© amec foster wheeler 2016. - iom3 ccs_james wa… · context - eu27 –reduction by technology...
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© Amec Foster Wheeler 2016.
© Amec Foster Wheeler 2015.
Cleveland Institute of EngineersCarbon Capture and Storage
02 02 2016
© Amec Foster Wheeler 2016.
3
► Overall drive is emission reduction
► Climate change driven
► Targets set globally for impact on mean temperature
► UK
► Commitment to 80% reduction by 2050
► All sectors impacted
► “Industry”
► 2013 – 87MtCO2e
► Has been declining since 1970
► Partly due to economics
► Needs to decarbonise as part of wider efforts
CCS and Emission Reduction
© Amec Foster Wheeler 2016.
Context - EU27 – Reduction by Technology Type
For the 2°C – 4°C
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
2015 2020 2025 2030 2035 2040 2045 2050
EU27 Technology Type
European Union-Power generation efficiency and fuel switching-2DS-4DS
European Union-Nuclear-2DS-4DS
European Union-End-use fuel switching-2DS-4DS
European Union-End-use fuel and electricity efficiency-2DS-4DS
European Union-Renewables-2DS-4DS
European Union-Carbon capture and storage-2DS-4DS
© Amec Foster Wheeler 2016.
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► What options do we have
► Highly dependent on the
industrial sector
► But there are issues
► Sustainability
► Environmental
► Business
► Survivability
► Competition
► Economic disadvantages
► Decreased investment
► Ability to modify
► Stranded assets
► Locked in CO2 production
How do we achieve that?
► High level options
► Electricfication
► Fuel switching
► Feed stock switching
► Abatement
► New technology
► Energy saving
► Efficiency
► Integration
► Material efficiency
© Amec Foster Wheeler 2016.
What is CCS?
It is not a single technology strand
► Carbon – technology that aims to decarbonise, prevent Carbon
based emissions from entering the atmosphere
► Capture – abatement or prevention technology step
► condition – treatment of captured carbon dioxide streams fro
transport and storage
► transport – via pipeline or ship (or other!)
► Storage – storage of captured Carbon Dioxide in a physical store
► Depleted hydrocarbon formations
► Deep saline formations
► re-use – re-use of the Carbon Dioxide for other purposes
► MMV – measuring, monitoring and verification
6 © Amec Foster Wheeler 2015.© Amec Foster Wheeler 2016.
Capture routes – a simplified picture
FEEDSTOCK
TREATMENT
CHEMICAL
PROCESS
PROCESS
EMISSIONS
CHEMICAL
PROCESS
PROCESS
EMISSIONS
CO2FEEDSTOCK
POWER AND
HEATCAPTURE
GASIFICATION
SHIFT, GAS
CLEANUP &
SEPARATION
POWER AND
HEATCO2 CONDITIONING,
DEHYDRATION AND
COMPRESSION
AIR
SEPARATION
POWER AND
HEATGAS CLEANUP
CO2
CO2
CO2
SYNGAS
AIR
STEAM
AIR
FUEL
AIR/OXYGEN
FUEL
FUEL
EMISSIONS
POTENTIAL FUEL STOCKS
FEEDSTOCK
POTENTIAL
FEEDSTOCK
10.635
© Amec Foster Wheeler 2016.
Why is it important for Industry
► UK Carbon Dioxide Emission targets – 80% reduction by 2050
► UK “industry” emitted – 87MtCO2e in 2013
8
Energy Supply , 180.76
Business, 75.45
Transport, 115.69
Public, 9.49
Residential, 74.68
Agriculture, 4.93
Industrial Process ,
12.22 Land Use Change, -6.01Waste Management, 0.25
2013 UK Emissions, MtCO2e
© Amec Foster Wheeler 2016.
ICCS and Teesside
9 © Amec Foster Wheeler 2016.
► Technical, technical options and cost information
► Looks at capture options on 4 sites
► Growhow
► Lotte
► SSI
► BOC HMU
► Transport Infrastructure
► 5 million tonnes per annum
► 15 million tonnes per annum
► Storage
► Offshore – Goldeneye (part of Peterhead CCS Project)
► Offshore – Endurance store, 5/42 (part of White Rose CCS Project)
► Non-technical
► Business case
► Economics
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Teesside CollectiveIndustrial CCS Study
© Amec Foster Wheeler 2016.
► Define the drivers/issues for each emitter
► Workshop the solutions
► Emitters constraints and drivers
► Business
► Site
► Process
► Screening criteria
► Options
► Options assessments
► High level look at possible options
► Screening
► Deeper look at selected options
► Basic engineering and costing of selected option or options
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How did we do that?Industrial CCS Study
© Amec Foster Wheeler 2016.
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► SSI was the most complicated
case
► Number of
► Emission points
► Flows paths
► Energy pathways
► Issues with plant
► Distributed
► Old
► But typical of its generation of I &
S works.
SSI example
© Amec Foster Wheeler 2016.
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SSI Example
► Concept 1 –
Post
combustion
on new power
plant
► Concept 2 –
Pre-
combustion,
non-shifted
► Concept 3 –
Pre-
combustion
Shifted
Blue Sky Workshop Detailed Evaluation Down Selection
© Amec Foster Wheeler 2016.
