Defining CCS Ready: An Approach to An International Definition

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Chapter 3: Transport Ready Plant Definitionships can carry out the construction of larger, low-temperature and semi-refrigeratedmarine tankers suitable for mass CO 2 transportation. 623.2 Rights of Way and Conflicting Land UsesIdentifying rights of way and conflicting land uses will guide the identification of feasibletransport routes and alternatives, enable early identification of potential barriers to securingrights, and minimize delays at the time of retrofit. This information can be used to assess thefeasibility of a transport plan for linking the future capture plant with a storage site.Obtaining the right of way to site a CO 2 pipeline is an essential step before construction.Acquiring this right could involve the direct purchase of land, though more likely it would beobtained through leases or rights of way. Obtaining rights could require substantial andlengthy negotiations. Alternatively, project developers could consider existing right of waycorridors (if available), which may expedite the siting process. Rights of way will likely bemore difficult to acquire in highly populated or pristine areas. Steps for acquiring will dependon international (in the case of a pipeline crossing national boundaries), national, andsubnational laws.National governments have various laws around the power of eminent domain (also calledcompulsory purchase or acquisition), giving the government the right to seize land or grantuse of private property for public use, often with reasonable compensation to the landowner. For example, the US government has provided natural gas pipelines with eminentdomain authority pursuant to a certification process under the Natural Gas Act. 63 However,currently eminent domain authority is rare for CO 2 pipelines, which may make siting CO 2pipelines more challenging than siting a natural gas pipeline. The US states of Texas and NewMexico are examples of areas that do have eminent domain statues for CO 2 pipelines. 633.3 Common CCS Ready CriteriaThe common criteria applicable to defining Transport Ready plants are described below.3.3.1 Acceptable Economic CostsThe overall economic assessment of a CCS Ready plant, as well as its eventual retrofit,requires an estimate of the cost for making the plant Transport Ready. 64 As with CaptureReady plants, high upfront costs, or a very long time lag between building a Transport Readyplant and the eventual implementation of a CO 2 transport infrastructure, may not providesufficient economic incentives for developers to make plants Transport Ready.Reference examples for first-of-a-kind total CCS costs analysis prepared for the Global CCSInstitute range from $44 to $90 per metric ton captured, transported, and stored for large62 Intergovernmental Panel on Climate Change (IPCC). (2005a). IPCC Special Report on Carbon Dioxide Capture andStorage. New York, NY: Cambridge University Press.63 Carnegie Mellon University CCSReg Project, Department of Engineering and Public Policy (CMU). (2009). Carbon captureand sequestration: Framing issues for regulation (CCSReg Interim Report). Pittsburgh, PA: Author.64 Note that the CCS Ready plant developer may not be same as the developer of the CO2 transportation network. The CCSReady developer will thus need to work with potential vendors of such services to obtain cost estimates for transport facilities.23 February 2010 38
Chapter 3: Transport Ready Plant Definitioncoal-fired power plants of various technologies. Of these costs, approximately 7% to 12% isfor transportation, using a reference-case assumption of 250 km transport distance. 65These transport costs depend on the length of the pipeline required, CO 2 throughput rates,and the overall cost of labour and steel in each jurisdiction. As noted above, CO 2 pipelinesrequire thicker pipes (compared with natural gas pipelines) due to the high pressure of thecompressible fluid involved.Exhibit 3-1 illustrates the cost ($/metric ton) of a 300km pipeline section in Canada atvarious capacity rates (metric tons/day) 66 . Volumes over 5 million metric tons/year on a 300-km route can achieve costs of less than CA$20/metric ton of CO 2 transported. 66Exhibit 3-1: CO 2 Pipeline System Costs as a Function of Pipe DiameterSource: Canadian Energy Pipeline AssociationA recent study 67 suggested that a potential “high case” for CCS implementation in NorthAmerica would envision transporting 1,000 million metric tons of CO 2 per year by 2030.The capital cost of constructing the CO 2 pipelines for such a “high case” range fromUS$32.2 billion to US$65.6 billion by 2030. 67 Thus, the cost of building pipeline networks fortransporting CO 2 may be significant.The analytical costs of building Transport Ready plants may be on the order of $1 million to$2 million for a large coal-fired power plant, exclusive of any rights of way that may need to65 Global CCS Institute. (2009b). Strategic analysis of the global status of carbon capture and storage. Report 2: Economicassessment of carbon capture and storage technologies.66 Alberta Carbon Capture and Storage Development Council. (2009). Accelerating carbon capture and storageimplementation in Alberta (Final Report). Edmonton, Alberta: Author.67 ICF International. (2009). Developing a pipeline infrastructure for CO2 capture and storage: Issues and challenges. Reportprepared for INGAA Foundation.23 February 2010 39
Page 1: Defining CCS Ready: AnApproach to A
Page 4 and 5: PrefacePrefaceThe Global CCS Instit
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Page 8: Executive SummaryThe components spe
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