Carbon Capture, Utilization and Storage: Decarbonisation Pathways for Singapore
Mark Schenkel
CONTENT PAGE
• Climate change and the urgency to decarbonize economic activities
• The role of Carbon Capture, Utilization and Storage (CCUS) in decarbonizing industries
• CCUS pathways in Singapore
Cl imate change and the
urgency to decarbon ize
economic act iv i t ies
Credit: @ed_hawkins
Credit: NASA Worldview
The ro le of CCUS in
decarbon iz ing indust r ies
Governments, industries and NGOs are increasingly interested in CCUS
CCUS is on the radar of many organizations leading climate change action
We also consulted for corporates, public-private partnerships such as EIT
Climate-KIC and newly formed, dedicated consortia such as PORTHOS in
Rotterdam that aim to establish world-scale CCUS projects.
In recent years we executed work for European, American and Asian
governments.
CCUS is part of many techno-economic analyses we do for industries and
utilities, for example the low-carbon roadmaps for the European steel
manufacturers or the Dutch chemical industry.
Many multinational companies have extensive R&D programs to develop
and implement CCUS technologies for abatement or valorization of carbon
emissions
The European Union and many European countries are investigating how
CCUS can contribute to a low-carbon, circular and prosperous economy.
Utilities explore CCUS to increase the license-to-operate of their assets in a
carbon constrained society.
Interest in CCUS is on the rise, globallyGuidehouse sees strong uptake of public and private interest
Carbon sourceCarbon Capture
methodology
Utilization or
Sequestration?
Weathering of mineral rocks like olivine
Example route
Algae cultivation to produce fuels
Carbon Capture and Storage (CCS)
Bio-Energy Carbon Capture and Storage (BECCS)
CO2 to fuels, such as synthetic methanol
AtmospherePassive
Utilization
Industry Sequestration
Biological
Technological
Direct Air Capture (DAC) to horticulture
Credit: Guidehouse, adopted from collaboration with EIT Climate-KIC
CCUS is an umbrella term for many technologies
CCUS competes against other decarbonization optionsPolicy support required – as do other solutions!
200
400
300
0
-100
100
500
US$/tCO2
Energy efficiency (11 measures)
Circulair feedstock (5 measures)
Circulair products (7 measures)
Decarbonizing heat supply (6 measures)
Electrification (16 measures)
CCS (6 measures incl. blue H2)
23 MtCO2e
Key message: CCS measures are on the lower end of the marginal abatement cost curve for Dutch industry to meet its
2030 GHG emissions reduction target
Credit: Navigant, a Guidehouse company, for Dutch Klimaatakkoord (climate accord)
Global CCS projects in operation or under serious considerationincreases after years of stagnation to 43 projects worldwide, mostlyfor enhanced oil recovery.• In light of the Paris Agreement, various countries look to reduce industrial emissions with CCS
• The EU launched a fund to stimulate CCUS investments, together with specific incentives from nationalgovernments; US Tax Incentives
• In the EU, 2–4 projects are scheduled to come online and developed around CO2 storage hubs
• Some of them rely on CO2 shipping routes to Norway, and offshore transport
“Projects of Common Interest” in the European UnionNorwegian transport and storage model
Credit: nova Institute, 2019. Hitchhiker’s Guide to Carbon Capture and Utilisation
Most scalable CCU solutions avoid resource extraction elsewhere and thereby reduce emissions
CCUS pathways
in S ingapore
1. Identify & analyse
suitable CCUS
technologies that could
be implemented in
Singapore
2. Help agencies
prioritise near-term (5-
10 years)
implementation and
research, development
and demonstration
(RD&D) pathways up
to 2050 for Singapore.
