1. AGENCE INTERNATIONALE DE L’ENERGIEINTERNATIONAL ENERGY AGENCY Clean Energy and Sustainable Development Clean Fossil Energy Opportunities: CO 2 Capture and Storage Dr. Jacek Podkanski International Energy Agency jacek.podkanski@iea.org Energy Week 2006 The World Bank Group

2. INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE What is CO 2 capture & storage? Capturing CO 2 from the gas streams emitted during electricity production, industrial processes or fuel processing Transporting the captured CO 2 by pipeline or in tankers Storing CO 2 underground in deep saline aquifers, depleted oil and gas reservoirs or unminable coal seams

3. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios Global CO 2 emissions

4. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios Emission stabilisation Marginal CO 2 abatement cost

5. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios Capture at various CO 2 prices

6. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios CO 2 capture by process area

7. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios CO 2 emissions from electricity generation

8. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios Electricity production by power plants fitted with CCS, by region

9. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios Fuel market implications: CCS impact on coal use at 50$/t CO 2 CCS impact 2050: 50$/t CO 2 results in 80% or 40% decline in coal use, depending on availability of CCS

10. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios Challenges RD&D gaps Public awareness and acceptance Legal and regulatory framework Long-term policy framework and incentives

11. PROSPECTS FOR CO 2 CAPTURE AND STORAGE Energy Technology Scenarios Carbon Capture & Storage Research, Development, Demonstration and Deployment ● US ● EU ● Canada ● Australia ● Germany ● UK ● Norway ● France ● Italy ● Japan,… Carbon Sequestration Leadership Forum International Energy Agency Intergovernmental Panel on Climate Change (IPCC) World Energy Council Bilateral Agreements, … Alstom ExxonMobil BP EniTecnologie SpA ChevronTexaco EPRI Shell International RWE AG Total Rio Tinto, Schlumberger,…

12. www.ieagreen.org.uk Programme Members 18 Member Countries 13 Industrial Sponsors

13. www.ieagreen.org.uk Japanese Vision - Development for 21 st Century

14. www.ieagreen.org.uk Japanese Roadmap Development – Starting Point

15. www.ieagreen.org.uk Japanese C3 Initiative toward ZET Coal Utilisation

16. www.ieagreen.org.uk Japanese R&D Programme IGCC Demonstration Project Demonstration of 250 MW IGCC (based on oxygen enriched air blown gasifier) to be operational by 2007 Target efficiency (LHV basis) ~ 48% Energy Application for Gas, Liquid and Electricity (EAGLE) Programme Target to deploy 50 MWe IGFC by 2010 (for distributed electricity) Target to deploy 600 MWe IGFC by 2020 Oxy-Combustion Development International cooperation with Australia Hyper-Coal Project (Ultra Clean Coal Project) International cooperation with Australia Target to produce coal processed to remove ash and other undesirable components which will be fired directly in a turbine.

17. www.ieagreen.org.uk Australia – Coal21 Action Plan

18. www.ieagreen.org.uk Australian R&D Programme Oxy-Combustion Development Japanese-Australian cooperation Pilot Scale study for PC Boiler Retrofit (25 MWe) – Callide A Project IGCC Demonstration Plant Programme Demonstration of IGCC with carbon capture programme Pilot plant study (16 MW and 65 MW) 200 MW will be commissioned at Stanwell Power Station by 2010 - depending on the outcome of the feasibility study IDGCC for brown coal Target to commission 800 MWe IDGCC by 2010 100 MW IDGCC demonstration project is currently at site selection and costing stage. Decision to proceed will be made by mid-2006 Ultra Clean Coal Development Programme International cooperation with the Japanese (Hyper Coal Project) A relationship was developed with the Chinese power utilities

19. www.ieagreen.org.uk USA Roadmap Development Principle Short-term: keep existing fleet in service; prepare for transition to near- zero-emission future SO 2, NO x, Hg Plant optimization and control Reduced carbon intensity Long-term: add near-zero emission energy plants IGCCs to market Advanced materials Ultra-high efficiency hybrid systems CO 2 capture and storage Rev. 071404

20. www.ieagreen.org.uk Rev. 071404 USA Roadmap Development Global Climate Change Initiative set a target of 18% GHG emission intensity reduction by 2012 (baseline year 2001) Future Gen – “Integrated Sequestration and Hydrogen Research Initiative” US$ 1 Billion – 10 year programme Target to demonstration a 275MW polygeneration plant by 2015 Turbine of the Future Programme Development of Gas Turbine firing with H 2 rich fuel

21. www.ieagreen.org.uk Gasification with Cleanup Separation System Integration Carbon Sequestration USA: Overview of the FutureGen Programme Optimized Turbines Fuel Cells H 2 Production

