Carbon Capture & Storage and Hydrogen Henry Smyth (Ervia Head - PowerPoint PPT Presentation

Carbon Capture & Storage and Hydrogen Henry Smyth (Ervia Head of Regulation & Technical) Code Mod Forum 12 June 2019

Background 2

Ireland’s emissions and gas usage Ireland has committed to reducing CO 2 emissions 70 60 50 Natural gas usage emitted c.9 MT of CO 2 40 30 20 10 - 2016 2050 target [80%] 2050 target [95%] MT CO2 Agri Energy 3

Current natural gas usage & future electricity demand Electricity peak forecast for Ireland - EirGrid 6

Decarbonising Electricity Generation with CCS – Ireland needs ‘Zero Emission Firm Power’ No credible alternatives to Gas+CCS – AT SCALE  Nuclear - Not legally allowed  Hydro - Lack of resource  Biomass - Sustainability???  Batteries - Scale unachievable  Electrical I/C - Unsuitable for Security of Supply Long periods with very little wind No other technology visible today to provide long-term, low-carbon peak supply – securely Long periods with very little wind 5

2050 Vision – A Zero Carbon Emissions Gas Network 70.0 60.0 50.0 40.0 Demand (TWh) Hydrogen Total 30.0 Biomethane Total Natural gas (CCS) 20.0 Total 10.0 0.0 2018 2020 2022 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 -10.0 6

What is Carbon Capture and Storage? Exhaust gas CO 2 Gas-fired CCGT CO 2 Compression CO 2 underground Carbon Capture Transportation power plant and Conditioning storage Unit CO 2 is Existing or new The captured The CO 2 is 90% of CO 2 transported power plant CO 2 is injected into the separated from through both compressed and depleted gas exhaust gas from onshore and dried field for the power plant offshore gas permanent pipelines to a storage depleted gas field 7

Global CCS Status Large scale CCS facilities 18 230+ operating globally as of 2019. MT of CO 2 Million tonnes of CO 2 can 40 has been be captured annually captured since 1972. KM of CO 2 pipelines 6,500 23 MT in operating safely Norway. 0 The United Kingdom created joint 2025 industry/gov working group to develop CCS by mid 2020s 8

Global CCS Status

Experts agree on need for CCS Limiting global warming to 1.5 degrees will require ‘the use of negative emissions technology’ Bio Energy CCS will be critical The UK Government should not plan to meet the 2050 target without CCS To stay ‘well below 2 degrees’ CCS would provide 32% of global emission reductions The UK Committee on Climate Change’s Net -Zero report (May 2019) states “CCS is a necessity not an option”.

CCS Options CAPTURE TRANSPORT STORAGE Pre Post Oxyfuel Combustion Combustion Pipeline UK 70,000Mt POWER Cork INDUSTRY 300Mt Ship CO 2 BY SHIP Norway HOMES 70,000Mt Base Case Assessed – CCS in Cork Emerging Potential for International Storage 11

Cork CCS Feasibility Study 12

Cork CCS Feasibility Study Close to Cork city Depleted, offshore, low pressure gas field. Two gas-fired CCGTs and an oil refinery. Ireland 56km pipe 13

Close proximity of power plants and refinery Aghada CCGT 440 MW, 2010 Irving Oil Refinery 75,000 bpd Whitegate CCGT 440 MW, 2010 14

Potential for CCS industry cluster 15

Irving Oil Refinery 106 Refineries in the EU – 2 nd largest producer of petroleum products globally EU Ireland’s Proximity Biofuels only oil of emitters Directive refinery. 16

Proximity of power plants and refinery to where offshore pipe comes onshore Aghada CCGT • The 56km offshore gas pipeline comes Inch Terminal – link Irving Oil to offshore gas Refinery ashore at Inch infrastructure Terminal. Whitegate CCGT • All key infrastructure for CCS is located within a few kms of each other. 17

The Kinsale Head Gas Field Decommissioning due to start in 2020 18

What a CCS project could do for Ireland Annual CO 2 Emissions 2 CCGTs + Refinery Irish Cement Industry (Cork) 2.5mtpa 2.7mtpa Removing Emissions Emissions Over Emission 1.1 million from from 100,000 savings from 750,000 oil flights all wind cars from 925,000 Irish roads heated cows between turbines in homes Dublin & Ireland in Brussels 2016 19

