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A Case For CCS

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A Case For CCS

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Jun Abrajano
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© © All Rights Reserved
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GLOBAL

STATUS
OF CCS
2019
TARGETING
CLIMATE CHANGE
URGENT ACTION
IS REQUIRED TO
ACHIEVE CLIMATE
CHANGE TARGETS
CARBON CAPTURE
AND STORAGE
IS VITAL
< >

1.0
INTRODUCTION

ABOUT US ABOUT THE REPORT ACRONYMS CONTENTS


The Global CCS Institute (the Institute) is an CCS is an emissions reduction technology BECCS  Bioenergy with CCS 1.0 INTRODUCTION
international think tank whose mission is to accelerate critical to meeting global climate targets. CCS  Carbon Capture and Storage 1.1 About Global CCS Institute
the deployment of carbon capture and storage (CCS), CCUS  Carbon Capture Utilisation and Storage 1.2 About the Report
The Global Status of CCS 2019 documents important
a vital technology to tackle climate change. COP  Conference of the Parties 1.3 Acronyms
milestones for CCS over the past 12 months, its status
DAC  Direct Air Capture 1.4 CEO Foreword
As a team of almost 40 professionals, working with across the world and the key opportunities
DACCS  Direct Air Capture with Carbon Storage
and on behalf of our Members, we drive the adoption and challenges it faces.
EC  European Commission
of CCS as quickly and cost effectively as possible; sharing 2.0 MEETING THE CLIMATE CHALLENGE:
We hope this report will be read and used by EOR  Enhanced Oil Recovery
expertise, building capacity and providing advice and THE NEED FOR CCS
governments, policy-makers, academics, media ESG  Environmental, Social and Corporate Governance
support so CCS can play its part in reducing greenhouse
commentators and the millions of people who care ETS  Emissions Trading Scheme
gas emissions.
about our climate. EU ETS  European Union’s Emissions Trading System 3.0 GLOBAL STATUS OF CCS
Our diverse international membership includes EU  European Union 3.1 Global CCS Facilities Update
governments, global corporations, private companies, AUTHORS FEED  Front-End Engineering Design 3.2 Policy Levers for Accelerating Deployment
research bodies and non-governmental organisations; GHG  Greenhouse Gas 3.3 Global CO2 Storage Overview
all committed to CCS as an integral part of a net-zero The team that prepared this report and its underlying Gt Gigatonne 3.4 Legal and Regulatory Overview
emissions future. analyses: This report was led by Brad Page, Guloren Turan GW Gigawatt
and Alex Zapantis and included Lee Beck, Chris Consoli, IPCC  Intergovernmental Panel on Climate Change
The Institute is headquartered in Melbourne, Australia 4.0 REGIONAL OVERVIEWS
Ian Havercroft, Harry Liu, Patricia Loria, Annya Schneider, LCFS  Low Carbon Fuel Standard
with offices in Washington DC, Brussels, Beijing, 4.1 International Climate Policy Overview
Eve Tamme, Alex Townsend, Lucy Temple-Smith, MMV  Monitoring, Measurement and Verification
London and Tokyo. 4.2 Americas
Dominic Rassool and Tony Zhang. Mtpa  Million Metric Tonnes Per Annum
4.3 Europe
Other Institute staff members who contributed to this MW Megawatt
NDC  Nationally Determined Contribution
4.4 Middle East and Central Asia
report are: Jamie Burrows, Jeff Erikson, Bruno Gerritts, 4.5 Asia Pacific
Carla Judge, David Kearns, Xiangshan Ma, Rob Mitchell, OECD  Organisation for Economic Co-operation
Hiroshi Nambo and Nabeela Raji. and Development
R&D  Research and Development 5.0 CCS DEVELOPMENT:
SDS  Sustainable Development Scenario TECHNOLOGY AND APPLICATIONS
SMR  Steam Methane Reformation 5.1 Natural Gas
SOE  State Owned Enterprise 5.2 Hydrogen
TWH  Terrawatt Hour 5.3 CCS in the Power Sector
UNFCCC  United Nations Framework Convention 5.4 Bioenergy with Carbon Capture
on Climate Change and Storage (BECCS)
UK  United Kingdom 5.5 Direct Air Capture (DAC)
US  United States of America 5.6 CO2 Utilisation
US DOE  United States Department of Energy 5.7 CCS Innovation
5.8 Industry’s Transition to a Net-zero Future

6.0 APPENDICES

7.0 REFERENCES

5
1.0 Introduction CONTENTS
1.4  CEO Foreword < >

BRAD PAGE
CEO
Global CCS Institute

As if the world needed any more evidence that action. It is possible to get there but it requires policies Ramping up over time to capture and store between developing the new energy economy based on clean
the effects of climate change are with us now and that mobilise enormous sums of capital to deliver an 3.4 and 4.0 million tonnes of CO2 per annum, Gorgon fuels like hydrogen, is dependent on CCS deployment.
getting worse, 2019 bore witness to unprecedented unprecedented transformation of the global energy puts Australia on the CCS facility map and is a credit to And as CCS is deployed, many communities that
catastrophic events that go well beyond weather system. It is hard but it can be done. the determination and persistence of the joint venture otherwise may have a less prosperous outlook in a
variability and cannot be explained away as simply partners led by Chevron and including prominent carbon-constrained world become a positive part
The recurring theme of many deeply analytical and Institute members Shell and Exxon Mobil.
extreme events that happen from time-to-time. Fires of the transition.
credible reports is that we need all technologies to win
of devastating proportion and impact – in many cases Hydrogen as a vital new energy source in the
this wrestle. We can no longer afford to have confected But we have much more work to do. Few clean energy
more severe and widespread than ever previously decarbonisation race was also to the fore in 2019.
competitions between technologies with prejudices technologies are on track to be deployed at the scale
experienced – have wrought havoc in countries as In Europe, Australia, Japan, South Korea and an
that serve to compromise our ability to rapidly reduce required to meet the Paris climate targets. CCS is
disparate as the United States (US), France, Greece, increasing number of other countries, hydrogen is
emissions. resurgent but still lagging while emissions again rose
Portugal and Australia. Elsewhere, extreme storm receiving policy attention not seen for several decades. in the past year. Now is the time to rally for greater
events have been experienced. Think Typhoon Hagibis Against this background we have seen exciting new The difference this time around is that the need for policy support and for capital to be allocated to build
in Japan during the Rugby World Cup, prolonged developments in the energy transformation during a zero-emission energy dense fuel is vital and the on the positive CCS progress of the past two years.
monsoons in India, Hurricane Dorian in the Bahamas 2019. For the second year in a row the CCS facility technology to produce and deliver the hydrogen has
and Typhoon Lekima in China to name but a few, all pipeline has grown. The flexibility, applicability and advanced substantially in the intervening period. As
with devastating loss of life and property. Meanwhile increasingly positive economics of applying CCS to is noted later in this report, the most technologically
droughts worsen and deepen in many parts of the a range of emission sources is coming to the fore. proven, economical, at-scale process for producing
world, including in essential food production areas. As this report reveals, positive policy intentions and clean hydrogen is through steam methane reforming
settings are apparent in many parts of the world and or coal gasification, both with CCS. The potential
The climate science has been clear for many years. Now
especially the US, the UK, Norway and the Netherlands market for clean hydrogen is substantial and early
we are experiencing first hand the impacts of unabated
leading to more projects being added to our globally stage investment in production facilities, evidenced for
greenhouse gas emissions.
comprehensive database. CCS is also to the fore in the example in the Japanese/Australian joint venture of
Time is not on our side to achieve the necessary targets plans and policies of the EU while Japan continues to building a coal gasification pilot plant, is the harbinger
agreed at the historic COP 21 in Paris in 2015. We have make impressive strides forward. It is also notable that of a growing industry as are plans in the UK and in
in the recent past had highly credible analysis of options China continues to attach importance to CCS and has Europe.
and pathways to achieve the 2˚C and 1.5˚C targets established a new professional committee to broaden
along with net zero carbon emissions by mid-century. the advice and support to government on CCS policy Perhaps the most compelling development in the last
Indeed, the IPCC 1.5˚C Special Report makes it clear and actions. 12 months though is that increasingly, CCS is the stand
that all technologies, and especially CCS in various out technology to genuinely deliver a just transition
2019 will also be celebrated for the commencement for many fossil fuel-based communities. Dealing with
applications, are necessary along with reaching net zero
of injection at the world’s largest geological storage the associated emissions for extracting, processing
emissions around 2050. The 4 pathways offered by the
facility – Gorgon – offshore NW Western Australia. and using fossil fuels and perhaps more significantly
IPCC all demand urgent and unprecedented levels of

1 2
1.0  Introduction CONTENTS
CCS Ambassador < >

LORD NICHOLAS STERN


IG Patel Professor of Economics & Government,
London School of Economics
Chair, Grantham Research Institute

“CARBON CAPTURE,
USE AND STORAGE,
WILL PLAY A VITAL ROLE
The effects of climate change are already raging One of the opportunities that we have at hand, AS INDICATED BY THE
INTERGOVERNMENTAL
across the world with wild fires, droughts, and carbon capture, use and storage, will play a vital
rising sea levels. Bad as it is already, we risk far role as indicated by the Intergovernmental Panel
worse. Failure to mitigate climate change is deeply on Climate Change’s Report on Global Warming of

PANEL ON CLIMATE
dangerous; we owe it to future generations to tackle 1.5 ºC. The diversity of its applications is immense;
this global and urgent problem. The faster we can from direct air capture delivering negative
reduce emissions in the near-term, the better our emissions, to the ability to prevent infrastructure

CHANGE’S REPORT
chance of preventing the worst impacts of climate emissions lock-ins by abating existing
change. infrastructure in the industrial and power sectors,
capturing, using and storing carbon will be a vital
For this, we need to change the way we think

ON GLOBAL WARMING
instrument in reaching net-zero emissions goals.
about this global challenge. Turning towards a
new form of sustainable economic growth and As is the case for many abatement options, effective
looking at investment in innovation would also actions and policy to accelerate the deployment
yield strong societal and economic returns. The
Global Commission on the Economy and Climate
has shown that bold climate action could deliver
returns of trillions of dollars per year in the period
of a wide-range of carbon capture use and storage
technologies across many sectors of the economy,
and especially those that are hard to decarbonise,
are urgently needed.
OF 1.5ºC.”
to 2030 and create more than 60 million good jobs.
As a society, we have a responsibility towards future
We need to invest in all opportunities for emissions generations to mitigate climate change. Investment
reductions while radically changing how we work, in mitigation and innovation will undoubtedly offer
live, and consume. Living and consuming more large returns and great value, while improving our
efficiently is the first step, along with a massive ability to tackle climate change through sustained
growth in renewable and clean energy. Yet, we must action. Time is short, but we have in our hands a
not forget that we will need to completely transform different model of development. It is the sustainable
Lord Nicholas Stern
the economy for it to become carbon neutral and and inclusive growth story of the 21st century. IG Patel Professor of Economics & Government,
deploy a portfolio of measures and technology London School of Economics
Chair, Grantham Research Institute
solutions to accelerate the clean energy transition.

3 4
1.0 CONTENTS
CCS Ambassador < >

JADE HAMEISTER OAM


Polar explorer
“IT’S ABOUT
SUPPORTING
ALL VIABLE
TECHNOLOGIES
& IDEAS,
Together, we are all part of the human species.
Separating us are just divisions of our own making
I now feel a deep emotional connection with our
planet Earth and a responsibility to play my part INCLUDING
CARBON
in the protection of these incredibly beautiful
– such as religious beliefs, borders drawn on maps,
and fragile environments.
concepts of race, money, and gender.
My polar expeditions confirmed for me that
Debates about saving our planet from global
global warming is an undeniable truth.

CAPTURE
warming are misplaced.
That is why I call on the political and business
Planet Earth doesn’t need saving - it will recover
leaders to stop arguing and start taking massive
long after we have wiped ourselves and all other life
action. It’s not about choosing the best technology –
out – this is about the survival of the human species.

& STORAGE”
it’s about supporting ALL viable technologies
But… what if? What if we could focus more on this and ideas, including carbon capture and storage –
great threat to humanity and why we need to work that together create a web that seeks to hold global
together, rather than focus on what spreads us temperature rise to under two degrees Celsius
apart? (if that is even still possible).
If we can make this shift, we could learn to relate My generation will inherit this great threat of
as one great tribe of humans, learn to respect our global warming and the political decisions of
common home, and ultimately save the future of today’s leaders. Please give us a platform from
all life on Earth, including our own. which we can still achieve a positive outcome.
At just 18, I am no expert on the science of global I am confident that my generation will have the
warming, but I am likely the only person on the technology, the passion and the unified movement
planet of my generation to have the privilege of to make a meaningful difference, but it is up to
first-hand experience in Earth’s three main polar current world leaders to make sure we still have
regions. Journeys that saw me cover a total of a fighting chance. Jade Hameister OAM
around 1,300km in 80 days. Polar explorer
Please, give us that fighting chance.

5 6
1.0 CONTENTS
CCS Ambassador < >

BILL GATES

“ANOTHER WAY
WE CAN GET
ZERO-CARBON
ELECTRICITY
I often hear that lower cost solar and wind power
along with the emerging breakthroughs in energy IS CARBON
CAPTURE,
storage mean that these sources will be enough
to get us to a carbon-free power grid. But because
the world must balance the need to eliminate
carbon emissions with economic growth, we

UTILISATION,
should also consider what solutions would be
most affordable. A recent study from researchers
at MIT found that supporting renewable energy
with a mix of clean energy solutions— including

& STORAGE”
nuclear and carbon capture and storage (CCS)—
would make carbon-free electricity up to 62
percent cheaper than using renewables alone.
Another way we can get zero-carbon electricity
is carbon capture, utilisation, and storage,
which separates and permanently stores CO2
pollution from an energy plant’s exhaust to
keep it out of the atmosphere. This technology
is especially important in places where there
isn’t good renewable energy potential, or where Bill Gates
it would be too costly to retire and replace GatesNotes.com,
May 14, 2019
existing power plants.

7 8
CONTENTS
< >

2.0
MEETING THE CLIMATE CHALLENGE:
THE NEED FOR CCS

1.0 INTRODUCTION
1.1 About Global CCS Institute
1.2 About the Report
1.3 Acronyms
1.4 CEO Foreword

2.0 MEETING THE CLIMATE CHALLENGE:


THE NEED FOR CCS

3.0 GLOBAL STATUS OF CCS


3.1 Global CCS Facilities Update
3.2 Policy Levers for Accelerating Deployment
3.3 Global CO2 Storage Overview
3.4 Legal and Regulatory Overview

4.0 REGIONAL OVERVIEWS


4.1 International Climate Policy Overview
4.2 Americas
4.3 Europe
4.4 Middle East and Central Asia
4.5 Asia Pacific

5.0 CCS DEVELOPMENT:


TECHNOLOGY AND APPLICATIONS
5.1 Natural Gas
5.2 Hydrogen
5.3 CCS in the Power Sector
5.4 Bioenergy with Carbon Capture
and Storage (BECCS)
5.5 Direct Air Capture (DAC)
5.6 CO2 Utilisation
5.7 CCS Innovation
5.8 Industry’s Transition to a Net-zero Future

6.0 APPENDICES

7.0 REFERENCES

9
2.0  Meeting the Climate Challenge: The Need for CCS CONTENTS
< >

CCS IS A PROVEN AND WELL • The mass of CO2 captured and permanently stored in 2050
UNDERSTOOD TECHNOLOGY reaches 2.8 billion tonnes per annum
• The mass of CO2 captured is split almost equally between
CCS prevents carbon dioxide (CO2) from being released into the the power sector and industry sectors including iron and
atmosphere. The technology involves capturing CO2 produced by steel production, cement production, refineries and upstream
large industrial plants, compressing it for transportation and then oil and gas production.
injecting it deep into a rock formation at a carefully selected and
safe site, where it is permanently stored. The deployment of CCS is not happening quickly enough for it to play
its role in meeting emissions reductions targets at the lowest possible
CCS is proven and well understood. Since the 1930s, carbon cost. The IEA’s ‘Tracking Clean Energy’ progress indicator, provides
capture equipment has been used commercially to purify natural a status snapshot of 39 critical energy technologies needed to meet
gas, hydrogen and other gas streams in industrial settings. CO2 was a less than 2°C target under its Sustainable Development Scenario
first injected underground in commercial-scale operations in 1972. (SDS). Only seven of the technologies assessed are “on-track”.
Over 260 million tonnes (Mt) of CO2 emissions from human activity Critically CCS in power, and in industry and transformation,
(anthropogenic sources) has already been captured and stored. are “off-track”.
The global capture and storage capacity of projects currently
operating or under construction, stands at around 40 million To achieve the levels outlined in the SDS, the number of industrial
tonnes per annum (Mtpa). scale facilities needs to increase a hundredfold, from 19 in operation
now to more than 2,000 by 2040.
CCS reduces emissions from industrial processes vital to the global
economy; like steel, cement and chemicals production. Paired with To rapidly scale up the technology in a smooth and steady way,
bioenergy used for power generation or biofuel production, it is one urgent action is required. Governments have a pivotal role to play,
of few technologies that can deliver negative emissions on a large by providing a clear, stable and supportive policy framework for CCS.
enough scale to limit temperature rises to 1.5°C. It can be applied
The good news is that CCS provides a wealth of benefits in addition
to coal and gas fired power plants to help provide low emissions
to its primary role in reducing emissions. It enables a just transition
generation capacity, complementing increased use of intermittent
to new low emissions industries for communities currently reliant on
renewables; and in the production of low carbon hydrogen for fuel,
emissions intense employment. It can protect people from the severe
heat and transport.
economic and social disruption that otherwise results from closing
local industries. On top of this, CCS:
THE NEED FOR AND BENEFIT • supports high paying jobs;
FROM URGENT ACTION • reduces total system costs of electricity supply by providing reliable,
The IEA’s World Energy Outlook 2019 describes the measures dispatchable generation capacity when fitted on flexible fossil fuel
necessary to deliver its Sustainable Development Scenario (SDS), power plants;
a future where the United Nations energy related sustainable • can utilise existing infrastructure that would otherwise
development goals for emissions, energy access and air quality are be decommissioned, helping to defer shut-down costs; and
met. This scenario is consistent with a 66 per cent probability of • provides knowledge spillovers that can support innovation-
limiting global temperature rise to 1.8 degrees Celsius without relying based economic growth.
on large scale negative emissions.
The time available to limit temperature rises to 1.5°C is running out.
As shown in Figure 1 under this scenario: Widespread use of CCS technology is critical to meeting these goals.
We need to scale up deployment now.
• Carbon capture utilisation and storage (CCUS)i provides 9 per cent
of the cumulative emissions reduction between now and 2050
• The average mass of CO2 captured and permanently stored each
year between 2019 and 2050 is 1.5 billion tonnes per annum

CCS IS VITAL TO ACHIEVE The Special Report on Global warming of 1.5°C2 (IPCC SR15) 2000 2018 2050
CLIMATE CHANGE TARGETS reinforced the important role of CCS in avoiding dangerous climate 40

GT CO2
change. It underlined that reducing emissions alone is no longer STATED POLICIES SCENARIO
Despite both the urgent need for action to mitigate climate change, enough. To limit global temperature rises to 1.5°C above pre-industrial
and the rapid take-up of renewable energy over the past 20 years, levels, the world must reach net zero emissions by around 2050. Most
progress in curbing emissions has been slow. Approximately 80 per modelling scenarios show that this will require significant deployment 37% EFFICIENCY
30
cent of primary energy is supplied by fossil fuels, the same as 50 years of negative emissions technologies. Bioenergy with CCS (BECCS)
ago. Global energy-related CO2 emissions are on an upward trend is one of the few available that can deliver to the necessary scale.
again—having temporarily stabilised for a few years, they rose by 1.7
As the IPCC SR15 report outlined, it is possible to construct emissions 32% RENEWABLES
per cent in 20181. Government commitments do not bridge the gap
abatement models that limit global warming to 1.5 without CCS, but
between current emissions and the remaining global carbon budget. 20
extensive near-term reductions in energy demand would be necessary.
8% FUEL SWITCHING
Analysis by the Intergovernmental Panel on Climate Change (IPCC) To accommodate rising population and income, extreme societal and SUSTAINABLE 3% NUCLEAR
and International Energy Agency (IEA) has consistently shown that behavioural changes would be necessary. Experience to date suggests DEVELOPMENT SCENARIO 9% CCUS
CCS is an essential part of the lowest cost path towards meeting such radical changes are extremely challenging and highly improbable. 12% OTHER
climate targets. The IPCC's Fifth Annual Assessment Report (AR5) 10
showed that excluding CCS from the portfolio of technologies used
to reduce emissions would lead to a doubling in cost - the largest cost
increase from the exclusion of any technology.

FIGURE 1  EMISSIONS REDUCTIONS IN THE IEA'S SUSTAINABLE DEVELOPMENT SCENARIO (SDS)3


Note: CCUS (carbon capture utilisation and storage)

11 12
2.0 CONTENTS
CCS Ambassador < >

PROFESSOR SALLY BENSON


Co-Director, Precourt Institute for Energy; “OVER THE LAST
20 YEARS, THE
Director, Global Climate & Energy Project;
Professor, Energy Resources Engineering Department;
Senior Fellow, Precourt Institute for Energy
Stanford University

ROLE OF CARBON
CAPTURE AND
STORAGE HAS
EVOLVED FROM
CLOSING THE AMBITION GAP AND
GETTING ON WITH THE INEVITABLE
Of course, there are many reasons why we aren’t
doing more. At the top of the list is lack of the
‘NICE TO HAVE,’
When I was a teenager growing up in Northern
California, we had a big wildfire every 10 years
carrots or sticks that would motivate action and
justify the investment. But perhaps even more
important than this, we have an ambition gap
TO ‘NECESSARY,’
AND NOW, CCUS
or so. Shockingly, thousands of homes would
between the rate that CCUS is growing today –
be lost and many more people displaced. Now
about 10 per cent a year, compared to the rate
huge wildfires happen every year. As I write
needed to reach a Gt/year by 2040. If we could

IS INEVITABLE.”
this, one hundred kilometers north, 77,000
just double scaleup rate to 20 per cent per year,
acres are burning, casting a haze of smoke
and sustain that to 2040, bingo, we reach
across the state. Those once-rare and extreme
1 Gt/year by 2040. Let’s do it.
events like wildfires, floods, droughts, extreme
heat, and intense hurricanes happen much
more frequently now, with enormous societal
cost and personal suffering. Climate change
is no longer abstract or something we need to
worry about in the future. I am worried now.
Over the last 20 years, the role of carbon
capture and storage has evolved from “nice
to have,” to “necessary,” and now, CCUS is
inevitable. We need Gt* scale CCUS now.
We are using up our carbon budget so quickly,
that at some point in the not-to-distant future
we are likely to begin scrubbing carbon dioxide
from the atmosphere. But this is much less Professor Sally Benson
Co-Director, Precourt Institute for Energy;
efficient than capturing CO2 directly from point Director, Global Climate & Energy Project;
sources. So why aren’t we doing more to scale Professor, Energy Resources Engineering Department;
Senior Fellow, Precourt Institute for Energy
up CCUS from point sources when we could Stanford University
stop these emissions now?

