Implications of the Reuse of Captured CO 2 for European Climate - - PowerPoint PPT Presentation

• Dr. Paul Zakkour

Carbon Counts (on behalf of Carbon Counts and Ecofys) CO2 Reuse Workshop, Brussels, 7th June 2013

Overview of project:

Implications of the Reuse of Captured CO2 for European Climate Action Policies

Project objectives and approach

• Project objectives:*
• 1. Understand role of CO2 reuse (CCU) in supporting EU

Climate Action (DG CLIMA) objectives

• 2. Consider key drivers and barriers for CCU in EU
• 3. Compare CCU activities in EU with rest of the world
• 4. Assess the options for better integrating CCU into EU

policy: both DG CLIMA & DG RTD

• Approach – two parts:

– Part 1 – Overview of CCU technologies – Part 2 – Actions to support CCU in EU

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* Non exhaustive review of CCU technologies and activities

What is CCU? Why is it of interest?

• Drivers for considering CCU:

– Emergence of new techniques to convert CO2 to high value products – Concerns over CCS value-chain costs/lack of progress in Europe – Lack of CO2 storage potential in some EU MSs – Enhance energy security and support renewables – Support industrial innovation and competitiveness

• Challenges and barriers:

– Low activation state – need for energy + catalysts = costs/emissions

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feedstock

conversion

Urea yield boosting Polymers Carbamates Carbonates

CO2

non-conversion

energy solvents working fluid Biofuels Syngas/methane Formic acid Renewable methanol Enhanced oil recovery (EOR)

• En. gas recovery (EGR)

Enhanced coal bed methane (ECBM)

• En. geothermal systems

(EGS) Supercritical CO2 power cycles

Source: Ecofys/Carbon Counts

What is the status of CCU?

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CCU category CCU technology Research Demon- stration Economically feasible under certain conditions Mature market CO2 to fuels Hydrogen (renewable methanol) Hydrogen (formic acid) Algae (to biofuels) Photocatalytic processes Nanomaterial catalysts Enhanced commodity production Power cycles (using scCO2) Enhanced production (urea; methanol) Enhanced hydrocarbon recovery Miscible/immiscible floods (CO2-EOR) Miscible/immiscible floods (CO2-EGR) Sorption-based displacement (ECBM) CO2 mineralisation Carbonate mineralisation CO2 concrete curing Bauxite residue carbonation Chemicals production Sodium carbonate Polymers Other chemicals (e.g. acetic acid) Algae (for chemicals)

Main activities Some activities

Source: Ecofys/Carbon Counts

Who is involved in CCU development? Where?

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Academia Start-ups Industry CO2 to fuels Enhanced commodity production Enhanced hydrocarbon production Carbonate mineralisation Chemicals production

KEY

Europe – all segments at all levels US – all segments at all levels. Many more start-up companies Asia – pockets

• f R&D across

various segments, especially energy

• Geographical factors play an important role in determining

interest/potential for several technologies (e.g. climate, material/energy availability etc.)

Source: Ecofys/Carbon Counts

Economic factors affecting CCU

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• Capital
• Energy
• Other OPEX
• Scope for cost

reduction

• Displacing lower cost,

trusted, incumbents

• Focus on high-value (speciality)

products could yield results

• Eco-labelling
• Potential volumes of

CO2 that could be utilised (highly variable <1 MtCO2/yr to several 100)

• Creating revenues

(using waste)

• Avoiding costs

(e.g. EU ETS costs)

Value Creation Market demand Costs Commercial

CCU and Climate Policy

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Captured CO 2

CO2 to fuels Enhanced commodity production Enhanced hydrocarbon production CO2 mineralisation Chemicals production

Algae cultivation Renewable methanol Formic acid Photo-catalysis Enhanced geothermal systems with CO2 Supercritical CO2 power cycles Urea yield boosting Methanol yield boosting Enhanced coal bed methane (ECBM) Enhanced gas recovery (EGR) Enhanced oil recovery (EOR) Carbonate mineralisation Concrete curing Bauxite residue treatment Sodium bicarbonate Polymers Other chemical processes

Displacement

• f fossil fuel

and/or other GHG benefits

Permanent storage CCU category Technology / application Potential abatement effect

Improved efficiency

Temporary storage

• EC Regulation 601/2012 (MRGs): No longer allow transfers to be deducted

from inventory

• Scope for exists to include “...future innovations” to allow new pathways

for CCU to be opted-in to EU ETS

Source: Ecofys/ Carbon Counts

CCU and Other EU Policy

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Renewable Energy Directive Fuel Quality Directive:

• Could potentially affect blending rates of

CCU products in cement

EU Standard EN197-1 on cement:

• Fuel blending rates at 3% do not appear to

be near-term barrier

• Are synergies, but dialogue between CCU

and CCS communities seems limited to date

Carbon capture and storage:

• Capacity to contribute to several strands: e.g.

green growth and industrial competitiveness

Innovation strategy

Future action to support CCU

Drive innovation through RD&D support

• Horizon 2020
• Innovation centres
• Technology platform

Drive commercial interest through market creation

• EU ETS and climate policy
• RED and renewables policy
• Technology innovation policy
• Eco-labelling

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“Push” factors “Pull” factors

* For example, the proposed Energy Security Trust Fund in the US included a US$ 25M prize for the first natural gas CCGT CCS project in the country

• Technology “prize”*

Near-term policy considerations

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Stakeholders and communication

• Diverse set of actors involved in CCS space (academia, industry, start-ups)
• Wide range of technologies with different characteristics
• No single voice acting for CCU interests

 Should stakeholders provide single voice for CCU at EU level?  What is the right forum – technology platform?

Research and development (“push” factors)

• Horizon 2020 is under design at the current time
• CCU technologies could feature across both thematic and cross-cutting

programmes, but:  Not really in the minds of policy-makers - should it be? What more could be done to highlight CCU in Horizon 2020?

Climate and energy policy (“pull” factors)

• No apparent near-term needs to support CCU (e.g. under EU ETS or RED).

 Are there areas where policy actions could support development? (inclusion of CCU element within NER300?)  Is there a role of a technology prize to support CCU development?

Thank you

Paul Zakkour, Carbon Counts

Email: paul.zakkour@carbon-counts.com Web: www.carbon-counts.com

Further information available at: www.co2reuse.eu

Chris Hendriks, Ecofys

Email: c.hendriks@ecofys.com Web: www.ecofys.com

Report coming soon