CO2 abatement in the Energy and Petrochemicals industry

JAN VAN DER EIJKCHIEF TECHNOLOGY OFFICER

“Business as Usual” Total final consumption

400

600

800

1000EJ per year

Middle East & Africa

Asia & Oceania

Latin America

Europe

Business as usual – total final consumption

2

Source: Shell International BV and Energy Balances of OECD and Non-OECD Countries OECD/IEA 2006

0

200

400

1975 2000 2025 2050

Europe

North America

Energy sustainability drives the energy mix - Blueprints

• Broad awareness of challenges at all levels, not only national

• Critical mass of parallel responses to hard truths

• Effective carbon pricing established early

Total primary energy (EJ per year)

600

800

1000

Energy sustainability drives mix- Blueprints

3

early

– Rerouted to renewables

– Taxes on imported fossil fuels

• Efficiency standards

• Electrification of transport sector

• New infrastructure develops e.g. CCS emerges after 2020

Source: Shell International BV and Energy Balances of OECD and Non-OECD CountriesOECD/IEA 2006

0

200

400

600

2000 2010 2020 2030 2040 2050

Oil Gas Coal Nuclear Biomass Solar Wind Other Renewables

0

10

20

30

40

50

60

Abatement cost€ per tCO2e

Global GHG abatement cost curve beyond business-as-usual – 2030

Exhibit 1

Tillage and residue mgmt

Pastureland afforestation

Nuclear

Degraded forest reforestationReduced intensive

agriculture conversion

Coal CCS new build

Iron and steel CCS new build

Cars full hybrid

Gas plant CCS retrofit

Solar PV

Waste recycling

High penetration wind

Low penetration wind

Residential electronics

Residential appliances

Retrofit residential HVAC

Power plant biomass co-firing

Coal CCS retrofit

Degraded land restoration

Solar CSP

Building efficiency new build

2nd generation biofuelsInsulation retrofit (residential)

Cars plug-in hybrid

0

10

20

30

40

50

60

Abatement cost€ per tCO2e

Global GHG abatement cost curve beyond business-as-usual – 2030

Exhibit 1

Tillage and residue mgmt

Pastureland afforestation

Nuclear

Degraded forest reforestationReduced intensive

agriculture conversion

Coal CCS new build

Iron and steel CCS new build

Cars full hybrid

Gas plant CCS retrofit

Solar PV

Waste recycling

High penetration wind

Low penetration wind

Residential electronics

Residential appliances

Retrofit residential HVAC

Power plant biomass co-firing

Coal CCS retrofit

Degraded land restoration

Solar CSP

Building efficiency new build

2nd generation biofuelsInsulation retrofit (residential)

Cars plug-in hybrid

GHG abatement: beyond business-as-usual 2030

35 3825

0

105 15 20 30-10

-100

-20

-30

-40

-50

-60

-70

-80

-90

Note: The curve presents an estimate of the maximum potential of all technical GHG abatement measures below €60 per tCO2e if each lever was pursued aggressively. It is not a forecast of what role different abatement measures and technologies will play.

Source: Global GHG Abatement Cost Curve v2.0

Lighting – switch incandescent to LED (residential)

Cropland nutrient management

1st generation biofuels

Clinker substitution by fly ash

Electricity from landfill gas

Small hydro

Reduced slash and burn agriculture conversion

Reduced pastureland conversion

Grassland management

Organic soil restoration

Motor systems efficiency

Rice management

Insulation retrofit (commercial)

Geothermal Abatement potentialGtCO2e per year

Efficiency improvements other industry

35 3825

0

105 15 20 30-10

-100

-20

-30

-40

-50

-60

-70

-80

-90

Note: The curve presents an estimate of the maximum potential of all technical GHG abatement measures below €60 per tCO2e if each lever was pursued aggressively. It is not a forecast of what role different abatement measures and technologies will play.

Source: Global GHG Abatement Cost Curve v2.0

Lighting – switch incandescent to LED (residential)

Cropland nutrient management

1st generation biofuels

Clinker substitution by fly ash

Electricity from landfill gas

Small hydro

Reduced slash and burn agriculture conversion

Reduced pastureland conversion

Grassland management

Organic soil restoration

Motor systems efficiency

Rice management

Insulation retrofit (commercial)

Geothermal Abatement potentialGtCO2e per year

Efficiency improvements other industry

40

50

60

7070

Global GHG emissions

GtCO2e per year

-12

-12

-14

Major categories of abatement opportunities

Technical measures

below € 60/tCO2

Energy efficiency

Terrestrial carbon

Low carbonenergy supply

Business-as-usual

Exhibit 3

Global GHG Emissions

0

10

20

30

40

2030252010 15

-12

- 5

- 4 Behavior changes*

Technical measures

€60 – 100 per t CO2

Terrestrial carbon(forestry, agriculture)

* The estimate of behavioral change abatement potential was made after implementation of all technical levers;

the potential would be higher if modeled before implementation of the technical levers.Source: Global GHG Abatement Cost Curve v2.0; Houghton; IEA; US EPA

23

• Recovery and Upgrading of unconventional hydrocarbons

• Energy from contaminated gas (H2S, CO2)

