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New technology This is the world’s largest climate tool

Sustainability How to go green and increase your profits No. 1 / Dec. ’09

CARBON CAPTURE AND STORAGE

SPECIAL ISSUE

COP15

THE TIME TO ACT IS NOW HOW CCS CUTS YOUR CO2 EMISSIONS

New enemy: “Climate change is among the greatest threats to security and stability we face in the future”, says Rear Admiral Neil Morisetti of the British Navy.

IN COMMAND: Rear Admiral Neil Morisetti on the flight deck of the former flagship of the Royal Navy, HMS Invincible.

E X PLORE THE GLOBAL POT E N T I AL OF CCS : 8414 individual emission sources geographically mapped out and possible to filter by emission size and source type. Visit the leading resource on the technology, politics and business of CCS at www.bellona.org/ccs

PHOTO: CHRIS ISON/PA/SCANPIX


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CHALLENGES Both technology development and the transfer of technology from the most advanced economies to less developed countries are vital to seal the deal in Copenhagen.

WE RECOMMEND Frederic Hauge Co-founder and leader, Bellona Foundation

PAGE 14

Clean fossil energy needs kick-starting arbon capture and storage is a key technology. According to a recent report from the International Energy Agency, primary energy demand could grow by 40 per cent between 2007 and 2030.Fossil fuels could account for more than three-quarters of this increase. In the long run, limiting global warming means we either have to stop using fossil fuels as a primary energy source or find ways to avoid energy-related emissions of CO2.

C

Test without delay

SINTEF 2009. Photo: Jodie Coston/illustration: Raymond Nilsson

In Europe, close to half of total CO2 emissions stems from fossil fuel power utilities and industry. On a global scale, technologies for carbon capture and storage could take care of one-fifth of emissions in 2050. The challenge today is that the technology has not been proven. It looks promising in laboratories and small scale test facilities, but must undergo a full scale

demonstration without delay.

Promote new technology That is why Norway has moved ahead with building the first large scale test centre at Mongstad. This will provide companies and researchers with a unique opportunity to demonstrate how different technologies perform, and provide some guidance on what solutions are the most promising. The Technology Centre Mongstad (TCM) is part of a broader effort by the Norwegian government. Earlier this year, we supported the establishment of two new research centres, and efforts to promote carbon capture internationally are also ongoing.

Polluters must pay Carbon capture and storage needs to be competitive in order to succeed. Ultimately it must become profitable. However, there will always be some level of additional cost, thus successful implementation of this technology is conditional on political determi-

Erik Solheim Minister of the Environment and International Development

“Carbon capture and storage needs to be competitive in order to succeed. Ultimately it must become profitable.”

CO2 Capture

nation to make polluters pay. The European emissions trading system is Europe’s main vehicle for stimulating long-term demand for clean technologies, as it effectively puts a price on emissions of CO2. But in this initial phase we realize that stimulating demand is not enough. Therefore European governments and industry have committed to kick-starting large scale demonstration of clean energy from fossil fuels.

Define the 21st century Demonstrating carbon capture and storage is only one step on the road to more sustainable energy markets. In 2050, it is expected that 8 out of 9 billion people will live in what are now considered developing countries. Providing the basics, such as housing, energy,clothes and food for all,will be another daunting task that defines the 21st century. The challenges of providing clean energy and development are intertwined, and both are critical in addressing climate change.

“100 per cent carbon-neutral power in Europe well before 2050 is actually possible if governments show sufficient foresight and establish a clear regulatory roadmap to abolish dirty power in the near future.”

We make our readers succeed! CARBON CAPTURE AND STORAGE, 1ST EDITION, DECEMBER 2009 Country Manager: Thomas berge Editorial Manager: Petter T. Stocke-NIcolaisen Business Developer: Henning Ebbestad Sub-editor: Erlend Lans Pedersen Responsible for this issue Project Manager: Anders Borchsenius Phone: +47 22 59 30 03 E-mail: anders.borchsenius @mediaplanet.com Distributed with: Recharge, Print: Dagblad-trykk Mediaplanet contact information: Phone: + 47 22 59 30 00 Fax: + 47 22 59 30 01 E-mail: synspunkter@mediaplanet.com Mediaplanet’s business is to create new customers for our advertisers by providing readers with high-quality editorial content that motivates them to act.

Developing technology with a greener carbon footprint

Join us!

International CCS Research Centre www.bigccs.no

bigccs@sintef.no


GASSNOVA SF The Norwegian state enterprise for carbon capture and storage

Gassnova’s objective is to manage governmental interests to help cope with the challenge of climate change, within the area of capture, transportation and geological storage of the greenhouse gas CO2. Gassnova has a key position in the Norwegian government’s strategies on carbon capture and storage. The main efforts are focused on: z Support research and technology development to ensure access to energy through fossil fuel power without CO2 emissions z Contribute to reduced costs and reduced technological an economical risk through building and operating large scale facilities for carbon capture and storage z Stimulate international partnerships and knowledge sharing z Act as advisor to the Ministry of Petroleum and Energy

Gassnova also represents governmental interests in the realisation of large-scale CO2 projects. Assessment or planning is currently being performed in the following projects: z European CO2 Technology Centre Mongstad (TCM), (under construction) z Large-scale transport and geological storage of CO2 from Kårstø and Mongstad z Full-scale CO2-capture at Kårstø gas fired power plant z Full-scale CO2-capture at Mongstad combined heat and power plant

info@gassnova.no ••• • • • ••• ••• • • • ••• www.gassnova.no


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NEWS

HOW YOU

Question: How can we reduce CO2 emissions in existing power plants? Answer: Norwegians will capture CO2 from a gas plant and refinery at Mongstad, and test out new technology to make it more cost-effective.

