Abstract

The aim of this study is to assess whether the value of flexibility can influence the investment decision between CO"inf"2"/inf" ship and pipeline transport and, therefore, the way the infrastructure develops. For this, the value of a carbon capture and storage project are calculated with the standard net present value (NPV) and with the least-squares Monte Carlo method, which is a real option approach (ROA).Results of the NPV and ROA show that ships are preferred for small volumes over large distances. For instance, for a design capacity of 2.5Mt/y, pipelines are preferred for 250km and ships for 500km. The ROA shows that the option value to abandon the project and to switch off the CO"inf"2"/inf" capture unit temporarily are about 2-4 and 5 times as high for the ship compared to the pipeline configurations, respectively. The option to connect to another storage reservoir has a value of "1000M€ for the 10MtCO"inf"2"/inf"/y configurations. Consequently, this option turns the project values positive for the 10MtCO"inf"2"/inf"/y pipeline and shipping configurations over a distance of 250 and 500km.Overall, the value of flexibility did not change the preferred transportation mode from pipeline to ship transport, at least for the considered options to abandon the project, switch off the capture unit temporarily and switch to another storage reservoir. However, under the assumptions made, all 10MtCO"inf"2"/inf"/y cases were not profitable with the NPV approach, while they were profitable with the ROA.

Abstract

This paper addresses technical and operational aspects pertaining to the transport of CO2. It deals with lessons learnt from the development of three large CCS demonstration projects: the UK-based Don Valley project, the Dutch ROAD project, and the Spanish Compostilla project. These projects were all selected by the European Commission in 2009 to receive funding under the European Energy Programme for Recovery (EEPR). The purpose of the demonstration projects is to verify feasible capture techniques (i.e. gasification, flue-gas cleaning, and oxy-coal combustion in circulating fluidised bed, respectively), and to demonstrate geological storage options, off-shore and on-shore. As the distance and elevation of the CO2 transport system are inherently given by the project, the transport conditions for the CO2 will generally differ from one project to another.The demonstration projects have shown that the thermophysical nature of CO2 is prone to complicate certain operational procedures mainly due to phenomena like phase change, hydrate formation and Joule-Thomson cooling. The front-end engineering design studies suggest, however, that the handling of CO2 is quite feasible during normal operation, although customised solutions may be required to handle transients like emergency shut-down and pipeline re-pressurisation. This implies that CO2 transport is not seen as an insuperable hurdle to the design and operation of large CCS systems.

Abstract

In this study, we identify and characterize known and new environmental consequences associated with CO 2 capture from power plants, transport by pipeline and storage in geological formations. We have reviewed (analogous) environmental impact assessment procedures and scientific literature on carbon capture and storage (CCS) options. Analogues include the construction of new power plants, transport of natural gas by pipelines, underground natural gas storage (UGS), natural gas production and enhanced oil recovery (EOR) projects. It is investigated whether crucial knowledge on environmental impacts is lacking that may postpone the implementation of CCS projects. This review shows that the capture of CO 2 from power plants results in a change in the environmental profile of the power plant. This change encompasses both increase and reduction of key atmospheric emissions, being: NO x , SO 2 , NH 3 , particulate matter, Hg, HF and HCl. The largest trade-offs are found for the emission of NO x and NH 3 when equipping power plants with post-combustion capture. Synergy is expected for SO 2 emissions, which are low for all power plants with CO 2 capture. An increase in water consumption ranging between 32% and 93% and an increase in waste and by-product creation with tens of kilotonnes annually is expected for a large-scale power plant (1 GW e ), but exact flows and composition are uncertain. The cross-media effects of CO 2 capture are found to be uncertain and to a large extent not quantified. For the assessment of the safety of CO 2 transport by pipeline at high pressure an important knowledge gap is the absence of validated release and dispersion models for CO 2 releases. We also highlight factors that result in some (not major) uncertainties when estimating the failure rates for CO 2 pipelines. Furthermore, uniform CO 2 exposure thresholds, detailed dose–response models and specific CO 2 pipeline regulation are absent. Most gaps in environmental information regarding the CCS chain are identified and characterized for the risk assessment of the underground, non-engineered, part of the storage activity. This uncertainty is considered to be larger for aquifers than for hydrocarbon reservoirs. Failure rates are found to be heavily based on expert opinions and the dose–response models for ecosystems or target species are not yet developed. Integration and validation of various sub-models describing fate and transport of CO 2 in various compartments of the geosphere is at an infant stage. In conclusion, it is not possible to execute a quantitative risk assessment for the non-engineered part of the storage activity with high confidence.