Defining CCS Ready: An Approach to An International Definition

More documents

Recommendations

Info

Chapter 2: Capture Ready Plant Definition2.4.1 Acceptable Economic CostThe proposed definition notes that technical capability of the capture plant retrofit needs tobe “at an acceptable economic cost.” This term refers to whether the cost of a CCS Readyplant and the eventual CCS retrofit is acceptable under the expected economic conditionswithin a jurisdiction. In other words, if the plant can be converted to CCS only at anastronomical cost, then it cannot for any practical purposes be considered CCS Ready.As mentioned in Chapter 1, this might mean, for example, that a reasonable probabilityexists during the operating life of the plant for it to be retrofitted and operated with CCSat a total cost comparable to the GHG mitigation costs expected to be borne by otherplants in a jurisdiction. “Economically acceptable” could also be defined to mean that thetotal cost of a plant’s products with CCS (for example, X$/kWh) is acceptable to and canbe absorbed by the marketplace. The plant’s total cost for capture, transport, and storagewould include costs for planning, construction capital, and operating costs, including thetime value of money.The proposed definition deliberately does not specify a definite criterion for economicacceptability; as such a definition would vary across jurisdictions. Policymakers andregulators in each jurisdiction would need to decide what would constitute aneconomically feasible plant.A study of upfront costs of a Capture Ready plant—and the subsequent benefits of loweredretrofit costs in the future—is critical to determining the level of acceptability of these costsfor the project developer, policymakers, and the public. High upfront costs, or a very longtime lag between building a Capture Ready plant and retrofitting the plant, may not providesufficient economic incentives for developers to make plants Capture Ready.An assessment of economic feasibility is also considered by several existing sources in theCCS Ready literature. Article 33 of the EU Directive 2009/31/EC notes that the economicfeasibility of retrofitting (for plants more than 300 MWe) needs to be demonstrated beforesuitable space for capture and compression of CO 2 is set aside. The UK CCR Guidance alsorequires applicants to assess the economic barriers for retrofitting CCS technologies. 31Applicants are expected to produce a detailed economic analysis for retrofitting the entireCCS infrastructure (capture, transport, and storage) onto the plant. One method forindicating feasibility, according to the UK CCR Guidance, is to model the total lifetime costof electricity as a function of carbon prices and indicate whether the crossover carbon pricefor the cost of electricity for plants with and without CCS is feasible over the plant’slifetime. 32 If the economic assessment indicates that the CCS retrofit is feasible, then theconsent application can be granted.The cost for any specific plant will vary based on the jurisdiction in which the plant islocated, and will depend heavily on assumptions used for the cost analysis. Details of the31 Paragraph 6, page 8, of U.K. Department of Energy and Climate Change (U.K. DECC). (2009a). Carbon capturereadiness (CCR): A guidance note for Section 36 Electricity Act 1989 consent applications (Publication no. URN 09D/810).London, UK: Author..32 Page 26 of U.K. Department of Energy and Climate Change (U.K. DECC). (2009a). Carbon capture readiness (CCR): Aguidance note for Section 36 Electricity Act 1989 consent applications (Publication no. URN 09D/810). London, UK: Author..23 February 2010 28