CCS Plants - Operational Carbon capture plant CO 2 compressor station SaskPower coal fired power station with CCS facility at Boundary Dam, Saskatchewan, Canada 20

Potential for CO 2 Export 21

Export Potential 2050 projected CO 2 shipping flows European Storage Capacity North Sea Storage Capacity Sector Estimates British 69,000Mt Dutch 2,715Mt German 2,943Mt Norwegian 66,000Mt Source: North Sea Basin Task Force Report “NSBTF strategic regional plan on CCS transport infrastructure - Networks for carbon dioxide infrastructure in and between countries bordering the North Sea” (February 2017) 22

Shipping CO 2 – UK Cost Estimation Study by Element Energy for BEIS, Nov 2018 Total T&S unit costs, incl. 30 years experience. shipping from EU port to European trade is 3 Mtpa UK could be less than of CO 2 . £20/tCO 2 . Ship loading can use LNG technology . 23

Economics of CCS 24

CCS - Cost of CO 2 Abatement Cost Abated € /tonne - Dispatchable Electricity Generation Options 500 450 400 350 CCGT+CCS (Post 300 combustion) € /tonne 250 Electricity I/C 200 Large Biomass 150 100 50 0 CCGT+CCS (Post Electricity I/C Large Biomass combustion) Decarbonised dispatchable options for Ireland. Renewables and batteries will play a role, however batteries currently only offer storage for seconds, minutes and hours. 25

Abatement Costs and subsidy requirements in other sectors competing for state support Home heating Transport Subsidy required per t/CO 2 abated 2500 2000 € /tonne CO 2 abated 1500 1000 500 0 Biomethane transport EV GNI analysis of “ The combined role of policy and incentives in Analysis carried out by Ervia based on publically available information from SEAI, promoting cost efficient decarbonisation of energy: A case study ESB, GNI. for biomethane” 26

Hydrogen activity June 2019 Henry Smyth

Hydrogen pathways Wind Natural gas • Colourless, odourless, tasteless, non-toxic, non-corrosive, Steam methane flammable Electrolysis reforming • Compatible with polyethylene pipe used in the distribution Hydrogen Hydrogen network • Comparison to natural gas 1/3 rd the • calorifivalue Demonstration projects Most cost effective large 1/8 th the density • across EU scale production method HyDeploy up to 20% H 2 Leeds H21 Report blend project. Cadent at conversion of distribution Keele, UK to 100% H 2 . NGN, UK 28

KPMG Report for the UK Energy Networks Association – decarbonising heating Evolution of Gas Diversified Energy Networks Sources - Gas and hydrogen for heating - Different technologies in different areas (Municipal model) - Carbon Capture & storage £156 - £188 bn £104 - £122 bn Electric Future Prosumer - Switch to electric heating systems - Self-generating heating - Gas network no longer used Gas network no longer used £274 - £318 bn £251 - £289 bn

Hydrogen production Steam methane reformer Electrolysis • • A proven commercial technology in use since Carbon free if renewable electricity used. 1960’s. Lowest cost and dominates production. • Potential solution for electricity industry’s storage • Natural gas commonly used as a feedstock as dilemma. being low sulphur little pre-treatment is needed • Currently higher cost due to grid electricity costs. and it is already compressed. • Used in smaller scale production including service • 250MW unit is a typical size. station in demonstration projects. • Output >99.9% purity. • Up to 100MW available • Efficiency 70%-80% HHV • Output >99.999% purity. • • Suitable for CCS to be added . Efficiency 70% HHV. 30

Most EU countries are active in hydrogen demonstration activity Ireland has the opportunity to EU Power to gas projects participate but has not done so EU allowable blend percentages 31

Typical storage capacities and time scales of different network scale technologies Electricity storage will require several technologies to overcome the volatility of renewable generation. Power to gas may play a role in large scale long term energy storage well beyond the capabilities of batteries. 32

A future international trade in hydrogen? • Hydrogen may be produced more economically elsewhere. – Countries with CCS facilities may produce hydrogen from SMR and export i.e. Norway – Countries and areas with high wind resources may have dedicated hydrogen production from renewables i.e. Dogger bank island proposal – Countries with large solar potential may use emerging technologies i.e. North Africa, Australia to Japan • Hydrogen may be shipped – In liquid form at very low temperatures – Contained within ammonia at -30C at atmospheric pressure • Hydrogen may be transported by pipelines – There is circa 3,000 km of hydrogen transmission pipelines in both Europe and the US 33