CUT

YOUR BUSINESS’ EMISSIONS

MAKE CCS MORE COST-EFFICIENT

■ Current estimates indicate there is too much CO2 in the air and that this will continue to rise. New plants will be built, and traditional plants which release great amounts of CO2 are still in use. It seems like it will be difficult to reach the reduced emission goals set by the politicians. But everything may not be as gloomy as it might appear at first sight. On the Norwegian west coast, just north of Bergen, Statoil, Gassnova and Norske Shell, are building what will be the largest of its kind in the world: a large-scale CO2 capture plant which will capture and test two carbon capture technologies: carbon and amine technologies. Aker Clean Carbon will deliver the amine technology, whilst Alstom Norway will deliver the carbon technology solution to what has been labelled the country’s moon landing project by PM Jens Stoltenberg.

Learn from Mongstad ”It is the only plant which will test

Vegar Stokset Communications Manager at TCM

”The tests will be relevant to gas plants, refineries and coal plants.” CO2 capture from two exhaust gas sources. This means the tests will be relevant to gas plants, refineries and coal plants”, says Vegar Stokset Communications Manager at the European CO2 Technology Centre Mongstad (TCM). According to Stokset the test centre

will be ready in the third quarter of 2011. The testing period is set to last five years. The CCS technologies applied at Mongstad can be installed in existing plants and may contribute to reducing the world’s CO2 emissions. “We can’t escape the fact that CCS is the only effective tool we have to reduce large amounts of CO2 emissions today”, says CEO Jan Roger Bjerkestrand of Aker Clean Carbon.

Develop technology “This is a fantastic opportunity to develop our technology further and a great opportunity to enhance our knowledge”,says Bjerkestrand. “We have tested the amine technology for some time, and Mongstad allows us to test it on a larger scale. Mongstad is a step towards our aim of testing the technology in a full scale plant.” “Mongstad is currently the largest advanced CO2 capture plant on the market. No one has built a full scale plant so far. The test centre will be able to capture a to-

tal of 160,000 tons annually”, says Bjerkestrand.

Reduce costs The carbon technology could potentially reduce energy consumption per captured ton CO2,but since it has not undergone full scale testing it represents a higher risk than the amine technology, which has been widely used in various industries. But there is still potential for improvement in this technology.According to Stokset,TCM will evaluate the improvements related to the process, building method and cost-effectiveness. The overall aim is to make CO2 capture more cost-effective and financially viable. ■ “It is difficult to estimate the improvements we expect, but we believe the total costs,for the plant and operations, could be reduced by 10-30 per cent for a new full scale plant based on TCM’s experience”, says Stokset. GUNN IREN KLEPPE redaksjonen@mediaplanet.com

TESTING TECHNOLOGY The Mongstad complex, just north of Bergen, where TCM will be opened in the third quarter of 2011. PHOTO: HARALD M. VALDERHAUG/ STATOIL

EPC Management at echnology Centre Mongstad Technology Aibel is one of the key suppliers to the new Europe European CO2 Technology Centre under construction at Mongs Mongstad outside Bergen. We are responsible for all engineering and procurement activities for the utilities and infrastructure outside the two CO2 capture technology areas, and interface man management between contracts. With our 4000 employees, we ar are one of the largest Norwegian oil and gas services compani companies that engineers, builds, maintains and modifies oil and gas p production facilities. With our extensive experience, skills and e expertise, we enable our clients to achieve more efficient oil and gas production.

www.aibel.com www.aibel. Aibel

Ve Vestre Svanholmen 14 P .O. box 300 N-4066 Stavanger Norway

Tel:

+47 08527


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CHP Seawater

CO2 emissions

EFFICIENT CO2 CAPTURE

RCC

Electro building Administration building

Utilities Amine technology Carbonate technology

Pay attention! If you’re interested in how a CO2 capture process facility can reduce today’s energy consumption by half, then pay attention to SOLvit.

Find better technology

EUROPEAN CO2 TECHNOLOGY CENTRE MONGSTAD (TCM) TCM is the first step in the implementation of CO2 capture at the Mongstad refinery. The test facilities are planned to capture 100 000 tonnes of CO2 ILLUSTRATION: STATOILHYDRO annually.

SOLvit is an eight year research programme aiming to find more cost-effective CO2 technology. This will be done by making amines, which capture CO2, cheaper and more efficient.

Develop solutions Two of the companies behind the programme, SINTEF and Aker Clean Carbon,have developed chemical solutions based on amines. They established the programme together with NTNU in August.