*Billion tons of CO2 captured and stored per annum

13 14
CONTENTS
< >

3.0
GLOBAL STATUS OF CCS

1.0 INTRODUCTION
1.1 About Global CCS Institute
1.2 About the Report
1.3 Acronyms
1.4 CEO Foreword

2.0 MEETING THE CLIMATE CHALLENGE:


THE NEED FOR CCS

3.0 GLOBAL STATUS OF CCS


3.1 Global CCS Facilities Update
3.2 Policy Levers for Accelerating Deployment
3.3 Global CO2 Storage Overview
3.4 Legal and Regulatory Overview

4.0 REGIONAL OVERVIEWS


4.1 International Climate Policy Overview
4.2 Americas
4.3 Europe
4.4 Middle East and Central Asia
4.5 Asia Pacific

5.0 CCS DEVELOPMENT:


TECHNOLOGY AND APPLICATIONS
5.1 Natural Gas
5.2 Hydrogen
5.3 CCS in the Power Sector
5.4 Bioenergy with Carbon Capture
and Storage (BECCS)
5.5 Direct Air Capture (DAC)
5.6 CO2 Utilisation
5.7 CCS Innovation
5.8 Industry’s Transition to a Net-zero Future

6.0 APPENDICES

7.0 REFERENCES

15
3.0  Global Status of CCS CONTENTS
3.1  Global CCS Facilities Update < >

3.1
GLOBAL CCS
FACILITIES UPDATE
Over the past year the global development and deployment of CCS
continued to gather pace. The world map on these pages shows the
growing presence of CCS around the globe. In 2019, the number
of large-scale CCS facilities increased to 514.
Of these:
• 19 are operating;
• four are under construction;
• 10 are in advanced development using a dedicated front
end engineering design (FEED) approach; and
• 18 are in early development.
Right now, those in operation and construction have the capacity to
capture and permanently store around 40 million tonnes of CO2 every
year. This is expected to increase by about one million tonnes in the
next 12-18 months. In addition, there are 39 pilot and demonstration
scale CCS facilities (operating or about to be commissioned) and nine
CCS technology test centres.

MAJOR STRIDES IN 2019 FOR CCS


In 2019, more than 25 million tonnes of CO2 from the power
and industrial sectors was permanently stored using CCS.
Two new facilities commenced operation and others reported the
achievement of significant cumulative CO2 storage milestones:
• CO2 injection commenced at the Gorgon natural gas processing
plant on Barrow Island off the coast of Western Australia in August
2019. This will be the world’s largest dedicated geological CO2
storage facility when it ramps up to full capacity storing up to 4.0
Mtpa CO2 a year5.
• The Alberta Carbon Trunk Line (ACTL), a 240-kilometre CO2
pipeline, expected to come online in 2020, will offer CO2 transport
services to industry in Alberta, Canada. North West Redwater
Partnership’s Sturgeon refinery and the Agrium fertiliser plant
will jointly supply around 1.6 Mtpa of CO2 via the pipeline
to EOR operations in central Alberta.
• 100 million tonnes – Shute Creek gas processing plant in Wyoming
US, with a 7 Mtpa CO2 capture capacity, has cumulatively captured
more than 100 million tonnes of CO2 from natural gas processing
operations for use in enhanced oil recovery6.
• 38 million tonnes – Great Plains Synfuels plant in North Dakota
US, captures CO2 from the coal (lignite) gasification process,
producing syngas (hydrogen and carbon monoxide) for energy use
and chemical production. It has delivered around 38 million tonnes
of CO2 for EOR in the Weyburn and Midale fields in Canada since
it commenced operation since 20007.
LARGE SCALE CCS FACILITIES PILOT & DEMOSTRATION SCALE FACILITY • 22 million tonnes – On the Norwegian continental shelf, Sleipner
IN OPERATION & CONSTRUCTION
IN OPERATION & CONSTRUCTION CO2 storage and Snøhvit CO2 storage facilities have cumulatively
LARGE SCALE CCS FACILITIES PILOT & DEMOSTRATION SCALE FACILITY captured and stored around 22 million tonnes of CO28. Sleipner
IN ADVANCED DEVELOPMENT IN ADVANCED DEVELOPMENT
was the world's first large scale dedicated CO2 geological storage
PILOT & DEMOSTRATION SCALE facility, storing CO2 from natural gas processing since 1996.
LARGE SCALE CCS FACILITIES COMPLETED FACILITY COMPLETED
TEST CENTRE • 10 million tonnes – Petrobras Santos Basin CO2-EOR facility in
LARGE SCALE = >400,000 TONNES OF CO2 offshore Brazil, reached a milestone of 10 million tonnes of CO2
CAPTURED PER ANNUM captured and reinjected in the natural gas processing industry9.
Petrobras is continually expanding the capacity of its floating
production storage and offloading (FPSO) units, aiming to
cumulatively reinject more than 40 million tonnes of CO2 by 2025.
FIGURE 2  CURRENT CCS FACILITIES AROUND THE WORLDii

17 18
3.0  Global Status of CCS CONTENTS
3.1  Global CCS Facilities Update < >

APPLICATIONS IN OPERATION 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+
Dry Fork integrated commercial CCS THE CCS PIPELINE IS REPLENISHING,
WASTE
INCINERATION
The Basin Electric Power Cooperative aims to capture 3.0 Mtpa CO2 BUT NOT FAST ENOUGH
NORWAY FULL CHAIN from the 385 MW Dry Fork coal-fired power station in Wyoming, USA.
CEMENT They are targeting adjacent geological storage formations currently Figure 4 (below) shows how the CCS facility pipeline has developed
PRODUCTION
being studied by Wyoming CarbonSAFE13. The Cooperative is also over the past decade. It shows a continuous decrease in the number
CHEMICAL
INTEGRATED considering EOR as a potential CO2 storage pathway, utilising nearby of facilities in the pipeline between 2010 and 2017 followed by
PRODUCTION
SINOPEC QILU
LAKE
CHARLES MID- CO2 pipeline networks and EOR operations. year-on-year increases in 2018 and 2019. There are many possible
ILLINOIS INDUSTRIAL METHANOL CONTINENT
HUB
explanations for this pattern and it is not possible to be definitive about
YANCHANG
CarbonSAFE Illinois hub – Macon Countyiii the causes. However it is likely that the Global Financial Crisis (GFC)
IRON & STEEL Building on learnings from Illinois Industrial CCS facility in the which started in mid 2007 and ran through 2009 contributed to the
ABU DHABI PHASE 1
PRODUCTION
Archer Daniels Midland Ethanol plant, this project seeks to establish a observed decline. The uncertainty in global markets and the economic
HYDROGEN CARBONNET* 50+ million tonne commercial geological storage hub in Illinois USA. downturn that accompanied the GFC focussed governments’ attention
PRODUCTION GREAT AIR QUEST ACTL
PORTHOS Adjacent power plants, such as Prairie State Generation (816 MWe, on short term economic recovery and focussed the private sector
PLAINS PRODUCTS STURGEON
coal fired power plant, 10 Mtpa CO2) which has been awarded a full- on survival. Action to mitigate climate change fell down the list of
scale FEED study14, and regional ethanol plants are potential CO2 priorities and both public policy and private capital responded in-
FERTISLISER
PRODUCTION sources. kind. Investment in CCS, which requires strong policy and significant
ENID
FERTILISER COFFFEYVILLE ACTL AGRIUM WABASH capital, subsequently retreated. If data for 2007 to 2009 showed a
Integrated mid – continent stacked carbon storage hub peak in the project pipeline, that would lend weight to this hypothesis.
However, this period was prior to the 2009 establishment of the
NATURAL GAS Storage infrastructure would be established in southwestern
SNØHVIT CNPC JILIN Institute and the data therefore is unavailable.
PROCESSING Nebraska and southwestern Kansas to enable collection of CO2
SHUTE from ethanol plants, power plants and refineries in the region.
CREEK PETROBRAS PRE-SALT The CCS industry has been regaining momentum since 2017 and
Ethanol plants producing 1.9-5 Mtpa CO2 in the region could utilise there are roughly four times as many large scale CCS facilities
ABU DHABI this infrastructure. The Nebraska Public Power District’s Gerald operating today as there was in 2010. A number of factors have
CENTURY UTHMANIYAH GORGON PHASE 2 Gentleman Station (coal fired) is another potential source of CO2 for probably driven the increase in CCS project development observed in
TERRELL
(FORMERLY
PLANT this storage hub. A FEED study on the retrofit of Ion Engineering’s 2018 and 2019. The 2015 Paris Agreement established a clear level
VAL VERDE) non-aqueous ICE-21 solvent capture technology to the Gerald of ambition to limit global warming to well below 2°C and pursuing
LOST CABIN Gentleman Station is underway15. efforts to limit [it] to 1.5°C. This was supported by almost every nation
SLEIPNER of the world. This agreement refocussed governments, the private
sector and civil society on climate mitigation. This has supported
POWER
GENERATION examples of stronger climate policy from government (e.g. legislating
net-zero emission targets), greater pressure from shareholders on
CARBONSAFE ILLINOIS HUB*

BOUNDARY DAM PETRA NOVA

DRY FORK 180

CO² CAPTURE AND STORAGE CAPACITY PER YEAR (Mtpa)


PROJECT TUNDRA
160

= 1 Mtpa CO2 CIRCLE AREA IN OPERATION IN CONSTRUCTION ADVANCED DEVELOPMENT


PROPORTIONATE TO CAPACITY
140

FIGURE 3  POWER AND INDUSTRIAL APPLICATIONS OF LARGE-SCALE CCS FACILITIES


IN OPERATION, UNDER CONSTRUCTION AND IN ADVANCED DEVELOPMENT 120
*Size of the circle is proportional to the capture capacity of the facility.
Indicates the primary industry type of the facility among various options.
100
• 5 million tonnes – Air Products’ carbon capture plant on hydrogen Abu Dhabi Phase 2 natural gas processing plant
in Port Arthur US, has mitigated more than 5 million tonnes of CO2 Abu Dhabi National Oil Company (ADNOC) is developing its second
by coupling steam methane reforming (SMR) with CCS and has CCUS facility in the United Arab Emirates. It will capture 1.9 to 2.3 80
been in operation since 201310. Mtpa of CO2 from its gas processing plant for EOR. Both the Abu Dhabi
• 4 million tonnes – The Quest CCS facility in Canada, operating Phase 1 (CO2 capture from the Emirates Steel Industries steel plant)
since the end of 2015, has been capturing CO2 from the SMR and Abu Dhabi Phase 2 facilities will store CO2 in the same reservoir. 60
process for hydrogen production. Shell Canada announced that
4 million tonnes of CO2 had been captured and safely stored, Wabash CO2 sequestration
ahead of schedule11. Wabash Valley Resources LLC aims to develop an ammonia plant with 40
• 3 million tonnes – Boundary Dam CCS, the first large-scale near-zero CO2 emissions using a repurposed integrated gasification
CCS facility in power generation, for Boundary Dam Unit 3 in combined cycle (IGCC) plant in Indiana, USA. The facility will capture
Saskatchewan, Canada has been in operation since the end of 2014. 1.5 to 1.75 Mtpa CO2 for dedicated geological storage in the Wabash
20
The facility passed 3 million tonnes of CO2 captured in 201912. CarbonSAFE CO2 storage hub.
Investment in CCS is slowly gathering momentum. Figure 3 (above) Project Tundra
shows CCS growth planned for the next five years and beyond. 0
The Minnkota Power Cooperative is planning the retrofit of a 3.1 to 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Facilities that entered the advanced development stage for the
iii
3.6 Mtpa CO2 capture plant to the Milton R. Young coal-fired power
first time in 2019 are summarised in the following paragraphs: station in North Dakota USA. Carbon dioxide will be captured from IN OPERATION IN CONSTRUCTION ADVANCED DEVELOPMENT EARLY DEVELOPMENT
Unit 2 of the power station which generates 455 megawatts of electric
(MWe). They are initially targeting dedicated geological storage sites.
The North Dakota CarbonSAFE Storage Hubiii is studying the future FIGURE 4  PIPELINE OF LARGE-SCALE CCS FACILITIES FROM
potential for the utilisation of CO2 from this facility for EOR. 2010 TO 2019: CO2 CAPTURE AND STORAGE CAPACITY

19 20
3.0  Global Status of CCS CONTENTS
3.1  Global CCS Facilities Update < >

publically listed companies to reduce emissions, and accelerated the More information about some of these hubs and clusters:
movement of capital away from high emissions assets to low emissions INTEGRATED MID- CARBONSAFE
assets. The net result has been a more thorough analysis of how to
• Petrobras Santos Basin CCS network was the first “CCS hub and 4 CONTINENT STACKED 3 ILLINOIS MACON 9 NET ZERO
cluster” in operation. It has a unique set up with 10 FPSOs anchored
TEESSIDE
deliver significant emission reductions necessary to achieve ambitious CARBON STORAGE HUB COUNTY
0.8 - 6 Mtpa
in the Santos Basin off the coast of Rio de Janeiro, Brazil. The
climate targets by governments, and an increased sense of urgency 1.9 - 19.4 Mtpa 2 - 15 Mtpa
captured CO2 is directly injected into the Lula, Sapinhoá and Lapa
in the private sector to develop strategies to insulate themselves from
oil fields for EOR.
future climate-policy risk. In both cases, CCS emerges as an essential
part of the answer. Add to these drivers the significant reduction in the • Supported by CAD485 million from the Alberta Government, the
cost of capture observed over the past decade, and four years after the ACTL will transport up to 14.6 Mtpa CO2 from Alberta’s Industrial
Paris Agreement, the CCS pipeline is repleneshing. Heartland for CO2 emission reduction. This is in addition to CO2
transport from the Sturgeon refinery and Agrium fertiliser plant.
The capture capacity of operating large-scale CCS facilities has • Northern Lights is an open-access CO2 transport and storage hub,
increased from 31.2 Mtpa in 2017 to 39.2 Mtpa in in 2019. The total 1 ACTL 5 WABASH 8 NORTHERN XINJIANG JUNGGAR
14 BASIN CCS HUB
seeking to provide capacity for large CO2 volumes across Europe21. CARBONSAFE LIGHTS
capacity of all facilities at all stages of development in the pipeline has This will move the operation beyond the current Norway full chain 1.7 - 14.6 Mtpa 1.5 - 18 Mtpa 0.8 - 5 Mtpa 0.2 - 3 Mtpa
increased from 64.5Mtpa from 37 facilities in 2017 to 97.5Mtpa from CCS facility from the Norcem and Fortum capture sites.
51 facilities in 2019. A growing number of these, as well as recently
• Six of eight new facilities which emerged in the US are part of the
announced projects in the US, New Zealand and Qatariv, that have
United States Department of Energy’s Carbon Storage Assurance
not yet been added to the CCS pipeline have the potential to form the
Facility Enterprise (CarbonSAFE) Initiative. This is focused on
next global wave of CCS investment in the 2020s. Also significant is
the development of a geologic storage complex for 50 plus million
the broader application of CCS represented in the new facilities under
tonnes of CO2 from industrial sources.
study. They go beyond the “low hanging fruit” opportunities like
natural gas processing, fertiliser and ethanol production to include less • CarbonNet is a CO2 transport and storage hub supported by
the Victorian and Australian Governments. It will provide CO2
8
developed industries like hydrogen production and bio-energy CCS.
transport and storage services to potential capture projects in
In the coal fired power sector, where the cost of CCS was once Australia’s Latrobe Valley. The Hydrogen Energy Supply Chain 9
considered too expensive, the cost of CO2 capture has reduced by (HESC) project is constructing a pilot hydrogen production plant via
half using only first-generation technology – down from over USD100 1
coal gasification and will demonstrate the transport of hydrogen by
per tonne CO2 captured, to around USD45 per tonne. The benefits of ship to Japan. A decision on investment on a commercial hydrogen 2
learning-by-doing from the first tranche of CCS facilities continues to production plant with CCS is expected around 2025. If it proceeds, 3 11 14
12
drive costs down. this plant could be the first customer of the CarbonNet CO2 hub. 4 5
• Net Zero Teesside in the UK is a CO2 transport and storage hub for 6 10
Whilst the recent uptick in investment in CCS is encouraging, it is
far from sufficient to meet climate targets. If all facilities in the CCS the Tees Valley.
pipeline now were operational in 2040 and no more entered the • Other CCS hubs and clusters supported as Projects of Common 13
pipeline, CO2 capture capacity would still be approximately a factor Interest include Acorn Full Scale CCS, Ervia Cork, the Port
of 20 below what is required. There is an urgent need for stronger of Rotterdam CCUS Backbone Initiative (PORTHOS) and the
government policy to incentivise private sector investment in CCS. Amsterdam IJmuiden-CO2 Transport Hub and Offshore Storage
(ATHOS).
• The Net Zero Teesside, Northern Lights, PORTHOS, Xinjiang
NEXT WAVE OF CCS: HUBS AND CLUSTERS Jungger CCUS hub and the Gulf of Mexico CCUS hubs have been
7
“Next wave” facilities based around CCS hubs and clusters have selected as kickstarters for the Oil and Gas Climate Initiative’s 15
featured in 2019. Added to the Global CCS Institute's database in large-scale investment in CCS hubs and clusters18.
201616, these facilities take advantage of the fact that many emissions- Further details about hubs and clusters are discussed in Section 4.0
intensive facilities (both power and industrial) tend to be concentrated of this report.
in the same areas. Hubs and clusters significantly reduce the unit cost NORTH DAKOTA 7 PETROBRAS SANTOS 11 PORTHOS 13 ABU DHABI
2 CARBONSAFE BASIN CCS CLUSTER CLUSTER
of CO2 storage through economies of scale, and offer commercial
3 - 17 Mtpa 9 FPSOs - 3 Mtpa 2 - 5 Mtpa 2.7 - 5 Mtpa
synergies that reduce the risk of investment. They can play a
strategically important role in climate change mitigation.
Figure 5 (opposite) shows CCS hubs and clusters identified as having
made significant developments in 2019, and summarises some of the
features they share.

Key characteristics of hubs and clusters: Hubs and clusters 6 GULF OF MEXICO
CCUS HUB
ZERO CARBON
10 HUMBER
12 ATHOS
15 CARBONNET
significantly reduce the unit
• Multiple industrial point sources of CO2 connected to a CO2
transport and storage network. 6.6 - 35 Mtpa 1 - 6 Mtpa
Up to 18.3 Mtpa 2 - 5 Mtpa
• Access to large geological storage resources with the capacity to
store CO2 from industrial sources for decades. cost of CO2 storage through
• Studies of almost all potential hubs and clusters have been
supported by government17.
economies of scale, and offer
• Economies of scale deliver lower unit-costs for CO2 storage. commercial synergies that
reduce the risk of investment.
• Synergies between multiple CO2 sources and the storage operator INDUSTRY SECTOR STORAGE TYPE DELIVERY
reduce cross chain risks and support commercial viability. COAL FIRED POWER CHEMICAL & PETROCHEMICAL DEEP SALINE FORMATIONS PIPELINE
PRODUCTION
NATURAL GAS POWER ENHANCED OIL RECOVERY SHIP
CEMENT PRODUCTION
NATURAL GAS PROCESSING DEPLETED OIL AND GAS ROAD
WASTE INCINERATION RESERVOIRS
FERTILISER PRODUCTION DIRECT INJECTION
ETHANOL PRODUCTION VARIOUS OPTIONS
HYDROGEN PRODUCTION CONSIDERED
BIOMASS POWER
IRON AND STEEL PRODUCTION

FIGURE 5  CCUS HUBS AND CLUSTERS GLOBALLY, WITH SIGNIFICANT DEVELOPMENTS IN 2019

21 22
3.0  Global Status of CCS CONTENTS
3.2  Policy Levers for Accelerating Deployment < >

To meet climate change mitigation targets, an estimated 2000-


3.2 plus large scale CCS facilities must be deployed by 2040, requiring
BIOMASS
POWER GEN
11%

hundreds of billions of dollars in investment. Today, there are 19


POLICY LEVERS large scale facilities in operation and four under construction. Figure
SOLAR
PV 23%
6 shows that the business case for investment in each facility was
FOR ACCELERATING underpinned by favourable commercial conditions and supportive WIND
12%
policy. It demonstrates that the private sector will invest in CCS when
DEPLOYMENT
(OFFSHORE)
the right incentives are in place.
WIND 12%
(ONSHORE)

GAS 14%
(NGCC)

GAS FIRED 15%


Policies Carbon Tax credit Grant Provision by Regulatory Enhanced Low cost Low cost Vertical POWER PLANT
& project tax or emissions support government requirement oil recovery capture transport integration
characteristics credit or SOE and storage COAL FIRED
8%
POWER PLANT
US

Terrell 0% 5% 10% 15% 20% 25%


AVERAGE LEARNING RATE (% REDUCTION IN COST FOR DOUBLING CAPACITY OR OUTPUT)
Enid Fertiliser

Shute Creek
FIGURE 7  LEARNING RATES FOR DIFFERENT ELECTRICITY PRODUCTION
Century Plant TECHNOLOGIES (THE AVERAGE FOR ONE-FACTOR MODELS)17

Air Products SMR


Like all large infrastructure projects, the development and There is strong evidence that capture costs have already reduced.
Coffeyville construction of CCS facilities is capital intensive. This influences Figure 8 (below) shows estimated costs from a range of feasibility and
the viability of projects and prices out potential investors. However, front end engineering and design (FEED) studies for coal combustion
Lost Cabin learning rates drive costs down as successive CCS facilities come CCS facilitiesv using mature amine-based capture systems. Two of the
online. For example, assuming a conservative learning rate of projects, Boundary Dam and Petra Nova are operating today. The cost
Illinois Industrial
8 per cent from Figure 7 (above), as facilities increase from tens of capture reduced from over USD100 per tonne CO2 at the Boundary
Petra Nova to thousands by mid-century, the cost of capturing CO2 falls by Dam facility to below USD65 per tonne CO2 for the Petra Nova facility,
approximately half. It is imperative that investors are incentivised some three years later. The most recent studies show capture costs
Great Plains as much as possible in the early stages, to accelerate the learning (also using mature amine-based capture systems) for facilities that
rate and attract new projects. plan to commence operation in 2024-28, cluster around USD43 per
Canada
tonne of CO2. New technologies at pilot plant scale promise capture
Boundary Dam costs around USD33 per tonne of CO2.

