8-26-10

Status of Carbon Capture Programs and Technologies - Hot Topic for August 26, 2010

Over the past few months, the US Department of Energy has awarded millions of dollars to projects associated with carbon capture, geologic storage and beneficial reuse of CO₂. But even with all of the public and private money being invested, will carbon capture technologies be ready in time to meet anticipated GHG reduction requirements? And, can they be deployed at an economically acceptable cost? Our speakers this week discussed these topics and more and provided valuable insight into the viability of CCS technologies and the future of coal for the power industry.

Howard J. Herzog, principal research engineer at the MIT Energy Initiative, provided a status report on CCS technologies. All components of a carbon capture, transportation and storage system are in commercial operation today. However, there is no CCS industry and the components have not been integrated into a complete system. Furthermore, there are many issues associated with scaling-up to a gigaton level including the cost (which he estimates to be $60-$80/ton of carbon), pipeline networks, storage integrity and liability issues and public acceptance.

Jeffrey H. Michel, an American energy researcher living in Germany, discussed barriers to CCS implementation in Europe. While the EU has committed at least €10 billion for 10 to 20 CCS demonstration projects over the next ten years, many of those projects are stalled due to public protests and cost overruns. In addition, he said that CCS effectively requires 40 percent more coal or lignite for the same electric output. But, at that rate, lignite supplies in Europe could be depleted before CCS becomes commercially viable. Michel believes a solution may lie in greater use of renewables and noted that over 17 percent of Germany’s power now comes from renewable sources. Participants questioned whether similar levels of renewable power could be possible in the US.

Michael Monea, Vice President of Integrated Carbon Capture & Sequestration Projects at SaskPower, described the Boundary Dam 3 CCS Demonstration Project. The $1.2 billion project involves refurbishment of aging 140-MW Unit No. 3, including performance upgrades and the addition of carbon capture and storage. The project will be the first megaton-scale CCS project at a coal-fired power plant when it starts up in 2013. The plant is located at the mine mouth, is situated over a proven reservoir for enhanced oil recovery, and received a $240 million grant from the Canadian government, all of which help the economics of the project.

Ned Leonard, Vice President of Program Support for the American Coalition for Clean Coal Electricity, discussed the importance of carbon capture and storage to the future of coal-based electricity generation in a carbon-constrained economy. He believes that a portfolio of solutions including renewables, nuclear power and CCS will be necessary. He discussed the daunting (but not insurmountable) challenges that CCS presents to a number of stakeholders including policymakers, regulators, technology developers, electricity suppliers and consumers.

William (Bill) T. Shefchik, Associate Geologist at Burns & McDonnell Engineering, discussed serious “volume” issues associated with carbon storage. As an example, he said ten years of emissions from a 750-MW plant would require underground storage covering an area roughly 10 miles by 10 miles – assuming favorable geology. He also gave an example of an area in Texas along the Gulf coast which has favorable geology but presents other risks such as leakage from thousands of unknown abandoned wells.

David St. Angelo, Vice President of Field Operations at Skyonic, Inc., discussed the current status of commercialization of the SkyMine^® process which relies on well-understood chemical reactions to capture and mineralize CO₂. The process produces marketable chemicals such as hydrogen, chlorine, hydrochloric acid and sodium bicarbonate. Skyonic was recently awarded a Phase II DOE grant in the beneficial reuse of CO₂ category and is working to build a 75,000 million ton CO₂/yr capture facility at a cement plant in San Antonio, Texas.