International cooperation JOINING FORCES On December 12 Steven Chu, the US Energy Secretary, visited TCM for a firsthand briefing on the company’s plans for carbon capture. He was accompanied by Terje Riis Johannesen, Norwegian Minister of Petroleum and Energy. PHOTO: DAG SUNNANÅ/STATOILHYDRO

Global carbon dioxide emissions ■ The diagram shows CO2 emissions from 7500 large point sources. CO2 can only be efficiently captured from large plants. To really make a difference, CO2 must be captured from power plants. 6 % Oil refineries 3 % Petrochemical industry 5 % Iron and steel Cement production Fuel oil power generation

7% 7%

11% Gas power generation

SOURCE: INTERNATIONAL ENERGY AGENCY

Promoting the business of Carbon Capture & Storage technology a crucial solution to climate change

60% Coal power generation

A CCS potential study presented by the environmental foundation Bellona contains some astonishing findings. The calculations indicate that wide implementation of CCS can reduce CO2 emissions by 54 % in the EU and 33 % globally in 2050 (compared to emission levels today).

In 2009, Statkraft, E.ON and Scottish Power joined the programme, which will test chemicals and processes in a mobile capture facility provided by Aker Clean Carbon.

New laboratory The programme’s financial value is estimated at NOK 317 million kroner, and will result in a new laboratory and a test centre with a 30 metre tall tower and processing column in Trondheim.

The financing The project is primarily being financed by Aker, Gassnova, SINTEF and NTNU. ELISABETH KOLSTAD redaksjonen@mediaplanet.com


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INSPIRATION Question: What global implications could an average temperature increase of 4°C have? Answer: A world far less secure and stable.

It is time to act LEADER TO LEADER OSLO, NORWAY

It’s been a while since climate change was seen as affecting only the flora and fauna. The immense effect on human life from an average rise of 4°C is now more worrying than ever. Health and jobs are at risk, as we know, but now a new force is rising to fight carbon emissions and maintain a stable climate.Why? “In recent years we have in fact increasingly realised that climate change has wider implications. And included in that are those related to security. In fact, in our national security strategy in 2008 in the UK, we said that climate change is among the greatest threats to security and stability we face in the future.” The words are those of Rear Admiral Neil Morisetti.

Enemies without guns He speaks of security and stability, as any military man with his CV would. But his enemies are not carrying loaded guns. In fact, he has no enemies. Instead he is out to make as many friends as possible. Morisetti is the UK Ministry of Defence’ and Foreign and Commonwealth Office’s Climate and Energy Security Envoy. He is probably the only such envoy in the world: at least at the moment. “Increasingly this is becoming a wider issue. There is work being done in America and I have spoken with colleagues in Bangladesh about what’s go-

WHERE DO THEY G0? If the ice caps melt.Bangladesh could lose 25 to 40 per cent of its land PHOTO: ISTOCK

ing on, trying to broaden the perspective”, says Rear Admiral Morisetti. Why a military man? “Because we in the military like talking to each other, we understand each other. And the important thing, what I am trying to do, both in the United Kingdom and overseas, is to broaden and include the understanding of the security implications of climate change. And I am also encouraging military authorities and departments of defence to engage with their governments,the same way foreign affairs and energy departments would do, in order for the governments to understand the full implications of climate change”, says Morisetti. He claims that when looking at the so-called “four degrees scenario” model, covering a possible rise of 4 °C in the average global temperature, there is a compelling case for all of us to be allies with everybody else. “This is a global issue, and it will require global activity from all nations. The extent of each nation’s contribution will clearly depend on resources and capabilities, but it is very necessary for all nations to be engaged”, says Morisetti, adding “I am an optimist. I think it will be challenging and that there will be a cost to it. But the effects of not doing anything now are such that we really must act.”

Energy efficiency is security In the UK the armed forced have contributed a total of about 1 per cent of all emissions, through their buildings, land, aircrafts, vehicles and ships. The armed forces are now working on a joint project. “We are going to have to learn how to reduce our emissions, for example by using more simulations and less live training. If we start doing that, and engage our colleagues overseas, we can start to build and to share our understanding. Much can be done on a regional basis, be it by the European Union, NATO or the Arctic Council, and then be brought together”, says Morisetti. The armed forces need to understand the climatic conditions for the mid-21st century – what implications climate change will have on the capabilities that are required. Many questions need to be answered. “Do we need equipment that can withstand other temperatures? And where are our soldiers going to get

“If you want growth, you need low carbon and high growth, and that means new technology.” Rear Admiral Neil Morisetti

RISK MAP ■ See pages 8 and 9 The UK Met Office’s Hadley Centre has produced a map outlining some of the impacts that may occur if the global average temperature rises by 4 °C (7 °F) above the pre-industrial climate average.

their water? They are going to need more water if they are in a hot climate. A lot of our equipment today consumes vast amounts of energy. Assuming it’s available in the mid 21st century, it’s going to be considerably expensive. It also makes us vulnerable. If we can be more energy efficient, we can reduce that vulnerability”, says Rear Admiral Morisetti. ■ Depending on who you talk to, it is believed that the melting of the ice caps will lead to a rise of between 3.5 and 7.5 metres in sea levels. “Even if we’re optimists I believe that 3.5 metres will have quite a bearing on people everywhere, Northern Europe included. It is no longer an issue only on the other side of the world”, says Morisetti. If the ice caps melt,we would initially see flooding and, also due to the rise in temperature, we would see rivers dry out and therefore crop failure leading to famine. This explains why and how climate change is a matter of international security: “If there is a failure of crops and a famine in a country, there is increased danger of rioting and this could destabilise a government. People might start to migrate from country to country in an unplanned fashion. For example, Bangladesh could lose 25 to 40 per cent of its land when sea levels rise. Where would all the people go? If the Central African belt should become uninhabitable, where could all the people go?” asks the Rear Admiral. He thinks there will have to be a balance between mitigation and adaption to the changes in climate. “But we need to act now”.