Quest

ACTL Agrium 140

COST OF CO2 CAPTURE


(US$ 2017 PER TONNECO2)
ACTL Sturgeon

Brazil
120
Petrobras Santos
PORTO TOLLE BOUNDARY DAM
Norway PROJECT PIONEER
100
Sleipner
BETCHATÓW
Snøhvit

UAE 80
ANTELOPE VALLEY
Abu Dhabi CCS SHAND
KINGSNORTH PETRA NOVA
MASSVLAKTE MOUNTAINEER PROJECT TUNDRA SAN JUAN
Saudi Arabia 60 LONGANNET TRAILBLAZER
Uthmaniyah
SURAT HELE
China
40
CNPC Jilin

Sinopec Qilu* ION C3DC FUELCELL MCFC


LINDE/BASF OASE
20
Yanchang*
2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Australia
PREVIOUSLY STUDIED FACILITIES CURRENTLY OPERATING RECENTLY PROPOSED AND NEW FACILITIES
Gorgon FIRST GENERATION CAPTURE TECHNOLOGY LEARNING RATE NEXT GENERATION CAPTURE TECHNOLOGY LEARNING RATE

FIGURE 6  CONDITIONS THAT ENABLED LARGE-SCALE FACILITIES FIGURE 8  LEVELISED COST OF CO2 CAPTURE FOR LARGE SCALE POST-COMBUSTION
*In construction FACILITES AT COAL FIRED POWER PLANTS, INCLUDING PREVIOUSLY STUDIED FACILITIESvii

23 24
3.0  Global Status of CCS CONTENTS
3.2  Policy Levers for Accelerating Deployment CCS Ambassador < >

The most obvious way to create incentives for investors is to place Figure 9 (below) shows how government policy and confidence in ESG disclosures and investment decisions are increasingly part
a material value on CO2. Policymakers can choose from options like CCS can reduce the cost of debt over time. Initial CCS facilities are of financial reporting obligations. Some suggest there is now a clear ZOË KNIGHT
tax credits, carbon tax or direct regulation as a condition of approval. developed under high risk conditions, due to the existence of weak link between a company’s ESG performance and its ability to leverage Managing Director & Group Head,
The mistaken idea that CCS is too expensive compared to other policy frameworks and few CCS facilities being in operation, so the capital, including the cost of that capital. HSBC Centre of Sustainable Finance
climate change mitigation technologies is easily dispelled when cost of debt is at its highest.
Experience shows that failure to adopt a pragmatic approach to
a low value is placed on carbon. For example, the IEA has estimated
As more facilities enter operation, and better policy frameworks environmental performance and climate change impacts, may result
that as much as 450 MtCO2 could be captured, utilised and stored
evolve, the cost of debt is reduced. Eventually a low risk lending rate, in direct and indirect risks for a company. The burgeoning divestment
globally with a commercial incentive as low as USD40 per tonne of
representative of a mature industry, is reached. movement is one example, where the views of shareholders and the
CO2 by deploying CCS on the many low-cost opportunities available19.
wider public have been made very clear to companies perceived as
This value is at the bottom end of the USD40-80 range that the
high-risk investments, or as failing to address their carbon footprint.
High-Level Commission on Carbon Prices recommended by To explore further detail on policy priorities for policymakers and how
2020 to drive transformational change consistent with meeting to stimulate investment in CCS, download our 2019 Thought Leadership Potential harm to a company’s reputation is an important
Paris Agreement targets20, 21. Report Policy priorities to incentivise large scale deployment of CCS at consideration, but there may be more significant implications for
globalccsinstitute.com
organisations that don’t meet expectations in regard to climate change
Compared to mature industries, there is relatively little experience
mitigation. In recent years, resolutions have been brought against
developing commercial CCS facilities. As a consequence, potential
ESG AND DIRECTORS’ DUTIES corporations by shareholder groups seeking to ensure that companies
investors and financiers apply risk premiums which drive up the cost
adapt their practices to the realities of a carbon constrained future. In
of private capital (both debt and equity) to a level where investing is
A company’s attitude towards environmental, social and corporate some instances, shareholders even brought formal legal proceedings
difficult. In fact, very few CCS projects have been funded through debt
governance (ESG) factors, is an increasingly significant consideration against company directors.
financing because prevailing risks—and perceived risks that arise from
banks’ lack of knowledge—make it difficult for them to qualify. Until for investors, shareholders and the wider public. There is closer Adopting low-carbon technologies will be an important solution
risks are perceived to be well managed, banks are unwilling to qualify scrutiny and reporting of ESG factors that are material to a business’s for many organisations seeking to address public and investor-led
CCS projects for debt financing or offer competitive interest rates to core activities. While companies are increasingly willing to adopt perceptions of their activities, and meet shareholder challenges.
project developers. By working collaboratively with the private sector— more sustainable practices, their openness has also been driven In order to meet the net-zero emissions
which is well placed to manage general project risks such as technical, by the rise of socially-conscious investment, the concept of the CCS offers a potent opportunity for those with significant CO2 ambition, a diverse set of clean energy
construction and operational performance risks—governments can ‘enlightened shareholder’ and increased public activism surrounding exposure, to demonstrate their management of the issue and improve technologies is required. CCS' crucial role
play a pivotal role in risk-sharing, enabling private sector investment. environmental, social and governance issues. how they are regarded. Increasingly, major companies are choosing
to invest in CCS technology, demonstrating commitment to CO2
to delivering emissions reductions has been
Robust policy frameworks can address market failures that lead to In recent years, the ‘environmental’ aspects of corporate governance reduction as part of their long-term risk management strategies. underscored by the IPCC, the UK Committee
hard-to-reduce risks, such as cross-chain, and long-term liability have increased in importance, with climate change and carbon risk on Climate Change, the IEA just to name a few.
risks. Government can de-risk investments by taking on risks that exposure becoming the most pressing considerations. In organisations CCS is likely to play an increasingly large role in companies’ ESG
cannot be borne by the private sector. While private sector investment with a significant CO2 footprint, investors and shareholders are offered commitments. With the need to scale up to more than 2,000
in CCS is profit-driven, government is motivated to provide public detailed information about matters like exposure to climate change facilities by 2040 we also have no time to lose.
goods. Government forgoes financial return on CCS investments, in impacts and carbon risk, how these will be adapted to, strategies for
addressing greenhouse gas and any new commercial opportunities
While the flow of funding towards new low-
exchange for efficient industry contributions towards emissions targets
and a stable climate for constituents. Cross-chain and liability risks that have been identified to reduce the business impacts. carbon technologies is increasing, it is not
are therefore managed through the development of shared transport TASK FORCE CLIMATE-RELATED FINANCIAL happening at the pace that is needed. As with
Reporting against sustainability and environmental performance
and storage networks, and robust legal and regulatory frameworks, measures has moved from being largely voluntary to necessary. DISCLOSURES (TCFD) – DEFINING A renewables when they were in early stages of
respectively. UNIVERSAL APPROACH TO DISCLOSING deployment, targeted public sector signals of
THE IMPACTS OF CLIMATE CHANGE support for the industry would help accelerate
Formed by the Financial Stability Board (FSB) in 2015, the the market for CCS.
TCFD sought to develop a framework to help organisations
16% disclose the financial impact of climate change on their
COST OF DEBT

15% POLICY
operations. The FSB required the disclosures developed by
14%
the TCFD, to “promote more informed investment, credit [or “WITH THE NEED TO
CONFIDENCE
lending], and insurance underwriting decisions” and, in turn,
“enable stakeholders to understand better the concentrations SCALE UP TO MORE
12%

10% POLICY
of carbon-related assets in the financial sector and the financial
system’s exposures to climate-related risks.”
THAN 2,000 FACILITIES
10% CONFIDENCE The recommendations, published in 2017, should assist BY 2040 WE ALSO HAVE
8%
companies to identify and disclose key financial information
that helps the wider finance and investment community better
NO TIME TO LOSE.”
understand climate-related risks and opportunities. The
MATURE recommendations focus on four areas:
6%
INDUSTRY • governance
10%
4% • strategy
• risk management
2% • metrics and targets.
The TCFD’s recommendations have been adopted by many
0% organisations worldwide. In May 2019 Chair, Michael
HIGH RISK IRREDUCIBLE GENERAL MODERATE IRREDUCIBLE GENERAL LOW RISK Bloomberg, reported that nearly 800 public and private-sector
LENDING RISKS PROJECT RISK LENDING RISKS PROJECT LENDING organizations now support the task force and its work. This
includes global financial firms responsible for assets exceeding
$118 trillion.
FIGURE 9  THE EVOLUTION OF ILLUSTRATIVE LENDING RATES
WITH POLICY DE-RISKING AND INCREASED DEPLOYMENT RATES
FOR CCS FACILITIES

25 26
3.0  Global Status of CCS CONTENTS
3.3  Global CO2 Storage Overview < >

3.3
GLOBAL CO2 STORAGE OVERVIEW

Global estimates show there are vast storage


resources to meet the highest requirements
for CCS to achieve climate change targets.

TIME TO FOCUS ON GIGATONNE CO2 STORAGE


To meet climate targets, the IPCC climate pathways model up to 1,200
Gt of CO2 cumulatively stored by 210023. There is high confidence
that vast CO2 storage resources are available globally to meet these
scenarios. The IEA forecasts that 2.3 Gt of CO224 must be stored each
year, by 2060. It means a CCS deployment rate of more than double to
that of the growth of the oil industry during the last century25.
To achieve multi-gigatonne annual CO2 storage rates, the world will
need to characterise, appraise and develop thousands of individual
200
NORTH
storage sites. The IEA Greenhouse Gas R&D Programme (IEAGHG)26
estimates that approximately 30-60 storage sites need developing each
SEA

200-430 300 year until 2050. Adding negative emissions storage, from 2050 and
2,100, that number could double. The good news is that the history of
1,210-4,130 oil and gas shows what can be achieved when there is a business case.
According to the IEAGHG:
• 350 gas and oil fields were developed annually in the peak

2,000-21,000 100 140 development period (2000-2010)


• since 1940, commercial gas resources were discovered at a rate
equal to the required rate of development for CO2 storage resources
1-5 5-25 • the number of rigs (used to drill for exploration and CO2 injection

100 5-30 wells) required to develop CO2 storage sites is only 20 per cent
of the total rig count.

47-63 9 12 23 Recognising the importance of CCS to meeting emission reduction


targets, several countries have implemented initiatives to identify
140 CO2 storage sites:
• The US is identifying a series of sites which could store
50Mt or more of CO2
7
2,000 • Norway and UK both completing significant public
databases of CO2 storage formations across the North Sea

2-228 • EU nations producing a storage formation-scale atlas


• Australia undertaking site-scale evaluations with seismic
220-410 and core analysis around the country
150 • Japan completing an offshore drilling campaign to test
CO2 storage formations.

16
HIGH CONFIDENCE
MEDIUM CONFIDENCE
LOW CONFIDENCE
VERY LOW CONFIDENCE

FIGURE 10  GLOBAL STORAGE RESOURCE


ESTIMATES (GIGATONNE) AROUND THE WORLD22

27 28
3.0  Global Status of CCS CONTENTS
3.3  Global CO2 Storage Overview < >

MONITORING IS CRITICAL TO ENSURE THAT such as tracers, and geophysical logging tools are also employed.
Collectively, these downhole tools can provide high-resolution ENHANCED OIL RECOVERY PRODUCTION 3. A mixture of oil, brine, and other fluids brings the remaining
COMMUNITY EXPECTATIONS ARE MET CO2 to the surface. The CO2 is separated from these fluids,
conformance and verification of the CO2. PERMANENTLY STORES CO2
compressed and re-injected into the oil field with additional
Monitoring, measurement and verification (MMV) play a vital role in The primary driver for surface monitoring is to meet community Over 260 million tonnes of anthropogenic CO2 has been injected CO2, creating a closed loop with trivial fugitive emissions.
ensuring CO2 storage meets operational, regulatory and community expectations. In an appropriate well-characterised site, the likelihood
expectations. CO2 storage uses MMV technologies and the experience and permanently stored to date—most through enhanced oil
of CO2 reaching the surface is diminishingly small. Hence, surface CO2 is the most expensive operational cost of any CO2-EOR facility,
of the oil, gas, and groundwater industries. The key focus of a CO2 recovery (EOR). Increasing oil production this way is a standard,
monitoring primarily focuses around boreholes (legacy or operational) so almost every molecule supplied is re-injected. The high cost
MMV programme is tracking the CO2, pressure field, and the mature and routine global operation. It is important to emphasise
that provide the only direct path from the storage formation to the of CO2 means the gas is monitored at the surface and within the
surrounding geology around the storage formation. Groundwater and that CO2 – EOR is not suitable for every oil field. But where CO2
surface. Geochemical analysis measures soil or surface water for reservoir to ensure optimal use. Ultimately, all the CO2 injected into
surface monitoring are also common place in most MMV programmes. is suitable to enhance oil recovery the process is as follows:
elevated CO2 levels. In the offshore, geochemical sampling is also an oil field for EOR remains trapped in the pore space that originally
employed, along with bubble detection systems and sonar to identify 1. CO2 is injected into the oil field’s rock formations where held the oil and other fluids.
Seismic imaging is the most commonly used method to ensure the
plume is behaving as expected. With repeated 3D seismic, under potential leaks. The automation of sampling is decreasing costs and it behaves as a solvent, swelling the oil and mobilising oil
The permanent storage of CO2 through EOR delivers emissions
certain conditions, a plume can be tracked as it moves through the physical footprint of monitoring. previously trapped in the rock’s pore spaces.
abatement. The IEA estimates that during conventional EOR
the storage formation. Passive seismic and downhole seismic are During the first wave of CO2 storage operations, risk-assessment 2. A proportion of the CO2 migrates through the formation as a operations, there is an emissions abatement on a full lifecycle
increasingly being employed to minimise the footprint and cost of CO2 plume, known as free phase CO2. As more CO2 is exposed basis. This includes emissions from using the oil produced27.
Storage environments and technology based MMV programmes demonstrated to regulators and stakeholders
to the rock, it dissolves into surrounding brine. Some becomes
deployment and long-term monitoring. that CO2 storage is predictable and permanent. In many cases, the If policy incentives are put in place, industry will store even
number of tools operators use to prove conformance and verify the immovably trapped in the pore spaces—residual trapping. These more CO2 this way, beyond what the optimising process requires.
Pressure monitoring is one of the oldest downhole-based technologies. same trapping mechanisms occur during dedicated storage.
By measuring the pressure of the formation, an operator can confirm CO2 is gradually being reduced. The cost of MMV is reducing as the
the containment of CO2. Any shift in pressure may indicate a change community understand the low risk of CO2 storage, and tools and
in conditions. Also, monitoring the pressure of surrounding formations techniques become more sophisticated.
can rapidly detect if the CO2 does move out of the storage formation.
Along with pressure monitoring, a suite of geochemical testing,

CO2
CO2 CO2

Purchased CO2 Injected CO2 Recycled CO2


2 3
Anthropogenic and/or From production well
other natural sources
2
1

Zone of Efficient Sweep (minimum 1000m)


800m

ZOOM
ONE
2 CO2 stored
permanently
Driver Miscible Additional
CO2 Water CO2 Oil Bank
water Zone Oil Recovery
CO2 stored in
pore space
1 1. 1 Atmosphere
ATMOSPHERE Sub-surface
11. 1 SUB-SURFACE 11. 1 OFFSHORE
Offshore
Airborne
AIRBORNE EM EM Downhole
DOWNHOLE fluid
FLUID chemistry
CHEMISTRY Boomer/Sparker
BOOMER/SPARKER profiling
PROFILING
Airborne
AIRBORNE spectral
SPECTRAL Downhole
DOWNHOLE pressure
PRESSURE Bubble
BUBBLE stream
STREAM detection
DETECTION
Satellite
SATELLITE interferometry
INTERFEROMETRY Downhole
DOWNHOLE temperature
TEMPERATURE Multi-echo
MULTI-ECHO soundings
SOUNDINGS
Geophysical
GEOPHYSICS LOGSlogs Sidescan
SIDESCAN sonar
SONAR
22. SURFACE
2 Surface
EDDY COVARIANCE
Eddy covariance 22. SUB-SURFACE
2 Sub-surface 22. OFFSHORE
2 Offshore
ZOOM
ONE Free Phase ZOOM
TWO Residual Trapping ZOOM
THREE Dissolution Trapping ZOOM
THREE Mineral Trapping
SURFACE GAS FLUX
Surface gas flux CROSS-HOLE EM EM
Cross-hole SEABOTTOM GASPage
SAMPLING 1.2.1.3/
Seabottom gas sampling
04

Caprock Caprock Caprock


SOIL GAS CONCENTRATIONS CROSS-HOLE ERT SEAWATER GEOCHEMISTRY
Soil gas concentrations Cross-hole ERT Seawater geochemistry
GROUND WATER CHEMISTRY CROSS-HOLE SEISMIC SEABOTTOM SEISMIC
Ground water chemistry Cross-hole seismic Seabottom seismic ZOOM CO2
MICROSEISMIC SEABOTTOM EM
23. SURFACE Microseismic Seabottom EM THREE ZOOM
TWO
VERTICAL SEISMIC PROFILING
3
2D/3D SurfaceSEISMIC
SURFACE Vertical seismic profiling Page 05 3.9.2/ Emissions Sources and Mitigation Options in Industry
WELL GRAVIMETRY
2D/3D surface seismic
LAND EM/ERT Well gravimetry right column list; height: full page (Layout
SURFACELand EM/ERT
GRAVIMETRY below). CO2

Surface gravimetry
TILTMETERS
Tiltmeters EM ELECTROMAGNETIC ERT ELECTRICAL RESISTANCE TOMOGRAPHY A

EM Electromagnetic ERT Electrical Resistance Tomography Full Page width;


FIGURE 11  A SCHEMATIC OF SELECT MONITORING FIGURE 12  SCHEMATIC OF CO2 EOR AND CO2
TECHNOLOGIES AVAILABLE FOR CO2 STORAGE FACILITIES TRAPPING MECHANISMS

29 30
3.0  Introduction CONTENTS
CCS Ambassadors < >

DEEPIKA NAGABHUSHAN PROFESSOR MICHAEL


Program Director,
Decarbonized Fossil Energy
GERRARD
Clean Air Task Force Andrew Sabin Professor of Professional Practice,
Columbia Law School

“IF WE MEET THESE FOUR


In the two years since the U.S. Congress passed a The report from the Intergovernmental Panel on
milestone CCUS incentive, 45Q tax credit, a number Climate Change comparing worlds with 1.5 vs.
of projects have initiated development. In the same 2.0 degrees Celsius increases on global average
period, an interesting theme has emerged: states
and utilities have set themselves goals to have
CATEGORIES OF CCUS POLICY temperatures made it clear that a massive amount
of carbon dioxide must be removed from the
carbon-free electricity.
States such as California and New York have
GOALS, THEN WE WILL AT LEAST atmosphere if we are to avoid the worst impacts
of climate change. Other recent reports have come
to similar conclusions. Removing the carbon
committed to achieving zero-carbon power
systems. Utilities that provide over 40 per cent HAVE A CHANCE TO MEET OUR dioxide from the atmosphere is only part of the
story, however. We must do something with it –
of US electricity have committed to reducing
their CO2 emissions between 80 to 100 per cent. MID-CENTURY CLIMATE GOALS. either utilize it or sequester it.
Thus carbon sequestration is one essential
CCUS will not only play an important role in
fulfilling above commitments, but also help
meeting even bolder goals that will include
THAT IS WHAT IS AT STAKE.” component of addressing the climate crisis.
While the ideal method is to reduce emissions,
and everything possible must be done to achieve
decarbonizing industrial emissions and leveraging
that, this still will not be enough. Moreover, there
zero-carbon fuels. This creates implications on Third, we need to expand the network of CO2 Deepika Nagabhushan
Program Director, are several massive industries, such as cement
federal and state governments to enact additional pipelines and storage sites such that CO2 capture Decarbonized Fossil Energy
and steel production, that emit carbon dioxide in
CCUS enabling policies. projects can easily connect to it, much like a Clean Air Task Force
massive amounts; until technological alternatives
commercial laundromat would connect to the
First, we need cheaper capture technologies that are developed and widely applied, it will be
existing water and sewage lines.
are faster to build. This requires federal funding necessary to capture and then utilize or store the
to support transformational technology research Finally, broader climate policies such as emissions from these industries as well.
and development. procurement mandates, emission caps and
Carbon sequestration poses numerous
energy standards must embrace CCUS,
Second, we need financial incentives to technological, financial, legal and logistical
promoting wide-scale deployment.
commercially deploy CCUS. This will lead challenges; these must all be overcome if it is
to multiple technology vendors providing If we meet these four categories of CCUS policy to proceed at the massive scale that is required.
standardized components, reducing custom goals, then we will at least have a chance to meet
engineering needs and banks that are familiar our mid-century climate goals. That is what is
enough with CCUS to readily finance projects. at stake.

31 32
3.0  Global Status of CCS CONTENTS
3.4  Legal and Regulatory Overview < >

NORTH WESTERN EUROPE MEDITERRANEAN


3.4 IS IT TIME TO ADOPT A NEW
LEGAL AND APPROACH TO LIABILITY?
Liability is often raised by policymakers, regulators and project
REGULATORY OVERVIEW proponents as a potential barrier to widespread CCS deployment.
NORTH SEA EUROPE

It continues to be an issue globally, despite the adoption of various


Policy makers and project proponents agree that practical, well- detailed CCS-specific frameworks in recent years. Our Thought
defined legislation and a strong global regulatory framework are Leadership Report examined the issue through policy and
necessary for CCS to reach its potential. The US state of California’s legislative analysis and interviews with policymakers, regulators,
CCS Protocol which accompanies the Low Carbon Fuel Standard lawyers, project proponents and insurance sector representatives.
(See section 4.2 Regional overview: Americas), has allowed the The report — Lessons and Perceptions: Adopting a Commercial
development of a regulatory model that addresses the requirements Approach to CCS Liability — concluded that effort must be made to
of operators, and wider public concerns. Generally though, progress dispel the widely-held view that liability could be a ‘showstopper’
continues to be slow. Several jurisdictions are yet to even examine their for the technology, and to give the public and private sectors
legal frameworks and in some existing regimes, movement is limited, greater confidence that it can be managed. Adopting a more
continuing the uncertainty for those seeking to invest in CCS. commercial approach will ultimately see a shift in focus from
In recent months, the most notable legal and regulatory development high-level concerns, towards identifying successful practices and
is a proposal to address a key barrier found in international marine models, as well as eliminating the remaining obstacles to more
agreements. Article 6 of the London Protocol governs the Parties’ widespread deployment.
export of wastes for dumping in the marine environment. An The following actions are central to a more commercial approach:
unintended consequence of this Protocol is that it effectively bans
transboundary transportation of CO2 for geological storage. The • Clearly determine what is meant by the term liability. While
signatories to the London Protocol passed an amendment to resolve there are potentially a wide range of liabilities applicable to
CCS operations throughout the project lifecycle, their impact EUROPE
this issue in 2009, however two thirds of the Protocol's contracting
parties must ratify the amendment for it to come into force. So far only differs greatly when considered individually.
AFRICA
Norway, United Kingdom, Netherlands, Finland, Estonia and Iran • Examine options for addressing greenhouse emissions/climate
have done so. At the London Convention meeting in early October, the liabilities, which present unique challenges to both operators
Parties of the London Protocol agreed to allow provisional application and regulators alike.
of the 2009 amendment of Article 6 to the London Protocol allowing • Consider the role of both government and the private sector
for cross-border transport and export of CO2 for geological storage in in allocating and managing risks and consequently liability.
sub-seabed geological formations. Experience to-date reveals that there are options which may
SOUTH EAST ASIA & OCEANIA EAST ASIA
Adopting the resolution will not set a precedent and will only be reduce parties’ exposure and support project deployment.
binding upon those Parties that choose to be provisionally bound by • Renewed engagement with the insurance sector. Timely SOUTH
and more regular engagement will be necessary if insurers EAST
the amendment. If the Parties accept the interim solution, there will ASIA
be legal certainty about cross-border CO2 transport for CCS climate are to develop new products to assist operators manage their
emissions mitigation. Our analysis of potential ‘hot-spots’ for activity potential liabilities.
within the scope of Article 6, are set out in Figure 13 (opposite). The • Ensure a close and robust dialogue, between project SOUTH KOREA
hot-spots represent locations where transboundary storage is likely proponents and regulators. Experience demonstrates that
because a nation has limited storage potential, but neighbouring engagement has assisted both parties in determining the
jurisdictions can store CO2 on their behalf. As seen from Figure 13, practical requirements of legislation, or where there is
there are multiple opportunities for transboundary shipment of CO2 ambiguity in its application.
worldwide, especially in Europe and Asia.
The current status of some forms of CO2 transportation under To download our report Lessons and Perceptions:
European legislation, also remains uncertain. Amendments have Adopting a Commercial Approach to CCS Liability
been made to the European Union Emissions Trading Scheme (EU please visit globalccsinstitute.com
ETS) Directive to include CO2 capture, transport by pipelines and JAPAN
the geological storage of CO2 within its scope of activities. Covered CHINA
installations are not required to surrender emissions allowances for
the CO2 they have successfully captured for subsequent transportation
by pipelines and geological storage, and they can benefit from the
EU ETS carbon price. The scope of the Directive, however, applies AUSTRALIA
narrowly to CO2 transport by pipelines and those installations that
plan to transport CO2 by other means, e.g. by ships or trucks, would
still need to pay for these emissions. The legislation as it currently
stands, therefore poses a regulatory barrier to those projects that wish
to transport CO2 through different means (e.g. trains and barges).

