Fuel Oil News March 2019 | Page 19

Carbon Capture, Usage and Storage (CCUS) Inside Out WITH THE INTENTION OF HAVING THE FIRST CCUS SITE COMMERCIALLY OPERATIONAL BY THE MID 2020S, THE UK GOVERNMENT HAS RECENTLY PUBLISHED A CCUS ACTION PLAN. THE PUBLICATION OF THIS ACTION PLAN FOLLOWS THE GOVERNMENT’S INDUSTRIAL STRATEGY COMMITMENT (PUBLISHED IN LATE 2017) TO EARMARK £200 MILLION FOR SUPPORTING THE DEVELOPMENT OF THE CCUS SECTOR A few years back, plans were announced by the coalition government to support carbon capture. There was talk of a pilot project at Peterhead in Scotland with a budget of up to £1bn but, for reasons that were never entirely clear, the plans were abandoned in 2015 by the Conservative government with accompanying funding support withdrawn. In November 2018 a summit entitled Accelerating Carbon Capture, Use and Storage was held in Edinburgh. Attended by the Global Carbon Capture and Storage Institute, a think- tank backed by governments and businesses, which highlighted the conclusion of the International Energy Agency (IEA) that carbon capture, use and storage was not on track for a world in which the rise in global temperatures since pre-industrial times could be kept below 2C. There is international consensus that carbon capture usage and storage (CCUS), is needed in order to meet the ambitions of the 2015 Paris Agreement (COP21), to look at how net-zero emissions may be achieved in the second half of the century. While CCUS has been shown to work, no solution has yet emerged as to how to deploy it commercially, while ensuring that consumers do not pay over the odds; this is a complex but increasingly urgent task. According to the IEA, progress on CCUS remains off-track when measured against globally agreed climate and energy goals. Today’s CCUS plants represent less than 4% of what’s needed by 2030 to be consistent with the Paris Agreement objectives. This stark figure shows the scale of the challenge to meet the global action to tackle climate change. CCUS has economy-wide qualities that can deliver clean industrial growth and provide a route to net zero emissions. It is also one of few available options to significantly reduce emissions from fossil-based power plants, power stations and carbon heavy industries such as cement, chemicals, steel and oil refining. These energy- intensive industries produce approximately 24% of global carbon emissions. The UK Government Action Plan The action plan commits the UK to: • Set out in 2019 how to enable the UK’s first CCUS facility • Invest £20 million in supporting construction of CCUS technologies at industrial sites across the UK, as part of £45 million commitment to innovation • Invest £315 million in decarbonising industrial sites, including the potential to use CCUS • Begin work with the Oil and Gas Authority, industry and the Crown Estate and Crown Estate Scotland to identify existing oil and gas infrastructure which could be transformed for CCUS projects The government also announced a £175,000 investment in Project Acorn in St Fergus in Scotland to develop ways of transporting carbon emissions from where they are captured to storage facilities. This investment will be matched by the Scottish government, with the European Commission also expected to provide funding. The project will use the unique combination of legacy circumstances in north east Scotland to engineer a minimum viable full chain carbon capture, transport and offshore storage project to initiate CCUS in the UK. It will seek to repurpose an existing gas sweetening plant with established offshore pipeline infrastructure connected to a well understood offshore basin, rich in storage opportunities. 3 3 3 3 Repurposing or rebuilding an existing CO2 capture plant at the coastal St Fergus gas processing plant New CO2 gathering, conditioning and compression An existing offshore pipeline for CO2 transportation to the central North Sea selected from a portfolio of existing gas pipelines awaiting decommissioning Injection into a subsurface storage site close to the pipeline corridor using proven subsea well technology Five other industrial locations/sites have been identified GRANGEMOUTH – chemicals and the source of the majority of Scottish CO2 emissions TEESSIDE – chemicals with access to Southern North Sea storage HUMBERSIDE – refining, steelmaking and biomass fired power generation MERSEYSIDE – refining, chemicals and fertiliser production with potential for storage in east Irish Sea SOUTH WALES – steelmaking and refining The plan recognises that while CCUS is being deployed elsewhere in the world, there needs to be a significant acceleration in order to meet global emissions reduction targets. Looking to play a global leader role the UK government is keen to work with other governments and industry to accelerate global CCUS deployment and achieve global cost reductions. The technology around carbon capture does not stand still Traditional methods rely on pulling carbon dioxide out of a smokestack or from close to the source of emissions in an industrial process. Direct air capture is a new process which sucks carbon dioxide from the atmosphere by using chemicals and fans. Based in British Columbia, Carbon Engineering is a Bill Gates- backed start-up company which has instigated a $60 million fundraising round to enable it to design and construct commercial scale plants. The CO2 extracted can then be used to produce synthetic fuels to substitute for petrol, Jet A-1 or diesel and be used in the same engines without modification. These fuels do produce carbon dioxide but, having been made using carbon dioxide, are considered to be low-carbon. This has not failed to attract the attention of two US oil companies, Chevron and Occidental, who have both taken minority stakes in the start-up. An interesting development to watch which could take carbon capture to a whole new level! www.ccsassociation.org Fuel Oil News | March 2019 19