CO2 Capture and Storage
| Author | European Union Publications Office, 2006 |
| Pages | 27-35 |
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| CO2 Capture and Storage | |
| R&D Areas | CO2 capture, CO2 geological storage |
| State of Commercialisation | Technology development, early demonstration |
| Key Nations | US, Germany, UK, Japan |
| Expected contributions to EU energy policy targets | Enabling the development of cleaner and more efficient fossil fuel plants, reducing GHG emissions |
| EC policy backing | No specific policy backing to date |
| Key Member States | Germany, UK, France, Italy |
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The development24 of CO2 capture and storage technologies is considered critical for the reduction of CO2 and other greenhouse gas emissions across the world. The hydrogen economy is still under development: it is widely viewed that, during the transition period, hydrogen will predominantly be produced from fossil fuels. The development of these technologies is critical to the process of removing CO2 from the gas stream during the production of hydrogen from fossil fuel-based gasification technologies. However, since the technologies require more research before they can be commercialised and mass- deployed, many countries are aiming to reduce the emissions through efficiency improvements in the short run. Capture and storage technologies however will play a critical role in emissions reduction in the long run.
Research in the next decade is likely to focus on developing and improving CO2 capture and storage technologies -reducing costs, increasing capture rates and evaluating the different storage options. The next step will be to develop large-scale demonstration projects and to develop advanced systems suitable for mass commercialisation. Beyond 2030, research will focus on the transition towards the "Hydrogen Economy" and the development of zero-emission power plants.
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EC research in the field of CO2 capture and storage in FP6 is aimed at:
* Reducing the cost of capture from euros 50-60 to euros 20-30 per tonne of CO2 captured (mid to long term objective).
* Realising capture rates of over 90% through methods such as pre-combustion capture, post-combustion capture and oxyfuels combustion. The deadline by which the EC pledges to reach these cost and capture targets is not clear.
* Assessing reliability and long-term stability of CO2 storage to map the geological storage potential, ensure safety and build public confidence.
* Increasing public awareness and acceptability of CO2 capture and storage technologies (especially storage in geological formations), a paramount objective that is considered as important as developing the technology itself. Most, if not all, CO2 capture and storage projects have a component that aims to educate the public about the importance of these technologies in controlling environmental emissions. The aim is also to provide objective information to improve the credibility and mass acceptance of these technologies.
An outstanding example of targeted coordination and collaboration in the field of CO2 capture and storage technologies research at European level is the CASTOR project.
The CASTOR project is highlighted because it covers all the key technology areas in the CO2 capture and storage field, and facilitates significant technology improvements by improving the position of European research and industry in a wide range of technologies. By demonstrating CO2 storage across different sites in Europe, the project also aims to enhance public acceptance of geological storage technologies.
More than 30 stakeholders (both public and private) across the 11 major countries of Europe contributed to the development of the CASTOR project with an overall cost of euros 15.8 M, the EC contribution amounting to euros8.5M.
This project runs from February 2004 to February 2008 and aims to make possible the capture and geological storage of 10% of European CO2 emissions or 30% of emissions of large industrial facilities (mainly conventional power stations).
The broad objectives of the project include: reducing post-combustion capture costs, advancing the overall acceptability of geological storage, and initiating the development of an integrated strategy linking the capture, transport and storage options for Europe.
The key technical objectives of the project include:
* Developing absorption liquids with a thermal energy conversion of 2GJ/tonne CO2 at 90% recovery rates.
* Ensuring costs per CO2 not higher than euros 20-30/tonne CO2
* Developing pilot tests to show the reliability and efficiency of the post-combustion capture process.
* Storage in four new sites across Europe, conducting risk and environmental impact studies at these sites. The methodologies for monitoring and predicting the future of these sites will also be developed.
* Defining and monitoring the effectiveness of CO2 reduction strategies from a techno-economical point of view.
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Apart from research conducted by the big oil and gas companies, there is limited industrial activity in this field, as the development of CO2 capture and storage projects requires drastic investments that go far beyond the annual R&D budgets of most private companies. Statoil, one of the leading companies in the world in the field of CO2 storage, is involved in the the most important European research projects in this field such as ENCAP and CASTOR. Other oil and gas companies such as BP, Shell, and Gaz de France are also actively conducting research in the field of geological storage of CO2. Vattenfall is a leading company in the field of CO2 capture in coal-fired power plants: the company is planning to build a 30MW thermal pilot power plant with CO2 capture in Germany. It is also involved in five EC- sponsored CO2 capture and storage projects. Alstom Power is another major company that is actively involved in conducting research to develop zero-emission systems that capture all the CO2 from the fuel.