Growth means low carbon “Increasingly, commerce is recognising this issue and, for example, we come across companies who are reducing their amount of packaging, producing less hydrocarbons. And again, as the public increasingly say ‘I am not prepared to buy things that produce a lot of hydrocarbons’, that again will encourage companies to reduce their emissions”, states Morisetti, continuing: “We all have to look at our lifestyle, reduce our energy demand and at the same time look for alternative energy and alternative technology. Leaders who want to expand their businesses must seek a lower use of energy, less emissions and a low carbon approach. Because what we can’t have is high carbon and high growth.” “If you want growth, you need low carbon and high growth, and that means new technology”, he says. And what if we don’t find sufficient non-fossil energy sources and lower our emissions of carbohydrates? “Then we might come to see the map as depicted with an average rise of four degrees.Which means a rise of eight degrees in London - you can imagine what that would be like on hot days and what impact it would have on the infrastructure and transport system. From a security perspective, it’s clear that under such circumstances we would have to question whether we’d be able to deliver security”, says Morisetti, adding “We have to drive forward and look to encourage our governments to stretch targets, limit the effects and keep global warming to two degrees.”

!

ANDERS ENGEN RASCH redaksjonen@mediaplanet.com

PROFILE

Neil Morisetti ■ Position: Rear Admiral, The British Royal Navy. ■ Education: Military training at Britannia Royal Naval College, Dartmouth, and attendance at the University of East Anglia. ■ Career: 1986: Appointed Commanding Officer of the patrol boat HMS Cygnet in the Northern Ireland Squadron. 1991: Joined the Naval Secretary’s Department as Officers’ Appointer. 1993-1994: Commanding Officer of the destroyer HMS Cardiff. 2004: Took command of the aircraft

carrier HMS Invincible. 2005: Promoted to Read Admiral. 2007: Appointed Commandant of the Joint Services Command and Staff College. 09.2007 – 08.2009: Commandant of the JSCSC, responsible for providing post graduate education to officers from 60 nations September 2009: Took up a new cross government post as Climate and Energy Security Envoy for the Ministry of Defence, and Foreign and Commonwealth Office.


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THE GREEN ADMIRAL “A lot of our equipment today consumes vast amounts of energy. Assuming it’s available in the mid 21st century, it’s going to be considerably expensive. It also makes us vulnerable,” Rear Admiral Neil Morisetti. PHOTO: ANDERS ENGEN RASCH


8 · DECEMBER ’09

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10 · DECEMBER ’09

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NEWS

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GREEN

Use CCS to create carbon negative energy ENERGY EVEN GREENER

■ Question: What can we do to reduce CO2 emissions until we have the technology to replace fossil fuels with renewable energy? ■ Answer: Until then, emissions from traditional power plants can be reduced considerably using carbon capture and storage (CCS).

WINDS OF CHANGE Building wind turbines, like these in Smøla wind farm, leads to large CO2 emissions. CO2 capture and storage can be used to reduce them. PHOTO: STATKRAFT

TRENDS You need around 900 3MW wind turbines to produce the energy equivalent of a large, 900MW coal power plant. Building wind turbines requires more steel and cement than coal power plants. The production of these materials will inevitably lead to large CO2 emissions. “CO2 capture and storage can be used to reduce these emissions. The question is, do we want to build a renewable energy society with or without CO2 emissions,” asks Energy Policy Advisor Bjørn Utgård of the environmental NGO, Bellona. Adding CCS to the production of these materials makes reaching renewable energy targets more environmentally friendly.

Combine bio with CCS Large power plants using biomass can be fitted with CCS,thus providing a carbon negative effect and removing CO2 from the atmosphere. “According to some researchers, the atmospheric concentration of CO2 is already too high,” says Utgård. “Emissions from some industries, particularly farming, are hard to reduce. Greater emission reductions in the energy sector can compensate for this.” Utgård sees great potential in combining bio-energy with CCS to create carbon negative energy. “It’s not magic; all you need is to exchange coal for biomass and add CCS.” Utgård is adamant that CCS should not be developed at the expense of developing renewable energy, however: “We definitely need both. Thermal power plants are necessary to balance the intermittency of energy sources like wind and solar energy. Hence, CCS enhances the climate benefit of wind, solar and bio-energy.”

Clean the industry Power plants, steel and cement are responsible for Europe’s highest CO2 emissions. According to CO2 Bjørn Utgård Policy Advisor, Bellona

Storage Advisor Tore Andreas Torp of Statoil, these also have great potential with respect to emissions reductions using CCS. In the steel industry, levels of 45 per cent CO2 are possible by exchanging the air used in blast furnaces with pure oxygen. The rest of the gas constitutes a valuable raw material, CO gas. Typically, the cost of capturing CO2 from power plants has ranged between EUR 60–90 plus transportation and storage. By splitting the CO and CO2 from steel, costs of capture, transportation and storage may come down to EUR 30 per ton. “We have tested it twice on a large scale in Luleå. This technique works,” states Torp who is Statoil’s representative in the ULCOS project (Ultra Low CO2 Steelmaking).

