Strategy for promoting low-carbon technology transfer to developing countries: The case of CCS

Carbon Capture and Storage (CCS) is the critical enabling technology that would reduce CO₂ emissions significantly while also allowing fossil fuels to meet the world’s pressing energy needs. The International Energy Agency analysis shows that although the developed world must lead the CCS effort in the next decade, there is an urgent need to spread CCS to the developing world. Given technologies for reducing GHG emissions originate mainly in developed countries, technology transfer, as an important feature emphasized by both the United Nations Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, therefore has a key role to play in bridging a gap between developed and developing countries. The main objective of this paper is to explore potential policies and schemes promoting the transfer of CCS technologies to developing countries. First, it reviews the global CCS status, analyzes the significant gap of CCS in developed and developing countries, and investigates stakeholder perceptions of diffusing CCS to China, which is a major developing country and a significant potential candidate for large-scale CCS deployment; then the authors make an attempt to understand technology transfer including its benefits, barriers, and definition. The UNFCCC explicitly commits the developed (Annex I) countries to provide financial and technical support to developing countries under favorable terms. The authors argue that the ultimate goal of technology transfer should not only be limited to apply CCS in developing countries, but also to enhance their endogenous capabilities, which will enable future innovation and ensure long-term adoption of low-carbon technologies. As a result, the authors propose a four-pronged approach to the transfer of CCS technologies, which involves physical transfer of explicit technologies, a financial mechanism, endogenous capacity building, and a monitoring mechanism. Concrete enhanced actions to promote CCS technology transfer are also proposed. The four-pronged approach and related enhanced actions proposed in this paper are also applicable to other low-carbon technology transfer.     

Techno-economic and environmental evaluations of large scale gasification-based CCS project in Romania

Gasification is a promising technology in terms of reducing carbon capture energy and cost penalties as well as for multi-fuel multi-product operation capability. The paper evaluates two carbon capture options in terms of main techno-economic indicators. The first option involves pre-combustion capture, the syngas being catalytically shifted to convert carbon species into CO₂ and H₂. Gas–liquid absorption is used for separate H₂S and CO₂ capture, then clean gas is used for power generation. The second capture option is based on post-combustion capture using chemical absorption. The most promising gasifiers were evaluated in a CCS design.     

Carbon prices and CCS investment: A comparative study between the European Union and China

Carbon Capture and Storage is considered as a key option for climate change mitigation; policy makers and investors need to know when CCS becomes economically attractive. Integrating CCS in a power plant adds significant costs which can be offset by a sufficient CO₂ price. However, most markets have failed: currently, the weak carbon price threatens CCS deployment in the European Union (EU). In China, a carbon regulation is appearing and CCS encounters a rising interest. This study investigates two questions: how much is the extra-cost of a CCS plant in the EU in comparison with China? Second, what is the CO₂ price beyond which CCS plants become more profitable than reference plants in the EU and in China? To address these issues, I conducted a literature review on public studies about CCS costs. To objectively assess the profitability of CCS plants, I constructed a net present value model to calculate the Levelised Cost of Electricity and the breakeven CO₂ price. CCS plants become the most profitable plant type beyond 115 €/tCO₂ in the EU vs. 45 €/tCO₂ in China (offshore transport and storage costs). I advise on the optimal plant type choice depending on the CO₂ price in both countries.     

On sustainability of bioenergy production: Integrating co-emissions from agricultural intensification

Biomass from cellulosic bioenergy crops is seen as a substantial part of future energy systems, especially if climate policy aims at stabilizing CO₂ concentration at low levels. However, among other concerns of sustainability, the large-scale use of bioenergy is controversial because it is hypothesized to increase the competition for land and therefore raise N₂O emissions from agricultural soils due to intensification. We apply a global land-use model that is suited to assess agricultural non-CO₂ GHG emissions. First, we describe how fertilization of cellulosic bioenergy crops and associated N₂O emissions are implemented in the land-use model and how future bioenergy demand is derived by an energy-economy-climate model. We then assess regional N₂O emissions from the soil due to large-scale bioenergy application, the expansion of cropland and the importance of technological change for dedicated bioenergy crops. Finally, we compare simulated N₂O emissions from the agricultural sector with CO₂ emissions from the energy sector to investigate the real contribution of bioenergy for low stabilization scenarios.As a result, we find that N₂O emissions due to energy crop production are a minor factor. Nevertheless, these co-emissions can be significant for the option of removing CO₂ from the atmosphere (by combining bioenergy use with carbon capture and storage (CCS) options) possibly needed at the end of the century for climate mitigation. Furthermore, our assessment shows that bioenergy crops will occupy large shares of available cropland and will require high rates of technological change at additional costs.     

