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Bioenergy with Carbon Capture and Storage (BECCS) David T. Kearns and Dominic Rassool, Global CCS Institute
Bioenergy with Carbon Capture and Storage (BECCS)
David T. Kearns and Dominic Rassool, Global CCS Institute
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Agenda
• Introduction of the CTCN
• Different bioenergy resources including Waste-to-Energy (WtE)
• An overview of CCS technologies for bioenergy applications
• Example BECCS projects
• Outlook and potential for BECCS
• CCS project financing
4
The Climate Technology Centre and Network
Organisation
• Operational arm of the UNFCCC Technology Mechanism
• Consortium of organizations from all regions + Network
Mission and scope
• Mission to stimulate technology cooperation and enhance the
development and deployment of technologies in developing countries
• Technologies include any equipment, technique, knowledge and skill
needed for reducing greenhouse gas emissions and for adapting to
climate change effects
Core services
• Technical assistance to developing countries
• Knowledge platform on climate technologies
• Capacity building and support to collaboration and partnerships
5
CTCN Technical Assistance (TA)
Country-driven
• Any organization from developing countries can express need
• Request endorsed and submitted by the NDE
Fast and easy access to assistance
• User-friendly access: 4-pages submission, in all UN languages
• Appraisal of request within 1-2 weeks and response design within 2-12 weeks
CTCN selects and contracts relevant experts
• Assistance provided through Consortium and Network (value up to 250,000
US$)
• Collaboration with financial organizations to trigger funding
Support to remove barriers to
technology transfer (financial,
technical, institutional)
Identification of needs and
prioritization of technology,
depending on country context
Technical recommendation for
design and implementation of
technology
Feasibility analysis of
deploying specific
technologies
Support to scale up use and
identify funding for specific
technologies
Support legal and policy
frameworks
6
Networking and Collaboration
Join our network! Easy and free of cost.
Access commercial opportunities: respond to competitive bidding for delivery of
CTCN technical assistance services
Create connection: network with national decision makers and other network members
to expand your partnership opportunities and learn about emerging areas of practice
Increase visibility: broaden your organization or company’s global reach, including
within UNFCCC framework
Exchange knowledge: keep updated on the latest information and share via the
CTCN’s online technology portal
Examples of collaboration
• Co-host climate related events
• Twinning arrangements with research institutions
• Engage in new technology projects
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Bioenergy and Carbon Capture and Storage (BECCS)
Delivering negative emissions with
bioenergy, biofuels and waste-to-energy
• Different bioenergy resources
including Waste-to-Energy (WtE)
• An overview of CCS technologies
for bioenergy applications
• Example BECCS projects
• Outlook and potential for BECCS
• CCS project financing
Dr David T. Kearns
Senior Consultant
CCS Technology
Melbourne, Australia
Dominic Rassool
Senior Consultant
Policy and Finance
London, UK
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Bioenergy background
• Bagasse
• Wood & forestry residues
• Starches and oils/fats
• Dedicated energy crops (e.g. perennial grasses)
• Microalgae
• Landfill gas
• Municipal solid waste (MSW)
CO2 from
atmosphere
Biomass Energy conversion(s)
Heat
CO2 to atmosphere
Electricity
or
Mechanical
work
Image: Klemetsrud WtE plant
Biofuels:
liquid,
solid or
gas
Biomass contains solar energy
converted to chemical form via
photosynthesis.
CO2 from combustion of biofuel is
biogenic – taken to be zero net
emissions by most carbon
accounting systems
Some GHGs emitted during life
cycle:
• Land use change
• Biomass cultivation:
• Biofuel production (e.g. heat and
power consumption)
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Bioenergy with CCS (BECCS)
• Bagasse
• Wood & forestry residues
• Starches and oils/fats
• Dedicated energy crops (e.g. perennial grasses)
• Microalgae
• Landfill gas
• Municipal solid waste (MSW)
Biomass Energy conversion(s)
Dilute CO2
Biofuels:
liquid,
solid or
gas
CO2 from
atmosphere
Concentrated
CO2 to
Storage
(>90% of feed)
Residual
CO2 (<10%
of feed)
Process Net CO2
removed
from
atmosphere
per tonne
CO2 in
biomass
Biomass
to power
- 0.50
Biomass
to liquid
fuel
- 0.75
Source: Grantham Institute,
Imperial College, London.