Key countries in Europe that are involved in research on capture and storage of CO2 associated with clean fossil fuel plants are Germany, the UK and France. There is also CO2 research in Norway with a specific focus on utilising natural gas for power generation with CO2 capture: KLIMATEK's (Norwegian Climate Technology R&D Programme) key priority includes developing new and improved technologies for gas-fired power production with CO2 capture and storage.
The main emphasis of the research in this field in Europe is on improving power plant efficiencies to reduce CO2 emissions in the short run and on developing CO2 capture and storage technologies in the medium to long run.
It must be noted that, following FP5, in order to ensure concentration of effort and to maximise the impact of the programme, the intention of the EC RTD portfolio in this field of reference has been to focus on a limited number of priority topics. As a result EC-funded research in FP6 has only focused on capture and storage technologies, meaning that it is the responsibility of individual member states to invest in research related to improvements in power plant efficiency. This is expected to change in FP7 as the EC plans to research clean coal technologies as well.
An important European initiative in the field of carbon sequestration research, developed with the close cooperation of industry, national research institutes, IEA and the EC, is the Saline Aquifer CO2 Storage (SACS) project.
SACS is a large-scale demonstration of CO2 injection and storage in undersea deep saline aquifers. This is the first case of industrial scale CO2 storage. The project collected relevant data, modelled and verified the behaviour of the CO2 for three years, and developed methods for predicting its behaviour in future.
The initial phase of the SACS project was completed in December 1999 and the second phase in April 2002. Under FP5, the SACS project was funded to the extent of euros 1.2 M by the EC, out of a total cost of euros 2.1 M.
Besides providing valuable data, the industrial-scale demonstration of CO2 storage in saline aquifers has helped to increase the acceptability of geological storage and develop a best practice manual to facilitate further technology improvements. This project is also notable because it established a milestone in industrial history, as this had never before been carried out on such a large scale (1 mt/a CO2). In addition, CO2 had never been compressed and injected underground from an offshore platform before.
The key aims of the project include:
* To host a large-scale demonstration of CO2 injection and storage of the Utsira formation in the Sleipner field beneath the North Sea
* To undertake baseline data gathering and evaluation
* To examine reservoir geology
* To undertake reservoir simulation studies
* To undertake geochemistry evaluations and geophysical modelling
* To assess costs and well monitoring requirements
Being the first project of its kind in the world, the key deliverables of the project - technical reports and the best practice manual for CO2 injection into aquifers - have enhanced knowledge and understanding of carbon sequestration in aquifers. This monitoring project confirms that CO2 storage in deep saline reservoirs is a safe and reliable option: it has provided data to validate reservoir simulation models that will be essential in the planning of future CO2 storage projects in other parts of the world.
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The priority areas for research in the field of carbon sequestration in the United States25 are:
* Aim at advancement26 of CO2 capture and storage technologies and systems to the point of pre-commercial deployment.
* Additional areas of research include monitoring CO2 storage, non-CO2 greenhouse gas control and developing field projects.
* Groundwork for the future carbon sequestration deployments.
* A programmatic approach to R&D management: industry/government partnerships, cost sharing, education and outreach, and environmental compliance.
Japan has the largest and longest-running carbon capture and sequestration technologies research programme27. The Research Institute of Innovative Technology for the Earth (RITE) was established in July 1990 as an international research hub to promote the development of innovative environmental technologies and to broaden the range of possible CO2 sinks.
Japanese research in the field of CO2 capture and storage is aiming to reduce CO2 emissions in the short to medium term by making improvements in power plant efficiencies. In the medium to long run, the reduction in emissions will be attained through the development of technologies that generate hydrogen from coal, the development of fuel cell and gas turbine hybrids for power generation, and the development of hydrogen vehicles for transportation.
The priority areas for CO2 research in Japan are:
* Develop technologies that can cut CO2 emissions by 30 % or more by 2030.
* Develop technologies for CO2 separation and sequestration:
> RITE is currently funding a project to develop a new chemical absorption system. This is expected to help reduce the cost of CO2 capture drastically. Launched in 2004, the project will run through to 2008.
> Ocean storage28 is one of the key areas researched in Japan and the country is perceived as the world leader in this field.
Research in the field of CO2 capture and storage in Canada is focused on:
* Technology development and cost reduction of CO2 capture and storage29.
Since carbon storage and capture technologies are still in the development phase, the broad objectives in this field are fairly consistent around the world. The key objectives of research in the field of CO2 capture are:
* To develop the technology by improving CO2 capture rates at lower costs.