Assessing innovation in emerging energy technologies: Socio-technical dynamics of carbon capture and storage (CCS) and enhanced geothermal systems (EGS) in the USA

This study applies a socio-technical systems perspective to explore innovation dynamics of two emerging energy technologies with potential to reduce greenhouse gas emissions from electrical power generation in the United States: carbon capture and storage (CCS) and enhanced geothermal systems (EGS). The goal of the study is to inform sustainability science theory and energy policy deliberations by examining how social and political dynamics are shaping the struggle for resources by these two emerging, not-yet-widely commercializable socio-technical systems. This characterization of socio-technical dynamics of CCS and EGS innovation includes examining the perceived technical, environmental, and financial risks and benefits of each system, as well as the discourses and actor networks through which the competition for resources – particularly public resources – is being waged. CCS and EGS were selected for the study because they vary considerably with respect to their social, technical, and environmental implications and risks, are unproven at scale and uncertain with respect to cost, feasibility, and life-cycle environmental impacts. By assessing the two technologies in parallel, the study highlights important social and political dimensions of energy technology innovation in order to inform theory and suggest new approaches to policy analysis.     

Evaluation of syngas-based chemical looping applications for hydrogen and power co-generation with CCS

This paper evaluates hydrogen and power co-generation based on coal-gasification fitted with an iron-based chemical looping system for carbon capture and storage (CCS). The paper assess in details the whole hydrogen and power co-production chain based on coal gasification. Investigated plant concepts of syngas-based chemical looping generate about 350–450 MW net electricity with a flexible output of 0–200 MW_th hydrogen (based on lower heating value) with an almost total decarbonisation rate of the coal used.     

Determinants of the costs of carbon capture and sequestration for expanding electricity generation capacity

This study models the costs of electricity generation with carbon capture and sequestration (CCS), from generation at the power plant to carbon injection at the reservoir, examining the economic factors that affect technology choice and CCS costs at the individual plant level. The results suggest that natural gas and coal prices have profound impacts on the carbon price needed to induce CCS. To extend previous analyses we develop a "cost region" graph that models technology choice as a function of carbon and fuel prices. Generally, the least-cost technology at low carbon prices is pulverized coal, while intermediate carbon prices favor natural gas technologies and high carbon prices favor coal gasification with capture. However, the specific carbon prices at which these transitions occur is largely determined by the price of natural gas. For instance, the CCS-justifying carbon price ranges from $27/t CO₂ at high natural gas prices to $54/t CO₂ at low natural gas prices. This result has important implications for potential climate change legislation. The capital costs of the generation and CO₂ capture plant are also highly important, while pipeline distance and criteria pollutant control are less significant.     

Evaluation of power generation schemes based on hydrogen-fuelled combined cycle with carbon capture and storage (CCS)

IGCC is a power generation technology in which the solid feedstock is partially oxidized to produce syngas. In a modified IGCC design for carbon capture, there are several technological options which are evaluated in this paper. The first two options involve pre-combustion arrangements in which syngas is processed, either by shift conversion or chemical looping, to maximise the hydrogen level and to concentrate the carbon species as CO₂. After CO₂ capture by gas-liquid absorption or chemical looping, the hydrogen-rich gas is used for power generation. The third capture option is based on post-combustion arrangement using chemical absorption.Investigated coal-based IGCC case studies produce 400-500 MW net power with more than 90% carbon capture rate. Principal focus of the paper is concentrated on evaluation of key performance indicators for investigated carbon capture options, the influence of various gasifiers on carbon capture process, optimisation of energy efficiency by heat and power integration, quality specification of captured CO₂. The capture option with minimal energy penalty is based on chemical looping, followed by pre-combustion and post-combustion.     

