Financing Carbon Capture from a Waste to Energy Plant: The Case of a - - PowerPoint PPT Presentation

Financing Carbon Capture from a Waste to Energy Plant: The Case of a Pioneering Initiative at Klemetsrud, Oslo A Feasibility Study

Elling Enger, Jon Lereim, Magne Lia & Atle Midttun , BI Norwegian Business School Arne Lind & Julien Meyer, IFE Institute for Energy Technology

Equinor, Shell and Total E&P Norge AS to carry out the concept and FEED studies for developing an open source service for transport and storage of European CO2

Source: Equinor 2019

Catering for a Complete Carbon Chain:

Klemetsrud in the Larger North Sea Carbon-Industrial Ecology

Klemetsrud plant with CO2 Sequestration

Waste Incine- ration Energy Generation Heat production El Market Heating Market Pipeline System El Transm System Various Types Of Waste

CO2 Storage

CO2 CAPTURE

CO2 Transport

Deposit

Fly Ash

Bottom Ash

Metal Recirculation

CO2 Captured

€5.2 m 18.9 m

Gate Fees

Household Waste 273,000 tonnes @ €70 per tonne Imported Waste 91,200 tonnes @ €46 per tonne

Waste transporters/ Brokers

Infectious Waste (hospitals, etc) 15,200 tonnes @ €308 per tonne

• €1.0m

Revenue from metals covers costs

The S Curve Technological Maturity The Learning Curve Cost Efficiency Performance

High cost Low cost Mature technology Early stage technology Technology subsidy policy Niche market policy Competition Policy, Access policy Monopoly regulation policy, etc. R&D policy

Regulatory Approaches To Drive Technological Progress

From Midttun & Gautesen (2007)

65 –euro – current cost 35 –euro - nth plant

Technology & Market Development

Market- volume Technology Development Cost Technology Development Market Development

Immature Mature Partly Mature Programmes for Market development Creating New Markets Piloting Of New Technology Demonstration Novel technology Full Scale Innovative Technology

Idea/ Feasibility

Concept Design & test

Case: Enova Corporate Strategy

Financing Klemetsrud plant with CO2 Sequestration

Waste Incine- ration Energy Generation Heat production El Market Heating Market Pipeline System El Transm System Various Types Of Waste

CO2 Storage

CO2 Sequestration

CO2 Transport

Increase in Gate Fees

Waste transporters/ Brokers

Deposit

Fly Ash

Bottom Ash

Metal Recirculation

Transfer from State/Municipal Budgets

CO2 Capture

Price uplift for de-carbonizing electricity Price uplift For de-carbonizing heat

€5.2m €18.9m

• €1.0m

Revenue from metals covers costs Household Waste 273,000 tonnes @ €70 per tonne Imported Waste 91,200 tonnes @ €46 per tonne Infectious Waste (hospitals, etc) 15,200 tonnes @ €308 per tonne

Financing in EU – ETS market

Economic Value Drivers Breakdown Structure – Energy to Waste

NPV

Income

(Revenues)

CAPEX OPEX

Heat El Production facilities Logistics systems Operations Heat Facilities Operations El-generator Socio Economic Benefit Operations CO2 facility

Heat Facility EL- Facility CO2- module

CO2 Price Price Price?

Volume Capacity Volume Capacity Volume? Capacity

Generator

Grid

Generator

Grid

Scrubber

Storage

Closing remarks

• A NPV/IRR model is established for the

Carbon Capture-cases

• Various Scenarios are run for a range of

variables

• The NPV/IRR Klemetsrud case provides us

with a business driven framework for Carbon Capture

• The NPV/IRR model should be used as a

primary dialogue tool with the authorities regarding public funding and incentives for technology breakthroughs and acceleration of the implementation for Next Generation Carbon Capture facilities