* To study the feasibility of CO2 storage and monitor the effects of geological storage of CO2 in various sites.
The only variations that can be observed are that the EC is not researching efficiency improvement technologies under FP6, unlike other key countries in Europe and around the world. Also, Japan is perceived to be particularly strong in the field of ocean sequestration. Europe and the US are studying the feasibility of other forms of geological storage of CO2 - such as storage in coal beds, oil and gas reserves, and deep saline aquifers.
An important international project worth highlighting in the field of carbon sequestration research is the WEYBURN CO2 monitoring project30.
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THE WEYBURN CO2 monitoring project is an excellent example of international collaboration and includes partners (governments, industrial companies and research institutions) from Canada, the US and Europe: the overall project cost is euros 19.3M. The success of the WEYBURN project has led to the development of the WEYBURN II CO2 Storage Project31: the overall cost of this phase of the project is euros 17.2 M in cash and euros 17.2 M in kind. The project is planned to continue until July 2008.
The WEYBURN project is highlighted for two key reasons. On one hand, the successful demonstration of CO2 storage in geological formations helps to increase the awareness and acceptability of CO2 storage technologies. On the other hand, the data collected during the course of the first project, as well as the development of a best practice manual, has paved the way for future research and development in this field by sharing the key learning and knowledge of the project.
WEYBURN is a major CO2 sequestration demonstration project based on a CO2 enhanced oil recovery operation in Southern Saskatchewan, Canada. It aims to enhance the knowledge and understanding of the mechanisms by which CO2 is sequestered in an onshore oil field during CO2 enhanced oil recovery (EOR) projects.
The key aims of the project include:
* Increasing the understanding of processes occurring during CO2 enhanced oil recovery operations.
* Addressing issues of safety and sequestration performance.
* Analysing regional concentrations of CO2 and groundwater.
* Carrying out modelling studies of the long-term fate of injected CO2.
The aims of the second phase of the WEYBURN II project are to assess the technical and economic feasibility of geological storage of CO2 in oil reservoirs and develop implementation guidelines for such projects, and identify the risks associated with this method of CO2 storage, especially long-term risks of leakage.
The key scientific and technical objectives fall into three broad categories:
* Monitoring changes in the host reservoir and overlying rocks as the CO2 injection proceeds.
* Increasing the understanding of chemical, mineralogical, geomechanical and fluid flow processes within both the shallow subsurface and within rocks close to the injection horizon.
* Developing generic and site-specific safety assessment models based upon real data generated from the Weyburn study.
* Completing a design and operating manual aimed at site assessment, project design, and field implementation of commercial CO2 geological storage projects.
The total funding for CO2 capture and storage technologies in FP6 (to date) is euros 68.7 M. Within the current framework programme, the EC has already funded 18 projects (total project cost - euros 121.9M) in this technology area.
Note: At the time of writing this report, detailed information was only available on seven FP6 projects, hence the following analysis is based on those projects only.
The main emphasis in FP632 is on CO2 capture and CO2 storage research. The funding is nearly evenly split between these technologies: around euros 18.1 M funding was given for the development of CO2 capture and euros 16.8 M for CO2 storage technologies.
EC-funded research33 in the field of CO2 capture and storage comprises medium to long-term research for the development of CO2 capture and storage technologies: this is due to the fact that these technologies are still in their infancy and more research (both basic and applied) is required before they can be commercialised.
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No projects have been funded in the field of chemical/mineral sequestration of CO2 in FP5 and FP634. However, four STREPS researching advanced CO2 separation techniques are being negotiated as part of FP6. The inclusion of these projects in the EC portfolio will make the EC FP6 portfolio in the field of CO2 capture and storage complete and comprehensive, based on the research priorities set by the Commission.
Germany, the UK and France are the key European countries investing in CO2 capture and storage research. There is also some interest in Italy, the Netherlands and Norway. Although the level of government funding has been increasing over the last few years, funding at Member State level is still not sufficient to engage in large demonstration projects. It is felt that such projects should be taken care of by the EC, and this is the trend the EC portfolio has been following in FP6, with involvement in such programmes as the Castor and Weyburn projects.
The typical level of funding in the key European nations (Germany, the UK, France) is only around euros 10-20 M per year. Funding is mainly used on research to develop clean fossil fuel technologies (i.e. technologies to improve power plant efficiency and CO2 capture and storage technologies).