• Transportation fuels from sustainable sources of biomass

MORE ENERGY

Technology Challenges

6

• Process intensification (energy efficiency, capex)

• Capture / use of low value process heat (60 - 200 0C)

• CO2 capture and storage

LESS CO2

: IN SITU UPGRADING PROCESS (IUP)

STANDARD IN SITU RECOVERY

Light products

Coke

Combine with

diluent

Produce heavy oil

Refinery

In-Situ Upgrading Process (IUP)

7

SHELL IN SITU UPGRADING PROCESS (IUP) 2004: 82004: 82004: 82004: 8ooooAPI 2007: 30 API 2007: 30 API 2007: 30 API 2007: 30 ---- 49494949

ooooAPIAPIAPIAPI

Light productsProduce lighter oil

Coke remains in subsurface � More oil recovered

� Higher quality product� Coke left underground

Refinery

Conditions

• -62 deg C < T < -20 deg C

• Pressure 10 – 30 bara

• Separates CO2 as a liquid

• Pressure recovery

• Very compact

Gas Separation Technology I

Conditions

• -62 deg C < T < -20 deg C

• Pressure 10 – 30 bara

• Separates CO2 as a liquid

• Pressure recovery

• Very compact

Gas Separation Technology I

Gas Separation Technology IGas Separation - Technology 1

8

Expansionturbine Coagulation

pipe Swirler

Liquid outlets

• Very compact

Expansionturbine Coagulation

pipe Swirler

Liquid outlets

• Very compact

Gas Separation Technology II Gas Separation - Technology 2

9

0.38 nm

0.38 nm0.32 nm 0.36 nmCO2 CH4H2S

FIRST GENERATION BIOFUEL

BIOMASS: moving to the next generation

10

SECOND GENERATION BIOFUEL

TO BIO-ENERGY AND WASTE ORGANIC FEED STOCKS

Lignocellulose

Pre-treatment

Enzyme

Production

Enzymatic

Hydrolysis

Application: EthanolApplication: Cellulosic Ethanol

Separation

Ethanol

Fermentation

Distillation

Power

Generation

CelluloseEthanol

Electricity

Application: BTL

Lignocellulose

Low temperature

gasifier

Carbo-V®

gasifier

Chemical

quenching

Application: BTL

12

Recuperator

Dust removal / scrubber

Fischer-Tropsch synthesis

BTL

Application: Algae Diesel

Cellana(Shell/HR Biopetroleum)

Algae growth

Harvesting Water

WaterCO2 nutrients

Application: Algae Diesel

13

Drying

Processing

LipidsElectricity

Feed, Fertiliser

Dry Biomass

Residue

• Recovery and Upgrading of unconventional hydrocarbons

• Energy from contaminated gas (H2S, CO2)

• Transportation fuels from sustainable sources of biomass

MORE ENERGY

Process Technology Challenges

14

• Process intensification (energy efficiency, capex)

• Capture / use of low value process heat (60 - 200 0C)

• CO2 capture and storage

LESS CO2

95

100

Liq

uid

sele

cti

vit

y, %

w

2nd generation Bintulu retrofit

Improvement of GTL catalyst performance

3rd generation?

2nd generation

Pearl GTL

80

85

90

0 50 100 150 250 300 350

relative reactor productivity

Liq

uid

sele

cti

vit

y, %

w

200

capex down

efficiency up

1st generation

40

80

Efficiency

Combined Cycle

42

60

Efficiency : power/input

Gasturbine Efficiency Improvements

0

40

36 966646 56 76 86

Year

Gasturbine

Steam Power Plant

06

Power generation Efficiency: Refinery Trend

Higher efficiencyMore reliabilityLower emissions

More use ofNatural gas

Attractive export Conditions electricity

Improved control and Utility optimization

District heating

1950 1960 1970 1980 1990 2000 2010

Higher gasturbine inlet temperatures

Higher steamturbine efficiency Cogeneration

Low emissionburners

Carbon Capture and Storage TechnologiesCO2 StorageTransport

CO2 Infrastructure

Separation task

CO2 Capture Contaminated Gas

Sequestration options

Enhanced extraction Storage only

CO2 for EOR

H2S / CO2

CO2 / CH4

Post-combustionCO2/ N2

CO2 in aquifer

CO2 Solutions

Of both energy using equipment and processes

Efficiency Improvements

Cleaner Generation Fuel switch

Pipeline - ShippingECBM

Materials

CO2 for EOR

Unconventional (immiscible) CO2 EOR

CO2 / CH4 Pre-combustion

CO2/ H2

Oxy-fuelCO2/ O2

CO2 in depleted gas fields

Mineralisationsurface/subsurface

CO2 in aquifer

CO2/H2S storage

Process Technology Challenges

• Novel Catalyst/Reactor Combinations

• Novel Separations

• Equipment development

Technology Challenges

• Reduction in CAPEX Intensity

• Reduction of Environmental Footprint

• Smart Fields, Plants and Sites

• Distributed Manufacturing

BIG IMPACT: from small innovations

BENEFITTING THE HEALTH OF A MILLION PEOPLE

21