Cut with charcoal Research done by the Norwegian ferroalloy industry using charcoal, has resulted in slightly higher efficiency and cleaner products. “There is no need to build any-

thing.You can change over to charcoal at a couple of weeks’ notice,” Torp explains. However, charcoal from biomass is more expensive than fossil coal. Fossil CO2 emissions can be reduced by 90 per cent. The only thing remaining is the electrodes.There is no need for CCS as the CO2 is plant based. ■ The aluminium industry is

also showing promise. “By using closed furnaces producing pure CO2, capture is no longer necessary.” Torp explains that pure CO2 is easy to compress and transport. No new technology is needed, but, again, the cost will be higher. GUNN IREN KLEPPE redaksjonen@mediaplanet.com

FACTS

Potential of carbon capture and storage (CCS) ■ The potential for accumulated CO2 capture by 2050 is 236 billion ton CO2 globally. ■ Wide implementation of CCS has the potential of reducing the CO2 emissions by 33 per cent globally and 54 per cent in the EU by 2050 compared to today’s emissions. ■ According to Bellona, the strategy to achieve the necessary reductions in CO2 emissions is a combination of 1. increasing energy efficiency; 2. switching from fossil fuel to renewable energy sources;

3. wide implementation of CCS. ■ The Intergovernmental Panel on Climate Change argues that dramatic climate effects will occur if the global average temperature increases by more than 2 oC, ■ The consequences will be melting polar ice caps, a sea level rise of up to one meter by 2100, an increased frequency of extreme climate events, permanent flooding of coastal cities, disruption of ecosystems, and extinction of species. SOURCE: BELLONA/ THE CCS POTENTIAL REPORT

BIOMASS

New climate for innovative solutions Since biomass is a renewable fuel and thereby considered CO2 neutral, negative CO2 emissions can be achieved when CO2 capture and storage (CCS) is combined. “CCS should be part of a CO2 mitigation portfolio of technology and measures to mitigate anthropogenic CO2 emissions. This also holds for biomass in CCS plants, assuming that climate neutral certified biomass is used.” Where can biomass in CCS plants be implemented? “First, co-firing biomass in large coal-fired power plants with CCS, where high steam data makes the biomass conversion efficient. Second, applied to the pulp and paper industry, where the fuel itself is biomass. Third, applied to natural gas fired power plants. This through partly substituting natural gas with biomass derived synthetic gas or combusting solid biomass in some new type of gas turbine combustor. Fourth, applied to ethanol production from fermentation. Fifth, applied to future polygeneration plants, producing electricity, heat and transport fuel with the process, fuelled by a mixture of coal and biomass.” Will it be cost efficient? “The scale is important. CCS is cost efficient for large, centralised plants with an integrated infrastructure for the transport and storage of CO2. Thus, co-firing biomass with coal will most likely be the first to be cost efficient.” Filip Johnsson Professor of Sustainable Energy Systems, Chalmers University of Technology

Johnsson thinks CCS with fermentation may suffer from high infrastructure costs, since such systems are likely to be relatively small scale. What about the future? “Bio-CCS may very well play a significant role in the future energy system, but there are many options for using biomass and it is not obvious which ones will be most favourable. Most importantly the cost of emitting CO2 needs to be high enough.Then, I am sure we will see a number of innovative technologies, including those involving CCS from biomass. Climate change is not only a threat, it will also stimulate the ‘climate’ for new innovations.” GUNN IREN KLEPPE redaksjonen@mediaplanet.com


SINTEF 2009. Photo: Jodie Coston/illustration: Raymond Nilsson

Join us in developing greener carbon footprints!

International CCS Research Centre The BIGCCS Centre will enable sustainable power generation from fossil fuels based on cost-effective CO2 capture, and safe transport and underground storage of CO2. This will be achieved by building expertise and closing critical knowledge gaps of the CO2 chain, and developing novel technologies in an extensive collaborative research effort. 21 partners

8 years

www.bigccs.no

€ 48 million

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Tailor-made team from Ross Offshore AS

Field Development and CO2 Storage In 2008 Ross Offshore was awarded the contract by Gassnova SF to find safe storage areas in the Norwegian Continental Shelf to store CO2 from the Kårstø and Mongstad power plants. The contract includes the delivery of the subsea system and well design to achievement investment decision for safe storage, said Jørgen Jørgensen, Manager of Field Development. To achieve this, a highly experienced project team of geophysicists, geologists, reservoir engineers, production technologist, drilling & completion engineer and subsea engineer have been assembled. The task of the team is to deliver the whole development value chain from seismic interpretation, geo-modeling, reservoir simulation, well planning and subsea schemes. Having subsurface specialists working as an integral part of a project team is unique in itself and the benefit is in arriving at solutions quickly. Ross Offshore has built up a unique knowledge base and experience in CO2 handling and storage. Carbon capture and storage (CCS) is an increasing environmental interest in the industrial world. Ross Offshore is uniquely placed to assist clients with industrial plants in achieving their environmental obligations. To this end Ross Offshore has

opened an office in Copenhagen on its first move toward servicing the international market. Ross Offshore’s personnel have strong experience from other field development projects in such a way that this project has become a good benchmark project for us. Ross Offshore has licenses for simulation tools for geo modeling, reservoir simulation and flow assurance. We can, at short notice, establish a team for the oil and gas industry also to address field development in the early phase and for fields in operation, emphasizes Jørgen Jørgensen.

