Financing Carbon Capture from a Waste to Energy Plant: The Case of a Pioneering Initiative at Klemetsrud, Oslo A Feasibility Study Elling Enger, Jon Lereim, Magne Lia & Atle Midttun , BI Norwegian Business School Arne Lind & Julien Meyer, IFE Institute for Energy Technology
Catering for a Complete Carbon Chain: Klemetsrud in the Larger North Sea Carbon-Industrial Ecology Equinor, Shell and Total E&P Norge AS to carry out the concept and FEED studies for developing an open source service for transport and storage of European CO2 Source: Equinor 2019
Klemetsrud plant with CO2 Sequestration Energy El Transm El CO2 CAPTURE Generation €5.2 m System Market Waste Heat Incine- Pipeline Heating 18.9 m production ration System Various Market Types CO2 Of CO2 CO2 Captured Waste Transport Storage Fly Ash Deposit - €1.0m Metal Revenue Bottom from metals Recirculation Ash covers costs Gate Fees Waste transporters/ Brokers Household Waste Imported Waste Infectious Waste (hospitals, 273,000 tonnes 91,200 tonnes etc) @ €70 per tonne @ €46 per tonne 15,200 tonnes @ €308 per tonne
Competition Policy, Access policy The S Curve Regulatory Monopoly regulation Technological policy, etc. Mature Approaches Maturity technology To Drive Niche market Technological policy Progress Technology subsidy Early stage policy technology R&D policy The Learning Curve Cost Efficiency High Performance cost 65 – euro – current cost 35 – euro - nth plant Low cost From Midttun & Gautesen (2007)
Case: Enova Corporate Strategy Technology & Market Development Technology Development Market Development Market- Technology volume Demonstration Programmes Development Novel technology for Cost Market development Full Scale Piloting Creating New Markets Innovative Of Technology New Technology Partly Mature Immature Mature Idea/ Design & Concept Feasibility test
Financing Klemetsrud plant with CO2 Sequestration Transfer from State/Municipal Budgets Price uplift for Energy de-carbonizing electricity El Transm El €5.2m Generation CO2 Sequestration System Market Waste Heat Price uplift Incine- Pipeline Heating €18.9m For de-carbonizing heat production ration System Various Market Types CO2 Of CO2 CO2 Capture Waste Transport Storage Fly Ash Deposit - €1.0m Metal Bottom Revenue Recirculation Increase in Gate Fees Ash from metals covers costs Waste transporters/ Financing in Brokers EU – ETS market Household Waste Imported Waste Infectious Waste (hospitals, 273,000 tonnes 91,200 tonnes etc) @ €70 per tonne @ €46 per tonne 15,200 tonnes @ €308 per tonne
Economic Value Drivers Breakdown Structure – Energy to Waste Socio NPV Economic Benefit Income CAPEX OPEX (Revenues) CO2 Heat Production Logistics Operations Operations Operations El facilities systems Heat Facilities El-generator CO2 facility Price Price? Price EL- CO2- Heat Facility module Facility Volume Volume Volume? Capacity Capacity Capacity Generator Generator Scrubber Grid Grid Storage
Closing remarks • A NPV/IRR model is established for the Carbon Capture-cases • Various Scenarios are run for a range of variables • The NPV/IRR Klemetsrud case provides us with a business driven framework for Carbon Capture • The NPV/IRR model should be used as a primary dialogue tool with the authorities regarding public funding and incentives for technology breakthroughs and acceleration of the implementation for Next Generation Carbon Capture facilities
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