POTENTIAL STORAGE LOCATIONS. THESE AREAS HAVE


BEEN CHARACTERISED AS SUITABLE FOR CO2 STORAGE
AND ARE IDEALLY LOCATED IN THE OFFSHORE OR
ADJACENT TO THE COAST.
INDICATIVE OF TERRITORIAL BOUNDARIES
NOTE: THE IDENTIFIED STORAGE LOCATIONS ARE NOT
EXHAUSTIVE AND DO NOT REPRESENT ACTUAL STORAGE BASINS

FIGURE 13  LEGAL HOT SPOTS: LOCATIONS WHERE


TRANSBOUNDARY STORAGE IS LIKELY

33 34
CONTENTS
< >

4.0
REGIONAL OVERVIEWS

1.0 INTRODUCTION
1.1 About Global CCS Institute
1.2 About the Report
1.3 Acronyms
1.4 CEO Foreword

2.0 MEETING THE CLIMATE CHALLENGE:


THE NEED FOR CCS

3.0 GLOBAL STATUS OF CCS


3.1 Global CCS Facilities Update
3.2 Policy Levers for Accelerating Deployment
3.3 Global CO2 Storage Overview
3.4 Legal and Regulatory Overview

4.0 REGIONAL OVERVIEWS


4.1 International Climate Policy Overview
4.2 Americas
4.3 Europe
4.4 Middle East and Central Asia
4.5 Asia Pacific

5.0 CCS DEVELOPMENT:


TECHNOLOGY AND APPLICATIONS
5.1 Natural Gas
5.2 Hydrogen
5.3 CCS in the Power Sector
5.4 Bioenergy with Carbon Capture
and Storage (BECCS)
5.5 Direct Air Capture (DAC)
5.6 CO2 Utilisation
5.7 CCS Innovation
5.8 Industry’s Transition to a Net-zero Future

6.0 APPENDICES

7.0 REFERENCES

35 36
4.0  Regional Overviews CONTENTS
4.1  International Climate Policy Overview CCS Ambassadors < >

4.1 The GCF is an excellent potential source of funding for new CCS
projects in developing countries because it allows project developers to DR FATIH BIROL BERTRAND PICCARD
access significant levels of funding at more affordable rates than would
SUPRANATIONAL otherwise be available. Executive Director,
International Energy Agency
Chair,

CLIMATE POLICY The International Civil Aviation Organization is currently developing


a Carbon Offsetting and Reduction Scheme for International
Solar Impulse Foundation

OVERVIEW Aviation (CORSIA). The scheme aims to stabilise the CO2 emissions
of international aviation at 2020 levels. The rulebook is still being
The role of CCS in climate change mitigation is highlighted in the written, but airlines will need to offset their emissions by purchasing
IPCC SR15 report and in a range of recent analyses and studies. international credits from other sectors, or taking actions themselves.
Several ongoing international processes are poised to have an impact The CCS community will closely follow this industry because airlines
on CCS’s wider, global deployment. These include the pledges and may purchase carbon credits from CCS projects or even develop
cooperative approaches under the Paris Agreement, Green Climate emission reduction projects of their own.
Fund (GCF) and carbon offsetting scheme for international aviation.
Under the Paris Agreement, Nationally Determined Contributions
(NDCs) are the main opportunity for countries to highlight their CARBON, CAPTURE, UTILISATION AND
commitment to using CCS technology. So far, ten countries (Bahrain, STORAGE (CCUS) RECOGNISED BY G20
China, Egypt, Iran, Iraq, Malawi, Norway, Saudi Arabia, South
LEADERS IN JAPAN
Africa and United Arab Emirates) have done so. CCS has near-term
relevance28 for an estimated 50-60 countries who are well-positioned June was a good month in politics for CCUS technologies. The
to use it over the coming decades. Some of these countries have first success was being included in Karuizawa’s G20 Ministerial
previously shown strong interest in CCS, but did not include it in their Meeting on Energy Transitions and Global Environment for The IEA has consistently highlighted that CCUS is When I was spending holidays in the Swiss Alps
Nationally Determined Contribution (NDC). The Institute expects that Sustainable Growth communiqué, for the first time ever. critical to meeting our global climate goals. Last year, during the 60’s, all the residents of the village were
many will over the next cycles. global energy demand accelerated at its fastest pace taking their garbage in their car to dump them in
And then, the opportunities offered by CCUS technologies for the
Signatories to the Paris Agreement are invited to submit their energy transition were recognised within the official G20 Osaka this decade, with fossil fuels meeting around 70 per a valley where a little river was flowing. The waste
long-term low-greenhouse-gas emission development strategies Leaders’ Declaration, following Japan’s hosting of the event. The cent of this growth and contributing to a historic high would burn day and night and produced smoke with a
to the United Nations Framework Convention on Climate Change admittance of CCUS, as well as hydrogen, into the Declaration for energy-related CO2 emissions. In fact, for more horrible smell. But all this was completely legal. Why
(UNFCCC) by 2020. Ten out of the 13 strategies submitted as of marked another first.
August 2019, include CCS29. As more are submitted, the Institute will
than 30 years, the share of fossil fuels in the world’s don’t we do it anymore? Because today it’s prohibited.
The Declaration acknowledged, “the role of all energy sources energy mix has remained virtually unchanged at
form a clearer picture of where CCS fits in the long-term emissions The result of stopping people from throwing rubbish
and technologies in the energy mix and different possible national
reduction planning of countries and regions. around 81 per cent. CCUS is a necessary bridge
paths to achieve cleaner energy systems.” It stated that all G20 into the valley and paying for its disposal was the
Article 6 of the Paris Agreement offers countries another option to Leaders: between the reality of today’s energy system and the
creation of new industries - waste collection, energy
support wide scale deployment of CCS. Negotiations are underway increasingly urgent need to reduce emissions. Not
... recognise opportunities offered by further development of recovery, recycling - that created jobs and profit.
around co-operation between nations to fulfil their pledges through innovative, clean and efficient technologies for energy transitions, only can it avoid locking in emissions from existing
joint action, which would also bring down compliance costs. With including hydrogen as well as, depending on national circumstances, power and industrial facilities, it also provides a Why is it then that companies can still dump as much
growing interest in CCS technologies, this approach may help to the Carbon Capture, Utilisation and Storage (CCUS), taking note of carbon into the atmosphere as they wish? Why should
establish CCS projects in developing countries.
critical foundation for carbon removal or negative
work on ‘Carbon Recycling’ and ‘Emissions to Value’. it be treated differently?
emissions. But so far, the vast potential of CCUS
The UNFCCC increasingly sees technology transfer as one of the key Signatories reaffirmed that they will, “communicate, update or remains largely unrealised.
mechanisms to achieve climate change mitigation and adaptation. maintain our NDCs, taking into account that further global efforts Today, we must correct this market failure. Putting
Their Technology Executive Committee’s work plan for the next four are needed (by 2020)” and emphasized, “the importance of a price on carbon will provide incentives to capture,
years includes the “role of emerging technologies”. The Technology providing financial resources to assist developing countries with reduce or eliminate harmful emissions. Doing so is
Mechanism will look at improving access in developing nations, and respect to both mitigation and adaptation in accordance with the not adding a new tax, but merely correcting an old
IEA has concluded that the largest deployment of CCS must occur in Paris Agreement.”
non-OECD countries30. The GCF listed CCS as one of the technologies injustice, and will open the door to the market of
to transform energy and industry, in their strategic programming The Institute looks forward to more progress before the 2020 G20 the century - protection of the environment.
for the first replenishment. The replenishment process has had an summit in Riyadh.
excellent start, with announcements from over a dozen of countries to
double their pledges and the total amount of the first replenishment
already exceeding the previous pledging conference in 2014.

“CCUS IS A NECESSARY BRIDGE


BETWEEN THE REALITY OF
ADOPTION OF THE FACILITATIVE GLOBAL GLOBAL NET ZERO
PARIS AGREEMENT DIALOGUE STOCKTAKE STOCKTAKE EMISSIONS

Talanoa Dialogue
& adoption of the
Countries communicate
new or updated NDCs &
Countries communicate
new or updated NDCs.
TODAY’S ENERGY SYSTEM AND
Paris rulebook. long term strategies. New financial commitments due.
THE INCREASINGLY URGENT
2015 2017 2018 2020 2023 2024 2025 2028 2030 2050 NEED TO REDUCE EMISSIONS.”
Climate plans submitted, UN Secretary General’s National inventory Countries communicate Dr. Fatih Birol
first round pledges Climate Summit. report on NDCs. new or updated NDCs.
(NDCs) Executive Director,
International Energy Agency

FIGURE 14  PARIS AGREEMENT AMBITION MECHANISM31

37 38
4.0  Regional Overviews CONTENTS
4.2 Americas < >

The Americas are home to 13 of the world's large-scale operating permitting procedures and requirements. Other bills deal with
4.2 CCS facilities32. The region has advanced thanks to supportive policy matters such as addressing emissions from natural gas power
frameworks, abundant geological storage, diverse stakeholder support, plants and industrial facilities, and how to optimize incentive
AMERICAS and a wealth of private-sector expertise. Notably, the United States structures and R&D programs.
of America (US) Congress continues a reinvigorated push toward
California’s LCFS is a credit-based trading mechanism aiming for
championing technology. In this environment which offers industry
a 20 percent reduction in the intensity of the state’s transportation
the confidence to invest, CCS projects continue to roll-out, cementing
fuels by 2030. Since January 2019, it has included a CCS protocol.
the region’s global position.
CCS FACILITIES IN THE AMERICAS CO2 CAPTURE ADVANCING CCS Recently trading at an average of USD194 per tonne of CO2, the credit
This region is home to 13 of the world’s These facilities combined capture 29.9 Million In this region, CCS deployment is supported This was a year of multiple milestones: applies to CCS projects that lower the emissions intensity of fuels in
19 large-scale operating CCS facilities. tonnes per annum (Mtpa) of CO2 . by strong policy frameworks, abundant the California market. DACCS projects anywhere in the world are
• The Shell Quest facility in Canada celebrated capturing its four
geological storage, diverse stakeholder included, in recognition of the fact that CO2 concentration in the
millionth tonne of CO2.
support and a wealth of private-sector atmosphere is a transnational problem.

CO2 experience • Eight new facilities in the Americas were added to the Institute’s
database of large-scale CCS facilities, creating a total of ten projects State-level action in the US has been plentiful. After California –
in various stages of development. There are many projects at historically regarded as the gold standard of climate policy – passed

2 IN CANADA 29.9 conceptualization stage; several will progress in coming years.


• Occidental Petroleum and Carbon Engineering announced the
its zero-carbon electricity mandate and carbon-neutrality by 2050
goal, other states followed. Six states33 now have 100 per cent carbon-

10 IN UNITED STATES Mtpa first large-scale direct air capture with carbon storage (DACCS)
project. With a capacity of 1 Mtpa, the project results from the
free energy goals in their electricity markets. States like Montana,
Louisiana, Texas, and North Dakota provide tax incentives for CCS
deployment, while others like Wyoming, are aiming to substantially
policy confidence offered by the federal 45Q tax credit and a
progress CCS.
NEW WAVE OF FACILITIES CCS-Amendment to California’s LCFS.
• The Oil and Gas Climate Initiative (OGCI) indicated that it will The US, which leads the world in progressing CCS and looks set to
In 2019 the Global CCS Institute added 8 new
large-scale facilities in the Americas to our invest in (what will be) the US’s largest dedicated geologic storage continue in first place, has excellent opportunities for demonstrating
database. project – an ammonia production facility by Wabash Valley the versatility of CCS applications in both power and in industry:
IN BRAZIL
1 Resources, storing 1.5 Mtpa of CO2.
1. The power sector accounts for 28 per cent of the US’s greenhouse

8 NEW
gas emissions34. About half of total new generation capacity
UNITED STATES OF AMERICA between now and 2050 will likely come from unabated fossil-
fired power35. These assets, expected to operate over a lifetime of
Section 45Q of the Internal Revenue Code establishes tax credits more than 30 years are risking to lock-in CO2 emissions through
FACILITES for storage of CO2. Congress extended and increased these in 2018
so they provide for USD35 per tonne of CO2 permanently stored via
mid-century. Gas fleets are also young and growing, and retiring
nuclear, which provides more than 60 per cent36 of carbon free
enhanced oil recovery and USD50 per tonne of CO2 stored geologically power, will probably be replaced only partially by zero-carbon
– if projects commence construction by 2024. Although seen as the resources. An analysis of 45Q has shown that it could spur retrofits
ACTIVE STATES KEY US POLICY of coal and natural gas power plants; capturing 49 Mtpa37 by 2030.
world’s most progressive CCS-specific incentive, Section 45Q is yet to
In the US, states that are active in CCS incentives Industrial sector Section 45Q of the Internal Revenue Code be formally implemented, creating ambiguity about which projects are CCS solutions in the United States will provide a blueprint for many

22
and progression are: California, Montana, Texas, accounts for a further establishes tax credits for storage of CO2 . eligible. The Internal Revenue Service, tasked with implementation, other countries to follow. In 2019, the Institute added four power
North Dakota, Louisiana and Wyoming. sought comments from stakeholders in mid-2019 and a draft guidance plant retrofits to our Institute database (CO2RE.CO).
Several CCS supportive bills were
introduced in 2019 including the USE IT Act. is expected by early 2020 at the latest. Stakeholders are seeking an 2. The US industrial sector accounts for another 22 per cent of total
WYOMING
California’s LCFS is a credit-based trading extension to the construction deadline. emissions. Some of these emissions stem from sources such as
MONTANA NORTH DAKOTA
ethanol or ammonia production, or natural gas processing, where
% mechanism applies to CCS projects that
lower the emissions intensity of fuels in
The IPCC’s Report on Global Warming of 1.5°C inspired a shift in
lawmakers' discourse, progressing the climate conversation to one
CO2 capture is at the low end of the cost scale38. These facilities
of US emissions. the California market. could be ideal targets for low-cost CCS commercialisation and
of debating solutions. Building on the passage of 45Q, several bills
technology optimisation. Cement and steel production are also
were introduced in 2019. The Utilising Significant Emissions with
This includes ethanol or ammonia
production and natural gas processing, CO2 Innovative Technologies (USE IT) Act, a top priority for many CCS
advocates, would provide further clarity on CO2 infrastructure
large CO2 emitters, and represent further opportunities.

where CO 2 capture is at the low end of the


cost scale, ideal targets for CCS. STORAGE
TAX CREDITS

REGIONAL DEVELOPMENTS TYPE OF CO2 MINIMUM SIZE OF ELIGIBLE CARBON RELEVANT LEVEL OF TAX CREDIT GIVEN
Clean Energy Ministerial held in Canada 2019. STORAGE/USE CAPTURE PLANT BY SIZE (KtCO2/YR) IN OPERATIONAL YEAR (USD/tCO2)
CALIFORNIA LOUISIANA
TEXAS Canada invested $25 million in Direct Air
Capture (DAC). OTHER
POWER INDUSTRIAL DIRECT AIR

$25M
PLANT FACILITY CAPTURE 2018 2019 2020 2021 2022 2023 2024 2025 2026 LATER
US EMISSIONS PROFILE AND THE POTENTIAL

INVESTED
FOR CCS TO MAKE A DIFFERENCE… DEDICATED
GEOLOGICAL 500 100 100 28 31 34 36 39 42 45 47 50
Power sector accounts for 28% of the STORAGE
US’s greenhouse gas emissions. In 2019,
the Institute added three power plant retrofits Brazil stored >3 Mtpa CO2. Stakeholder interest
to our Institute database. When operational in advancing CCS use; in coal, natural gas power STORAGE
500 100 100 17 19 22 24 26 28 31 33 35 INDEX
plants, ethanol sector. VIA EOR LINKED
will capture up to a further 10.3 Mtpa of CO2 .
CH4

>3 Mtpa
10.3
OTHER
Cement and steel production represent UTILISATION 25 25 25 17 19 22 24 26 28 31 33 35
further opportunities. CO2 PROCESSES*

MtCO2
ADDED CAPTURE CAPACITY
FROM COAL RETROFIT
World Bank CCS Trust Fund funding two CCS
pilot projects in Mexico; expected to proceed
in early 2020.
*Each CO2 source cannot be greater than 500 ktCO2/yr. Any credit will only apply
to the portion of the converted CO2 that can be shown to reduce overall emissions.

FIGURE 15  45Q TAX CREDIT39 

39 40
4.0  Regional Overviews CONTENTS
4.2 Americas < >

APPLICATIONS IN OPERATION 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+ DIRECT AIR CCS AT OIL & GAS CCS AT ALL OTHER CCS
CAPTURE PRODUCTION REFINERIES PROJECTS (E.G.
PROJECTS FACILITIES PROJECTS CCS WITH ETHANOL)
CHEMICAL
PRODUCTION INTEGRATED
LAKE
ILLINOIS INDUSTRIAL CHARLES MID- LOCATION OF Anywhere in the world Anywhere, provided they Anywhere, provided they Anywhere, provided they sell
CONTINENT CCS PROJECT sell the transportation fuel in sell the transportation fuel in the transportation fuel
METHANOL HUB
California California in California

HYDROGEN STORAGE SITE Onshore saline or depleted oil and gas resevoirs, or oil and gas resevoirs used for CO2 EOR
PRODUCTION GREAT AIR QUEST ACTL STURGEON
PLAINS PRODUCTS

CREDIT METHOD Project-based Project-based under the Project-based under the Project-based or fuel pathway
FERTISLISER
PRODUCTION Innovative Crude Provision Refinery Investment Credit
ENID
FERTILISER COFFFEYVILLE ACTL AGRIUM WABASH Program

EARLIETS DATE WHICH Any 2010 2016 Any


NATURAL GAS EXISTING PROJECTS
PROCESSING ELIGIBLE
SHUTE
CREEK PETROBRAS PRE-SALT REQUIREMENTS Project must meet requirements specified in the CCS protocol

TERRELL CENTURY PLANT ADDITIONAL RESTRICTIONS None Must acheive minimum None None
(FORMERLY CI or emission reduction
VAL VERDE)
LOST CABIN
FIGURE 17  DIFFERENT TYPES OF CCS PROJECTS THAT CAN
POWER QUALIFY TO GENERATE CREDITS UNDER THE CALIFORNIAN
GENERATION LOW CARBON FUEL STANDARD40
CARBONSAFE ILLINOIS HUB*

BOUNDARY DAM PETRA NOVA

DRY FORK
CCS Ambassador
PROJECT TUNDRA

= 1 Mtpa CO2 CIRCLE AREA


PROPORTIONATE TO CAPACITY
IN OPERATION IN CONSTRUCTION ADVANCED DEVELOPMENT
NEWTON B. JONES
President,
FIGURE 16  APPLICATIONS OF CCS FACILITIES: AMERICAS International Brotherhood of Boilermakers
*Size of the circle is proportional to the capture capacity of the facility.
Indicates the primary industry type of the facility among various options.

CANADA, CENTRAL AND SOUTH AMERICA


Interest in accelerating CCS deployment remains strong across the
Americas:
• Canada's Government joined the ranks of BHP, Occidental
Petroleum and Chevron through investing $25 million in CCUS is the global answer to climate change.
the Canadian Direct Air Capture (DAC) company Carbon
Engineering through Canada's Strategic Innovation Fund.
It is the only solution that can truly mitigate climate
• In Brazil, the Petrobras Santos Basin Pre-Salt Oil Field CCS has
change and provide reliable energy production
been separating CO2 onsite as part of natural gas processing since through a realistic mix of renewables and natural
2013 and is now storing 3 Mtpa. The captured CO2 is injected resources—all while preserving and creating jobs,
direct into the Lula, Sapinhoá and Lapa oil fields for enhanced oil economic growth and social stability.
recovery. Stakeholders are keen to speed up CCS use; mainly in
coal and natural gas power plants, but also in the ethanol sector. While CCUS is finally gaining limited awareness,
• With funding from the World Bank CCS Trust Fund, two CCS “[CCUS] IS THE ONLY we’re not yet scratching the surface on the volume
pilot projects are progressing in Mexico. The CO2 Capture Pilot of mainstream attention needed to scale up support
Project (CCPP) and the CO2 EOR and Storage Pilot Project (CESP). SOLUTION THAT CAN TRULY from legislators who can ensure government policies
Significant planning and scoping have been completed and the
projects are expected to proceed in early 2020. MITIGATE CLIMATE CHANGE and incentives are in place to expedite industry
CCUS investments.
The potential convergence of industry, transport and energy policies AND PROVIDE RELIABLE
under the umbrella of comprehensive climate action, is driving The urgency to bring viable CCUS projects to
government initiatives and policy innovation that supports CCS. ENERGY PRODUCTION life is now, and the International Brotherhood of
The focus must now be on these policies, and their ability to deliver
steel in the ground.
THROUGH A REALISTIC Boilermakers is fully committed to raising our
collective voices to advocate for CCUS as the bridge
Above: Petra Nova Carbon
MIX OF RENEWABLES AND to a cleaner energy future and the right solution to
Capture, United States of America;
right: Quest Facility, Canada.
NATURAL RESOURCES.” save our way of life and our planet.
Photo courtesy of Shell.

41 42
4.0  Regional Overviews CONTENTS
4.3 Europe < >

4.3 In November 2018, the European Commission (EC) published its


vision for a climate neutral Europe by 2050 in “A Clean Planet for
per cent from 2021 onwards, compared to 1.74 per cent currently.
This review has delivered a stronger carbon price, which has been

EUROPE all - A European strategic long-term vision for a prosperous, modern,


competitive and climate neutral economy41.” CCS is one of seven
fluctuating around 25 EUR for most of 2019. Another element added
during the 2018 revision, setting up the 10-billion EUR Innovation
building blocks in the strategy, and in the various scenarios put Fund, has been progressing well and several CCS projects will be ready
forward, its contribution ranges from 52 to 606 MtCO2 per year in to tap into its resources.
2050— a strong case for CCS in supporting Europe’s path to a climate
Aside from climate and energy policy, there is a major development
neutral economy. The strategy’s scenarios rely on CCS mainly for
CCS FACILITIES IN EUROPE in the field of sustainable finance in Europe, which can help direct
industrial decarbonisation, delivering negative emissions through
2 large scale CCS facilities in operation 10 large scale CCS facilities in various stages of CCS facilities in operation and development across financial flows towards wider deployment of CCS. The EU taxonomy
BECCS and producing low-carbon hydrogen.
in Norway, capturing and storing development (6 in the UK, 2 in the Netherlands, cement, power generation, waste-to-energy and for sustainable investments42, currently being negotiated between the
1.7 million tonnes per annum of CO2. 1 in Norway, 1 Ireland). When operational, these hydrogen production. Discussion around Europe’s 2050 target has shifted from “if” to Council of the EU, the European Parliament and the EC, will create a
facilities will capture: “how” climate neutrality will be delivered. This change has sparked common language for all actors in the financial system, steering public
renewed interest in CCS as one emission reduction technology and private capital toward sustainable investments. The technical

1.7 Mtpa 20.8 Mtpa needed in a portfolio of climate solutions. The EU’s long-term strategy
should be adopted in the coming months, before it is submitted to the
report on EU Taxonomy43 sets technical screening criteria for activities
that can make an important contribution to climate change mitigation.

of CO2 of CO2
UNFCCC in early 2020 as requested under the Paris Agreement. CCS is highlighted under several activities. If the technical criteria
and the outcome of political negotiations follows the current path, the
Under the Governance of the Energy Union Regulation, EU Member
taxonomy can become a strong driver for institutional investment in
States developed their draft National Energy and Climate Plans
UK Netherlands Norway Ireland CCS across the EU and, potentially, globally.
(NECPs) for 2021-2030. Each country took a close look at their energy
and climate targets together, breaking down silos and mapping their Norway, United Kingdom and the Netherlands are already strong
pathway to meet the 2030 targets. While CCS is reflected in many supporters of CCS, and the number of countries showing interest in
NECPs, details about how, and on what scale, these technologies will these technologies continues to increase. Most notably, Germany is
be deployed, are often not provided. The final versions of NECPs, talking about CCS again with Chancellor Angela Merkel confirming
due by the end of 2019, should reflect all ongoing and/or planned in May 2019 that Germany must reach climate neutrality by mid-

H
activities, as well as highlighting where CCS ought to be used because century. Three CCS facilities currently in development – Net Zero
of its strong potential to deliver emission reductions. Teesside, UK; Port of Rotterdam (PORTHOS), Netherlands; and
2 ATHOS (Belgium/Netherlands) – consider Germany to be one of their
The latest EU ETS review, finalised in 2018, strengthened the Market
CO2 sources in future expansion phases of their projects44.
Stability Reserve (the mechanism to reduce the surplus of emission
allowances) and increased the pace of emissions cuts. The overall
STORAGE POLICY number of emission allowances will decline at an annual rate of 2.2
Europe has over 300 gigatonnes (Gt) of CCS is one of the seven building blocks in the CCS contribution in strategy ranges from 52 to
CO2 geological storage space available.* European Commission's vision for a climate 606 MtCO2 per year in 2050— a strong case
neutral Europe by 2050. for CCS in supporting Europe’s path to a climate
neutral economy. INNOVATION FUND

3
GIGATONNES
CCS
2050
52 606
The Innovation Fund is the largest fund available for financing
CCS in Europe. It finances innovative low-carbon technologies and
processes in energy intensive industries, CCUS, renewable energy
and energy storage projects. Ten billion euros are hoped to be made
Up to 40 per cent of grant payments will be given in the
project preparation phase, based on pre-defined milestones.
The remaining 60 per cent, linked to innovation, are based on
verified emissions avoidance outcomes and can continue for up

MtCO2 MtCO2 available, based on a €22 carbon price when 450 million EU ETS
allowances are auctioned in 2020-30.
to 10 years. The fund’s simplicity, flexibility, increased synergies
and streamlined governance are a result of lessons learned from
its predecessor, NER300 programme.
Innovation Fund grants can be combined with other funding
FINANCE
sources; for example, with EU instruments like Horizon Europe The first call for proposals will be made in 2020, with regular calls
The Innovation Fund; largest fund available for EU taxonomy for sustainable investments can or Connecting Europe Facility, with national programmes, or with expected thereafter. Several planned CCS facilities are already well
financing CCS in Europe – 10 billion euros are play an important role to advance CCS.
private capital. positioned to submit proposals.
hoped to be made available**

€10B FEASABILITY
STUDY
GRANT AWARD

FEED
FINANCIAL CLOSE ENTRY INTO OPERATION
PROJECT MILESTONES

CONSTRUCTION
3-10YRS
ANNUAL INSTALLMENTS

REPORTING
PERIOD

HUBS AND CLUSTERS


Most CCS projects in Europe are now planned as Capturing CO2 from clusters of industrial
hubs and clusters. installations, instead of single sources, and using
shared infrastructure for the subsequent CO2 Up to 40% payment At least 60% payment
transportation and storage network, will drive

$
down unit costs across the CCS value chain.