In Europe, research on CO2 capture and storage technologies has gained momentum since 2000:
Germany: Germany's COORETEC programme provided funding to an extent of euros 9.4 M for the development of clean fossil fuel technologies in 2004.
UK: the Cleaner Fossil Fuels Programme is allocated euros29.1M (£20M) for the period 2005-2008 to fund industry-led R&D and policy development on issues related to sustainable fossil fuel energy technologies.
Demonstration activities are funded to an extent of around euros 7.28 M (£5M) per year. Funding of around euros 36.38 M Q. (£25M) is also expected to be available for demonstration activities in the UK over four years, commencing 2006/07.
France: around euros 10 M of funding is provided for CO2 capture and storage technologies under the CO2 separation and storage programme, as part of the New Energy Technologies R&D programme. This is expected to increase to euros 15 M in the coming years. Around 5-10% of this funding is for building networks and improving coordination, the rest being equally split between capture and storage research.
Italy: funding for CO2 capture and storage is believed to be approx euros 3-5 M per year.
Norway: KLIMATEK (Norway Climate Technology R&D Programme) provided euros 58.8 M ($70M) of funding for the period of five years from 1997-2002. The Norwegian Government also offered euros 4.3 M (NOK33M) for Sintef Petroleum Research (2002-2006) and the University of Bergen's (2002-2005) CO2 storage projects.
The level of funding for carbon sequestration in the US35 has been increasing steadily. The overall funding for sequestration in the US was around euros50.4M ($60M) in 2005. The main component of this is the US DOE's sequestration programme. Funding for this was less than euros8.4M ($10M) up to 2000, but increased to about euros 33.6 M ($40M) per year in 2003 and 2004. Funding in 2005 is around euros 37.8 M ($45M) and the budget request for 2006 is over euros 54.6 M ($ 65 M). Funding across the different technology areas in 2005 is broken down as follows: capture of CO2 (24%), sequestration and storage R&D (25%), monitoring mitigation and verification (16%), developing breakthrough concepts (6%), non- CO2 GHG mitigation (3%), and developing regional partnerships (26%).
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Key characteristics of the US research portfolio in this field are:
* The massive share of funding that goes into supporting regional partnerships. The US DOE has initiated seven Regional Sequestration Partnerships36 in 2003 with the goal of supporting and enabling future carbon sequestration tests and deployment37.
* Strong industrial support for the technology. Industry shares 36% of the total cost of the projects under the US DOE's sequestration programme.
The budget for CO2 sequestration research in Japan38 is also very substantial39. Phase 1 of the "Development of CO2 coal-bed fixation technology" programme has a budget of around euros 25.9M (JPY3.6 billion) for 5 years (2002-2006). One of the distinguishing characteristics of the Japanese portfolio is the fact that it focuses on ocean sequestration.
RITE also funds CO2 sequestration research in Japan through projects such as:
* CO2 Ocean Sequestration Project (1998-2002)
* CO2 Geological Sequestration Project (2000-2004)
* Development of New Chemical Absorption System (2004-2008).
China's coal production and consumption ranks the highest in the world, so the development of clean coal technologies is of great importance there. Short-term research in this field is mainly focusing on large power generation technologies like ultra-super critical power generation and circulating fluidised bed combustion. There is also research focusing on the development of clean utilisation technologies in the next few years, with longer-term research in the field of new technology systems that can lead to sustainable development. This research focuses on technologies such as gasification and liquefaction, gas turbines, IGCC and IGHAT and co-production of power, liquids, chemicals and hydrogen which will ultimately facilitate the transition towards the hydrogen economy.
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Note: In the absence of data40, EC funding is assumed to be 20% of the total funding in Europe. The US funding data is as per DoE's 2005 technology roadmap. Japanese funding data refers to the tentative annual budget of RITE 1 (about JPY10 billion). EC (FP6) funding is assumed to be spread evenly across the four years. Funding in Norway refers to the average level of funding for the KL IMA TEK programme.
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EC-funded research in FP6 is focuses on medium to long term research in the fields of carbon capture and storage technologies. Funding is fairly evenly split between these two areas. Clean coal technologies and efficiency improvement-related research is not covered in the FP6 portfolio. However, in FP7, this aspect is also expected to be covered under "Clean Coal Technologies" research.
Research objectives in Germany are quite different from the EC FP6 objectives. Germany is focusing on research for improving power plant efficiencies to reduce CO2 emissions in the long run. The development of carbon capture and storage technologies is only recognised as a long-term solution for CO2 mitigation.
