Insights

COP 22 side event - Industrial reliance on CCS in a carbon constrained world

Organisation: Global CCS Institute

On Friday 11 November, within the official ‘blue zone’ of the UN Climate Talks in Marrakech, Mark Bonner, International Climate Lead for the Global CCS Institute moderated an event on Industrial reliance on CCS in a carbon constrained world.

The industrial sector will require a greater take-up of carbon capture and storage (CCS) if it is to better track to emissions levels that can help halt average temperature rises to well below 2 degrees Celsius (or 450 ppm concentration scenarios). This side-event explored the reasons why CCS is considered so critical to the mitigation efforts of industrial sectors like iron and steel, cement, fertilisers and hydrogen production; which are responsible for about a quarter of all global emissions.

The panel of experts included speakers (from right to left):

  • Simon Bennett, –  IEA
  • Trude Sundset  – CEO,  Gassnova
  • Nicholas Walters – Communications and Public Policy Director, World Steel Association
  • David Hone – Chief Climate Advisor, Shell
  • Belinda Perriman – Commercialisation Manager, Teesside Collective Teesside

Simon Bennet, IEA, gave an overview on the IEA’s modelling on CCS and industrial CCS’s role in meeting the Paris agreement. In recent years, analysts and governments have recognised that some of the world’s most carbon-intensive industries may have no alternatives to CCS for deep emissions reduction. This is because much of the CO2 is unavoidably generated by their production processes, not only from fuel use.  The IEA’s climate analysis indicates that CCS needs to contribute about 13% or 100 billion tonnes (Gt) CO2 of the global cumulative emission reductions required by 2050 to maintain a least-cost track to meeting the 2°C goal.  Simon explained that Industrial emissions are central & core challenge and why that’s the case we need to develop CCS as CCS is the only technology that can reduce these emissions in the industrial sector.  Simon said that CCS in industrial applications faces additional challenges compared to CCS in the electricity sector due to much higher international competition in the sectors concerned. Yet, he said that it’s interesting to note that all large-scale CCS projects in operation before mid-2014 were in fact in industrial sectors. Plants that capture up to 1 MtCO2/yr operate today in the gas processing, refining, chemicals and biofuels sectors. Simon closed by explaining that the current body of work on this topic at the IEA is focused on policy approaches that can support CCS in trade-exposed sectors and stimulate innovation for a low carbon future, while overcoming competitiveness concerns. 

David Hone – Chief Climate Advisor, Shell gave a presentation on pathways to net-zero emissions and the cost effectiveness of industrial CCS including an overview of:

David explained that the Quest project was designed to capture and safely store an average of one million tonnes of CO2 per year.  It is the first CCS project associated with oil sands production. The carbon dioxide capture infrastructure involves process modification to the existing Scotford Upgrader. The CO2 is captured from the three steam methane reformer (SMR) units that manufacture hydrogen for upgrading the bitumen into synthetic crude oil. David said that it is very encouraging to see that if Quest was going to be built again then it would cost 20-30% less to build & operate.

Trude Sundset, CEO of Gassnova gave an overview of Gassnova, its role to manage the Norwegian Governments  interests on CCS,  & Norway industry’s roadmap  which calls for zero emissions by 2050.

  • Trude gave an overview of the TCM Technology Center Mongstad (Link to it mongstad here)
  • She spoke about the Norwegian government's latest budget proposal which includes funding for the continued planning of full scale CO2 capture plants on three industrial sites. The budget has 40 million euros set aside for the three projects: Norcem AS (cement), Yara Norge AS (ammonia), and Klemetsrud (Waste-to-Energy recovery plant). The goal is to have a project up and running by 2022.
  • Trude mentioned that the Norwegian Government wants to be the storage hub for Europe. The Government has said that as long as companies capture the CO2, then the Norwegians Government will take care of the liability around the transport and storage aspect of the CO2 for the project.

Belinda Perriman – Commercialisation Manager, Teesside Collective, Teesside, gave an overview of theTeesside Collective, which is a cluster of energy-intensive industries with a shared vision, to establish Teesside as the go-to location for future clean industrial development by creating a Carbon Capture and Storage (CCS) equipped industrial zone. She explained the concept of ‘Hubs and Clusters’ and why they are so important for both mitigation outcomes and economic prosperity, especially in a time of rapid economic structural change in a carbon constrained world.  The project is trying to use this concept to progress the UK’s industrial and environmental interest’s hand-in-hand – helping to retain the UK’s industrial base, attract new investment and jobs, and meet the UK’s climate change targets.  It is envisaged that they will geologically store millions of tonnes of carbon dioxide per year. Teesside Collective published a blueprint for delivering Industrial Carbon Capture and Storage in the UK last year based on its first round of Government funding, which received widespread support among industry, environmental groups and Government.

Nicholas Walters, Communications and Public Policy Director, World Steel Association gave an overview of the fundamentals of the business case for deploying CCS in the steel industry and an update on the first Steel CCS project in the world.

He also spoke about the success of the now operating Abu Dhabi Steel CCS Project

The Abu Dhabi CCS Project involves the capture of CO2 from the Emirates Steel Factory in Abu Dhabi and its transportation to the ADNOC reservoirs for the purpose of enhanced oil recovery (EOR).  The Project was conceived and is managed by Al Reyadah: Abu Dhabi Carbon Capture Company, a Joint Venture between ADNOC, the UAE’s state-owned oil company, and Masdar, a wholly-owned subsidiary of the Abu Dhabi Government-owned Mubadala Development Company. The plant was launched in early November 2016, is located in the Mussafah industrial area on the outskirts of Abu Dhabi city, between the two main ESI plants. The project will take out 800,000 tonnes of annual CO2 emissions and is the first iron and steel project of its kind in the world.

Nicholas said that for more projects to come forward in the Steel industry they either need to have Enhanced oil recovery linked to them like the Abu Dhabi project or they need to be based in an area where hubs and clusters can be developed.