CCS Not-depending on verified


emissions avoidance
Depending on verified
emissions avoidance
CLUSTER $
FIGURE 18  DISBURSEMENTS BASED ON MILESTONES45

*High confidence
**Based on a €22 carbon price when 450 million EU Emission Trading System
allowances are auctioned in 2020-30

43 44
4.0  Regional Overviews CONTENTS
4.3 Europe < >

Beyond the two operating projects in Norway, the full-scale project NORWAY CONTINUES TO ADVANCE In September, the Norwegian Government hosted a high-level
in Norway and PORTHOS in the Netherlands are the most advanced HUBS AND CLUSTERS IN EUROPE48 ITS EUROPEAN CCS AMBITION CCS conference in Oslo, together with the European Commission.
European CCS projects under development. Both are expected to reach During the event Equinor, on behalf of the Northern Lights partners,
final investment decision in 2020-21 and could operate as soon as The way CCS projects are planned in Europe has changed A leading country in CCS development globally, Norway has signed agreements to develop value chains in CCUS with:
2023-24. They offer open access transport and storage infrastructure considerably during the last decade. The focus used to be geologically stored more than 20Mt of CO2 in the past 20 years.
on building full chain solutions where one source of emissions • Air Liquide
and, in the last year, had discussions with regional emitters with an The Sleipner and Snøhvit projects were the first in the world to
interest to use this shared infrastructure. Third party CO2 storage would build their own transportation pipeline to their storage store CO2 offshore and are the only operational large scale CCS • ArcelorMittal
is an increasingly attractive business opportunity. site. Now, most projects are planned as hubs and clusters. facilities in Europe. • Ervia
Other European projects are in varying stages of development: Capturing CO2 from clusters of industrial installations, • Fortum Oyj
A planned full scale CCS project will involve capturing CO2 at multiple
instead of single sources, and using shared infrastructure industrial facilities, then transporting it for storage. Operated by • HeidelbergCement AG
• In October, the ATHOS project – a consortium of Gasunie, Energie for the subsequent CO2 transportation and storage network, Equinor with partners Shell and Total, the facility will uniquely use • Preem
Beheer Nederland B.V. (EBN), Port of Amsterdam and Tata Steel will drive down unit costs across the CCS value chain. ship-based transport, thus enabling the storage of CO2 for major • Stockholm Exergi
– finalised their feasibility study in the North Sea canal area. They Keeping a network open for third party CO2 deliveries, sources across North West Europe. The transport and storage element
showed that a CCUS network is technically feasible and that it could increases economies of scale. Using a mix of transportation The parties will cooperate on CO2 handling and transport
of the project – Northern Lights – will be open access infrastructure.
help companies in the area reduce their emissions by 7.5 MtCO2 including pipelines and ships – but also trains and trucks to Northern Lights.
per year by2030. – offers flexibility and accessibility to a wider range of The initial Norwegian sources of CO2 – Fortum’s Oslo Varme waste-to-
• The UK’s Teesside cluster gained the support of OGCI Climate CO2 sources around the industrial clusters. Several major energy plant and Heidelberg Cement’s Norcem cement plant in Brevik
Investments. A commercial scale gas-powered power plant industrial regions are planning CCS cluster development: – have performed FEED studies and site testing. A drilling campaign
equipped with CCS, it is expected to be the anchor project will start soon to study the suitability and capacity of the Johansen
for the cluster, now named Net Zero Teesside. • Netherlands – Port of Rotterdam and Port of Amsterdam formation in the Norwegian Continental Shelf for storing CO2.
• Pilot testing of C-Capture’s amine free capture technology was • Belgium – Port of Antwerp
Based on its experience with CCS, the Norwegian Government
performed at the UK’s largest 3.8GW power station, Drax46. • UK – Humber and Teesside. hopes to use this project as the catalyst for wider deployment of
By capturing emissions from biomass combustion, this important The Ruhr industrial cluster in Germany is expected to CCS in Europe. The use of sea-based transport means industry
project could deliver negative emissions at scale. Drax, Equinor benefit from the CCS projects developed across the across Western Europe can also store and transport their CO2
and National Grid Ventures announced in May 2019 that they plan border in the Netherlands. through Northern Lights.
to develop a net zero CCS and hydrogen cluster in the surrounding
Humber region, called Zero Carbon Humber. A dedicated multi-partner ALIGN-CCUS project aims49
to contribute to the transformation of six European industrial
Existing and developing European projects rely on offshore CO2 regions into economically robust, low-carbon centres by 2025. NORWEGIAN FULL-SCALE PROJECT
storage, avoiding public opposition to onshore storage. Several plan The project will create blueprints for developing low-emission 3RD PARTY VOLUMES OF CO2
to re-use oil and gas infrastructure; improving project economics and industry clusters through CCUS and assess commercial ALTERNATIVE STORAGE PROJECTS
utilising well understood geological features. The Ervia Cork CCS models for CO2 cluster developments, including public-private
project in Ireland, for example, is expected to use the depleted Kinsale partnerships. CO2 HUB
area offshore gas fields and infrastructure to store CO2 produced by NORDLAND
two combined cycle gas turbines and nearby industry. The regulatory barrier of non-pipeline CO2 transport under
EU ETS will need to be addressed in the next couple of years
Hydrogen is playing an increasingly important role in the strategies for Europe to fully benefit from the economies of scale offered
of European countries who want to decarbonise key sectors like by hubs and clusters (see section 3.4 for more information).
transport, industrial processes and domestic heat. Several CCS
projects incorporate the production of hydrogen through steam
methane reforming of natural gas, while capturing and storing
the associated CO2. The Acorn CCS and hydrogen project at the
St Fergus Gas terminal in Scotland is a notable initiative. Around
35 per cent of all UK natural gas comes onshore at St Fergus,
NORCEM AS
providing an ideal location for blending hydrogen into the
national grid and decarbonising natural gas47. NORTHERN LIGHTS FORTUM
STORAGE SITE OLSO VARME
EYDE STOCKHOLM
CLUSTER BORG CO2 EXERGI

ACORN PREEM
LYSEKIL
PREEM
GOTHENBURG

NET ZERO
TEESSIDE

H2M, EEMSHAVEN ARCELORMITTAL


HAMBURG
AIRLIQUIDE
PORT ANTWERP
& FLUXYS
ERVIA ARCELORMITTAL
DUNKERQUE
ARCELORMITTAL
GENT

Sleipner field drone 2019, Norway. Port of Rotterdam, Netherlands. FIGURE 19  POTENTIAL SOURCES OF CO2 FOR NORTHERN LIGHTS50
Photo courtesy of Equinor. Photo courtesty of The Port of Rotterdam Authority.

45 46
4.0  Regional Overviews CONTENTS
4.3 Europe < >

PHASE ONE: ANCHOR PROJECTS PHASE TWO: SCALE-UP OF BECCS & HYDROGEN
CCS DEVELOPMENTS IN THE UK At the 2018 UN Climate Change Conference (COP 24) in Poland,
the UK Government shared its world-leading ambition to develop
In November 2018, the UK Government released “UK Carbon the first ‘net-zero carbon’ cluster by 2040. Backed by up to £170m,
Capture Usage and Storage Deployment Pathway: An Action Plan”. the announcement is already stimulating UK clusters. Hydrogen
This year, following the UK Committee on Climate Change's production is a common feature:
recommendations, the UK legislated a net zero target by 2050.
• Net Zero Teesside plans to develop an industrial cluster in the North
The value of CCS was highlighted in the ‘Net Zero’ report,
East of England. It is one of five global CCUS hubs supported by
where the Committee on Climate Change describes the technology
OGCI’s CCUS KickStarter initiative. Each year the cluster plans to
as “a necessity, not an option”.
capture up to 6 million tonnes of CO2 from a gas fired power plant
The UK is working towards meeting the goals set out in its Action and other industrial sources and could be fully operational by 2030.
Plan and is on track to achieve its aspiration of deploying the UK’s • Zero Carbon Humber is a partnership to build a zero-carbon
first CCUS facility from the mid-2020s: industrial cluster in England’s Humber region. Pilot testing for
• In March a CCUS Advisory Group was established, drawing on a BECCS project is underway at the UK’s largest power station,
experts from the industry, finance and legal sectors to consider Drax, and there are plans for a hydrogen and CCS network in the 2026 2027 2028-35 2028-40
challenges facing CCUS in the UK. The Group’s work culminated surrounding area. Figure 21 shows the anticipated timeline for the
Hydrogen (H2) demonstrator and test Bioenergy carbon capture and storage BECCS technology installed on all Hydrogen production scaled up to
in a report – “Investment Frameworks for Development of CCUS project, culminating in over 10 Mtpa of CO2 abated51.
facility constructed in the Humber. (BECCS) technology installed on one Drax biomass units, generating 16 provide low carbon fuel to multiple
in the UK”. • The Acorn project plans a major hydrogen and CCS hub at St Fergus Drax biomass unit. million tonnes of negative emissions industries across the region
• A government consultation in July examined business models in Scotland. Here, 35 per cent of all UK natural gas comes onshore, per year
that could work for CCUS. The proposed models use different making it the ideal place to blend hydrogen directly into the grid.
mechanisms to support capture from power, industry and hydrogen The project took a major step forward in late 2018 when it was
production separately, and transport and storage combined. awarded the first carbon dioxide appraisal and storage licence by FIGURE 21  ZERO CARBON HUMBER PROJECT TIMELINE
the Oil and Gas Authority, the independent regulator and licensing
• Since many of the UK’S oil and gas assets are nearing the end authority for offshore carbon dioxide storage in the UK.
of their economic lives, a second consultation looked at the
potential to re-use their infrastructure. Infrastructure In parallel to these major projects, innovative UK companies continue
repurposing can defer decommissioning costs, while to develop novel CCUS technologies. Two examples of success are:
substantially reducing transport and storage costs.
• C-Capture has developed a non-amine based capture technology, CCS Ambassador
Several planned UK CCUS projects will take this option.
now being tested at Drax.
• Carbon Clean Solutions was selected for the world’s largest
cement-based carbon capture project in India, using its
patented CDRMax technology. ALLARD CASTELEIN
With Scotland hosting COP 26, the year ahead is bound to be CEO,
another where CCUS takes purposeful strides forward in the UK. Port of Rotterdam

In Rotterdam, work is being carried out on a unique


CCS project. The concept of this project is based on a
pipeline measuring approximately 30 km that runs
through Rotterdam’s port and industrial area. This
pipeline will serve as a basic infrastructure that a variety
GRANGEMOUTH of industrial parties will be able to connect to in order to
4.3 MTCO2 dispose of the CO2 captured at their facilities. This CO2
will be transported to an empty natural gas field 20-25
TEESSIDE
3.1 MTCO2 km off the coast under the North Sea. By 2030, we expect
to store between two and five million tonnes of CO2
MERSEYSIDE
HUMBERSIDE every year.
12.4 MTCO2
2.6 MTCO2
Right now the planning is geared towards definitive
agreements with a number of industries in Rotterdam
“BY 2030, WE in 2020. At the same time, the Dutch Government is
developing a programme of subsidies to help level out
SOUTH WALES
8.2 MTCO2 St Fergus Terminal, United Kingdom. EXPECT TO STORE the difference in costs between the EU ETS and CCS.
SOUTHAMPTON
2.6 MTCO2
Photo credit: North Sea Midstream Partners (NSMP).
BETWEEN TWO The system is scheduled to be operational by the end
of 2023, after which it will also be possible to connect
AND FIVE MILLION CO2 sources from outside Rotterdam. For instance
TONNES OF CO2 from industry elsewhere in the Netherlands, Antwerp
or the German Ruhr region.
FIGURE 20  UNITED KINGDOM INDUSTRIAL EMISSIONS HUBS
AND CLUSTERS 
EVERY YEAR.”
This Rotterdam-based CCS project will serve two
main objects: first, CO2 emissions will be substantially
reduced, and second, the investment climate in
Rotterdam will be strengthened because companies will
have the option of connecting to the CCS infrastructure.

47 48
4.0  Regional Overviews CONTENTS
4.4  Middle East and Central Asia < >

4.4 MIDDLE EAST

MIDDLE EAST Natural gas demand is expected to continue to rise in the Middle
East, driven by the growing industrial sector, power generation
In the next decade,
AND CENTRAL ASIA demands and the growing petrochemicals industry52. Countries
in the region are increasingly aware of the need to decarbonise
Abu Dhabi National Oil
their oil and gas production and the importance of diversifying
OVERVIEW
Region has vast and accessible underground 2 large scale CCS facilities in operation:
toward new energy economies. CCS can play an important role in
the Middle East to support energy demand and the transition to Company aims to scale-up
CCS deployment six-fold,
Capturing 1.6 Mtpa of CO2 1 in iron and steel production and cleaner energy sources. With vast and accessible underground CO2
storage potential of 5-30 Gigatonnes*
1 in natural gas processing storage potential53, abundant cost-competitive gas resources54 and
hydrogen production facilities with excess capacity, the Middle East
has potential to become a hub for CCS development and deployment. capturing five million
The region could also use its location and natural gas and pore
space resources to develop a clean hydrogen export industry. Clean tonnes of CO2 by 2030.
hydrogen production, from natural gas with CCS, in the Middle East

1.6
is estimated to cost USD1.50/kg H255.
Saudi Arabia and the United Arab Emirates (UAE) lead this region’s

5-30 Gt
efforts, each hosting one large-scale CCS facility that is supported
and operated by State Owned Enterprises. Abu Dhabi captures CO2
Mtpa from steel production and Uthmaniyah, Saudi Arabia from natural
gas processing – both supply CO2 for enhanced oil recovery.
Abu Dhabi National Oil Company (ADNOC) recently announced
HYDROGEN OPPORTUNITY CENTRAL ASIA that it would be scaling up efforts to reduce its emissions 10 percent,
by 2023. CCS will play a role56. In the next decade, ADNOC aims to
Low carbon hydrogen production, from natural gas with CCS, Rapidly increasing energy demands being driven by growing population, scale-up CCS deployment six-fold, capturing five million tonnes of
in the Middle East is estimated to cost only USD1.50/kg rising living standards and urbanisation that is largely met by fossil fuels.
CO2 by 2030. Emissions will be captured from either the Habshan-
Bab complex, or the Shah plant57.
In October 2019, Qatar, now the second’s largest exporter of LNG58,
announced that it aims to capture and store five million tonnes of
CO2 from LNG facilities by 202559. Qatar Petroleum has announced

H
a facility at the industrial hub Ras Laffan with the potential to capture
and store 2.1 million tonnes per annum, which could become the
2 largest CCS facility in the Middle East and North Africa region60.

1.50
The captured CO2 will be used for EOR.
Saudi Arabia and the UAE are members of Mission Innovation
and the Clean Energy Ministerial. The two nations have each
committed to doubling public investment in clean energy research

$US /kg and development and are participating in the Clean Energy
Ministerial’s CCUS initiative.

CENTRAL ASIA
POLICY AND CCS MOVEMENT
In Central Asia, a growing population, rising living standards
Saudi Arabia and the United Arab Emirates both members
and urbanisation are creating rapidly increasing energy demands.
of Mission Innovation and the Clean Energy Ministerial.
Decarbonising the region’s energy system is key to achieving global These are largely met via abundant and inexpensive fossil fuel
climate targets. CCS has a role to play. reserves. For many countries, such as Kazakhstan and Turkmenistan,
energy production is a central part of the economy and they rely
heavily on fossil fuel. Home to some of the most energy intensive
economies in the world, decarbonising this region’s energy system
will be key to achieving global climate targets.
For several countries in the region, CCS could play a role in
supporting efforts to decarbonise energy sources. In Kazakstan for
example coal, oil and gas contribute 98 per cent of the country’s
primary energy supply61. The country is interested in CCS, given
Both countries have committed to doubling public investment in clean
its significant coal reserves and dependence on mining. Natural
energy research and development and are participating in the Clean

2
Energy Ministerial’s CCUS initiative.
resources company, Eurasian Resources Group (ERG) is currently
exploring how to use CCS to reduce emissions from its fossil fuel
power generation fleet. Initial investigations are focused on the
feasibility of retrofitting a coal fired power plant with a 2Mtpa
CCS facility. If successful, ERG will construct and operate a
pilot capture plant.

*Medium confidence

49 50
4.0  Regional Overviews CONTENTS
4.5  Asia Pacific < >

The Asia Pacific region is the source of just over half of the world’s total Indian company Dalmia Cement has committed to becoming
4.5 CO2 emissions. This heavy emissions profile is driven by large, rapidly carbon negative by 2040 and sees CCU as one of the solutions
growing and developing economies which rely on fossil fuels for power it needs to get there. In September 2019, the company announced
ASIA PACIFIC generation. Many countries, particularly those across South East plans for a large scale 0.5 Mtpa carbon capture facility in Tamil
Asia, have young fleets of fossil fuel power stations with decades of Nadu, in partnership with Carbon Clean Solutions who will provide
economic life, and are planning more. There are 352 GW of coal fired the plant’s technology. Dalmia is looking for multiple utilisation
power plants under construction or in planning for the near-future. streams from the carbon capture plant.
EMISSIONS PROFILE CCS In 2017, the Asia Pacific was responsible for 72 per cent of the world’s
Asia Pacific region is the source of just over 50% Led by China and India, Asia Pacific economies Region has 12 large-scale facilities coal consumption62. China made up nearly half of this; followed by JAPAN
of the world’s total CO2 emissions which is also produce more than half of the world’s either operating or in various South East Asia, Korea and Japan. Increasing coal power generation
driven by fossil fuel reliance. most emissions-intense products, such as stages of development. in Indonesia, Bangladesh, Philippines and Vietnam is driving future The Japanese Ministry of Economy, Trade and Industry (METI)
steel and cement. forecast demand. and Ministry of the Environment (MOE) continue to drive Japan’s

12
comprehensive CCS program. This program is multi-dimensional,
Switching from coal to gas for industrial and residential uses, addressing the full CCS value chain from the development, and
+ 50% particularly in China, has increased demand for liquefied natural
gas63. It is predicted to account for almost 60 per cent of total global
demonstration of capture technologies, investigating effective
regulatory models, exploring policy options for commercial
energy consumption by 202464. Led by China and India, Asia Pacific deployment, identifying and characterizing storage reservoirs and
economies also produce more than half of the world’s most emissions- CO2 transport options, and understanding CCS business models.
intense products, such as steel65 and cement66. In June, the Japanese Government submitted its Long-Term Strategy
+ 50% These challenges – combined with inertia around developing low- under the Paris Agreement, to the UNFCCC. The strategy identifies
carbon policy mechanisms and lack of legal and regulatory regimes CCS alongside other emission-reduction technologies, to deliver
to incentivise CCS investment – could create the assumption that there deep emission reductions to power generation and industrial
In 2017, Asia Pacific region was responsible for Currently 352 GW of coal fired power is little room for CCS technologies. But, with air pollution on the rise, processes including the production of clean hydrogen, and states
72 per cent of the world’s coal consumption. plants under construction or in planning. CCS deployment cannot happen soon enough. Encouragingly, in the the Government of Japan’s intention to collaborate with the private

72%
past year, the Asia Pacific has continued to strengthen its position as sector and other governments on a range of initiatives designed to
one of the most active CCS regions in the world, with 12 large-scale reduce barriers to CCS deployment.
facilities either operating or in various stages of development67. The Hydrogen Energy Supply Chain project (HESC) is a significant
example of Japanese government collaboration with the private
CHINA sector and other governments to commercialise CCS. This project

352
being developed by Kawasaki Heavy Industries (KHI), Electric
China leads CCS activity across the Asia Pacific with one large-scale Power Development Co. (J-Power), Iwatani Corporation, Marubeni
facility in operation, two in construction and five in early development. Corporation, Sumitomo Corporation and AGL, with the support of
China also contributes almost one third of the world’s CO2 emissions the Governments of Japan, Australia and the State of Victoria, will
GW and has the most urgent requirement to reduce them. demonstrate the production of hydrogen from coal in the Latrobe
Valley of Victoria and the transport of hydrogen by ship from
Following the 2018 restructure, the Chinese Government Australia to Japan. Construction of the gasifier commenced
CHINA INDIA focused on a more coordinated approach to general environmental in November 2019 and first hydrogen production is expected by
China contributes almost 1 large-scale facility in In 2018, India’s emissions IEA estimates that, by 2060, India will account management, combining emissions reductions with air pollutant 2021. If this pilot is successful, an investment decision to construct
one third of the world’s operation, 2 in construction rose by 4.8 per cent. for 20 per cent of global industrial CO2 controls, to stimulate new industries and jobs. Their new National a commercial scale clean hydrogen production facility with CCS in
CO2 emissions. and 5 in early development. emissions being captured and stored. CCUS Professional Committee will provide government with direct the Latrobe Valley, to supply Japan could be made in the mid 2020s.
China leads CCS activity 2018 2060 support and advice on relevant industrial standards and policy-
making, striving to enhance international cooperation on CCS.
across the Asia Pacific.
4.8% 20% In May 2019, the latest Roadmap for CCUS in China was published.
It clarified the strategic position of CCUS and proposed mid to long-
term targets and priorities for achieving low carbon transition
through affordable, feasible and reliable CCUS technologies.
ALMOST The Institute expects that these significant policy commitments to
33% cut emissions and advance low carbon technologies will advance
the deployment of CCS.