Within the field of CO2 capture and storage research, Japan is particularly strong in the field of ocean storage, as there was a clear focus on ocean sequestration during 1998-2002. However, since 2004, the latest research programme has aimed to develop new chemical absorption systems to improve CO2 capture rates.
The US is perceived as particularly strong in the field of geological storage. One of the noticeable initiatives at US level is the fact that it has engaged in a programme looking at developing regional partnerships across the US.
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The total funding available for CO2 capture and storage technologies has been increasing in the US, Japan and Europe since 2000. Before 2000 funding for the technology, especially in the US and Europe, was quite insignificant: however as governments across the world increasingly recognise the importance of reducing environmental emissions, technologies such as CO2 capture and storage are gaining prominence.
Europe and Japan have the lead over the US in terms of funding available for CO2 capture and storage technologies. Within Europe, the UK, Germany, France and Norway are the key nations investing in the technology. However, funding levels of individual European countries are still quite low and it is felt that the EC should take responsibility for developing large demonstration projects in Europe for the advancement of the technology.
The International Energy Agency (IEA) is generally considered an important international platform to promote collaborative research in the field of CO2 capture and storage, and the EC takes an active role in its work. The EC participates in the Committee of Energy Research and Technology - CERT and in the Working Party on Fossil Fuels - WPFF, with a particular role in the Zero Emission Technologies - ZETS strategy. It also sponsors and participates in the IEA Greenhouse Gas Implementing Agreement and in the IEA Clean Coal Centre Implementing Agreement.
The EC has science and technology (S&T) agreements with Argentina, Australia, Canada, China, India, Russia, South Africa and the US, and is a member of the Carbon Sequestration Leadership Forum (CSLF). However, very little research has resulted from the these agreements. CSLF is also considered to be more of a knowledge-sharing platform than a platform that encourages the development of multinational projects.
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[24] CSLF 2004a : Power Plant Emissions and CO2 Sequestration in Germany: Targets of the COORETEC program and CSLF 2004b: Geosequestration Needs Analysis, Australia
[25] DoE 2005: Carbon Sequestration Technology Roadmap and Program Plan 2005
[26] For details on the Core R&D areas in the field of carbon sequestration research in the US, refer to Annex II. 1
[27] IEA 2003: Zero Emission Technologies for Fossil Fuels Technology Status Report
[28] For further details of Japanese research in the field of ocean sequestration, please refer to Annex II.2
[29] More specific areas of research include capture using oxyfuel combustion and amine separation; Acid gas re-injection; Monitoring of CO2 storage in enhanced oil recovery; Enhancement of methane recovery through monitoring of CO2 injected into deep coal beds; Storage capacity assessments of Canadian coal seams, sedimentary basins, oil and gas reservoirs; Gasification of coal for electricity production; Acquiring pure CO2 suitable for storage
[30] http://www.co2captureandstorage.info/project_specific.php4?project_id =96
[31] http://www.co2captureandstorage.info/project_specific.php4?project_id=140, CORDIS
[32] Until the Third Call for Proposals
[33] For details on EC funding for CO2 capture and storage technologies in FP5 and FP6, please refer to Annex II.3
[34] Until the Third Call for Proposals
[35] DoE 2005: Carbon Sequestration Technology Roadmap and Program Plan 2005
[36] The underlying objective of this network of regional partnerships between federal government, state agencies, universities and private industries is to help determine the best options for capturing and storing CO2, knowing that the seven identified regions all present different geological formations and different sequestration opportunities. This is a specificity of the US RTD portfolio and the concept has been highly successful with the recent announcement of a second phase for the projects, mainly looking at field validation tests.
[37] NETL 2005: Regional Carbon Sequestration Partnerships - Phase I Accomplishments
[38] For details of NEDO's recent programmes and budget for CO2 fixation and utilisation technology research, please refer to Annex II.5
[39] RITE's budget for carbon sequestration research was about euros 72 M (JPY10 billion). (Source: IEA 2003: Working party on Fossil Fuels, Preliminary update)
[40] A word of caution: funding figures relate to funding of carbon capture and storage-related technologies by the central funding agency. State/regional level funding, apart from private funding, is not included. The funding by the U.S. DoE for clean coal technologies has also not been included, in order to provide a fair comparison with the EC- and Japanese-funded research in the field of CO2 capture and storage. However, funding figures for Europe in general include funding for cleaning coal, whilst funding for carbon capture and storage is grouped together with funding for coal for countries such as Germany and the UK. Public funding should not be used to draw conclusions about the leadership in research across Europe, the U.S. and Japan as industrial funding does not form part of this analysis.