Well Planning and Drilling Management Ross Offshore has also a large pool with valuable expertise within planning of wells and managing of drill operations on mobile rigs. Together with our field development group we utilize combinations of top competence and overall understanding of how to solve increasingly complicated tasks, says TomArbøll, Manager of Drilling and Well Management.

Attractive Employer Professional challenges are in line for our employees these days, says Cecilie Sælen, Manager of Consultancy. We have focus on being a good joint venture partner for our customers, and have noticed that we become a more attractive employer when we offer a wider range of services to the market. As you know, specialists attract specialists, she says with a smile.

FACTS ON: ROSS OFFSHORE Established: 1997 in Sandefjord, Norway Offices in: Sandefjord and Bergen Subsidiary company: Ross Engineering AS in Copenhagen Employees: 120 employees and consultants Elected as: “Gaselle-company” the last 7 years Turnover 2009: 260 mill.NOK A company in the STG-group; www.stg-subsea.no

Part of STG


12 · DECEMBER 2009

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GO GREEN – GET ACCESS TO CAPITAL

■ Question: How can your business meet the new climate demands and remain competitive? ■ Answer: Be proactive and include environmental issues in your core business strategy.

SINTEF 2009. Photo: Jodie Coston/illustration: Raymond Nilsson

As a result of climate change, businesses worldwide are starting to see the extent of climate regulations to come. Businesses already reducing emissions and increasing their energy efficiency are ahead of future regulations. ■ “I have seen examples that this represents a real competitive advantage,” says Pål Brun, head of sustainability services at PricewaterhouseCoopers in Norway. Brun believes the UN Climate Change Conference in Copenhagen will be an important milestone. Even if there are no binding agreements, stricter regulations are expected around the world. “We can see what is coming, and forward-looking companies will choose to prepare.” The US auto industry represents an example of how failure to adapt may put companies at risk. Back in 2002, the state of California suggested stricter standards for auto emissions. These standards will now take effect across the United States. “Had US car manufacturers directed their efforts toward produc-

ing more energy efficient cars back then, their situation might have looked different today.”

Investors concerned Investors are also increasingly concerned with environmental issues, and companies that act proactively may become more attractive to investors. Investing in companies that aren’t environmentally responsible may prove risky. Investors are therefore starting to demand disclosure on climate risk exposure and strategy. The Carbon Disclosure Project represents investors managing enormous amounts of capital. They send out annual requests to large companies worldwide, inquiring about emissions, environmental strategies, and preparedness for future regulations. According to Brun, many investors find that climate change risks, such as a the future financial cost of carbon emissions, are not accounted for in the valuation of the company. “When so many large investors become concerned about this, it starts affecting your company’s access to capital. The access of capital then becomes a good incentive for having an environmental strategy.”

their expectations. Many large, global corporations are demanding that their suppliers be environmentally responsible. Wal-Mart is one of many corporations who set environmental guidelines and request environmental responsibility from their suppliers.This has become a priority for many. Suppliers to the public sector are also encountering increasing demands. “It becomes an incentive to meet the demands from those who purchase your goods or services.” Brun also sees that recruiting can benefit from having an environmental strategy as part of your business’ core strategy. “The generation now entering the job market is increasingly concerned that their employers are environmentally responsible.” Similarly, energy efficient buildings are also beneficial and may help attract tenants. Many companies are concerned with energy efficiency when renting offices and other buildings. For one thing, it helps show stakeholders that you have reduced your climate impact. ■ “In addition, it is cost efficient. If you rent a building that is energy efficient, it provides direct savings opportunities.”

Increasing expectations Other stakeholders are raising

CO2 Transport

GUNN IREN KLEPPE redaksjonen@mediaplanet.com

Developing technology with a greener carbon footprint

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International CCS Research Centre www.bigccs.no

bigccs@sintef.no


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DECEMBER 2009 · 13

IF YOU NEED

MONEY MAKE GREEN STRATEGIES

Energy efficiency potential in industry BACKGROUND

The generation now entering the job market is increasingly concerned that their employers are environmentally responsible.

Around one-third of global energy is used by industry, and although energy efficiency has improved over the last decades, growing industrial production worldwide has increased industrial energy consumption.

Pulp and paper CO2 emissions reductions are particularly crucial in the five most energy-intensive sectors of industry: iron and steel, cement, chemicals and petrochemicals, pulp and paper, and aluminium. These sectors currently account for 75per cent of CO2 emissions by industry.

Many countries have great potential when it comes to increasing energy efficiency in pulp and paper sector. Promising new technologies such as black liquor gasification, lignin removal, biomass gasification and CCS will also be needed to achieve emissions reductions.

Iron and steel

Aluminium

Current technology can only reduce today’s energy use in iron and steel by 20per cent. Given the limited efficiency potential, new technologies such as smelt reduction and fuel switching will be needed. CCS is an important option and large-scale CO2 capture pilot projects at iron and steel plants must be developed urgently to understand the cost and performance of different CO2 capture methods.