INDIA
AUSTRALIA JAPAN In 2018, India’s emissions rose by 4.8 per cent, alongside a sharp
Policy: ambition to become the increase in energy demand and a five per cent growth in demand
2019 commencement of the When fully operational, Gorgon will 5 pilot and demonstration
world's 19th large-scale CCS CCS facilities. world’s leading emission free for coal68. It has the world’s third largest coal fleet69, with an average
be the world’s largest dedicated
project, a first for Australia. geological storage facility. hydrogen society and views CCS plant age of 16 years70 and growing infrastructure demands which
as a necessary part of achieving this. draw on energy intensive materials like steel and cement, of which

5
India is the world’s second largest global producer. Importantly, in
WORLD'S 19TH its clean technology scenario, the IEA estimates that, by 2060, India
will account for 20 per cent of global industrial CO2 emissions capture
LARGE-SCALE and storage71. CCS can underpin a meaningful energy transition for Osaki CoolGen facility, Japan.
CCS PROJECT this region, offering rapid decarbonisation for clean and sustainable

3.4-4
economic development.

Mtpa
H 2

51 52
4.0  Regional Overviews CONTENTS
4.5  Asia Pacific CCS Ambassadors < >

Other 2019 updates for CCS in Japan:


• With ongoing support from Japan’s Ministry of Economy,
CCS IN NEW ZEALAND: PROJECT POUAKAI IIDA YUJI SHOICHI ISHII
Trade and Industry, CCS Co. Ltd’s Tomakomai CCS facility, Project Pouakai is a clean power generation and clean hydrogen,
remains Asia’s first full-cycle CCS hydrogen plant. In 2019, ammonia and synthetic nitrogen fertiliser production complex,
it reached a capture milestone of 300,000 tonnes of CO2, currently being established in New Zealand’s Taranaki Region.
and continued intensive monitoring of storages. It draws on exciting new technological developments that enable
• Construction continued at Toshiba Corporation’s 49MW Mikawa economical production of electricity and hydrogen, with full
power plant in the Fukuoka Prefecture for biomass (and coal) carbon capture. It could also produce enough urea to meet the
with carbon capture. Completion is expected in early 2020. Director-General,
needs of the whole New Zealand agriculture sector, and more.
Industrial Science and Technology
• A new CO2 capture plant was established in August 2019, Policy and Environment Bureau
Owned by 8Rivers, a US based infrastructure technology firm,
continuing progress at the Osaki CoolGen facility in the Hiroshima Ministry of Economy, Trade and President,
the project is being developed by Pouakai NZ Limited Partnership
Prefecture. The JPOWER and Chugoku Electric Power Company’s Industry (METI), Japan Japan CCS Co. Ltd
(“Pouakai LP”), it is expected to come online by 2024. Once
166 MW oxygen-blown integrated gasification combined cycle
operational, the Pouakai facility will produce approximately 600
(IGCC) facility will separate and capture CO2 from the end of 2019.
tonnes of zero-emissions hydrogen per day. It is expected to use,
Solid oxide fuel cells will make up stage three.
in one cohesive natural gas-fed facility, three process technologies: The government of Japan approved “the Long-Term Strategy Since 2012, Japan CCS has been steadily accumulating numerous
• Toshiba’s carbon capture and utilisation system at the Saga City under Paris Agreement” at a cabinet meeting in June 2019. The results and achievements in the Tomakomai CCS Demonstration
Waste Incineration Plant continued operating, using captured • NET Power’s Allam Cycle (see page 64) electricity generation.
Strategy holds a long-term vision of reducing GHG emissions by Project, under the leadership of the Japanese Government and the
CO2 for algae culture. • 8Rivers’ 8RH2 hydrogen production technology. 80 per cent by 2050, proclaiming “a decarbonized society” as its warm support and cooperation of the people of Tomakomai City,
• ammonia synthesis and synthetic nitrogen fertiliser production ultimate goal, and aiming to accomplish it as early as possible led by Mayor Iwakura.
train consuming internally-produced feedstocks, all sharing in the second half of this century. Under this long-term vision,
AUSTRALIA a common air separation unit. The Tomakomai CCS Demonstration Project is playing an
CCS is regarded as a technology contributing to substantial GHG
important role of firstly to achieve the objective of demonstrating a
If Australia is to contribute to global emissions reduction goals at emission reductions in the future.
8Rivers has been developing Allam Cycle technology since 2008, full-chain CCS system comprising the capture, injection and storage
the lowest possible cost, CCS is essential. It can also help decarbonise including raising development capital through NET Power from So far, Japan has been working on a large-scale demonstration from onshore into sub-seabed reservoirs of a cumulative amount
energy-intensive industries that depend on fossil fuels, enabling just Exelon, McDermott and Occidental Petroleum and NP. test at Tomakomai, Hokkaido, research and development on CO2 of 300,000 tonnes of CO2, and further to resolve the challenges
transitions for many regional communities who rely on mining for A successful 50MW reference plant exists in La Porte, near separation and safety management technologies, and a study towards the practical use of CCS technology in Japan post 2020.
economic and social sustainability. Australia is in a good position to Houston, Texas. In combination with 8RH2 technology, it’s of suitable storage sites, aiming for the practical application of
embrace CCS, with a well-developed legal and regulatory framework, expected to cut feedstock (hydrogen, power and nitrogen) input Reflecting on our trajectory towards this objective, we achieved
the CCS technology around 2020. Especially, the demonstration
and moderate to high confidence that over 400Gt of geological storage costs in ammonia and synthetic nitrogen-fertiliser production. 100,000 tonnes in November 2017, 200,000 tonnes in August
project at Tomakomai, which draws global attention, achieved the
capacity is available nationally. 2018, and en route to achieving our objective by the end of 2019.
accumulative CO2 injection amount of 280,000 ton as of the end of
Project Pouakai will have a process approximately 25 per cent
In 2019: September 2019, having made successful progress in coordination Our achievement of safe and secure operation of the Tomakomai
more efficient than leading fertiliser plants globally, while
with local stakeholders. Project in the vicinity of a large city, and in spite of major
• Gorgon commenced in August – the world’s nineteenth large- enabling high-efficiency baseload and peak power generation.
earthquakes and disasters has established that CCS is a safe
scale CCS project and Australia’s first. When fully operational, Meanwhile, in order to realize the future societal implementation
and sound mitigation technology against global warming. Also,
CO2 injection at this natural gas processing facility will lead to of CCS in Japan, further reduction of CCS costs and availability of
in conjunction with the demonstration of CCS technology, we
CO2 storage of around 3.4-4 Mtpa. It will be the world’s largest transportation from distant CO2 sources to suitable storage sites
have been active in fostering the acceptance of CCS by the local
dedicated geological storage facility. with enough potential are issues needing to be addressed. Social
community, and have been steadily advancing our global
acceptance of CCS needs to be ensured as well. Efforts are needed
• Momentum continued around the Hydrogen Energy Supply warming efforts together with the local community.
to proceed with the full chain of economic and safe separation and
Chain (HESC) pilot project in the LaTrobe Valley. Construction
capture, transportation, and storage, under appropriate division Our efforts in Japan in countering global warming have been
of the pilot brown coal gasification plant, which will produce
of roles between the government and the private sector. received very highly internationally, and we have widely promoted
hydrogen, commenced in late 2019.
the storage of CO2 into the offshore sub-seabed. Of particular
• Victoria’s CarbonNet project continued to consider the potential Looking at efforts in other countries, “the Long-Term Strategy
note is our deep collaborative relationship with the Global CCS
for establishing a commercial scale CCS transport and CO2 under Paris Agreement” promotes to “seek international
Institute, which has been instrumental is disseminating widely
storage network. It included field investigation activities such collaboration on research and development, demonstration,
our achievements in the international scene. The trust that has
as geophysical and geotechnical surveys. standardization and further rulemaking.” Participating in the
been extended to us by the Institute has inspired us in our day-
• Advanced research by the CO2CRC continued, with stage three CEM CCUS Initiative and the IEA CCUS Summit among others
to-day activities has led us on a path towards contributing to the
project work beginning at the Otway National CCS Research so far, Japan has been actively promoting efforts for further
development of CCS in the world, for which we are truly grateful.
Facility. deployment of CCUS, while supporting overseas operations of
its private companies under bilateral cooperation with countries As has been pointed out in the IPCC SR15 report, the earth in
The IEA’s 2018 Review of Australia’s Energy Policies stated that: such as the US, Indonesia, and Saudi Arabia. Japan continues to which we live is experiencing serious consequences of global
“Australia is well placed to demonstrate cutting-edge technologies, seek for such multilateral and bilateral cooperation. warming. In recent years, Japan has suffered extensive damage
including concentrated solar power, battery storage and carbon from heavy rains and giant typhoons caused by rising sea water
capture and storage.”72 The IEA urged Commonwealth and As a technology that is capable of reducing substantial CO2
temperatures, and many people are starting to witness firsthand
State Governments to step up support for technology R&D and emissions, it is important not only for Japan but also for the
the effects of the extreme changes in the global environment.
commercialisation, including through the Australian Renewable entire world to put CCS into practical use and realize its
Energy Agency (ARENA) and the Clean Energy Finance Corporation commercialisation. I would like to extend my respect to We consider our efforts in global warming countermeasures
(CEFC). activities of the Global CCS Institute, which is working to through the promotion of CCS to be our duty, and will continue
promote the worldwide deployment of CCS. our active engagement in international activities.
To fully realise the opportunities offered by CCS, Australia will need
a dedicated and expanded focus on creating supportive policy and To this end, under the guidance of the Japanese Government,
addressing legal and regulatory barriers to deployment, across both and in collaboration with the local and global community,
State and Federal jurisdictions. we will endeavor towards the improvement of our technical
“AS A TECHNOLOGY THAT IS CAPABLE OF capabilities and the large-scale deployment of CCS in Japan and
REDUCING SUBSTANTIAL CO2 EMISSIONS, abroad. While aiming to proceed to the next step in CCUS which
takes into perspective the efficient use of CO2, we will continue
IT IS IMPORTANT NOT ONLY FOR JAPAN our international activities in order that the achievements of
BUT ALSO FOR THE ENTIRE WORLD TO the Tomakomai CCS Demonstration Project are shared and
PUT CCS INTO PRACTICAL USE AND effectively utilised not only in Japan but also abroad as pioneering
accomplishments in offshore sub-seabed CO2 storage, and in
REALIZE ITS COMMERCIALISATION.” doing so make a small contribution towards the mitigation of
global warming.

53 54
CONTENTS
< >

5.0
CCS DEVELOPMENT:
TECHNOLOGY AND APPLICATIONS

1.0 INTRODUCTION
1.1 About Global CCS Institute
1.2 About the Report
1.3 Acronyms
1.4 CEO Foreword

2.0 MEETING THE CLIMATE CHALLENGE:


THE NEED FOR CCS

3.0 GLOBAL STATUS OF CCS


3.1 Global CCS Facilities Update
3.2 Policy Levers for Accelerating Deployment
3.3 Global CO2 Storage Overview
3.4 Legal and Regulatory Overview

4.0 REGIONAL OVERVIEWS


4.1 International Climate Policy Overview
4.2 Americas
4.3 Europe
4.4 Middle East and Central Asia
4.5 Asia Pacific

5.0 CCS DEVELOPMENT:


TECHNOLOGY AND APPLICATIONS
5.1 Natural Gas
5.2 Hydrogen
5.3 CCS in the Power Sector
5.4 Bioenergy with Carbon Capture
and Storage (BECCS)
5.5 Direct Air Capture (DAC)
5.6 CO2 Utilisation
5.7 CCS Innovation
5.8 Industry’s Transition to a Net-zero Future

6.0 APPENDICES

7.0 REFERENCES

55
5.0  CCS development: Technology and Applications CONTENTS
5.1  Natural Gas < >

Demand for clean hydrogen is expected to grow strongly.


5.1 THE ALLAM CYCLE OPPORTUNITY 5.2 A briefing paper prepared for the Australian Commonwealth
and State Governments on the development of a National
NATURAL GAS A new gas-based power generation technology is being developed HYDROGEN Hydrogen Strategy envisages demand exceeding 530 Mtpa
by NetPower which offers the promise of electricity generation by 205090, up from 70 Mtpa today91.
with carbon capture for the same cost as conventional natural
THE FOCUS ON HYDROGEN Currently, 98 per cent of global hydrogen production is from
DECARBONISING POWER, INDUSTRY AND gas combined cycle generation. The technology utilises the Allam
unabated fossil fuels, around three quarters92 stemming from
KICK-STARTING THE ENERGY TRANSITION Cycle. In a conventional natural gas combined cycle generator,
Hydrogen regained the spotlight in 2019 as a multipurpose, clean fuel natural gas. CO2 emissions from its production are approximately
the combustion gases from methane burnt in air drive a
for a net-zero future, producing no greenhouse gas emissions when 830 Mtpa93, equivalent to the annual emissions of the UK in 201894.
In 2018, demand for natural gas grew at its fastest pace since turbine which in turn drives a generator to produce electricity.
used. The breadth of regions, countries and cities with strategies and To meet climate targets, hydrogen must be produced via zero or very
2010, accounting for almost half of added global energy demand73. The exhaust gases from the turbine then pass through a heat
supportive policies for using and producing hydrogen, demonstrates low emission pathways. The European Commission95 and several
It is expected to grow at about 1.6 per cent per year through to exchanger to heat water creating steam which drives a second
global recognition of the fuel’s potential to decarbonise economies88. countries have already directly identified CCS as a key consideration
2024, largely because it is seen as a fix to worsening air quality turbine, also connected to the generator, producing additional
In 2018 alone, the EU and 18 national governments made notable for achieving this96. Australia, New Zealand, Japan, China, the US and
in non-OECD countries, can replace retiring coal and nuclear in power. The flue gases consist mostly of nitrogen (from air),
hydrogen announcements and by mid-2019 there were 50 incentives the Netherlands have also indicated its importance in their hydrogen
Europe, and is undercutting coal in the US74. The IEA’s Sustainable carbon dioxide and water. Capturing the carbon dioxide from
in place globally to support its use89. Hydrogen is expected to play a policies (see Appendix 6.3 for details).
Development Scenario75 sees gas demand stabilising slightly below the flue gases of a conventional gas powered generator requires
this forecast somewhere between the mid-2020s and 2040. While the installation and operation of a capture plant to separate the major role in decarbonising industrial processes, transport, domestic
gas power generation produces half the carbon dioxide emissions carbon dioxide, which makes up only about 10 per cent, from heating, and possibly electricity generation (see Figure 23 below).
of coal, at around 350 kg CO2/mega watt hour (MWh) for the most the other gases, mostly nitrogen. This adds cost and reduces the
efficient combined cycle gas plant, it is not considered a low emissions amount of electricity produced. In a conventional gas powered
technology. Natural gas production and processing also produce generator, the power required to run the carbon dioxide capture
significant CO2 emissions. plant may reduce the overall efficiency of the generator by 10 INPUTS & FUELS
to 15 percentage points.
Eliminating almost all greenhouse gas emissions along the natural
gas value chain is necessary if we are to meet the target of net-zero The Allam cycle burns gas in an atmosphere of oxygen and
emissions by mid-century. More than 700 Mtpa76 of indirect CO2 carbon dioxide producing only carbon dioxide and water in the NATURAL GAS BIOMASS OIL
COAL
emissions – almost equal to the emissions of Germany in 201677 – combustion gases, which then drive a turbine and a generator.
could be eliminated from oil and gas operations through the The hot exhaust gases pass though a heat exchanger, condensing
application of CCS. Applying CCS at gas processing facilities costs the water (which is removed), the remaining pure carbon dioxide
around USD20-25 per tonne CO278. It is not only one of the lowest is re-compressed and an amount equal to that continuously added
cost CCS-applications, but is already capturing 25 Mtpa79 at ten of from the combustion of methane is bled off at high pressure
19 operating large-scale CCS facilities80. Even so, roughly 150 Mtpa81 ready for transport and geological storage. The remaining carbon PRODUCTION
of effectively pure CO2 is still being vented from facilities around the dioxide is re-heated in the heat exchanger and recycled into the CCS
globe. CCS can play a role in laying out a sustainable path for natural combustion unit and turbine.
gas to become one of the preferred fuels of the future. REFORMER CO2 GASIFICATION HYDROGEN
Even though significant power is required by the air separation STORAGE STORAGE
PLANT PLANT
The liquified natural gas trade is forecast to grow by a quarter to unit necessary to produce the oxygen for the combustor, the
202482. The SDS expects it to increase another 15 per cent in the efficiency advantages of the Allam cycle over conventional
period to 204083. Natural gas usually contains CO2 which combined cycle generators produce equivalent over-all efficiencies
has to be stripped to 0.0005 per cent CO2 before liquefaction (almost 60 per cent). However, the Allam cycle enjoys a very
(compared to piped gas which usually has less than 0.5 per cent CO2), significant advantage over conventional gas power systems USES INDUSTRY TRANSPORT HEAT POWER
to comply with local regulations and protect equipment. Natural gas with respect to the capture of carbon dioxide as it requires no
is already being decarbonised at these processing facilities: additional equipment or power to separate carbon dioxide from its CHEMICAL PLANT HYDROGEN DOMESTIC & HYDROGEN
flue gases, ready for geological storage. Thus there is no parasitic STEEL PLANT FUEL CELL INDUSTRIAL HEAT GAS TURBINE
• The Gorgon CCS project was established due to a condition FERTILISER PLANT ELECTRIC TRUCK
load, no loss of efficiency and no reduction in electricity produced. REFINERY PLANT
of the project's approval—the gas field contains 14 per cent of
CO284, which has to be stripped before liquefaction. The facility
commenced CO2 storage in August 2019 and is expected to store
80 per cent of reservoir CO2 (or 3.4 to 4 Mtpa), reducing the
facility’s total emissions by 40 per cent. When operating at full HYDROGEN
TRAIN
capture capacity, it will be the world’s largest dedicated geological
storage project.
• A CCS project at the Snøhvit LNG plant in Norway has been
operating since 2008, storing about 0.7 Mtpa in a depleted HYDROGEN
natural gas field, under the sea bed. FUEL CELL
ELECTRIC CAR
Natural gas power generation with CCS, and other low emission
dispatchable power technologies, are an important complement
to the increasing use of intermittent renewables—ensuring system
reliability and resilience. Studies demonstrate that a grid consisting
of firm low-carbon generation capacity reduces the cost of the
energy transition and enhances energy security in decarbonisation
scenarios85. The average age of the global natural gas fleet is only
19 years86 and more than 130 GW87 of unabated capacity is under HYDROGEN CO2 FEEDSTOCK HEAT POWER
construction globally, potentially locking in emissions for decades.
CCS retrofits will be necessary so climate goals can be reached. FIGURE 22  HYDROGEN PRODUCTION AND USE
There are many opportunities already for CCS technologies
to provide low cost emissions abatement in gas production
and usage. It is a growing market.

57 58
5.0  CCS development: Technology and Applications CONTENTS
5.2 Hydrogen < >

HYDROGEN PRODUCTION WITH CCS In contrast, production using electrolysis with renewables accounts STEAM METHANE REFORMING (SMR)
for only 0.7 per cent100 of the 70 Mtpa of dedicated hydrogen produced
The three main technologies used to produce low-carbon today101. If hydrogen demand reaches 530Mtpa by 2050, producing Most of the hydrogen produced today is done using a chemical A hydrogen purifier separates high purity hydrogen from the stream
hydrogen are: this via electrolysis would require about 25,000 terrawatt hours process known as steam methane reforming (SMR). SMR leaving the shift reactor. The remaining gases (unreacted methane,
(TWh)vii of electricity from renewable or nuclear generation. This involves mixing methane with steam and heating the mixture CO and CO2) are used as fuel for heating in the reformer to provide
• gas reforming (mostly from steam methane reforming) with CCS; in the presence of a catalyst in a chemical reactor called a methane additional heat and to destroy the carbon monoxide.
is approximately 2.8 times the total electricity generated from all
• coal gasification with CCS; and renewable sources and nuclear combined in 2017102, viii. Creating reformer. A chemical reaction produces hydrogen (H2) and carbon
The SMR process produces high purity hydrogen. It generates
• electrolysis powered by renewables. enough renewable energy for both hydrogen production and low monoxide (CO):
CO2 from the chemical reactions and from combusting fuel
emissions electricity is extremely challenging. CH4 + H2O -> 3H2 + CO to heat the reformer.
Each technology offers its own benefits and will play a role in the
global energy transition97. The advantages of low-carbon hydrogen The reformer output stream, known as synthesis gas or syngas,
production through gas reforming and coal gasification with CCS, COMMERCIAL VIABILITY is fed to a second reactor called a water-gas shift reactor to generate
centre around the maturity of the technologies, scale and commercial more hydrogen and convert some of the CO to carbon dioxide (CO2):
viability. Price will be a key decider of whether hydrogen plays a significant CO + H2O -> CO2 + H2
role in emissions reduction. Low-carbon hydrogen produced using
gas reforming and gasification technologies with CCS is proven,
MATURITY operating at commercial scale and available for deployment WATER-GAS HYDROGEN
METHANE
right now. Hydrogen produced using coal or methane with CCS costs REFORMER SHIFT REACTOR PURIFICATION
Low-carbon hydrogen has been produced through gas reforming and
USD1.70-2.40 per kilogram103 compared to USD7.45 for hydrogen CO2
coal gasification with CCS, for almost two decades. For example, the
produced via electrolysisix. CCS hydrogen costs two thirds less.
Great Plains Synfuel Plant in North Dakota, US, commenced operation
in 2000 and produces approximately 1,300 tonnes of hydrogen Action is required now to ensure hydrogen can play its role in the global METHANE & STEAM RAW SYNGAS SHIFT REACTOR SYNGAS PURIFIED H2
(in the form of hydrogen rich syngas) per day, from brown coal98. energy transition, at the scale required to meet emissions reductions HYDROGEN MORE HYDROGEN
FUEL
Hydrogen produced from coal or gas with CCS is the lowest cost clean targets. Scaling up low-carbon hydrogen production with CCS will CARBON MONOXIDE MORE CO2
TAIL GAS
hydrogen by a significant margin and requires less than one tenth of require capital grants or incentivising policies from governments104, viii, METHANE LESS CARBON
STEAM MONOXIDE CARBON
the electricity needed by electrolysis. Where renewable electricity is a value on carbon and market mechanisms to create demand. CO2 LESS STEAM MONOXIDE
relatively scarce using renewable electricity to displace unabated fossil CO2
generation capacity in the grid may deliver more emissions reduction METHANE
than using it to produce hydrogen in electrolysers.
FIGURE 24  STEAM METHANE REFORMATION 
There are five low-carbon hydrogen production facilities with
CCS operating globally and three under construction, with a total
production capacity of 1.5 million tonnes99. Another three are in
advanced development (see Figure 24 below).

HYDROGEN AND CCS: FACILITATING A JUST


SCALE TRANSITION FOR AUSTRALIA’S LATROBE VALLEY
For hydrogen to make a meaningful contribution to global greenhouse
In regions that largely rely on jobs producing or using fossil fuels, resources could be the anchor investment needed to establish a
gas emission reductions, it will need to be produced in very large
decisions to close energy intensive facilities often result in damaging low emission industry hub. CO2 transport and storage infrastructure,
quantities to displace a significant proportion of current fossil fuel
economic and social disruption. Establishing a clean hydrogen constructed to support the hub, could also be used by nearby high-
demand. Scaling up for low-carbon hydrogen production with CCS
production industry in these places, can protect and create skilled emission industry sources, such as the Longford gas plant.
is currently far less challenging than scaling up the use of electrolysis.
and high value jobs, delivering a just transition for people and their
Commercial scale hydrogen production facilities with CCS that The requirements for reskilling the local workforce would be low.
communities.
each produce around 1000 tonnes of hydrogen per day are already A successful clean hydrogen industry utilises all the skills currently
operating. Coal, methane and pore space for CO2 storage are plentiful. Existing brown coal fired electricity generating facilities in the employed in the extractive and chemical industries. A new clean
When produced on a large scale, low-carbon hydrogen made with CCS Latrobe Valley of Victoria, Australia will close as they reach their hydrogen industry would also have a small footprint, confined
is currently the lowest cost source available. economic life in the coming decades. They will not be replaced. mostly to the footprint of existing industrial facilities and mines.
The damage to the local economy of the Latrobe Valley when these
Creating a low-carbon hydrogen industry based upon coal or
generators close, and their supply chains are no longer required,
gas with CCS in areas like the LaTrobe Valley that have all the
will be severe.
IN OPERATION 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+ necessary pre-requisites would deliver material emission reductions
INDUSTRIES
However, the Latrobe Valley hosts coal and natural gas feedstock for and create economic opportunities for the local community that
ENID SINOPEC QILU hydrogen production using CCS, and is adjacent to a world-class CO2 might otherwise suffer economic decline.
INVOLVING AIR PRODUCTS
FERTILISER PORTHOS
HYDROGEN
PRODUCTION
storage basin with several prospective storage sites. These existing
ACTL STURGEON
CARBONNET*
GREAT PLAINS QUEST
ACTL AGRIUM WABASH
COFFFEYVILLE

= 1 Mtpa CO2 CIRCLE AREA IN OPERATION IN CONSTRUCTION ADVANCED DEVELOPMENT


PROPORTIONATE TO CAPACITY

FIGURE 23  INDUSTRIES INVOLVING HYDROGEN


PRODUCTION WITH CCS – GLOBAL FACILITY PIPELINE
*Indicates the primary industry type of the facility among various
options. Size of the circle is proportional to the capture capacity
of the facility.

