Challenges to the Development and Commercialization of CCS

Report
Challenges to the Development
and Commercialization of CCS
Cheyenne A. Alabanzas
2009 ASME Intern
University of Alaska – Anchorage
Overview
Premise
What is CCS?
Current projects
Challenges
Conclusion
Recommendations
Questions
Importance of Coal in the US
Cheap
Price per kWh, as of April 2009:
Coal
$0.76
Petroleum Liquids
$3.12
Natural Gas
$1.50
Derived from EIA website, http://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html
Abundant
– US has recoverable reserves of 262 billion short tons
– At current rate of consumption, coal will be an energy source for
the next 250 years.
Importance of Coal in the US
Coal provides about 50% of the nation’s
electricity.
Net Generation Shares by Energy Source: Total (All Sectors),
Year-to-Date through April, 2009
Source: Energy Information Administration,
http://www.eia.doe.gov/cneaf/electricity/epm/epm_sum.html
The need for CCS
Coal is a dirty fuel.
80% of US greenhouse gas emissions
come from coal and petroleum fuels.
US recognizes the need to cut carbon
emissions by mid-century.
What is CCS?
Carbon Capture and Storage (or
Sequestration) is a broad term for
technologies involving three main steps:
1) capturing the CO2 from the combustion of
fossil fuels at stationary sources
2) transporting it to the storage site and,
3) storing it underground in geological
formations.
Source: Japan Exploration Company, Ltd.,
http://www.japex.co.jp/english/images/technology/gainen.jpg
Current commercial projects
Sleipner (Norway)
– Started in 1996 after Norway
implemented carbon taxes
– ~12 million metric tons of
CO2 injected
– No leakage detected
Snohvit, Weyburn, In Shalah
Small pilot demonstration
projects around the world
Source: World Coal Institute,
http://www.worldcoal.org/carbon-capture-storage/
Status of CCS
Congress has recognized the need for
more CCS R & D in the US.
The technologies to capture, transport and
store CO2 exist.
What’s next?
Why isn’t there a large-scale
demonstration project that integrates all of
these?
Scale of CCS is at the gigaton.
Challenges to CCS deployment
No national strategy to regulate GHG
emissions
High cost for installing CCS technology
Uncertainty in how to address CO2 under
existing statutes
Ensuring safety and security of CO2
storage
Long-term liability and monitoring
Regulating GHG Emissions
No cap-and-trade or carbon tax for GHG
emissions
Some portfolio standards are technology
restrictive.
High cost of CCS
Estimated cost of one large-scale project
is $1 billion per year.
– Capture is the most expensive component
due to the energy penalty.
– Increases cost of electricity by 2 – 7 cents per
kWh. Current average cost for US: 9.7 cents
per kWh
– No price on carbon + high cost of CCS =
companies reluctant to invest in an
“unproven” technology
CO2: Pollutant, Waste or
Commodity?
Pollutant
Massachusetts v. EPA (2007)
Commodity
Mineral Leasing Act (for Enhanced Oil
Recovery / Enhanced Gas Recovery
purposes)
Waste
Resource Conservation and Recovery
Act (RCRA) , Comprehensive
Environmental Response,
Compensation and Liability Act
(CERCLA)
Underground Storage
Potential leakage into the atmosphere
Ensure safety and security of stored CO2
– Groundwater sources protection
– Pore space ownership
Long term liability
Life cycle of geological sequestration:
Siting (1-10
years)
Operation/CO2
Injection (10-30
years)
Closure and
Abandonment
(10-30 years)
Post-closure
(100+ years)
Who monitors? For how long? Who is financially responsible
for potential damages?
Conclusions
Regulatory framework is needed in order
to encourage the development of CCS.
CCS is expensive. Cooperation between
government & private industry is needed.
CCS has the potential to be part of the
energy mix in climate change mitigation in
the United States.
Recommendations
Implement a national strategy that regulates
GHG emissions.
– Cap-and-trade or carbon tax
– Emissions performance standards for stationary
sources instead of renewable portfolio standards
Build large-scale demonstrations that
integrate all CCS components.
– Continue R & D support for capture technologies and
sequestration
– Proper project financing for early movers through
loan guarantees and federal sequestration tax credits
Recommendations
Develop environmental regulations that
specifically address captured CO2.
– Address issues that fall under EPA’s authority.
– State participation will be key in developing
regulations and oversight programs.
Create indemnification program for
long-term liability issues related to
CCS.
– Create a CCS trust fund.
– Address transfer of responsibility regulations.
Questions?
Thank you!
Acknowledgements
Melissa Carl
Robert Rains
Dan Deckler
Erica Wissolik
ASME Staff
Fellow WISE Interns

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