Objectives Outputs
Evaluate potential CCSU pathways that would help agencies prioritise near-term (5-10yrs), implementation
and research, development and demonstration (RD&D) pathways up to 2050 for Singapore.Goal:
Update of the CO2 emissions profile of the energy and chemical sectors in Singapore
Analysis of the CO2 abatement potential and cost of key CCUS technologies
Development of marginal abatement cost curves (MACCs)
Identifying technical and commercial barriers for implementation, and enablers, recommend technologies
Guidehouse was retained to explore role CCUS Singapore Decarbonization Pathways for Energy and Chemicals Sectors
38.8
0.1
21.9
9.3
1.0
6.6
0
5
10
15
20
25
30
35
40
Oil refining
MtCO2
Total HydrogenPower
generation
Steam
cracking
Ethylene
oxide
39 million tonnes CO2 / year is emitted in Singapore’s
E&C sectors, at varying concentrations…
Options and costs for CO2 capture in Singapore’s industrial and power sectors were studied, together with regional options for geological storage and CO2
utilization.
.
Sources: Bains et al, CO2 Capture from the Industry Sector, 2017; ADB, 2013. Prospects for Carbon Capture and Storage in Southeast Asia; Navigant team analysis
.
Capture and concentration… Storage
28.0
23.0
0
5
10
15
20
25
30
12.2
Vietnam
GtCO2
10.3
PhilippinesThailand Indonesia Malaysia
11.3
Depleted oil & gas
Mined coal seams
Saline aquifers
Total
• Largest share of emissions has
a low CO2 concentration
(e.g. NG power)
• Small part of emissions (1.6
MtCO2) can be captured at
costs of below $50/tCO2
• No domestic geological
storage potential
• Defined storage potential in
the region is around 85 GtCO2
20
40
100
60
0
80
6.6 4.6
85
0.5 0.2MtCO2
35
14
4.61.0
100
28
21.2
58 58 58
US$/tonne of CO2
100
0.1
41
Ethylene oxide
Ethylene
Coal
Hydrogen
Natural gas
Refinery - FCC
Fuel oil
Refinery - Process heaters
Refinery - Utilities
1 2 3 4 5 6 7 8 9
1,5
0,0
2,0
0,5
1,0
2,5
3,0
3,5
TRL
Concrete curing
tCO2/tonne
Supercritical CO2
Aggregates
Oxalic acid
Formaldehyde
Synthetic methanol as fuel
Synthetic kerosene
Acetic acid
Propylene glycolAmmonium carbamate
Other industrial applications
Mineralization
Chemicals production
Fuels
250
Global demand [mil tonne CO2]CCU application category
Source: Navigant/Guidehouse analysis
Using CO2 to produce fuels and building materials is
generally more advanced compared to chemicals
Low-cost hydrogen may bring CCU options closer to
economic reality. But where in hydrogen use case
merit order sits CCU?
48
46
1
1
69
83
499
316
0 100 200 300 400 500 600 700
2050
Net abatement cost synthetic methanol [US$/tCO2]
2025
447
617
CAPEX HydrogenO&M Energy
48
45
1
1
68
91
392
206
2025
3442050
509
EnhancedDecarbonizationScenario
Long-TermDecarbonizationScenario
Lower cost scenarios in Singapore show promise… …but competing hydrogen use cases
• Direct use in existing chemical and refining cluster
• Transport• Higher-value chemicals• Markets abroad• Other
Opportunity to prioritize and focus government stimulus for a strong and resilient energy and chemicals sector
Example
Companies and universities worldwide are actively working to resolve thesebarriers and reduce cost. Singapore can play a role with its excellent RD&Dcapabilities to bring CCUS further.
To increase the probability of realising most of these CCU technologies at industrial scale in Singapore, economicsneed to improve and technical barriers should be resolved through RD&D and availability of low-carbon hydrogen:
For the lower TRL technologies, technological breakthroughs are requiredto scale and improve efficiency.
o Specific funding and RD&D support to help scale CCU technologies and boost their efficiency.
For higher TRL technologies, further cost reductions related to hydrogen feedstock or a level playing field are required to compete with incumbent production methods and overcome commercial barriers.
o Supporting the development of low-carbon hydrogen and renewable energy production pilots to reduce production costs.