59 60
5.0  CCS development: Technology and Applications CONTENTS
5.3  CCS in Power Sector CCS Ambassadors < >

EOR and gas (EGR) recovery, underground water (EWR),


5.3 5.4 PROFESSOR WEI NING and coal-bed methane (ECBM) recovery have the highest
CCS IN POWER SECTOR BIOENERGY WITH Researcher,
Institute of Rock and Soil Mechanics,
potential. Also, CO2-EOR and CO2-EWR have sufficient
technical readiness levels (TRL) and relatively low cost
Most planned and active CCS projects are in industrial sectors where
high concentration CO2 is readily available and can be captured at
CARBON CAPTURE Chinese Academy of Sciences to deploy large, industrial-scale facilities today.
relatively low cost. However, to enable sustainable economic growth
and elevate living standards while achieving Paris Agreement targets,
AND STORAGE (BECCS) The total theoretical CO2 storage resources in China
can reach 2,500 gigatonnes (50 per cent probability)
deep emissions reductions are needed across all sectors, especially the Bioenergy with Carbon Capture and Storage (BECCS) is a promising with very high variations, including resource
power sector. There are only two large-scale CCS facilities currently class of technologies. The production of sustainable biomass is
operating therex. considered to be renewable energy, so integrating its combustion
availability, spatial distribution of suitable sites,
or fermentation with CCS technology, achieves negative emissions. TRL, and corresponding cost ranges of various CO2
Rapid deployment of renewable energy has reduced the amount of
Bioenergy is used to fuel vehicles (as bioethanol) and to provide geological storage and utilisation options.
dispatchable power required from fossil fuel sources, but the nature
electricity through biomass combustion, displacing fossil fuels as
of wind and solar generation, mean renewables may create challenges The theoretical CO2 storage resources available in
a source of thermal energy. It is considered one of the few scalable
for energy systems mostly not designed for intermittent generation105.
carbon dioxide removal options. BECCS is a feature of IPCC order of decreasing resource potential are: deep saline
High levels of intermittent energy may even substantially increase
scenarios consistent with limiting global warming to 1.5 degrees110. aquifers for EWR (2,471 GtCO2); coal-bed methane for
overall system costs106. Coal and gas fuelled power stations equipped
with CCS delivers dispatchable low emissions electricity demanded Despite its potential, there are some serious hurdles ahead of wide ECBM (114 GtCO2); oil fields for EOR (4.76 GtCO2); and
by advanced economies, and requires no additional measures to scale BECCS deployment: natural gas fields for EGR (4.02 GtCO2). The levelised
ensure grid resilience and reliability of supply. As the penetration cost of abatement in the order of increasing cost are
• Productivity and resource requirements for different types
of intermittent renewable generation in a grid increases, additional
investment in transmission augmentation, energy storage, demand
of land and biomass vary significantly. Growing forest based EOR, EGR, and EWR, being the highest cost amongst
residues uses 1-1.7 hectares for every tonne of CO2 removed the three technologies.
side management and artificial inertia is also required. The lowest cost OPPORTUNITIES IN CHINA
annually while purpose-grown energy crops need approximately
low emissions electricity grid will require dispatchable low emissions
generators alongside intermittent renewable generation capacity.
0.1-0.4 hectares111. Systematic source-sink matching results show that
China’s total annual CO2 emissions are currently
• Producing crops specifically for BECCS can involve land clearing, the effective annual mitigation potential of CGUS and
According to the IEA, existing and under construction energy which may reduce or even reverse its carbon removal potential112. approximately 10 billion tonnes. Four major sectors:
dedicated geological storage could reach 3.5 gigatonne
facilities account for around 95 per cent of the emissions ‘budget’ • Wide scale deployment of BECCS could compete or overlap with coal power, modern coal conversion, cement and the
under its SDS107. Coal-fired power stations make up around one per annum in China. The combined levelised cost of
land available for forest creation or food production, leading to iron and steel industry account for more than two-
third of total energy-related emissions globally. To enable continued abatement is less than 60 USD/t CO2 in those four major
significant changes in ecosystems113. thirds of total emissions. Technologies to capture
operation in a low-carbon world, asset owners need to conduct industry sectors above under current techno-economic
economic and technology feasibility assessments on retrofitting • Producing biomass at the scale required demands large amounts and geologically store CO2, using China’s vast storage
of water and fertiliser. conditions. Highly prospective regions include the
options. In developing countries, especially in Asia where coal fired resources, is predicted to significantly improve the
power plants have an average age of eleven years108 and decades of
North, Northeast, and Northwest of China.
Apart from the IEA, several prominent organisations (Royal Society, range and affordability of options available to mitigate
economic life, retrofitting CCS will be required to reduce emissions. Stanford University, Imperial College London and others) remain rising emissions from those four industries.
Under the IEA’s SDS, it is expected that 350 MtCO2 will be captured
and stored from the power sector in 2030109. Since large-scale CCS
committed to BECCS, viewing it as an essential technology in the
fight against climate change. Many private sector companies also see In addition, CO2 geological storage and utilisation
“THE TOTAL THEORETICAL
projects in power have long lead times – in the range of 6-10 years – BECCS as a way to decarbonise and shelter themselves from carbon
prices, or as a means to meet regulation requirements. In July 2013,
technologies can be applied to enhance the recovery CO2 STORAGE RESOURCES
the power sector must take substantive steps now, to meet those of hydrocarbons, underground water, geothermal,
targets in 10-20 years. UK based Drax power station converted the first of its six boilers to
fire using biomass. Their decision was made in response to the UK and other resources to offset the high cost of CO2
IN CHINA CAN REACH
Government’s 2025 deadline for phasing out coal in the power sector. storage. Among these options, the capacity of CO2 2,500 GIGATONNES”
Drax initiated a CCS pilot project in 2018 which now captures 1 tonne
of CO2 per day. If successful, the pilot will pave the way towards
negative emissions in the UK.
The other main application of BECCS uses fermentation to produce
bioethanol. Bioethanol production produces a relatively pure stream
HELEEN DE CONINCK
of CO2 gas which presents an opportunity for low cost capture and Associate Professor,
makes BECCS facilities a relatively low cost development. This could Department of Environmental Science,
be especially relevant in developing countries, which are responsible Radboud University
for approximately 35 per cent of global ethanol production114. Coordinating Lead Author of Chapter 4 of the
IPCC Special Report on Global warming of 1.5°C
The Institute regards the deployment of BECCS as a proven and
important complement to CCS, so long as it uses sustainably sourced
biomass. It cannot, however, be relied upon as the only form of CCS.
If we want to limit warming to 1.5°C, we need to halve
It is one option in a suite of solutions.
global CO2 emissions in ten years compared to now,
and CO2 emissions need to be net zero in 2050. Every
tonne and every year counts. Technological and cost
developments in CCS are outpaced by those in renewable
electricity. CCS is therefore only useful when fast
implementation and environmental performance can
be assured. This means in industry. CCS has a role there
if it enables an industrial system transition and takes us
out of the current carbon lock-in. If that can be done,
we should get on with it.”
Boundary Dam, Canada.
Photo Courtesy of SaskPower.

61 62
5.0  CCS development: Technology and Applications CONTENTS
5.5  Direct Air Capture (DAC) < >

5.5 5.6
MINERALISATION
CONCRETE CURING

DIRECT AIR CO2 UTILISATION


BAUXITE TREATMENT

CONVERSION BIOLOGICAL
CAPTURE (DAC) In the next several decades, the geological storage of CO2 will do the
vast amount of work to meet climate goals. However, carbon utilisation
ALGAE CULTIVATION

Direct Air Capture (DAC) is a modular technology that can has an important role to play. To illustrate, Mac Dowell et al estimate
capture CO2 directly from the atmosphere using chemicals that that up to 700 million tonnes per annum of CO2 could be utilized by CHEMICAL
LIQUID FUELS
bind or stick to it. CO2 can then be stored or repurposed into CO2 2050118. Estimates by the IPCC of the amount of CO2 that must be UTILISATION (CCU)
re-use applications, such as manufacture of construction aggregates, stored using CCS by the middle of this century to limit global warming POLYMERS
plastics and synthetic fuels. to 1.5 degrees are around 5000 to 10,000 million tonnes per year119.
FERTILISER
There are two promising groups of DAC technologies: Carbon utilisation will expand investment in the testing and refining GREENHOUSE
CARBONATES
of capture technologies and can be used to permanently sequester CAPTURE
• Large infrastructural DAC using water solutions containing NON-CONVERSION
CO2 at locations where transportation pipelines are impractical or not FOOD PROCESSING RENEWABLE METHANOL
hydroxides to extract CO2 from the air. It requires high & PACKAGING CO2 IN CONVENTIONAL
economically feasible.
temperatures (greater than 800°C ) for regeneration, METHANOL SYNTHESIS
which tends to be provided by burning natural gas. CCUS is the process of capturing CO2 to be recycled for further
• A modular technology based on amine materials bonded use. Carbon utilisation’s effectiveness as a positive weapon in the CO2 STORAGE (CCS)
DEDICATED GEOLOGICAL STORAGE CO2 METHANATION
to a porous solid support. The process operates at 85°-120°C fight against climate change depends on how it is used. It can be
ACETIC ACID
requiring far less heat energy. There is potential for future ‘substituted’ for natural CO2 in EOR, or be used as an input to ENHANCED OIL RECOVERY
cost reductions through mass production. the production of something of value. Interest and investment in CARBON FIBRE
ENHANCED GEOTHERMAL
converting CO2 to a different form or substance is recently booming.
Compared to other other forms of negative emissions (carbon dioxide In general terms, CO2 utilisation delivers emissions abatement where: BAKING SODA
removal i.e. trees), DAC facilities require little land. There are however,
concerns about its requirement for large amounts of water and energy • The CO2 utilised would have otherwise been emitted to the BIOETHANOL
to extract low concentration CO2 from the atmosphere. Recent models atmosphere and it remains permanently stored (EOR) or bound
estimate that if DAC was the only CO2 removal method used to avoid in the product (eg concrete).
FIGURE 25  UTILISATION AND STORAGE PATHWAYS
a rise of 1.5°C in global average temperature by 2050, its energy • The CO2 utilised would have otherwise been emitted to the
requirements would represent approximately half of current global atmosphere and the product displaces a product of fossil fuel
energy consumption115. origin (eg production of synthetic liquid fuels displacing diesel). Part of the appeal of carbon utilisation is that it allows businesses There are some significant but (relatively) easily faced challenges
• Climeworks, a Swiss company utilising modular DAC technology, • The CO2 utilised would have otherwise been emitted to to think about single-use carbon as a thing of the past, and is a way to overcome before scaling up CO2 utilisation technologies:
estimates its capture costs to be between USD500-700 per tonne atmosphere, and it displaces CO2 produced from a natural to engage in the circular economy.
• policy and regulatory environments need to be more supportive;
CO2 stored. It relies on support from individuals and companies, source solely for that purpose (eg greenhouse horticulture).
Commitment to a circular economy can be a key strategy for • lifecycle greenhouse gas emissions must be appropriately
willing to purchase emissions reduction certificates for a higher companies wanting to reduce their environmental footprint. accounted for, including energy inputs, to determine net
price than they could get on a market like the EU ETS. Climeworks CO2 ‘SUBSTITUTE’ It’s attractive to many large consumer brands who intrinsically carbon reductions; and
aims to bring the cost of storage down to approximately USD100 understand that their future marketing strategy needs to cover how
per tonne CO2116, so that it can access a larger market and upscale • costs need to keep coming down.
Dutch waste recycling and waste-to-energy firm AVR is beginning they are addressing climate change. Consumer brands are beginning
the technology. construction of a large-scale CO2 capture system in its Duiven plant. to look at carbon as a viable feedstock for the chemicals, polymers, However, it must be stressed that whilst the emissions abatement that
• Development of the world’s largest DAC plant was recently The pure CO2 stream, once an industry by-product, will be transported and other materials that go into their products and supply chain can be delivered through CO2 utilisation is valuable, their contribution
announced by Oxy Low Carbon Ventures and Carbon Engineering by Air Liquide to greenhouse horticulture areas in the Netherlands. executives are engaging with utilisation companies. Given their to the emissions abatement challenge is limited.
Ltd in the US. They are working on the engineering and design A similar project is occurring in Saga, Japan. Both projects will see marketing prowess, these companies have the potential to drive a
of a facility that will capture an estimated 1 Mtpa of CO2 from enhanced plant growth through the addition of extra CO2, while consumer pivot to low carbon goods, supporting the whole CCU space.
the atmosphere every year. The gas will be used for EOR and be avoiding the use of natural CO2 or natural gas for cultivation.
permanently sequestered in the Permian Basin. Projected revenues
from the EOR have made this large-scale DAC project commercially
viable. In addition, the project is designed to be eligible for 45Q tax REPURPOSED CO2 RESEARCH DEVELOPMENT DEMONSTRATION
credits and the LCFS CCS Protocol (see Section 4.3).
Other companies have developed technologies to permanently
• Global Thermostat in the US has built two pilot facilities, each with store CO2 in building materials and chemical products:
the capacity to remove 3,000-4,000 tonnes of CO2 per year117.
They will use captured CO2 to produce synthetic fuels. • CarbonCure, Blue Planet, and Solidia Technologies have various CARBON FIBRE POLYMERS CO2 METHANATION FERTILISER
sized concrete and aggregates projects underway worldwide, ACETIC ACID ALGAE CULTIVATION
The cost of DAC may reduce its appeal for wide scale deployment. many in North America.
Progress is being made though, and it is on its way to playing a role CO2 IN CONVENTIONAL
• BluePlanet bubbles waste gases from California’s largest METHANOL SYNTHESIS
in combatting climate change.
power plant at Moss Landing through seawater, collecting CO2. ENHANCED OIL
Around 90 per cent is removed and then combined with minerals POWER CYCLE RECOVERY
in the water to create limestone.
• Lanzatech creates chemical products and fuels using emissions CARBONATES
from industrial facilities, and has several projects around the globe. RENEWABLE METHANOL
CONCRETE CURING
• Cemvita Factory uses CO2 as the feedstock for sustainable
BAKING SODA
production of intermediate chemicals and polymers.
FOOD PROCESSING & PACKAGING
GREENHOUSE
BIOETHANOL

APPROXIMATE MARKET SIZES

FIGURE 26  CURRENT TECHNOLOGY READINESS AND MARKET


SIZE OF UTILISATION TECHNOLOGIES BY VOLUME

63 64
5.0  CCS development: Technology and Applications CONTENTS
5.7  CCS Innovation < >

5.7 WHAT HAS BEEN LEARNED?


5.8 STEEL AND IRON

CCS INNOVATION • Modularising previously large-scale capture plants has reduced


the price of design and construction – improving reliability and INDUSTRY’S TRANSITION Steel and iron production is reliant on coal, as both a feedstock
and a fuel, and the industry produces almost as much CO2 every

Carbon dioxide capture has been an essential part of industrial


processes for 90 years, either through chemical absorption
quality control through shop fabrication, lower front-end costs,
and increased flexibility to add more capture units when required. TO A NET-ZERO FUTURE year as cement production134. Unlike cement though, emissions arise
at different points in the production process. CO2 must be captured
• Operating expenses have been reduced through the development during heating and from the blast furnace when iron is being reduced
(amines, since 1930120), physical absorption, adsorption or a Industry is the basis of our modern society and is an essential source to make steel. Recent innovations include:
of advanced solvents with lower regeneration energy and high
membrane or cryogenic distillation-based separation process. In of economic growth, bringing financial benefits and job opportunities
degradation resistance– • An alternative to hot metal production and conventional blast
natural gas processing and urea fertiliser production, CO2 separation to communities around the world. While creating this wealth, industry
is an inherent part of the production process, so the cost for capture • the energy required for amine regeneration applied to coal uses about one-third of global energy and produces nearly a third furnaces—the smelting Reduction HIsarna Process has the
is very low121. In other industries like hydrogen, iron and steel and combustion flue gas has significantly improved from values of global greenhouse gases. To limit global warming to 1.5°C, the potential to capture 80 per cent of CO2 emissions from
cement production, and in waste-to-energy, CO2 capture has been around 5.5 GJ/t CO2 to 3.0 GJ/t CO2 for advanced amines, IPCC estimates that these direct and indirect emissions must fall by steelmaking when deployed together with CCS135; and
proven at commercial scale but not yet widely deployed. and to below 2.5 GJ/t CO2 in the latest enhanced solvent 75-90 per cent by 2050, relative to 2010 levels128. Under net-zero • The launch of the “3D” project (for DMX™ Demonstration)
technology; and emission targets, industry must become carbon neutral. It will require in Dunkirk — a consortium of European stakeholders is piloting
In the power sector, CO2 capture has only recently been applied at • high degradation resistance means reduced demand a portfolio of mitigation options including: improved energy efficiency, the capture of CO2 emissions at ArcelorMittal’s facility.
two commercial facilities – both coal fired generators – Boundary Dam for the makeup of the capture solvent. electrification via renewable energy, innovation in production
since 2015 and Petra Nova since 2017122. The extra costs of capture
processes, materials and feedstocks, and CCS.
and the absence of policies to justify investment are primary barriers • Process optimisation using inter-cooling, lean vapour CHEMICAL INDUSTRY: ETHYLENE AND AMMONIA
to large-scale deployment of CCS in power generation. However, good recompression, split flow arrangement and stripper CCS is essential to industrial decarbonisation. It can provide clean
progress has been made to reduce the cost of carbon capture and to inter-heating can further drive costs down. growth opportunities and help ensure a just and sustainable transition The chemical industry, which produces products like plastic, is the
optimise performance through project learning. Next-generation • Heat integration and the amount of steam/cooling water needed, for industrial regions and communities. There is a strong case for industrial sector’s third-largest emitter136. CCS has not been applied
capture technologies have also emerged to drive costs down. also affect operating costs. Finding the right steam supply method, arguing that without CCS, the necessary deep decarbonisation at commercial-scale in this sector. Some possibilities are:
maximising steam extraction efficiency at nominal and partial loads of industry is simply not possible. CCS essential to industrial
decarbonisation. It can provide clean growth opportunities and • Ethylene, used mostly as a base for plastics, is made from various
and recovering waste heat for use in the plant steam cycle are now
PROJECT LEARNING help ensure a just and sustainable transition for industrial regions hydrocarbons that are ‘cracked’ in pyrolysis furnaces. Known
seen as very important in new generation carbon capture plants.
and communities. Today, the vast majority of CCS projects are in as steam cracking, most CO2 is generated when fuel heats the
Providers of goods and services compete to reduce costs and to furnaces. Capturing CO2 from furnace exhaust gases is already a
industrial application.
improve the utility of their products in pursuit of market share. proven CCS application in the power and iron and steel industries.
As a market grows, economies of scale and scope and learning-by- The Energy Transitions Commission states that achieving net-zero • Ammonia, used as a base ingredient for fertilisers and explosives,
doing deliver cost reductions. Innovation happens and can only be 120
emissions in hard-to-abate sectors without CCS “will probably be is a critical input for the agriculture and mining sectors. It is derived
LEVELISED COST OF CAPTURE
(USD$2018 PER TONNE CO²)

protected from competitors for a finite time until knowledge leakage impossible, and certainly more expensive.” It describes CCS as from either coal or natural gas, and its production emits a mixture
inevitably spreads developments throughout an entire industry. the most cost-effective route to decarbonising chemicals, steel and of hydrogen and nitrogen, as well as a large, near-pure, stream of
Demand increases until market saturation occurs. The net result is hydrogen production129. The IEA estimates that CCS can contribute CO2. Two large-scale CCS facilities already compress, transport
the familiar pattern of technology costs reducing over time, in real 100 28 gigatonnes of CO2 emissions reductions in industry from 2017 and use (for EOR) pure stream CO2.
terms. This is exactly the pattern observed in relation to renewable to 2060130. The IEA’s Clean Technology Scenario, places CCS as the
energy technologies this century, driven by very strong and sustained second most important lever for deep emissions cuts, accounting for
policy support. 38 per cent in the chemical sector, 17 per cent in cement and 15 per
80 cent in iron and steel131. CCS is currently a key option available for
The process of cost reduction is only just beginning in the global deeply decarbonizing cement, steel and iron production.
CCS industry. Boundary Dam123 and Petra Nova demonstrate how
cost innovation is happening, even in the absence of a strong
competitive market. Altering design, construction and operations 60 CEMENT
can reduce costs for future carbon capture facilities: 26.2%
The cement industry contributes 8 per cent of global CO2 emissions132. 26.1%
• SaskPower reported in 2015 that, based on project learning
Heating the kiln for calcination of limestone and then the calcination
from Boundary Dam, they could cut costs by up to 30 per 40 reaction itself, produces almost all the emissions from clinker
cent on new CCS power projects. Their CCS feasibility study
production. Around 90 per cent of the CO2 can be captured
for SaskPower Shand power plant, was based on a 67 per cent
and stored using CCS, as long as engineering design is optimised.
reduction in capital costs and a levelized capture cost of USD45
This is already happening:
per tonne CO2 (prefeasibility level +40/-25%) 124. 20
2.1%
Shand is significantly cheaper than their first-of-a-kind facility. • The LEILAC project recently demonstrated that direct separation
• In 2018 NRG Energy showed that, based on their learnings, their (removing CO2 from limestone as it is being heated) could capture
next CO2 capture retrofit will be at least 20 per cent cheaper, 0
more than 95 per cent of CO2 process emissions133.
reaching a levelised capture cost of USD47 per tonne CO2125. BOUNDARY PETRA SHAND • Calix is piloting this new, efficient and cost-competitive direct 14.4% 28%
DAM NOVA separation technology.
Valuable project learning is leading to real improvements for large-
scale capture plants126, xi. Figure 28 (right) shows that the cost of CAPTIAL COST FIXED O&M • Norway’s Norcem project, which is part of a larger Northern Lights 3.2%
carbon capture in the power industry reduces through its evolution FUEL COST VARIABLE O&M project, aims to use post-combustion technologies to capture CO2
from the Boundary Dam CCS facility, to Petra Nova Carbon Capture from a cement plant. IRON AND STEEL (2.07 GTCO2)
facility, and the proposed Shand CCS facility. First-of-a-kind plants CEMENT  (2.22 GTCO2)
are expected to have substantially higher financial risks and costs for FIGURE 27  BREAK DOWN OF LEVELISED COST OF CAPTURE ALUMINIUM  (0.25 GTCO2)
design and construction, but provide experience and knowledge for (LCOC) FOR BOUNDARY DAM, PETRA NOVA AND SHAND127, xiii CHEMICALS AND PETROCHEMICALS  (1.14 GTCO2)
cost reductions in subsequent CCS plants. First-of-a-kind plant would be expected to have substantially higher financial PULP AND PAPER  (0.17 GTCO2)
risks and extra cost for design and construction, but it provides experience
OTHER INDUSTRY  (2.07 GTCO2)
and knowledge for the cost reductions in the subsquent CCS plants.
GCCSI Analysis based on 8% discount rate, 30 years project life, 2.5 years
construction time, capacity factor of 85%. Cost data are normalised to 2017 FIGURE 28  INDUSTRIAL EMISSIONS BY SECTOR BY IN 2017137
values. Expected accuracy range: Boundary Dam and Petra Nova: -10%
to +15%, Shand: -25% to +40%.