Uncertainty modeling of CCS investment strategy in China’s power sector

The increasing pressure resulting from the need for CO₂ mitigation is in conflict with the predominance of coal in China’s energy structure. A possible solution to this tension between climate change and fossil fuel consumption fact could be the introduction of the carbon capture and storage (CCS) technology. However, high cost and other problems give rise to great uncertainty in R&D and popularization of carbon capture technology. This paper presents a real options model incorporating policy uncertainty described by carbon price scenarios (including stochasticity), allowing for possible technological change. This model is further used to determine the best strategy for investing in CCS technology in an uncertain environment in China and the effect of climate policy on the decision-making process of investment into carbon-saving technologies.     

Cost-effective policy instruments for greenhouse gas emission reduction and fossil fuel substitution through bioenergy production in Austria

Climate change mitigation and security of energy supply are important targets of Austrian energy policy. Bioenergy production based on resources from agriculture and forestry is an important option for attaining these targets. To increase the share of bioenergy in the energy supply, supporting policy instruments are necessary. The cost-effectiveness of these instruments in attaining policy targets depends on the availability of bioenergy technologies. Advanced technologies such as second-generation biofuels, biomass gasification for power production, and bioenergy with carbon capture and storage (BECCS) will likely change the performance of policy instruments. This article assesses the cost-effectiveness of energy policy instruments, considering new bioenergy technologies for the year 2030, with respect to greenhouse gas emission (GHG) reduction and fossil fuel substitution. Instruments that directly subsidize bioenergy are compared with instruments that aim at reducing GHG emissions. A spatially explicit modeling approach is used to account for biomass supply and energy distribution costs in Austria. Results indicate that a carbon tax performs cost-effectively with respect to both policy targets if BECCS is not available. However, the availability of BECCS creates a trade-off between GHG emission reduction and fossil fuel substitution. Biofuel blending obligations are costly in terms of attaining the policy targets.     

Greenhouse gas mitigation in a carbon constrained world: The role of carbon capture and storage

Carbon capture and storage (CCS) promises to allow for low-emissions fossil-fuel-based power generation. The technology is under development; a number of technological, economic, environmental and safety issues remain to be solved. CCS may prolong the prevailing coal-to-electricity regime and countervail efforts in other mitigation categories. Given the need to continue using fossil-fuels for some time, however, it may also serve as a bridging technology towards a renewable energy future. In this paper, we analyze the structural characteristics of the CCS innovation system and perform an energy-environment-economic analysis of the potential contribution of CCS, using a general equilibrium model for Germany. We show that a given climate target can be achieved at lower marginal costs when the option of CCS is included into the mix of mitigation options. We conclude that, given an appropriate legal and policy framework, CCS, energy efficiency and some other mitigation efforts are complementary measures and should form part of a broad mix of measures required for a successful CO₂ mitigation strategy.     

Directed technical change and the adoption of CO2 abatement technology: The case of CO2 capture and storage

This paper studies the cost-effectiveness of combining traditional environmental policy, such as CO₂-trading schemes, and technology policy that has aims of reducing the cost and speeding the adoption of CO₂ abatement technology. For this purpose, we develop a dynamic general equilibrium model that captures empirical links between CO₂ emissions associated with energy use, directed technical change and the economy. We specify CO₂ capture and storage (CCS) as a discrete CO₂ abatement technology. We find that combining CO₂-trading schemes with an adoption subsidy is the most effective instrument to induce adoption of the CCS technology. Such a subsidy directly improves the competitiveness of the CCS technology by compensating for its markup over the cost of conventional electricity. Yet, introducing R&D subsidies throughout the entire economy leads to faster adoption of the CCS technology as well and in addition can be cost-effective in achieving the abatement target.     