Most of the energy consumed in the aluminium industry is in the form of electricity used for smelting. Important options include reducing heat loss and improving production controls in refineries, and reducing heat loss and electricity used in smelters. In the longerterm, moving towards the use of zero-carbon electricity in smelters represents the single largest opportunity for long-term CO2 emissions reductions. New technologies such as wetted cathodes and inert anodes or carbothermic reduction may offer reduction opportunities.

Cement

GREEN FUTURE “We can see what is coming, and forward-looking companies will choose to prepare,” says Pål Brun at PricewaterhouseCoopers in Norway.

SINTEF 2009. Photo: Jodie Coston/illustration: Raymond Nilsson

PHOTO: PETTER T. STOCKE-NICOLAISEN

CO2 Storage

production processes such as the wider use of catalysts, membranes and other new separation processes, production intensification, and the development of bio-based chemicals and plastics.In addition, CCS for ammonia, ethylene and large-scale CHP applications has to be developed.

Reducing CO2 emissions in the cement sector is very challenging owing to high production emissions. New technologies should be developed and implemented, particularly in the application of CCS. Urgent action is needed to support the development and demonstration of CCS for cement production. In the long-term, new CO2 free processes will need to be developed.

Chemicals/petrochemicals A range of new technologies must be developed to achieve CO2 reductions. These include novel olefin

Cross-cutting options There are important cross-cutting technologies and options for reducing CO2 emissions from a range of sectors, of which switching fuel to biomass and CCS are the two most significant and thus deserve particular attention vis-à-vis technology development.Other options include efficient motor and steam systems, CHP, and the increased use of recycled materials. SOURCE: WWW.IEA.ORG

Developing technology with a greener carbon footprint

Join us!

International CCS Research Centre www.bigccs.no

bigccs@sintef.no


14 · DECEMBER 2009

THIS SUPPLEMENT IS AN ADVERTISEMENT

PROFESSIONAL INSIGHT CCS PARTNERSHIP BELLONA ENVIRONMENTAL CCS TEAM:

BEST is a partnership with leading European energy and technology companies designed to accelerate the deployment of environmentally sound CCS. BEST is composed of three main areas: It will establish specific roadmaps for EU member states. The roadmaps will represent CCS value chains and include ‘sources and sinks’ for CO2, the necessary economic and financial incentives, as well as recommended regulations and the policy actions required for their deployment.

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CAPTURE THE FUTURE The states of California and Washington have already introduced such limits, which in effect prohibit new coalfired power plants without CO2 capture and storage (CCS). PHOTO: ISTOCK

We need to cut global greenhouse gas emissions by about 85 per cent by 2050 if we are to have a reasonable chance of avoiding the most dangerous tipping points of climate change. Bellona believes that in order for this to happen CCS must become mandatory for coal and gas-fired power plants in developed countries.

No future for dirty power he key to decarbonising our economy is the power sector. It emits 30 per cent of all greenhouse gases in the EU. Fortunately, emission reductions from the power sector are among the cheapest options available in developed countries, and in March 2009 the CEOs of all the main European electricity producers signed a declaration committing to zero carbon power supply by 2050. 100 per cent carbon-neutral power in Europe well before 2050 is actually possible if governments show sufficient foresight and establish a clear regulatory roadmap to abolish dirty power in the near future. However, 70-80 coal-fired power plants without CCS are in the planning stage in the EU. Such plants have an average lifespan of about 50 years. In other words, without an early deadline for the capture and storage of these plants’ CO2 emissions, we will not manage to decarbonise power in the EU quickly enough.

down costs and make CCS commercially viable. How do we get from 10–12 demonstration plants to 100 plants? Given the large sums required, subsidies would neither be possible nor appropriate for utilities that have had incredible windfall profits in recent years.

Build 100 CCS plants

Follow the SO2 example

T

The cost of emissions is not a sufficient incentive to install CCS today, which is why Bellona lobbied successfully for an EU funding mechanism for the first full-scale CCS demonstration projects. Approximately 100 plants have to be built in Europe alone in order to drive

Measure CO2 performance

Instead, we should complement emission-trading schemes with CO2 emission performance standards (EPS) – setting a limit on the amount of CO2 emitted per kilowatt-hour – so that the most emission-intensive options are simply banned. The states of California and Washington have already introduced such limits, which in effect prohibit new coal-fired power plants without CO2 capture and storage (CCS), and the US climate and energy bill, in both the House of Representatives and Senate versions, include the same regulatory tool. While introducing this for new plants is a useful first step, it is also necessary to set a future date by when existing plants must comply with the limit as well. Similar mandatory emission ceilings for SO2 from power plants in both the EU and the US have successfully reduced acid rain. Emission ceilings or performance standards provide much needed predictability for investors. The financial turmoil has de-

EPS

“If we had unlimited time to combat climate change, we could finetune emission trading schemes to bridge textbook economics with real world experience.”

Frederic Hauge Co-founder and leader, Bellona Foundation

stroyed lending for capital-intensive projects. In addition, the price of emission allowances – the only long-term incentive in the EU for CCS – has collapsed since summer 2008 from EUR 30 to about EUR 15 per metric ton of CO2.

