Commercialization process for ccs on natural gas power systems economics of natural gas ccs
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Commercialization Process for CCS on Natural Gas Power Systems Economics of Natural Gas CCS. USEA Workshop on Technology Pathways Forward for Carbon Capture & Storage on Natural Gas Power Systems 22 April 2014, Washington DC. Haroon S. Kheshgi, ExxonMobil Research and Engineering Company.

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Commercialization Process for CCS on Natural Gas Power Systems Economics of Natural Gas CCS

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Commercialization process for ccs on natural gas power systems economics of natural gas ccs

Commercialization Process for CCS on Natural Gas Power Systems

Economics of Natural Gas CCS

USEA Workshop on Technology Pathways Forward for Carbon Capture & Storage on Natural Gas Power Systems

22 April 2014, Washington DC

Haroon S. Kheshgi, ExxonMobil Research and Engineering Company


Ng ccs an important option in second half of century in least cost climate policy scenarios

NG-CCS an Important Option in Second Half of Century in Least-Cost Climate Policy Scenarios

  • Models show CCS to be an important option along with demand reduction, renewables, and nuclear power

  • Models assume

    • Future cost of options

    • Global price on carbon

    • Technology availability worldwide

    • Public acceptance

    • No significant barriers to implementation

  • Mandating high-cost CCS

    • Bypasses lower cost options

    • Endangers public support

Source: IPIECA (2013)


Operating large scale ccs projects zero experience with ng power ccs

Operating Large Scale CCS Projects: Zero Experience with NG-Power-CCS

Source: GCCSI 2014 The Global Status of CCS


Cost estimation perspectives on cost assumptions

Cost Estimation: Perspectives on Cost Assumptions

Lack of technology maturity

Affects cost, and adds uncertainty

First-of-kind plant raises cost

Capital charges

Total erected cost: M & L +installation + offsites + contingencies…

Retrofits raise complexity and installation + offsites

Indirect cost rise in proportion to direct costs

Potential for innovation to decrease cost

Cost of capital (financing) must be assumed to estimate cost of emissions avoided


Electricity cost from gas and coal generation

Electricity Cost from Gas and Coal Generation

Chart shows zones of lowest levelized cost of electricity (LCOE) for gas vs. coal generation

Lowest cost depends on fuel prices and CO2 cost


Electricity cost from gas and coal generation with ccs

Electricity Cost from Gas and Coal Generation with CCS

Chart shows zones of lowest LCOE including CCS options

Boundaries represent avoided CO2 cost between generation technologies

Gas CCGT and CCGT-CCS lower LCOE than coal-CCS over a wide range of gas prices


Studies confirm broad economic window for gas gas ccs only attractive above 100 t co 2

Studies Confirm Broad Economic Window for Gas:Gas-CCS Only Attractive Above ~$100/t CO2

Source: IPIECA (2013)


Summary

Summary

Current operating facilities rely on a combination of

low cost (e.g. gas processing)

co-benefits (e.g. EOR)

high CO2 cost (e.g. Norway’s carbon tax)

Broad economic window for gas and gas-CCS, therefore, an attractive long-term option

Current gas-power-CCS technology

not demonstrated successfully

not attractive until CO2costs above ~$100/t CO2

Recommendations:

Advance capture technologies through RD&D to lower cost for power-gen

Address barriers to CCS that raise costs or risks to CCS investments

Sound regulatory framework for CCS

Clear and equitable rules on CCS long-term responsibility


Electricity cost including nuclear

Electricity Cost including Nuclear

Supercritical Coal-CCS

Gas CCGT-CCS

Nuclear

Gas CCGT

$28/tCO2

Supercritical Coal

  • Nuclear Chart overlays nuclear zone of lowest LCOE on gas and coal zones

  • Nuclear dominates coal-CCS, with lower LCOE at all CO2 costs


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