Tackling CO2 reduction in India through use of CO2 capture and storage (CCS): Prospects and challenges

CO₂ capture and storage (CCS) is not currently a priority for the Government of India (GOI) because, whilst a signatory to the UNFCCC and Kyoto Protocol, there are no existing greenhouse gas emission reduction targets and most commentators do not envisage compulsory targets for India in the post-2012 phase. The overwhelming priority for the GOI is to sustain a high level of economic growth (8%+) and provision of secure, reliable energy (especially electricity) is one of the widely recognised bottlenecks in maintaining a high growth rate. In such a supply-starved context, it is not easy to envisage adoption of CCS—which increases overall generation capacity and demand for coal without increasing actual electricity supply—as being acceptable. Anything which increases costs—even slightly—is very unlikely to happen, unless it is fully paid for by the international community. The majority viewpoint of the industry and GOI interviewees towards CCS appears to be that it is a frontier technology, which needs to be developed further in the Annex-1 countries to bring down the cost through RD&D and deployment. More RD&D is required to assess in further detail the potential for CO₂ storage in geological reservoirs in India and the international community has an important role to play in cultivating such research.     

A scalable infrastructure model for carbon capture and storage: SimCCS

In the carbon capture and storage (CCS) process, CO₂ sources and geologic reservoirs may be widely spatially dispersed and need to be connected through a dedicated CO₂ pipeline network. We introduce a scalable infrastructure model for CCS (simCCS) that generates a fully integrated, cost-minimizing CCS system. SimCCS determines where and how much CO₂ to capture and store, and where to build and connect pipelines of different sizes, in order to minimize the combined annualized costs of sequestering a given amount of CO₂. SimCCS is able to aggregate CO₂ flows between sources and reservoirs into trunk pipelines that take advantage of economies of scale. Pipeline construction costs take into account factors including topography and social impacts. SimCCS can be used to calculate the scale of CCS deployment (local, regional, national). SimCCS’ deployment of a realistic, capacitated pipeline network is a major advancement for planning CCS infrastructure. We demonstrate simCCS using a set of 37 CO₂ sources and 14 reservoirs for California. The results highlight the importance of systematic planning for CCS infrastructure by examining the sensitivity of CCS infrastructure, as optimized by simCCS, to varying CO₂ targets. We finish by identifying critical future research areas for CCS infrastructure.     

Carbon-negative biofuels

Current Kyoto-based approaches to reducing the earth's greenhouse gas problem involve looking for ways to reduce emissions. But these are palliative at best, and at worst will allow the problem to get out of hand. It is only through sequestration of atmospheric carbon that the problem can be solved. Carbon-negative biofuels represent the first potentially huge assault on the problem, in ways that are already technically feasible and practicable. The key to carbon negativity is to see it not as technically determined but as an issue of strategic choice, whereby farmers and fuel producers can decide how much carbon to return to the soil. Biochar amendment to the soil not only sequesters carbon but also enhances the fertility and vitality of the soil. The time is approaching when biofuels will be carbon negative by definition, and, as such, they will sweep away existing debates over their contribution to the solution of global warming.     

The cost of integration of zero emission power plants—A case study for the island of Cyprus

In this work, a technical, economic and environmental analysis is carried out for the estimation of the optimal option scenario for the Cyprus's future power generation system. A range of power generation technologies integrated with carbon capture and storage (CCS) were examined as candidate options and compared with the business as usual scenario. Based on the input data and the assumptions made, the simulations indicated that the integrated gasification combined cycle (IGCC) technology with pre-combustion CCS integration is the least cost option for the future expansion of the power generation system. In particular, the results showed that for a natural gas price of 7.9US$/GJ the IGCC technology with pre-combustion CCS integration is the most economical choice, closely followed by the pulverized coal technology with post-combustion CCS integration. The combined cycle technology can, also, be considered as alternative competitive technology. The combined cycle technologies with pre- or post-combustion CCS integration yield more expensive electricity unit cost. In addition, a sensitivity analysis has been also carried out in order to examine the effect of the natural gas price on the optimum planning. For natural gas prices greater than 6.4US$/GJ the least cost option is the use of IGCC technology with CCS integration. It can be concluded that the Cyprus's power generation system can be shifted slowly towards the utilization of CCS technologies in favor of the existing steam power plants in order not only to lower the environmental emissions and fulfilling the recent European Union Energy Package requirements but also to reduce the associated electricity unit cost.     