Option 1 DevelopmentSelected for costing
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Attribute Outcome
Captured CO2 1.6 million te pa
209 te/hr (100barg)
Electrical Load 34 MWe
Heat demand 211 MWth
Reference Plant Boundary Dam
Attributes / issues End of Pipe Solution
Heat demand
Flue gas consistency
Areas for work during
FEED
Heat Integration with
wider site
© Amec Foster Wheeler 2016.
Challenges
►Diverse point source in a steel works
► Compatible technology
►For SSI
► Addressing some of the more “problematic” streams/processes
► Cost
► Retrofit – can the work be done on plant that is significantly old?
► Space & distance in site
►Different challenges
► All sites are different
► What do you do for major existing plant?
► Reluctant to modify
► What can we do to reduce carbon input?
► What technology is coming forward (ULCOS, DRI)
► Need to address more challenging emissions
© Amec Foster Wheeler 2016.
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► Growhow – minimum issues
► Already produces pipeline quality Carbon Dioxide
► Required only compression
► BOC
► Minimum issues
► Some technology options to consider
► Lotte
► Smallest emitter
► Typical retrofit issues
► Some concern of heat requirements, but achievable
► Package units available at this size from US
Other Sites
ReformerCCP
Core
Plant
PS
A
CCP Utilities
© Amec Foster Wheeler 2016.
Lotte
► PET plant
► PET is the basic material of plastic drink bottles
► Recently doubled capacity
► Carbon Dioxide is produced from heaters in the process
► Considered 13 options
► 5 moved to screening
► Amine plant selected
► Recovers 90%
► Issues
► Integration
► Impact of selection of an advanced amine – is other flue treatment required?
► Is it flexible enough
► Other learning
► non technical drivers key
► Clients have strong sustainability goals leading to other economic considerations
New
Plant
Existing
Plant
CCS
© Amec Foster Wheeler 2016.
Transport
“Blue” Route
5MM tpa, 4 Sites“Big Blue”
15MM tpa,
© Amec Foster Wheeler 2016.
Network - offshore
►Two options
► Shell Goldeneye (DHF) / Captain DSF
► NG 5/42 DSF (Deep Saline
Formation)
►Common shore landing
►No real issues
► Except that of the cost
►Assumed one or both would
succeed in the DECC competition
► Funding was withdrawn November
2015
► Both projects suspended
The economics?
►Difficult to assess the impact, but…
► Add £85 million to GVA/year
► Support an additional 350 jobs
► Ensuring industry remains in the UK
► 2,400 jobs in the 4 emitters
► 3,500 in their supply chain
► Contribute £290 million GVA directly
► £400 million in their supply chain
► That’s for just the 4 plants
►For 15 million tonnes/year
► 1,100 jobs
► Add £450 million GVA/year
►But the CAPEX costs are large
► £5.4 billion, £95/tonne over 20 years
► Individual costs vary from £16 to £302/tonne
© Amec Foster Wheeler 2016.
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Business Case Output
© Pale Blue Dot Ltd 2015
Teesside ICCS is technically & economically viable:
Scenario discounted capex cost ranges £0.8-£2.1bn
Over 20 years the entire ICCS Chain for the Reference
Scenario requires undiscounted financial support of £5.4bn
(£1.5bn PV7) equating to £95/T for 56.5mT CO2 stored. (13%
IRR. 7% Discount Rate)
Capture 47%, Gathering 3%, Offshore 50%
Trebling the infrastructure only requires an additional 8% of
support (£104m)
Financial Support
(£/T over 20 years)
Excluding Return Undiscounted PV7
Ammonia 25.5 8.4
Steel 30.5 10.1
Hydrogen 34.8 12.4
PET 116.7 42.8
Including Return Undiscounted PV7
Ammonia 37.4 10.5
Steel 45.3 12.7
Hydrogen 61.6 17.5
PET 214.9 61.6
© Amec Foster Wheeler 2016.
Commercial Support Mechanism
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Image Source:
Societe Generale
Three options for a Funding Mechanism
reviewed:
a Storage Mechanism Payment
a CO2 CfD Emitter Mechanism
a hybrid
© Pale Blue Dot Ltd 2015
© Amec Foster Wheeler 2016.
► Retrofit options are varied
► Some are far easier than others
► Some processes may need to be completely rebuilt
► Others are simple to apply CCS to
► Support is needed
► Current technology is expensive
► Other studies emerging globally
► Repeated outcomes
► Same issues
► Outcomes of the industrial CCS work
► Positive outlook
► Deployable technology
► Cheaper in a cluster
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Can we deploy industrial CCS?
Government
support is
still needed
Industry is
keen, sees the
future
problems they
face – CCS is
critical
Other things
can be done
© Amec Foster Wheeler 2016.
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► On 25th November HMG cancelled the current CCS program
► Withdrew a “ring-fenced” £1billion in HMG support
► No notice was given to the two projects
► Peterhead and White Rose are now cancelled
► These were the stores for Teesside
► The previous competition was cancelled in 2010
► 2012 second competition launched
► 2014 FEED studies
► 2016 Decision date
► 2019 Deployment
► Impacts
► Increased cost of emission reduction
► Pressure on other sectors
► Damage to sector confidence
What next?
© Amec Foster Wheeler 2016.
Q&A
26 © Amec Foster Wheeler 2016.
James Watt
Process Engineering Manager
Amec Foster Wheeler
Lingfield Point
Darlington, DL1 1RW
Untied Kingdom
t: +441325 744652, e: [email protected]
© Amec Foster Wheeler 2016.