company

• ADB loan for coal-fired IGCC

project - $135 million loan and

$5 million grant

• Lower the barriers to CCS

demonstration and develop a

pre-feasibility assessment for a

CCS pilot project

• TA to People’s Republic of China: Carbon

Capture and Storage in Natural Gas-Based

Power Plants - September 2011 ($1.8M)

• Evaluate CCS readiness and identify measures and

investments needed for making this plant "CCS ready";

(ii) pilot test CO2 capture (post -combustion) from NGCC

plant; and (iii) strengthen capacity in relevant areas. It will

be implemented over a period of 2 years. Storage options

and evaluation is a key component of this TA.

3 x 350 MW NGCC plant near Beijing.

Photo courtesy: Datang Corporation

Future Projects in China

• CCS pilot capture and storage up to 120,000 tons of CO2/year from IGCC plant financed by ADB.

• Project is being designed and will be operational by 2013

• Possible $10M grant from the CCS Fund

• Looking for additional funds

• $2 million FEED study proposal for oxy fuel combustion and some policy work with NDRC are being finalized for the 2012 program

•Regional TA to China and India: Demonstration: Analysis of Key Policy Issues and Barriers approved in May 2009 ($350,000)

•Analyze key issues and barriers, in particular, financing issues for CCS demonstration in developing countries

•ADB submitted a report to CSLF on financing CCS in emerging economies

•Key recommendation - set up $5 billion CCS dedicated fund for developing countries

.

Capacity Regional TA – Determining the Potential of CCS in Southeast Asia - August 2010 ($1.25 million) – INO, PHI, THA and VIE

• Identify key sources of GHG emissions. • Undertake screening of storage sites• Source-Sink mapping• Analyze key prerequisites for CCS pilots - policy, technical, geological, regulatory, financial, economic, public acceptance• Capacity building activities for governments, private sector and research institutes • Develop road maps for pilot and demonstration projects • Identify a pilot project and a willing host

.

11

Short List of Existing CO2

Sources in Thailand

No. Plants Technology Capacity EstCO2

(Mt/y)

Distance

from sink

(km)

1 A NG

Processing

1,842

MMSCFD

2.04 220

852

MMSCFD

3 C PP-CC 678 MW 2.15 160

4 D PP-SPC 660 MW 3.14 220

5 E PP-CC 1,468 MW 4.65 250

6 F PP-CC 1,400 MW 4.44 250

7 G PP-CC 713 MW 2.26 250

8 H PP-CC 700 MW 2.22 250

9 I PP-CC 746.8 MW 1.53 200

10 J PP-Thermal 1,346 MW 8.6 220

11 K PP-Thermal 2,400 MW 18.17 200

1602 B NG

Processing

0.94

1111

5

1

23

4

67 8

9

10

Key GHG Sources in Thailand

Source: TA 7575 Report

Storage Capacity for Thailand’s Sedimentary Basins

-

100.00

200.00

300.00

400.00

500.00

600.00

700.00

800.00

900.00

1,000.00

A B C D E F G H I J

Me

ga

ton

ne

s o

f C

O2

Sedimentary Basin

Saline Aquifer Storagein 10 of Thailand's

90+ Sedimentary Basins= 9 Gigatonnes of CO2

5693

Source: TA 7575 Report

Selected

CO2 Sources

100 km

Radius

Vietnam’s

Sedimentary

Basins

Source: TA 7575 Report

0

50

100

150

200

250

300

350

400

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34

Me

ga

ton

ne

s o

f C

O2

Oil & Gas Fields

Viet Nam Oil & Gas Fields Storage Capacity

Gas

Oil

Power Plant

Legend:

Storage Location

Pipeline

Note: Unscaled Map

Gas Processing Plant

GUU

U

Muara Tawar 2,3,4

Combined Cycle Power Plant

3 x 750 MW

Emissions Projection up to

2018: 26.6 MtCO2

Indramayu

Steam Coal Power Plant

2 x 1000 MW

Emissions Projection up to

2018: 65.8 MtCO2

Jawa Sea Offshore

South Sumatera Onshore

East Kalimantan Onshore

Bangko Tengah

Steam Coal Power Plant

4 x 600 MW

Emissions Projection up to

2018: 11.5 MtCO2

Subang

Gas Processing Plant

Emissions Projection up to

2018: 6.2 MtCO2

Muara Jawa

Steam Coal Power Plant

2 x 100 MW

Emissions Projection up to

2018: 10.6 MtCO2

60 km

60 km

320 km

35 km300 km

15 km

129.7 km

Power Plant

Legend:

Storage Location

Pipeline

Note: Unscaled Map

Gas Processing Plant

Power Plant

Legend:

Storage Location

Pipeline

Note: Unscaled Map

Gas Processing Plant

GUU

GUU

U

Muara Tawar 2,3,4

Combined Cycle Power Plant

3 x 750 MW

Emissions Projection up to

2018: 26.6 MtCO2

Indramayu

Steam Coal Power Plant

2 x 1000 MW

Emissions Projection up to

2018: 65.8 MtCO2

Jawa Sea Offshore

South Sumatera Onshore

East Kalimantan Onshore

Bangko Tengah

Steam Coal Power Plant

4 x 600 MW

Emissions Projection up to

2018: 11.5 MtCO2

Subang

Gas Processing Plant

Emissions Projection up to

2018: 6.2 MtCO2

Muara Jawa

Steam Coal Power Plant

2 x 100 MW

Emissions Projection up to

2018: 10.6 MtCO2

60 km

60 km

320 km

35 km300 km

15 km

129.7 km

CCS Scheme in Indonesia

ADB TA Focus area: Merbau CO2 Removal Plant

Source: LEMIGAS

Commonly Used Assumptions

• Economic factors

• Financing parameters

• EOR cost

• CO2 cost

Plant Specific Assumptions• Plant technical parameters• Capital costs• Operating costs• Cost of capital• Selling prices

Calculations • Debt payment schedule• Project income statement• Cash flow for evaluation

Results • Financial viability • Multi-factor sensitivity test

Scenario Analysis • Tabulation• Graphics

CCS Economic Modelling Framework

Conclusions from ADB’s Work

People’s Republic of China

• Near-term focus on power plants (both pre-combustion and post combustion).

• Large numbers of high efficiency, large-sized units being built.

• Aggressive GHG reduction mandates.

• Interest in being a technology leader.

• Appetite to look at concessional financing and feed-in tariffs to support CCS.

• Lot of prep work needed on storage aspects

South East Asia

• Near-term Focus on Gas Processing Facilities.

• Existing capacity within operators

• High CO2 fields provide economic incentive

• Emphasis on coal-fired power plants in the medium term.

• Lack of familiarity with SC and USC coal-fired plants

• Increased tariffs are a hard sell APEC (2010)

THANK YOU

ptharakan@adb.org