Miscanthus production in
Brazil, fuel/power in UK.
Excludes LUC emissions.
Capture
plant
Heat
or
work
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Carbon capture types
Capture Separating a concentrated CO2
stream (>95 mol% purity) from a
dilute CO2 source. Followed by
dehydration and compression.
Image: Aker Solutions “Just Catch” modular CO2
capture plant
Absorption (solvent) capture plants
ABSORBER DESORBER /STRIPPER
LEAN/RICHHEAT
EXCHANGER
CONDENSER
REBOILER
CO2 richflue gas
RICH SOLVENT LEAN SOLVENT
Flue gas to atmosphere
CO2 tocompressionand storage
Steam
Energy for capture in form of heat (steam)
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Carbon capture types
Membrane capture plants
Image: Air Liquide advanced separations
Membranes in module Energy for capture in form of pressure
(power to run compressor)
CO2 influe gas COOLER
1st STAGEMEMBRANE
PermeateCompressor
stage
After-cooler
2nd STAGEMEMBRANE
Recycle (medium CO2 concentration)
Permeate70-80% CO2
Flue gasto atmosphere
>95% CO2 tocompressionand storage
COMPRESSOR
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Carbon capture types
Adsorption (solid) capture plants
Image: Air Products and Chemicals
adsorption beds
Energy for capture in form of heat
(TSA) or pressure (power to run
compressor) (Pressure swing
adsorption - PSA) CO2 influe gas
DESORBING BED(HIGHER TEMPERATURE)
HEATER
ADSORBING BED(LOWER TEMPERATURE)
Flue gas to atmosphere
Purge gas(low CO2
high temperature)
Concentrated CO2 toCompression and storage
Temperature Swing Adsorption (TSA)
Beds contain “adsorbent” – porous
solids with affinity for CO2
Waves of CO2 move up
the adsorbing bed. Waves of
low CO2 move down desorbing bed.
When adsorbing bed is “full”, the flows
are reversed (“Swing”).
Adsorbing bed becomes hotter from
purge gas and starts desorbing to
release CO2.
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Waste to Energy: net emissions and measurement
WtE plants combust mix of biogenic
and non-biogenic (fossil) materials.
CO2 from combustion of biofuel is
biogenic – taken to be zero.
Non-biogenic fraction needs to be
estimated via:
1) Fuel sampling and
characterisation – difficult for
mixed materials like tyres, or
2) Flue gas sampling and
measurement of 14C
(radiocarbon dating) to estimate
biogenic fraction of CO2
emissions. Fossil fuel sources
have zero 14C so can be quite
accurate testing method.
1000 tonnes/day
CO2 from WtE plant
From fuel testing or flue gas
radiocarbon testing, CO2:
60% biogenic: 600 t/d
40% non-biogenic: 400 t/d
Carbon capture plant
recovers 90% of CO2
in feed for storage
CO2 stored: 900 t/d
60% biogenic: 540 t/d
40% non-biogenic: 360 t/day
CO2 emitted: 100 t/d
60% biogenic: 60 t/d
40% non-biogenic: 40 t/d
Net CO2 emissions: -540 t/d (biogenic) + 40 t/d (fossil) = -500 t/d
(not including emissions from CCS energy usage, if any)
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Example BECCS projects
Twence Waste-to-Energy:
Hengelo, Netherlands.
830,000 tonnes of waste per year.
CC project under development using
Aker Solutions’ “Just Catch” modular
capture technology. CO2 sold for
industrial use, offsetting CO2 produced
by burning natural gas.
Capture capacity 100,000 t/y CO2
Klemetsrud Waste-to-Energy:
Oslo, Norway.
400,000 tonnes of waste per year (50%
biogenic)
CCS project under development using
MEA (amine) solvent-based capture
technology. CO2 transported by ship for
storage.
Capture capacity 400,000 t/y CO2
Illinois Industrial CCS Project
Illinois, United States.
1.32 billion litres/year of corn ethanol.
CCS project commenced operations in
2017. Fermentation of corn produces
biogenic CO2. CO2 stored in geological
formations, transferred by pipeline.