Chapter 2: Capture Ready Plant Definitionincremental capital cost for several different Capture Ready design options are described inmore detail in Appendix B.In addition to capital cost assessments, the level of effort (human labour) needed to meetthe requirements of a CCS Ready policy in a jurisdiction will also affect the cost of aCapture Ready plant. Exhibit 2-5 provides estimated levels of effort (in units of work-years)that project developers may have to expend to meet CCS Ready requirements. A level ofeffort is provided for each component for a Capture Ready Plant, as introduced in Exhibit 1-4 in Chapter 1. These estimates are tentative, and the specific level of effort will depend onthe content and depth of work performed by a project developer to meet a specified levelof readiness. The range of estimated level of effort shown in Exhibit 2-5 indicates thisvariation. In general, most Capture Ready activities will not take longer than two workyears. It is also important to recognize that the expended effort will not be sequential or ina single time block. It is most likely that the effort will be spread out over several calendaryears, as would the development of any BAU plant. In general, the activities related to thedevelopment of a Capture Ready plant are integral with the overall plant design andengineering. It is likely that much of the work needed to be Capture Ready could beaccomplished in the time it would take for a BAU plant to be designed and approved.Exhibit 2-5: Estimated Work Hours for Capture Ready ActivitiesEstimated Range of Work YearsCapture Ready Activitiesto Complete Activity aPlant Site Selection 0.2 – 0.5Technology Selection 0.5Design for Capture Facilities 1– 2Space Allowance 0.5 – 1Equipment Pre-investment 0.25 – 1Cost Estimate for Capture Facilities 1 – 2Environmental, Safety, and Other Approvals for Capture Facilities 1 – 2Public Awareness and Engagement Related to Eventual Capture Facilities 0.5 – 1Sources for Equipment, Materials, and Services for Capture Facilities 0.1 – 0.5Ongoing Obligations 0.1 – 0.2a Work Years is the total number of years of work required for all staff to complete the activity.Most project developers would consider developing Capture Ready plants to be within theirown purview, as the work involved is within the site boundary of the plant; however,transport and storage readiness will likely involve other entities with ownership rights to thetransport network or storage site. As highlighted in the Considerations and RecommendedPractices, it is expected that a developer will be required to show advancement or readinessin all aspects of CCS in order to get approval of its CCS Ready Plant. In this case, projectdevelopers would also have to consider the timing for being Transport- and Storage Ready,as discussed below in later sections.2.4.2 Environmental, Safety, and Other ApprovalsMost countries have existing regulations that would require a wide variety of permits andother types of approvals at the planning, construction, and operational stages of a CaptureReady plant, as well as for retrofitting the plant with CCS. A CCS retrofit will result in23 February 2010 29
Page 1: Defining CCS Ready: AnApproach to A
Page 4 and 5: PrefacePrefaceThe Global CCS Instit
Page 6 and 7: Acknowledgements and CitationsThe c
Page 8: Executive SummaryThe components spe
Page 12 and 13: Executive SummaryExhibit ES-3: Illu
Page 15 and 16: Chapter 1: IntroductionDevelopers o
Page 17 and 18: Chapter 1: Introductionor more, lic
Page 19 and 20: Chapter 1: Introductionrelatively n
Page 21 and 22: Chapter 1: IntroductionExhibit 1-3:
Page 23 and 24: Chapter 1: IntroductionJustificatio
Page 25 and 26: CO2 Transport Ready PlantExhibit 1-
Page 27 and 28: Chapter 2: Capture Ready Plant Defi
Page 33: Chapter 2: Capture Ready Plant Defi
Page 43 and 44: Chapter 3: Transport Ready Plant De
Page 47 and 48: 3.3.2 Environmental, Safety, and Ot
Page 55 and 56: Chapter 4: Storage Ready Plant Defi
Page 57 and 58: • Site DesignChapter 4: Storage R
Page 75 and 76: Appendix A: Summary of Reviewed Exi
Page 83 and 84: Appendix B: Technology Design Optio
Page 85 and 86:
Appendix B: Technology Design Optio
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Appendix C: Policy Considerations a
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Page 115 and 116:
Page 117 and 118:
Page 119 and 120:
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Appendix D: AcronymsAppendix D: Acr
Page 133 and 134:
Appendix D: AcronymsNGONO XNSBTFNSP
Page 135 and 136:
Appendix E: ReferencesInternational
Page 137 and 138:
Appendix E: ReferencesIntergovernme
Page 139 and 140:
Appendix E: ReferencesNational Coal
Page 141 and 142:
Appendix E: Referencesfrom http://w
show all

Defining CCS Ready: An Approach to An International Definition

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?