Overview of project : Implications of the Reuse of Captured CO 2 for European Climate Action Policies Dr. Paul Zakkour Carbon Counts ( on behalf of Carbon Counts and Ecofys ) CO 2 Reuse Workshop, Brussels, 7 th June 2013
Project objectives and approach • Project objectives:* 1. Understand role of CO 2 reuse (CCU) in supporting EU Climate Action (DG CLIMA) objectives 2. Consider key drivers and barriers for CCU in EU 3. Compare CCU activities in EU with rest of the world 4. Assess the options for better integrating CCU into EU policy: both DG CLIMA & DG RTD • Approach – two parts: – Part 1 – Overview of CCU technologies – Part 2 – Actions to support CCU in EU * Non exhaustive review of CCU technologies and activities 2
What is CCU? Why is it of interest? CO 2 conversion non-conversion feedstock energy solvents working fluid Urea yield boosting Biofuels Enhanced oil recovery En. geothermal systems (EOR) (EGS) Polymers Syngas/methane En. gas recovery (EGR) Supercritical CO 2 Carbamates Formic acid Enhanced coal bed power cycles Carbonates Renewable methanol methane (ECBM) Source : Ecofys/Carbon Counts • Drivers for considering CCU: – Emergence of new techniques to convert CO 2 to high value products – Concerns over CCS value-chain costs/lack of progress in Europe – Lack of CO 2 storage potential in some EU MSs – Enhance energy security and support renewables – Support industrial innovation and competitiveness • Challenges and barriers: – Low activation state – need for energy + catalysts = costs/emissions 3
What is the status of CCU? under certain Economically conditions Research CCU category CCU technology stration feasible Demon- Mature market Hydrogen (renewable methanol) Hydrogen (formic acid) CO 2 to fuels Algae (to biofuels) Photocatalytic processes Nanomaterial catalysts Enhanced Power cycles (using scCO 2 ) commodity Enhanced production (urea; methanol) production Miscible/immiscible floods (CO 2 -EOR) Enhanced hydrocarbon Miscible/immiscible floods (CO 2 -EGR) recovery Sorption-based displacement (ECBM) Carbonate mineralisation CO 2 CO 2 concrete curing mineralisation Bauxite residue carbonation Sodium carbonate Polymers Chemicals production Other chemicals (e.g. acetic acid) Algae (for chemicals) Source : Ecofys/Carbon Counts Main activities Some activities 4
Who is involved in CCU development? Where? • Geographical factors play an important role in determining interest/potential for several technologies (e.g. climate, material/energy availability etc.) Europe – all segments at all levels Asia – pockets of R&D across various segments, especially energy US – all segments at all levels. Many more start-up companies KEY CO 2 to fuels Academia Enhanced commodity production Enhanced hydrocarbon production Start-ups Carbonate mineralisation Source : Ecofys/Carbon Counts Industry Chemicals production 5
Economic factors affecting CCU • Potential volumes of • Creating revenues CO 2 that could be (using waste) utilised • Avoiding costs (highly variable Value Market (e.g. EU ETS costs) <1 MtCO 2 /yr to several 100) Creation demand Commercial Costs • Capital • Displacing lower cost, • Energy trusted, incumbents • Other OPEX • Focus on high-value (speciality) products could yield results • Scope for cost reduction • Eco-labelling 6
CCU and Climate Policy CCU category Technology / application Potential abatement effect Algae cultivation Displacement Renewable methanol of fossil fuel and/or other CO 2 to fuels Formic acid GHG benefits Captured CO 2 Photo-catalysis Enhanced geothermal systems with CO 2 Improved efficiency Enhanced commodity Supercritical CO 2 power cycles production Urea yield boosting Methanol yield boosting Temporary Enhanced coal bed methane (ECBM) storage Enhanced hydrocarbon Enhanced gas recovery (EGR) production Enhanced oil recovery (EOR) Carbonate mineralisation CO 2 mineralisation Concrete curing Permanent storage Bauxite residue treatment Sodium bicarbonate Source : Ecofys/ Chemicals production Polymers Carbon Counts Other chemical processes • EC Regulation 601/2012 (MRGs): No longer allow transfers to be deducted from inventory • Scope for exists to include “...future innovations” to allow new pathways for CCU to be opted-in to EU ETS 7
CCU and Other EU Policy Renewable Energy • Fuel blending rates at 3% do not appear to Directive be near-term barrier Fuel Quality Directive: EU Standard • Could potentially affect blending rates of CCU products in cement EN197-1 on cement: Carbon capture and • Are synergies, but dialogue between CCU storage: and CCS communities seems limited to date • Capacity to contribute to several strands: e.g. Innovation strategy green growth and industrial competitiveness 8
Future action to support CCU “Push” factors “Pull” factors Drive innovation through Drive commercial interest RD&D support through market creation • • Horizon 2020 EU ETS and climate policy • • Innovation centres RED and renewables policy • • Technology platform Technology innovation policy • Eco-labelling • Technology “prize”* * For example, the proposed Energy Security Trust Fund in the US included a US$ 25M prize for the first natural gas CCGT CCS project in the country 9
Near-term policy considerations Stakeholders and communication • Diverse set of actors involved in CCS space (academia, industry, start-ups) • Wide range of technologies with different characteristics • No single voice acting for CCU interests Should stakeholders provide single voice for CCU at EU level? What is the right forum – technology platform? Research and development (“push” factors) • Horizon 2020 is under design at the current time • CCU technologies could feature across both thematic and cross-cutting programmes, but: Not really in the minds of policy-makers - should it be? What more could be done to highlight CCU in Horizon 2020? Climate and energy policy (“pull” factors) • No apparent near-term needs to support CCU (e.g. under EU ETS or RED). Are there areas where policy actions could support development? (inclusion of CCU element within NER300?) Is there a role of a technology prize to support CCU development? 10
Further information available at: www.co2reuse.eu Report coming soon Thank you Paul Zakkour, Carbon Counts Chris Hendriks, Ecofys Email: paul.zakkour@carbon-counts.com Email: c.hendriks@ecofys.com Web: www.carbon-counts.com Web: www.ecofys.com
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