CARBON CAPTURE, TRANSPORTATION AND STORAGE · CARBON CAPTURE, TRANSPORTATION AND STORAGE AN IRISH PERSPECTIVE Richard Vernon SLR Consulting Ireland ... – Time scale to explore prospects

CARBON CAPTURE, CARBON CAPTURE, TRANSPORTATION AND STORAGETRANSPORTATION AND STORAGE

AN IRISH PERSPECTIVEAN IRISH PERSPECTIVE

Richard VernonSLR Consulting Ireland

UCD Earth Systems Institute

24th November 2008

THE POLICY CONTEXT

“...we will build on analysis by SEI on costs, benefits and future potential for Ireland of CCS Strategies. Subject to developments, the Government would

envisage the commercial operation of a new clean coal power generation plant

before 2020”

ASSESSMENT OF THE POTENTIAL FOR GEOLOGICAL STORAGE OF CO2FOR THE ISLAND OF IRELAND

Commissioned by:

PROJECT MANAGEMENTGeological Assessment

Energy Policy Environmental Management

Capture TechnologiesScenario ModellingEconomic AnalysisEnergy Policy

Geology/ GISCO2 Sequestration ModelsGeo-Modelling /HydrodynamicsContainment

HydrodynamicsRisk AssessmentScenario ModellingEconomic Modelling

TERMS OF REFERENCE

• Identify large scale CO 2 point emissions appropriate for capture;

• Identify appropriate geological storage structures for each;

• Identify optimal, cost-effective capture, delivery a nd storage routes for each point;

• Move from theoretical to viable potential for geologic al storage of CO 2 on the island of Ireland

ALL-ISLANDCO2ALLOCATIONS

National Allocation Plans

2008 MAJOR POINT SOURCE EMISSIONSConcentration (Hub) Point Source CO 2 Emissions

Source Sectors Mt pa (actual)

Shannon Estuary Power Sector, Cement & Alumina 9.7 Mt

Dublin City and Huntstown

Power Sector & Industry 5.5 Mt

Belfast Power & Industry 4.8Mt

ROI Midlands Power & Cement 3.2 Mt

Cork/ Cork Harbour Power & Oil Refining 1.8 Mt

Drogheda/ Platin Cement & Periclase 1.6 Mt

Cavan Monaghan Cement 1.1 Mt

Derry Power & Industry 0.6 Mt

Fermanagh Tyrone Industry Cement 0.5 Mt

Total (all-island) 28.8Mt pa

ESB MONEYPOINT GENERATING STATION

Basin Locations

Kinsale Gas Field

Corrib Gas

Spanish

Point

Dragon

TECHNO ECONOMIC RESOURCE PYRAMID – CSLF 2007

QUANTIFIED STORAGE POTENTIAL

88,800 Mt

3,500 Mt

Kinsale 330Mt

Portpatrick 37Mt

93,000 Mt

1,500 Mt

Portpatrick 2700Mt

Peel 68,000Mt

GEOLOGICAL STORAGE CAPACITY Kinsale Gas Field (depleting)

• Kinsale (330 Mt practical ) most preferred option due to known reservoir characteristics and potential short term (<10 year) availability, post-production

• If proven up to ‘matched capacity’– 60+ years storage of current 5Mt Moneypoint emissions – 50 years of modelled 6.24Mt Moneypoint CO2 emissions

MARATHON KINSALE HEAD FIELD LAYOUT

KINSALE ALPHA PLATFORM

GEOLOGICAL STORAGE CAPACITY Clare Basin - Saline Aquifer?

• Unquantifiable storage capacity during study• Clare Basin strategically placed, proximal to Moneypoint , but will

require costly programme to prove up• No gas discovery to date

– limited exploration potential?

• Will require offshore investigation of Carboniferous Sandstones• High risk with low probability of quantifying storage

CONCLUSIONS

• Island of Ireland has significant potential to store CO2 in geological formations.

• Most assessable and best understood is the Kinsale gas complex.

• Sherwoood Sandstone offshore the East Coast offers significant aquifer storage.

• Potential storage in East Irish Sea oil and gas fields and aquifer

� The total quantified but unproven CO2 storage capacity of the Island of Ireland is 93,000 Mt

>> 88,800 Mt falls into the theoretical storage capacity and 5,000 Mt of effective/practical CO2 storage capacity.