Capture capacity 1,000,000 t/y CO2
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BECCS outlook and potential
As well as rapid emissions reductions, the world
needs options for Carbon Dioxide Removal
(CDR). BECCS is one such option.
Others include Direct Air Capture and
reforestation/afforestation.
Growing production of municipal waste presents
opportunity for BECCS to provide energy and
solve waste while producing negative emissions.
IPCC SR15 report (2018):
“All analysed pathways limiting warming to
1.5°C with no or limited overshoot use CDR to
some extent to neutralize emissions from
sources for which no mitigation measures have
been identified and, in most cases, also to
achieve net negative emissions to return global
warming to 1.5°C”
IEA: BECCS (power and fuel) provide almost 1 Gt
of CO2 captured globally by 2050.
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Barriers to investment in CCS
Policy is required to create a business case for investment
Market
Failures
Low Value
on
Abatement
Higher CAPEX
& OPEX
Hard to reduce
risks
Policy mitigates market failures Enabling investors to generate a reasonable return
on investment
Revenue
Cost
Investment Risk
General
Project
Risks
Expected
return
Investment
Decision
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What has worked so far?
A material value on CO2
A clear and robust legal framework
Strong capital support from
government
• Reduces the revenue risk
• Manages the liability risk
• Reduces the amount of private
capital needed
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What has worked so far?
A material value on CO2 can
be achieved through a number
of instruments, including:
• Tax credits
• Carbon tax
• Emissions trading scheme
• Regulation
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What has worked so far?
A clear and robust legal
framework that:
• Transfers liability from the operator to government a predetermined time after
closure
• Or to establish a risk cap below which liabilities rest with the operator and
above which liabilities are accepted by government
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What has worked so far?
Strong capital support from
public funds can take the form
of a number of instruments:
• Technical Assistance Funds
• Design-stage (Pre-FID or FEED) grants
• Capital Grants
• Equity Investments (state owned assets or PPPs)
• Concessional Capital
• Guarantees or Risk Insurance
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A closer look at hard to reduce risks
• Hard to reduce risks may
preclude investment. These are: • Cross-chain (counterparty)
risk • Long term liability risk
• All risks will add cost • General project risks
Government should
share with the
private sector
Private sector best
placed to manage
general project
risks
22
Hubs and Clusters reduce cost and cross chain risk
CO2
collection
hub
CO2
storage
hub
Economies of scale in
CO2 transport and
injection infrastructure
Multiple counterparties reduces
cross-chain risk and delivers
higher utilization of assets
Business A Business B
Business C Business D
Business E
Business F
Business G
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Initial investment is risky
CO2
collection
hub
CO2
storage
hub
• All the risks and costs of a single source – single sink business model
• Larger capital cost and lower asset utilization of pipeline infrastructure
that is oversized to accommodate future demand as the hub grows.
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Initial investment is risky
CO2
collection
hub
CO2
storage
hub
• Government takes up to 100% equity in initial CO2 pipeline and
compression infrastructure after securing an “Anchor customer”
Government
owned & operated
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Initial investment is risky
CO2
collection
hub
CO2
storage
hub
• Other businesses join the hub
Government
owned & operated
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Initial investment is risky
CO2
collection
hub
CO2
storage
hub
• Other businesses join the hub
Government
owned & operated
27
Initial investment is risky
CO2
collection
hub
CO2
storage
hub
• Sell the CO2 transport infrastructure to the private sector once the hub is
established
Government
owned & operated
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Kickstart investments through hubs and clusters
Government has a key role to
play in that it can bear hard to
reduce risks by:
• Facilitating the development of transport and
storage networks
• Bearing long term liability risk
• Identify specific policy interventions to reduce
significant risks e.g. the revenue risk
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The cost of debt and equity is material for CCS
Illustrative example of risk
premium applied to low risk
lending rate
A 10% risk premium can add tens of millions
of dollars to the annual cost of servicing debt
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The cost of debt will reduce with deployment
Mature
industry
Policy
Policy Confidence
Confidence
First CCS
investments
Growing
industry
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Investments become more attractive with deployment
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Low n Med n High n
Inte
rnal
Rate
of
Retu
rn a
nd
Hu
rdle
Rate
Cap
ital
Str
uctu
re
Grant Contribution Equity Contribution Loan Contribution Equity IRR Hurdle Rate n is the number of facilities in operation
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