NO CCS – NO 2°C

Clare Penrose, General Manager - Asia PacificJCOAL Clean Coal Day, Tokyo9 September 2014

JAPANESE COMPETITIVE ADVANTAGE

Fossil fuels will be important for a long time to come

Source: IEA (2013)

134 GW coal capacity added in 2013 – at least double that of any other fuel. – IEA 2014

Fossil fuels will continue to dominate energy consumption patterns

Fossil fuels must be a part of the climate change solution.

1990 2010 20350

4000

8000

12000

16000

20000

Primary energy demand by fuel source(million tonnes of oil equivalent)

Fossil Fuels Renewables Nuclear

76%

81%

81%

13%

6%

18%

6%

13%

6%

Source: IEA World Energy Outlook (2013).

- New Policies Scenario: assumes current climate change policy commitments and pledges by Government are fully implemented.

The climate change challenge

A 4°C world is so different from the current one that it comes with high uncertainty and new risks that threaten our ability to anticipate and plan for future adaptation needs.

World Bank Group President Jim Yong Kim, November 2012

Renewable technologies are not the sole answer to mitigating the rise in global temperature:

o decarbonising power without CCS would cost 40% more than with CCS

o in many industrial processes, accounting for over 20% of CO2 emissions, there is no alternative to CCS.

CCS is a critical component of a sustainable energy system

Source: IEA Energy Technology Perspectives (2014)

In a 2° scenario, CO2 captured in 2030 is in excess of 1,500 Mt and 6,300 Mt in 2050. So how are we tracking?

Gt C

O2

emis

sion

s

Large-scale CCS projects by project lifecycle and year

22 projects in operation or under construction – 8 more than in 2011.

CO2 capture capacity by actual or expected year of operation

CCS is a reality with 40 Mtpa of CO2 potentially captured by active projects but a broad portfolio of projects in the advanced stages of planning must progress if

momentum in the demonstration of CCS is to be accelerated.

Actual and expected operation dates for CCS projects in ‘Operate’, ‘Execute’ and ‘Define’ stages

CCS projects that utilise coal as a feedstock are increasing in prominence.

Air Products

Century PlantCoffeyville

Enid Fertilizer

Great Plains

Lost Cabin

Lula

Shute Creek

SleipnerIn Salah*

Snøhvit

Val Verde

ACTL Agrium

Kemper

ACTL Sturgeon

Boundary Dam

Abu Dhabi

Gorgon

Illinois Industrial

Quest

Uthmaniyah

Don Valley

HECA

Lake Charles

TCEP

Medicine Bow

FutureGen 2.0

Petra Nova

PetroChina Jilin

ROAD

Sinopec Qilu

Spectra

Yanchang

Sinopec Shengli

2015

Other feedstock

Coal feedstock

Pre-2014

Power generation

20172016

Hydrogen production

Natural gas processing

Chemical production

Iron and steel production

Syngas

Fertiliser production

Oil refining

2014 2018 2019 2020

= 1Mtpa of CO2 (areas of circle are proportional to capacity)

Coal-to-liquids

* Injection currently suspended

Peterhead

Sargas Texas

White Rose

Three large-scale CCS projects in the power sector are under construction in North America

1. BOUNDARY DAM INTEGRATED CARBON CAPTURE & SEQUESTRATION DEMONSTRATION PROJECT

Location: Saskatchewan, CanadaCO2 captured: 1 MtpaAnticipated start date: 2014

2. KEMPER COUNTY ENERGY FACILITY

Location: Mississippi, United StatesCO2 captured: 3.5 MtpaAnticipated start date: 2015

3. PETRA NOVA CARBON CAPTURE PROJECT

Location: Texas, United StatesCO2 captured: 1.4 MtpaAnticipated start date: 2016

Japanese technology is supporting key CCS projects: Mitsubishi Hitachi Power Systems (MHPS) is supplying the steam turbine for the SaskPower’s Boundary

Dam project. MHPS is also partnering with SaskPower to construct a carbon capture facility at their Shand Power Station.

Chugai Technos is delivering the storage monitoring system for the Boundary Dam Aquistore project. Petra Nova, a 50/50 joint venture between NRG Energy and JX Nippon Oil & Gas Exploration, will use a

carbon capture process developed by Mitsubishi Heavy Industries and Kansai Electric Power Co

1

2

3

There are a number of ‘notable’ pilot and demonstration projects in Japan

Name: TOMAKOMAI CCS DEMONSTRATION PROJECT

Name: EAGLE PILOT PROJECT Name: OSAKI COOLGEN

Japanese industry is well positioned to benefit as these projects progress.

Location: Hokkaido Proponents: METI (execution by Japan CCS Co. comprising 35 companies)Objective: Demonstrate an overall CCS system from capture to storage as foundation for commercialising CCS from 2020Project Status: In construction

Detailed descriptions of these projects are provided at www.globalccsintitute.com.

Location: HiroshimaProponents: J-POWER and Chugoku Electric Power Co.Objective: Testing to verify the reliability, economic efficiency and operability of an oxygen-blown IGCC systemProject Status: In construction

Location: FukuokaProponents: J-POWER, NEDO and HitachiObjective: Research and establish technologies for IGCC oxygen-blown coal systemProject Status: Testing completed

Japan-Australia Collaboration

Location: Callide A Power Station, Queensland, AustraliaObjective: Demonstrate how oxyfuel carbon capture technology can be applied to an existing coal-fired power station to generate low-emission electricity.

In the period from December 2013 to May 2014, the power station’s oxyfuel boiler recorded more than 6,000 hours of industrial operation and the capture plant more than 3,000 hours of industrial operation.

Joint venture between CS Energy, ACALET, Glencore, Schlumberger Carbon Services and Japanese participants – J-POWER, Mitsui and IHI Corporation

AUGUST 2014:

Brown Coal Innovation Australia (BCIA) announces AU$650,000 of funding for a AU$5 million joint research project between Australia’s CSIRO, AGL and IHI Corporation to explore a lower-cost process to capture CO2 from brown coal-fired power stations.

The syndicate will install and test a pilot plant at AGL’s Loy Yang Power Station in Victoria, Australia, that could use up to 40% less energy to capture CO2 emissions for storage.

No CCS – No 2°C

Importance of CCS

acknowledged

Wide adoption of CCS part of the scenario that achieves 450 ppm atmospheric stabilization

level for CO2

World Energy Council

Availability of CCS is critical for producing 450 ppm

Energy Modeling Forum 27 Study

CCS is an important technology in the long run…deployment to drive

down costs is desirable

UK Committee on Climate Change

Commercial demonstration of CCS essential for deployment in the 2030 timeframe

European Commission

CCS to be cost effective when transformational technologies emerge

US Climate Action Report 2014

Many energy and climate researchers

believe that CCS is vital to avoiding a climate

catastrophe

Wired Magazine March 2013

We intend to promote the use of low carbon technologies

(renewable energies, nuclear in the countries which opt to

use it, and carbon capture and storage)

G7 Energy Ministerial Meeting, May 2014

Coal must remain a part of our energy mix. At the same time, we have to reduce carbon emissions from coal.

Dr Julio FriedmannDeputy Assistant Secretary, Office of Clean Coal, US Department of EnergyMay 2014

The future of coal

GLOBALCCSINSTITUTE.COM