• The estimated storage capacities in this study have been classified according to the CSLF methodology

• Sources for Capture Critical – Economies of scale – Centre on largest Power Plants– Maximise existing infrastructure (coal jetties, HV transmission lines)

• Shannon Estuary: Moneypoint • Belfast Lough: Kilroot• Cork Harbour

• Transport to Sink by Pipeline– Moneypoint: pipeline to Kinsale Basin– Kilroot: pipeline to offshore Larne/ Portpatrick – Cork Power generation, pipeline to Kinsale

SOURCE TO SINK OPTIONS

PREFERRED HUB OPTIONS

CLEAN COAL PLANT AT MONEYPOINT: 2020+

• Selected scale of plant to maximise existing transmission capacity of 900 MW

• Plant would supply ~ 15% of electricity demand on an all-island basis

• If Kinsale is proven there would be sufficient CO2 storage capacity for 6.3 Mt of CO2 per year for the life of the plant

STORAGE SITES FOR CO2 FROM MONEYPOINT

Kinsale -– Kinsale Head estimate “practical storage” capacity 330

Mt CO2

– “Matched Capacity” is likely to be less than 330 Mt but adequate for the life of the plant

– Involves ~ 235 km of pipeline (185 km onshore, 50 km offshore)

Clare Basin Alternative– Time scale to explore prospects for CO2 storage in

nearby Clare Basin is conservatively estimated at 10 years plus

– Pipeline distance would depend on where in the basin the injection points are located – could be as little as 30 km but much longer if offshore

New CCGT’s under construction • ESB at Aghada – 431 MW• BGE at Whitegate – 432 MW

Location• Potential hub sources are geographically close to Aghada and

Whitegate• Cork Harbour good take off point for Kinsale as storage locaton

OPTIONS FOR CORK HARBOUR

ECONOMICS OF CCS

• Cost of clean coal CCS may be €3 billion• Capture costs ~ 70% • Cost of power capturing 90% CO2 would be €80-109 MWh –

competitive (ESB €104/ MWh 2007) • Little difference in cost / MWh of capture technologies• Ireland need not decide if wish to wait +8 years• Should Ireland elect to be one of 12 EU demo??

– Window of opportunity at Kinsale?• Power plant in Ireland with CCS, at CO2 price of €35/t could be

competitive in all-island market

IRISH ENERGY POLICY

• CCS would support fuel diversification/ security of supply

• Comparative costs of electricity– ESB €104/ MWh (2007); BNE €86 /MWh (2007)

• Comparative prices to REs: – wave €220/ offshore wind €140 / MWh– large onshore €57 / micro-hydro €72/ MWh

� CCS could be very attractive at price midway between onshore/ offshore wind

COMPARATIVE ELECTRICITY GENERATION COSTS

Coal at $90/tonne and CO 2 at €35/tonne

Price of Power from CCS and non CCS sources (€/MWh)

0

50

100

150

200

250

Wave PowerIncentive

OffshoreWind Power

IncentivePrice

ESB 2007Average

GenerationCost

3A NewKilroot 540

MW PC CCS

1AMoneypoint900 MW PC

CCS

2A Cork 900MW PC CCS

OnshoreLarge ScaleWind EnergySupport Price

(current)

New 900 MWCoal Fired

Plant no CO2penalty

Source Type

Pric

e pe

r M

Wh DB price for economic CCS

€90 /MWh @ 800 MW

ETS – CO2 PRICE VOLATILITY

RECOMMENDATIONS1. Storage: prove up Kinsale (€15m +)2. Further geological studies at Portpatrick & Clare to

increase confidence in storage capacities3. Establishment of an Irish Sea Task Force be

considered (EISB /Kish/ Peel/ CISB)4. Consideration be given to undertake one of early EU

12 Demo projects5. Price support similar to renewable energies (offshore

wind, wave) be considered for CCS

RECOMMENDATIONS1. Storage: prove up Kinsale (€15m +)2. Further geological studies at Portpatrick & Clare to

increase confidence in storage capacities3. Establishment of an Irish Sea Task Force be

considered (EISB /Kish/ Peel/ CISB)4. Consideration be given to undertake one of early EU

12 Demo projects5. Price support similar to renewable energies (offshore

wind, wave) be considered for CCS6. Commence national awareness programme of

potential benefits of CCS

For further information, pleased contact:

Richard Vernon

T: +353 (0) 1 296 4667M: +353 (0) 86 854 2152E: [email protected]