65 66
5.0  CCS development: Technology and Applications CONTENTS
5.8  Industry’s Transition to a Net-zero Future < >

CAPTURE TECHNOLOGY INNOVATION • Mitsubishi Heavy Industries’ new KS-21TM solvent – selected for
a FEED study retrofitting to Prairie State Generating Company’s CO2 CAPTURE RATES CAN
Next-generation capture technologies have unique features – either Energy Campus. APPROACH 100 PER CENT
through material innovation, process innovation and/or equipment • Linde-BASF’s lean-rich solvent absorption/regeneration cycle
innovation – which reduce capital and operating costs and improve technology – selected for a FEED study at Southern Company’s Carbon dioxide capture rates from low concentration gas streams A 2019 techno-economics analysis by CSIRO140 and IEAGHG141
capture performance. (See Figure 29 below). natural gas-fired power plant. such a power station flue gas, have historically targeted 90 per cent. looked at the cost of achieving 99 per cent CO2 capture in fossil
This capture rate has almost become the default target however, fuel-fired power plants, compared to achieving 90 per cent.
Some of these technologies are already being considered • The University of Texas’s piperazine advanced stripper (PZAS)
as described below, there is no technical reason why capture rates Excluding transport and storage, cost went up by three per
in engineering studies for CCS facilities. They are: process – selected for a FEED study at the Mustang Station of
in the high nineties can not be delivered. Notwithstanding what is cent in an ultra-supercritical coal plant and by eight per cent
Golden Spread Electric Cooperative138.
• Ion Engineering’s non-aqueous ICE-21 solvent – selected for technically feasible, both of the first retrofits of CCS to coal fired in a natural gas combined cycle.
a Front-End Engineering Design (FEED) study, retrofitting to Next generation technologies are helping to drive down CCS power stations adopted the 90 per cent capture target.
Figure 30 (below) shows that emissions with CCS can be reduced to:
Nebraska Public Power District’s Gerald Gentleman Station. development costs and shorten deployment timelines. Assisted by
The Boundary Dam CCS retrofit has not achieved an overall capture
• Membrane Technology and Research’s PolarisTM membrane industry improvements that result from learning-by-doing at facility • 48 grams CO2eq / kWh (9 grams CO2eq/kWh direct emissions)
rate of 90 per cent since it commenced operating due to down time
system – selected for a FEED study at Basin Electric’s Dry Fork operation and project management level, these developments are in a coal fired plant; and
required for maintenance and process improvements. As a first of
Station. edging CCS closer to widespread deployment. • 89 grams CO2eq / kWh (4 grams CO2eq/kWh direct emissions)
a kind plant, it is not surprising that operational difficulties were
encountered. However these lessons only need to be learned once in a gas fired plant.
and the operators of Boundary Dam, SaskPower, make all of their There is no technological barrier to capturing 99 per cent of direct
operational data available to share those learnings. CO2 emissions in coal or natural gas-fired power plants.
CURRENT
VENDOR TECHNOLOGY SCALE 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 The Petra Nova facility, which is the second retrofit of CCS to a coal
fired power station, has avoided similar difficulties. Petra Nova
SOLVENTS captures 90 per cent of the CO2 (approximately 1.4 million tonnes
LINDE/BASF ADVANCED AMINE/ 15 MWe
per year) from a slip stream of flue gas equivalent to that produced
HEAT INTEGRATION by a 240MW power station. The capacity of the capture plant was
determined by the demand for CO2. If there was sufficient demand,
there is no reason why Petra Nova could not have treated all of the
ION ENGINEERING NON-AQUEOUS 12 MWe
SOLVENT/ AMINE flue gas produced by the power station, at a capture rate of 90 per
MIXTURE cent or more.
IFPEN / AXENS SOLID-LIQUID 0.7 MWe
PHASE CHANGE
SOLVENTS
150

EMISSION INTENSITY (GRAM CO2eq per kWH)


UNIVERSITY HEAT-INTEGRATED 0.7 MWe
OF KENTUCKY ADVANCED AMINE

THE UNIVERSITY PIPERAZINE AND 0.5 MWe 125


OF TEXAS AT FLASH STRIPPER
AUSTIN PROCESS

SORBENTS
100
INVENTYS INTENSIFIED 2 MWe
RAPID-CYCLE
TSA

TDA ALKALIZED 0.5 MWe


ALUMINA 75
SORBENT

MEMBRANES
FUELCELL ENERGY MCFC WITH 3 MWe 50
ELECTROCHEMICAL
MEMBRANE

MTR POLARIS™ 1 MWe


MEMBRANE
25

SOLID LOOPING
CARBON CHEMICAL 0.5 MWe 0
ENGINEERING LOOPING
COAL FIRED GAS FIRED COAL FIRED GAS FIRED SOLAR WIND
WITH 90% COMBINED WITH 99% COMBINED PHOTOVOLTAIC
CAPTURE CYCLE WITH CAPTURE CYCLE WITH UTILITY
INHERENT CAPTURE 90% CAPTURE 99% CAPTURE

NET POWER / 8 ALLAM CYCLE 25 MWe DIRECT EMISSION INDIRECT EMISSION


RIVERS CAPITAL

TECHNOLOGY DEVELOPMENT STAGE BENCH SMALL PILOT LARGE PILOT DEMONSTRATION FIGURE 30  COMPARISON OF EMISSION INTENSITY IN
FOSSIL-FUEL-FIRED POWER PLANT WITH 90 PER CENT
AND 99 PER CENT CO2 CAPTURE142
FIGURE 29  SELECTED NEXT-GENERATION CAPTURE TECHNOLOGIES BEING Note: Direct emission in a power plant refers to greenhouse gas emission from the
TESTED AT 0.5 MWe (10 T/D) SCALE OR LARGER WITH ACTUAL FLUE GAS139 on-site power production; indirect Emission in a power plant includes a variety of
emissions from the supply chain, e.g. extraction and transport of fossil fuels, and/
or infrastructure used.

67 68
CONTENTS
< >

6.0
APPENDICES

1.0 INTRODUCTION
1.1 About Global CCS Institute
1.2 About the Report
1.3 Acronyms
1.4 CEO Foreword

2.0 MEETING THE CLIMATE CHALLENGE:


THE NEED FOR CCS

3.0 GLOBAL STATUS OF CCS


3.1 Global CCS Facilities Update
3.2 Policy Levers for Accelerating Deployment
3.3 Global CO2 Storage Overview
3.4 Legal and Regulatory Overview

4.0 REGIONAL OVERVIEWS


4.1 International Climate Policy Overview
4.2 Americas
4.3 Europe
4.4 Middle East and Central Asia
4.5 Asia Pacific

5.0 CCS DEVELOPMENT:


TECHNOLOGY AND APPLICATIONS
5.1 Natural Gas
5.2 Hydrogen
5.3 CCS in the Power Sector
5.4 Bioenergy with Carbon Capture
and Storage (BECCS)
5.5 Direct Air Capture (DAC)
5.6 CO2 Utilisation
5.7 CCS Innovation
5.8 Industry’s Transition to a Net-zero Future

6.0 APPENDICES

7.0 REFERENCES

69
6.0 Appendices CONTENTS
6.1  Large Scale CCS Facilities in Operation < >

6.1 6.2
LARGE SCALE CCS LARGE SCALE CCS FACILITIES IN CONSTRUCTION,
FACILITIES IN OPERATION ADVANCED AND EARLY DEVELOPMENT
NO. TITLE STATUS COUNTRY OPERATION INDUSTRY CAPTURE CAPTURE STORAGE NO. TITLE STATUS COUNTRY OPERATION INDUSTRY CAPTURE CAPTURE STORAGE
DATE CAPACITY TYPE TYPE DATE CAPACITY TYPE TYPE
(Mtpa) (Mtpa)

1 GORGON CARBON Operating Australia 2019 Natural Gas 3.4 - 4.0 Industrial Dedicated 20 ALBERTA CARBON TRUNK LINE In Canada 2020 Hydrogen 1.2 - 1.4 Industrial Enhanced Oil
DIOXIDE INJECTION Processing separation Geological ("ACTL") WITH NORTH WEST Construction Production separation Recovery
Storage REDWATER PARTNERSHIP'S for Oil Refining
STURGEON REFINERY CO2
Operating China 2018 Natural Gas 0.6 Industrial Enhanced Oil STREAM
2 JILIN OIL FIELD CO2-EOR
Processing separation Recovery 21 ALBERTA CARBON TRUNK LINE In Canada 2020 Fertiliser 0.3 - 0.6 Industrial Enhanced Oil
Operating United States 2017 Ethanol 1 Industrial Dedicated
("ACTL") WITH AGRIUM CO2 Construction Production separation Recovery
3 ILLINOIS INDUSTRIAL CARBON STREAM
CAPTURE AND STORAGE of America Production separation Geological
Storage 22 SINOPEC QILU In China 2020 Chemical 0.40 Industrial Enhanced Oil
PETROCHEMICAL CCS Construction Production separation Recovery
4 PETRA NOVA CARBON CAPTURE Operating United States 2017 Power 1.4 Post- Enhanced Oil
of America Generation combustion Recovery 23 YANCHANG INTEGRATED In China 2020 - 2021 Chemical 0.41 Industrial Enhanced Oil
capture CARBON CAPTURE AND Construction Production separation Recovery
STORAGE DEMONSTRATION
5 ABU DHABI CCS (PHASE 1 BEING Operating United Arab 2016 Iron and Steel 0.8 Industrial Enhanced Oil
EMIRATES STEEL INDUSTRIES) Emirates Production separation Recovery 24 WABASH CO2 SEQUESTRATION Advanced United States 2022 Fertiliser 1.5-1.75 Industrial Dedicated
development of America production separation Geological Storage
6 QUEST Operating Canada 2015 Hydrogen 1 Industrial Dedicated
Production for separation Geological 25 PORT OF ROTTERDAM CCUS Advanced Netherlands 2023 Various 2.0 -5.0 Various Dedicated
Oil Refining Storage BACKBONE INITIATIVE development Geological Storage
(PORTHOS)
7 UTHMANIYAH CO2-EOR Operating Saudi Arabia 2015 Natural Gas 0.8 Industrial Enhanced Oil
26 NORWAY FULL CHAIN CCS Advanced Norway 2023-2024 Cement 0.80 Various Dedicated
DEMONSTRATION Processing separation Recovery
development production and Geological Storage
8 BOUNDARY DAM CCS Operating Canada 2014 Power 1 Post- Enhanced Oil waste-to-energy
Generation combustion Recovery
27 LAKE CHARLES METHANOL Advanced United States 2024 Chemical 4.20 Industrial Enhanced oil
capture
development of America production separation recovery
9 PETROBRAS SANTOS BASIN Operating Brazil 2013 Natural Gas 3 Industrial Enhanced Oil
28 ABU DHABI CCS PHASE 2 - Advanced United Arab 2025 Natural gas 1.9 - 2.3 Industrial Enhanced Oil
PRE-SALT OIL FIELD CCS Processing separation Recovery NATURAL GAS PROCESSING development Emirates processing separation Recovery
PLANT
10 COFFEYVILLE Operating United States 2013 Fertiliser 1 Industrial Enhanced Oil
GASIFICATION PLANT of America Production separation Recovery 29 DRY FORK INTEGRATED Advanced United States 2025 Power generation 3.00 Post- Dedicated
COMMERCIAL CCS development of America combustion Geological Storage
11 AIR PRODUCTS STEAM Operating United States 2013 Hydrogen 1 Industrial Enhanced Oil capture or Enhanced Oil
METHANE REFORMER of America Production for separation Recovery Recovery
Oil Refining
30 CARBONSAFE ILLINOIS – Advanced United States 2025 Power generation 2.0 - 5.0 Post- Dedicated
12 LOST CABIN GAS PLANT Operating United States 2013 Natural Gas 0.9 Industrial Enhanced Oil MACON COUNTY development of America and ethanol combustion Geological Storage
of America Processing separation Recovery production capture and and Enhanced Oil
Operating United States 2010 Natural Gas 8.4 Industrial Enhanced Oil industrial Recovery
13 CENTURY PLANT
of America Processing separation Recovery separation

Operating Norway 2008 Natural Gas 0.7 Industrial Dedicated 31 PROJECT TUNDRA Advanced United States 2025 - 2026 Power generation 3.1 - 3.6 Post- Dedicated
14 SNØHVIT CO2 STORAGE
Processing separation Geological development of America combustion Geological Storage
Storage capture or Enhanced Oil
Recovery
15 GREAT PLAINS SYNFUELS Operating United States 2000 Synthetic 3 Industrial Enhanced Oil
PLANT AND WEYBURN-MIDALE of America Natural Gas separation Recovery 32 INTEGRATED MID-CONTINENT Advanced United States 2025 - 2035 Ethanol 1.90 Various Dedicated
STACKED CARBON STORAGE development of America production, power Geological Storage
HUB generation and/or and Enhanced Oil
16 SLEIPNER CO2 STORAGE Operating Norway 1996 Natural Gas 1 Industrial Dedicated
Processing separation Geological refinery Recovery
Storage
33 CARBONNET Advanced Australia 2020's Under evaluation 3.00 Under Dedicated
17 SHUTE CREEK GAS Operating United States 1986 Natural Gas 7 Industrial Enhanced Oil development Evaluation Geological Storage
PROCESSING PLANT of America Processing separation Recovery
34 OXY AND WHITE ENERGY Early United States 2021 Ethanol 0.6-0.7 Industrial Enhanced Oil
18 ENID FERTILISER Operating United States 1982 Fertiliser 0.7 Industrial Enhanced Oil ETHANOL EOR FACILITY development of America production separation Recovery
of America Production separation Recovery
35 SINOPEC EASTERN Early China 2021 Fertiliser 0.50 Industrial Enhanced oil
19 TERRELL NATURAL GAS Operating United States 1972 Natural Gas 0.4 - 0.5 Industrial Enhanced Oil CHINA CCS development production separation recovery
PROCESSING PLANT (FORMERLY of America Processing separation Recovery
VAL VERDE NATURAL GAS PLANTS) 36 HYDROGEN 2 MAGNUM (H2M) Early Netherlands 2024 Power Generation 2.00 Under Dedicated
development Evaluation Geological Storage

71 72
6.0 Appendices CONTENTS
6.2  Large Scale CCS Facilities in Construction, Advanced and Early Development < >

6.3
HYDROGEN STRATEGIES WITH CCS

NO. TITLE STATUS COUNTRY OPERATION INDUSTRY CAPTURE CAPTURE STORAGE COUNTRY INCLUSION/DETAIL/IMPORTANCE OF CCS IN HYDROGEN STRATEGY
DATE CAPACITY TYPE TYPE
(Mtpa)
AUSTRALIA Consultations by the National Hydrogen Working Group to develop a National Hydrogen Strategy by the
37 THE CLEAN GAS PROJECT Early United 2024-2025 Power generation 1.7 - 2.0 Post- Dedicated end of 2019 are already considering the production of hydrogen using fossil fuels and CCS. In addition,
development Kingdom combustion Geological Storage construction at the Hydrogen Energy Supply Chain (HESC) liquefaction and loading facility began in
capture July 2019. The HESC is a project, supported by a consortium of government and industry partners from
Australia and Japan, will look at the feasibility of turning brown coal from the Latrobe Valley into hydrogen
38 CALEDONIA CLEAN ENERGY Early United 2025 Power generation 3.00 Post- Dedicated to be shipped to Japan and using the CarbonNet CCS project to transport and store emissions in the nearby
development Kingdom combustion Geological Storage Gippsland basin.
capture
JAPAN Host of the 2019 G20, Japan used this important platform to highlight hydrogen. This included hosting the
39 OXY AND CARBON Early United States 2025 N/A 1.0 Direct Air Enhanced Oil
first Hydrogen Energy Ministerial meeting and, in the same month, adopted a carbon-neutrality strategy
ENGINEERING DIRECT AIR development of America Capture Recovery
CAPTURE AND EOR FACILITY that includes innovation goals for both carbon capture and hydrogen and launched a Japan H2 Mobility
program which aims build 80 refueling stations by 2021143.
40 SOUTH WEST HUB Early Australia 2025 Fertiliser 2.50 Industrial Dedicated
development production and separation Geological Storage UNITED STATES The United States also showed progress in the development of hydrogen production with CCS with provisions
power generation added to the 45Q tax credit to incentivise the conversion of CO2 and other products, and included conversion
via combination with hydrogen144. In addition, the amendment of California’s Low Carbon Fuel Standard
41 HYNET NORTH WEST Early United Mid-2020's Hydrogen 2.00 Industrial Dedicated to enable CCUS came into effect. This created a way for companies that produce hydrogen via SMR with
development Kingdom production separation Geological Storage carbon capture to generate credits, while also incentivising the roll-out of hydrogen-fuelling capacity – thus
eliminating one of the barriers to adoption.
42 PROJECT ECO2S: EARLY Early United States 2026 In Evaluation 3.00 In Evaluation Dedicated
CO2 STORAGE COMPLEX development of America Geological Storage UNITED KINGDOM In the UK, the majority of hydrogen production is expected to use natural gas with CCS and is being driven
IN KEMPER COUNTY
by the dedicated policies, reviews and investments in hydrogen as a low emissions technology to decarbonise
43 NORTHERN GAS NETWORK Early United 2026 - 2028 Hydrogen 1.5 - 20 Industrial Dedicated transport and heat sectors, as well as industry145.
H21 NORTH OF ENGLAND development Kingdom production separation Geological Storage For example, the H21 Leeds Citygate project, after a detailed economic and technical feasibility study
conducted in 2016, has proposed to decarbonise the existing natural gas network in the UK city of Leeds by
44 ERVIA CORK CCS Early Ireland 2028 Power generation 2.50 Under Dedicated converting it to 100 per cent hydrogen. The project involves a process of hydrogen production using Steam
development and hydrogen Evaluation Geological Storage Methane Reforming of natural gas; the associated carbon emissions will be sequestered under the North Sea.
production
EUROPE The Hydrogen Roadmap Europe146 was published in February 2019 by FCH JU, which consists of members
45 CHINA RESOURCES POWER Early China 2020's Power generation 1.00 Post- Dedicated
representing the European Commission, Hydrogen Europe and Hydrogen Research Europe. With the aim
(HAIFENG) INTEGRATED development combustion Geological Storage
CARBON CAPTURE of supporting research and development in fuel cell and hydrogen energy technologies, the study focuses
capture
AND SEQUESTRATION on pathways for their large-scale deployment until 2050. The production of hydrogen from steam methane
DEMONSTRATION reforming processes is highlighted as an avenue for the decarbonization of the transport and industrial
sectors. In particular CCS is recommended for companies as a proven method of producing very low carbon
46 HUANENG GREENGEN Early China 2020's Power generation 2.00 Pre- Under evaluation hydrogen on a large scale.
IGCC PROJECT (PHASE 3) development combustion
capture The EU’s “Clean Planet for All’ decarbonization strategy was published by the European Commission in
(gasification) November 2018. The strategy considers several pathways to reach decarbonization by 2050. The production
of hydrogen from natural gas steam reforming using CCS, for energy storage purposes, energy carrier
47 KOREA-CCS 1 & 2 Early South Korea 2020's Power generation 1.00 Post- Dedicated purposes in the transport, heat and industrial sectors and as a feedstock for industry is considered as a
development combustion Geological Storage potential decarbonization strategy in these sectors.
capture
NETHERLANDS Outlines of a Hydrogen Roadmap147 was drafted by TKI New Gas (Top Sector Energy) on behalf of
48 SHENHUA NINGXIA CTL Early China 2020's Coal-to-liquids 2.00 Industrial Under evaluation the Ministry of Economic Affairs and Climate Policy. Published in March 2018, the report explores
development (CTL) separation decarbonisation pathways using hydrogen in the industrial and transport sectors. The report recommends
exploring hydrogen production from natural gas with CCS (blue hydrogen) in order to accelerate large-scale
49 SINOPEC SHENGLI Early China 2020's Power generation 1.00 Post- Enhanced oil application of hydrogen.
POWER PLANT CCS development combustion recovery
capture

50 NET ZERO TEESSIDE Early United 2020's Various 0.8 - 10 Various Dedicated
development Kingdom Geological Storage

51 ACORN SCALABLE Early United End-2020's Various 3.0 - 4.0 Under Dedicated
CCS DEVELOPMENT development Kingdom Evaluation Geological Storage

73 74
CONTENTS
< >

7.0
REFERENCES

1.0 INTRODUCTION
1.1 About Global CCS Institute
1.2 About the Report
1.3 Acronyms
1.4 CEO Foreword

2.0 MEETING THE CLIMATE CHALLENGE:


THE NEED FOR CCS

3.0 GLOBAL STATUS OF CCS


3.1 Global CCS Facilities Update
3.2 Policy Levers for Accelerating Deployment
3.3 Global CO2 Storage Overview
3.4 Legal and Regulatory Overview

4.0 REGIONAL OVERVIEWS


4.1 International Climate Policy Overview
4.2 Americas
4.3 Europe
4.4 Middle East and Central Asia
4.5 Asia Pacific

5.0 CCS DEVELOPMENT:


TECHNOLOGY AND APPLICATIONS
5.1 Natural Gas
5.2 Hydrogen
5.3 CCS in the Power Sector
5.4 Bioenergy with Carbon Capture
and Storage (BECCS)
5.5 Direct Air Capture (DAC)
5.6 CO2 Utilisation
5.7 CCS Innovation
5.8 Industry’s Transition to a Net-zero Future

6.0 APPENDICES

7.0 REFERENCES

75
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138. Global CCS Institute (2019b) ‘CO2RE Database, ENDNOTES


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prevent CO2 from entering the atmosphere, such as in
139. Source data for Figure 29: cement curing, contribute to emissions abatement.
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2018, accessed from <https://www.netl.doe.gov/sites/default/ November 2019 (Global CCS Institute 2019a).
files/netl-file/Carbon-Capture-Technology-Compendium-2018.
pdf>. iii. The advanced development stage in a project’s lifecycle means
greater detailed investigation through front-end engineering
Global CCS Institute (2019a), ‘CO2RE Database, Facilities design (FEED) is underway. This may involve steps like choosing
Report’, accessed from <https://CO2RE.co/FacilityData>. the specific technology to use, examining design and overall
facility costs, obtaining permits and approvals or assessing
140. Feron, P, Cousins, A, Jiang, K, Zhai, R, Shwe Hla, S, key risks to the development. Once this stage is completed,
Thiruvenkatachari, R & Burnard, K (2019), ‘Towards Zero the project may be ready for a final investment decision (FID).
Emissions from Fossil Fuel Power Stations’, International
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v. The Institute is liaising with project developers and reviewing
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vi. Note that the cost of capture from more concentrated CO2
142. Source data for Figure 30: gas streams, such as biofuel production or hydrogen production
from gas or coal, are significantly lower.
International Energy Agency Greenhouse Gas R&D Programme
(2019) Towards Zero Emissions CCS from Power Stations using vii. GCCSI Analysis based on 8 per cent discount rate, 30 years
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x. Estimated electricity generated in 2017 from Nuclear was


6.0 APPENDICES 2637TWh, from all renewables combined was 6351TWh.
6.3 HYDROGEN STRATEGIES WITH CCS
xi. See p.71 for more detailed information about coal fired
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146. Fuel Cells and Hydrogen 2 Joint Undertaking (2019), Hydrogen


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147. Gigler, J. and Weeda, M. (2018), Outlines of a Hydrogen


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available at <https://www.topsectorenergie.nl/>

83
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