Delays make it tougher An EPS is also relevant to the global climate negotiations through the possible setting of benchmark emission levels for certain sectors in non-Annex I countries such as China. These benchmarks would be measured in terms of emissions per output and be set at the ‘no-regret’ level (e.g. efficiency levels of plants that are economically optimal from a lifetime perspective). Future CDM projects could then be eligible only to the extent that they reduce emissions below these benchmarks. Steel and cement have often been mentioned, but a CO2 EPS in the power sector could equally be included. If we had unlimited time to combat climate change, we could finetune emission trading schemes to bridge textbook economics with real world experience. But we need action now. There is no future for unabated coal if we want to stop global warming. The job will just get tougher if we delay action and lock in new coal-fired power plants without CCS. ■ So, what is holding governments back from making it crystal clear through law?

Bellona’s programme will establish specific roadmaps for EU member states.

BEST will actively engage in CCS advocacy. By starting a dialogue with other selected environmental NGOs in the EU and internationally, Bellona seeks to build broader public coalitions and promote the understanding of CCS.

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The successful deployment of CCS will require a transparent, comprehensive assessment of the key environmental issues associated with its deployment. This includes lifecycle analysis of all parts of the CCS value chain.

3

BEST will also focus on the development of carbon negative solutions, which combine the combustion of biomass with CCS. Sustainable biomass production from algae will be assessed. Similarly, it will also look at which existing power plants it would be most appropriate to co-fire with biomass and recommendations regarding regulatory frameworks.

!

BEST will assess sustainable biomass production from algae.


THIS SUPPLEMENT IS AN ADVERTISEMENT ERTISEMENT

NEWS

DECEMBER 2009 · 15

STORE CO2

SAFELY

GO IN-DEPTH “Scenario studies by the IPCC indicate that by 2050 some 20-40 per cent reduction in global CO2 emissions may be achieved using CCS technology”, says Arvid Nøttvedt, President and CEO of Christian Michelsen Research.

MEET NEW CLIMATE DEMANDS

C02-STORAGE

How safe is it actually? When it comes to reducing CO2-emissions to reach environmental goals, CO2-storage is an inevitable factor that can’t be overlooked. But many worry whether it is safe to store CO2 in geological formations below the surface.

PHOTO: ALLIGATOR/BUG/STATOIL

“In large concentrations,CO2 can cause suffocation, but it is not a toxic gas”, says geologist Sveinung Hagen in Statoil. “In comparison, water drowns in large concentrations. “We need both”, he adds. “CO2-storage is secure provided we chose the right CO2storage sites”, he says. It is Hagen’s job to find suitable storage sites for Statoil, an ongoing process that has lasted a year so far, and which will continue for some time. The geologist is looking for suitable sites in both the empty reservoirs and for new formations. The site has to be 800 metres below the surface to ensure it has the right characteristics for the CO2 to be injected as liquid rather than gas. “More CO2 can be stored in liquid form than as a gas”, he adds.

No guarantee

Dive into a greener future QUESTIONS & ANSWERS Arvid Nøttvedt President and CEO, Christian Michelsen Research

■ What is the greatest risk with storing CO2? ”There are few risks connected to CO2 storage, it is not a poisonous gas in low concentrations. It exists naturally in the air. However, the public probably consider leakage as the greatest risk. The un-stored CO2, goes straight into the air. In

the case of a leakage, more CO2 has been captured and taken away from the air, compared to the nonstorage option”. ■ What does it cost to store CO2? ■ ”It is expensive to store CO2. The most realistic option, storing it below the surface, requires an operation which is the opposite of pumping oil from the reservoirs.The same costly equipment is needed.When it comes to storing CO2 on the Norwegian shelf, the costs will override what may be gained selling quotas.The solution is to increase the price of quo-

tas, or setting up a cost-reducing system which receives CO2 from several locations. Either way, action from the authorities is needed. It is difficult to make it profitable, but the question is: can we afford not to?” ■ What is the greatest challenge with transporting CO2? ”Creating an efficient system for collecting CO2 from a number of point sources onshore and transporting it to common storage sites, particularly offshore, will be a challenge. In case of CO2 transport through populated areas, risk analysis and leak detection are important issues.

Secondly, effective systems for CO2 transport and storage require international, public acceptance and cross-border consent”. ■ What is the potential CO2 emission reduction with this technology? ”Scenario studies by the IPCC indicate that by 2050 some 20-40 per cent reduction in global CO2 emissions may be achieved using CCS technology. Subsurface storage of CO2 has an estimated technical potential of some 2000 Gt CO2.” ELISABETH KOLSTAD redaksjonen@mediaplanet.com

“It is impossible to predict exactly how safe each aquifer is for CO2 storage”, says Chief Scientist Erik Lindeberg from SINTEF Petroleum Research. He adds, “what we can do, is monitoring the injection to see how the CO2 behaves below the surface. If the CO2’s movements indicate a risk for future leakage, then we can perform some remediation to prevent this”, he says. ■ So far, Statoil’s experience with CO2-storage at the Sleipner field, where the company has stored around 12 million CO2 since 1996,and Snøhvit and fields in Algerie provide evidence that CO2 can be stored safely. “Empty oil and gas reservoirs have demonstrated their abilities to store CO2 long term, and therefore is one of the safest ways to store CO2, says Lindeberg”. “If surveys indicate that most of the CO2 can stay in a location for more than 5,000 years, then it is suitable”. “The likelihood of a leakages is minor provided the storage sites are selected on basis of sufficient geological data and that safe procedures are used to secure the storage sites and the inj e c t i o n”, Lindeberg says.

Sveinung Hagen, Geologist in Statoil


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