The calcium looping cycle for large-scale CO2 capture

The reversible reaction between CaO and CO₂ is an extremely promising method of removing CO₂ from the exhaust of a power station, generating a pure stream of CO₂ ready for geological sequestration. The technology has attracted a great deal of attention recently, owing to a number of its advantages: the relatively small efficiency penalty which it imposes upon a power station (estimated at 6–8 percentage points, including compression of the CO₂); its potential use in large-scale circulating fluidised beds (a mature technology, as opposed to the vastly upscaled solvent scrubbing towers which would be required for amine scrubbing); its excellent opportunity for integration with cement manufacture (potentially decarbonising both industries) and its extremely cheap sorbent (crushed limestone).     

Techno-economic evaluation of coal-to-liquids (CTL) plants with carbon capture and sequestration

Coal-to-liquids (CTL) processes that generate synthetic liquid fuels from coal are of increasing interest in light of the substantial rise in world oil prices in recent years. A major concern, however, is the large emissions of CO₂ from the process, which would add to the burden of atmospheric greenhouse gases. To assess the options, impacts and costs of controlling CO₂ emissions from a CTL plant, a comprehensive techno-economic assessment model of CTL plants has been developed, capable of incorporating technology options for carbon capture and storage (CCS). The model was used to study the performance and cost of a liquids-only plant as well as a co-production plant, which produces both liquids and electricity. The effect of uncertainty and variability of key parameters on the cost of liquids production was quantified, as were the effects of alternative carbon constraints such as choice of CCS technology and the effective price (or tax) on CO₂ emissions imposed by a climate regulatory policy. The efficiency and CO₂ emissions from a co-production plant also were compared to the separate production of liquid fuels and electricity. The results for a 50,000 barrels/day case study plant are presented.     

碳捕集与封存技术(CCS)成本及政策分析

当前,减排CO2的呼声日益高涨。在未来相当长的时间内,我国一次能源仍将以煤为主,而用于发电的煤炭量占到煤炭消费总量的一半以上,已成为国内CO2排放的重要来源。整体煤气化联合循环(IGCC)发电技术不仅具有燃料来源广、发电效率提升空间大等优点,而且能以较低的成本实现CO2减排。以IGCC碳捕集结合强化采油为例,分析碳捕集与封存(CCS)全过程CO2减排成本。结果表明,在IGCC电站进行碳捕集结合强化采油的情景下,捕集CO2的IGCC系统的发电成本低于不捕集CO2的IGCC电站的发电成本。CO2减排成本主要受井口油价及CO2利用率影响,当井口油价超过14.642美元/bbl时,CO2减排成本为负值。CCS的发展将经历示范、扩大规模和商业化三个阶段,针对不同的发展阶段,政府应分别采取相应的政策措施。在示范阶段,应加强对相关技术研究的支持,提供财政补贴;在扩大规模阶段,应重点采取财政补贴措施,并配以CCS发电配额标准和CCS电力贸易体系;在商业化阶段,政府已无需继续提供财政补贴,而CCS发电配额标准和认证贸易体系仍将是一个有效的方法。     

The role of carbon capture technologies in greenhouse gas emissions-reduction models: A parametric study for the U.S. power sector

This paper analyzes the potential contribution of carbon capture and storage (CCS) technologies to greenhouse gas emissions reductions in the U.S. electricity sector. Focusing on capture systems for coal-fired power plants until 2030, a sensitivity analysis of key CCS parameters is performed to gain insight into the role that CCS can play in future mitigation scenarios and to explore implications of large-scale CCS deployment. By integrating important parameters for CCS technologies into a carbon-abatement model similar to the EPRI Prism analysis (EPRI, 2007), this study concludes that the start time and rate of technology diffusion are important in determining emissions reductions and fuel consumption for CCS technologies. Comparisons with legislative emissions targets illustrate that CCS alone is very unlikely to meet reduction targets for the electric-power sector, even under aggressive deployment scenarios. A portfolio of supply and demand-side strategies is needed to reach emissions objectives, especially in the near term. Furthermore, model results show that the breakdown of capture technologies does not have a significant influence on potential emissions reductions. However, the level of CCS retrofits at existing plants and the eligibility of CCS for new subcritical plants have large effects on the extent of greenhouse gas emissions reductions.