22. www.ieagreen.org.uk Rev. 071404 USA Roadmap Development Clean Coal Technology – “Clean Coal Power Initiative” (2001 – 2011) US $ 2 Billion over 10 years “Power Plant Improvement Initiative” (2001) Focus on efficiency improvement and emission reduction VISION 21 Programme – “21 st Century Power Plant” Material Development Programme Development of boiler material to achieve operating steam temperature greater than 750 o C

23. www.ieagreen.org.uk Vision 21 Programme - Strategy

24. www.ieagreen.org.uk

25. German: COORETEC Programme

26. www.ieagreen.org.uk Carbon Reduction Time `Increased Efficiency` Trajectory `Zero Emissions` Trajectory Near-term Mid-termLong-term Zero emissions will need the most efficient plant Key issue will be value of CO 2 UK: CAT Options are complementary

27. www.ieagreen.org.uk EC: CO 2 Capture and Storage R&D Policy A Priority in Long Term Energy R&D in FP6 (2002-2006) Capture and sequestration of CO 2, associated with cleaner fossil fuel plants. Targets: reduce the cost of CO 2 capture from 50-60 € to 20-30 € per tonne of CO 2 captured, whilst aiming at achieving capture rates above 90%, and assess the reliability and long term stability of sequestration.

28. www.ieagreen.org.uk Components of FP7 Continued focus on Carbon Capture and Storage Re-introduction of Clean Coal Technology in recognition of the drive for greater efficiency whilst CCS is developed and deployed Technology Platform to advise on strategy and direction of these two elements

29. www.ieagreen.org.uk European Based R&D Programme CCS Projects Enhanced Capture of CO 2 in Large Power Plant (ENCAP) Project – FP6 funded project CO 2 from Capture and Storage (CASTOR) – FP6 funded project dealing with post-combustion capture ISCC (In-situ CO 2 Capture Technology for Solid Fuel Gasification) – FP6 funded project Vattenfall taking the initiative – 30 MW pilot plant study Polygeneration of Hydrogen and Electricity HYPOGEN Project Material Development Programme Component Test Facility for a 700 o C Power Plant (COMTES700) – RFCS funded project – continuation of AD700 programme

30. INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE International Energy Agency Working Party on Fossil Fuels and IEA Clean Coal Centre G8 Plan of Action: Cleaner Fossil Fuels Global database Global database with complete information on efficiency of fossil-based electricity generation Report Report on best practices in power plant operation Series of case studies Series of case studies on recently constructed plants Joint effort of IEA and IEA Clean Coal Centre in collaboration with the World Bank, European Commission, World Energy Council, VGB, EOn Focus on Russia and +Five Developing Countries Final Report to the G8 in mid-2008 WB/IFIs: Review of deliverables Report Report on potential of upgrades and replacement Report Report on potential of future developments Global conference Global conference and three regional workshops

31. INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE International Energy Agency Working Party on Fossil Fuels and IEA GHG R&D Programme G8 Plan of Action: Carbon Dioxide Capture and Storage Workshop on Early CCS Opportunities : CO 2 Enhanced Oil Recovery, CO 2 Separation from Natural Gas -organised jointly by the IEA’s WPFF and Oil and Gas Advisory Group, Chevron, US Energy Association, IEA GHG R&D Programme and EOR R&D; -San Francisco, 22-23 August 2006; -gathering of professionals from industry and research institutions: information exchange, preparation of dissemination and popularization conference; -follow-up publication; -conferences to disseminate information and popularise early opportunities (2007). Coordination with the CSLF Involvement of developing countries

32. INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE International Energy Agency Working Party on Fossil Fuels and IEA GHG R&D Programme G8 Plan of Action: Carbon Dioxide Capture and Storage Study on capture ready plant : -Engineering and cost study on capture ready plant (GHG R&D Programme, on going subcontracting process); -Report on policy instruments and incentives for capture ready plant (IEA Secretariat); -Dissemination efforts Coordination with the CSLF Involvement of developing countries

33. INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE Long-term policy framework and incentives In addition to the acceleration of RD&D funding, countries should create a level-playing field for CCS alongside other climate change mitigation technologies. This includes ensuring that various climate change mitigation instruments, including market-oriented trading schemes, are adapted to include CCS.

34. INTERNATIONAL ENERGY AGENCY AGENCE INTERNATIONALE DE L’ENERGIE Conclusions CCS can play a key role in addressing global warming  mainly through coal plants in coal-rich regions – but efficiency first  but also some natural gas opportunities Carbon incentives are needed, but also:  Proven technology – too early to pick up winning technology  Acceptable storage Capture ready plant ?

35. AGENCE INTERNATIONALE DE L’ENERGIEINTERNATIONAL ENERGY AGENCY jacek.podkanski@iea.org Thank you