Carbon Capture and Storage (CCS) technology could provide a technological bridge for achieving near to midterm GHG emission reduction goals. Integrated CCS technology is still under development and has noteworthy challenges, which would be possible to overcome through the implementation of large-scale demonstration projects. In order to assist developing countries to better understand issues related to potential technology deployment, there is a need to start analyzing various numerous challenges facing CCS within the economic and legal context of developing countries and countries in transition. This report is the first effort of the World Bank Group to contribute to a deeper understanding of (a) the integration of power generation with CCS technologies, as well as their costs; (b) regulatory barriers to the deployment of CCS; and (c) global financing requirements for CCS and applicable project finance structures involving instruments of multilateral development institutions. This report does not provide prescriptive solutions to overcome these barriers, since action must be taken on a country-by-country basis, taking account of different circumstances and national policies. Individual governments should decide their priorities on climate change mitigation and adopt appropriate measures accordingly. The analyses presented in this report may take on added relevance, depending on the future direction of international climate negotiations and domestic legal and policy measures in both developed and developing countries, and how they serve to encourage carbon sequestration. We expect that this report will provide insights for policy makers, stakeholders, private financiers, and donors in meeting the challenges of the deployment of climate change mitigation technologies and CCS in particular.
Author(s): Kulichenko, Natalya; Ereira, Eleanor
Series: World Bank Studies
Publisher: World Bank Publications
Year: 2012
Language: English
Pages: 192
Tags: Carbon dioxide mitigation Developing countries sequestration Environmental policy
Contents
Foreword
Acknowledgments
Acronyms and Abbreviations
Units of Measure
Executive Summary
Potential CCS Deployment in the Power Sector in Southern Africa and the Balkans
Assessment of Legal and Regulatory Frameworks Applicable to Potential CCS Deployment in Southern Africa and the Balkans
The Role of Climate Finance Sources to Accelerate Carbon Capture and Storage Deployment in Developing Countries
Finance Structures and Their Impacts on Levelized Cost of Electricity for Power Plants with CCS
Conclusions
Note
Reference
Chapter 1 Introduction
References
Chapter 2 Technology Overview and Status of CCS Development
CCS Technology
Figures
Figure 2.1: Diagram of a Power Plant with CCS with Offshore Storage and Enhanced Oil Recovery
Economics
Tables
Table 2.1: Active Large-Scale Integrated CCS Projects
Figure 2.2: Comparison of Studies of LCOE Increase and Net Efficiency Decrease for Post–Combustion Power Plants with CCS
Notes
References
Chapter 3 Techno-Economic Assessment of Carbon Capture and Storage Deployment in the Power Sector in the Southern African and Balkan Regions
Overview of Results
Table 3.1: Summary of Findings
Methodology
Southern African Region
Figure 3.1: Electricity Generation for Southern African Region—Reference Scenario
Figure 3.2: Electricity Generation for Southern African Region—Baseline Scenario
Figure 3.3: Electricity Generation Portfolio for Southern African Region—US$100/Ton CO2 Price Scenario
Figure 3.4: Cumulative CO2 Storage for Southern African Region—US$100/Ton CO2 Scenario
Table 3.2: Summary of Installed Capacity in 2030 for the Southern African Region (MW)
Figure 3.5: Summary of Results for Southern African Region, 2030
Figure 3.6: Comparison of Average Generation Costs across Scenarios for the Southern African Region
Figure 3.7: Comparison of Annual CO2 Emissions across Scenarios for the Southern African Region
The Balkan Region
Figure 3.8: Electricity Generation for the Balkan Region—Reference Scenario
Figure 3.9: CO2 Emissions for the Balkan Region—Reference Scenario
Figure 3.10: Share of CCS in Coal-Based Power Generation in the Balkan Region—Reference Scenario with EOR/ECBM Benefits
Figure 3.11: Share of CCS-Based Generation in the Balkan Region—US$100/Ton CO2 Price Scenario
Figure 3.12: CO2 Stored in the Balkan Region—US$100/Ton CO2 Price Scenario
Figure 3.13: CO2 Emissions for the Balkan Region—US$100/Ton CO2 Price Scenario
Figure 3.14: Comparison of Average Generation Costs across Scenarios for the Balkan Region
Table 3.3: Summary of Installed Capacity in 2030 for the Balkan Region (MW)
Figure 3.15: Comparison of Total CO2 Emissions across Scenarios for the Balkan Region
Notes
References
Chapter 4 Addressing the Legal and Regulatory Barriers in Developing Countries
Key International and Multilateral Legal Instruments Relevant to CCS Projects
Boxes
Box 4.1: Key Findings and Recommendations
Review of Regional and National Legal Regimes Applicable to CCS Activities in the Southern African Region
Review of Regional and National Legal Regimes Applicable to CCS Activities in the Balkan Region
Notes
References
Chapter 5 The Role of Climate Finance Sources in Accelerating Carbon Capture and Storage Demonstration and Deployment in Developing Countries
Box 5.1: Summary of Findings and Conclusions
Mapping Climate Finance to a Deployment Pathway
Figure 5.1: Marginal Abatement Cost Curves for CCS in 2020 by Sector and Region
Figure 5.2: Marginal Abatement Cost Curves for CCS in 2030 by Sector and Region
Challenges for CCS Projects in Developing Countries to Access Carbon Finance
Notes
References
Chapter 6 Project Finance for Power Plants with Carbon Capture and Storage in Developing Countries
Key Findings
Table 6.1: Summary of Findings and Conclusions
Methodology
Box 6.1: LCOE Structure
Description of the Model
Assumptions
Table 6.2: Terms of Financing Instruments and Resulting Blended Debt Interest Rates
Results
Figure 6.1: LCOE for Reference Plants without CCS and Plants with CCS for the Five Technologies Examined
Figure 6.2: LCOE for Full Capture Coal Plants with CCS with Different Coal Prices
Figure 6.3: Percentage Increase in LCOE from Reference Plant to Corresponding Plant with Full Capture CCS for Different Coal Prices
Figure 6.4: Percentage Increase in LCOE from Reference Plant to Plant with CCS for Different CO2 Prices
Figure 6.5: Percentage Increase in LCOE for a Reference Plant without CCS to a Plant with CCS and Enhanced Hydrocarbon Recovery
Figure 6.6: LCOE Variations with Different Financial Structures
Figure 6.7: LCOE with Different Levels of Concessional Financing for IGCC Plant
Table 6.3: Blended Debt Interest Rate for Different Levels of Concessional Financing
Figure 6.8: Concessional Financing Required to Set LCOE for Plant with Full Capture Equal to Reference Plant, for Financing Structure Case 1
Notes
References
Appendix A International Organizations Involved in CCS Work
Appendix B Techno-Economic Assessment of CCS Deployment in the Power Sector in Southern Africa and the Balkans
The Model
Table B.1: References Used to Develop CO2 Storage Estimates in the Model
Assumptions in the Model for Southern Africa
Table B.2: Fuel Price Assumptions for Southern African Region
Table B.3: Generic Energy Technology Options Available in the Region and Associated Model Input Parameters for the Southern African Region
Table B.4: South Africa DOE 2011 IRP “Revised Balance” Expansion Plan
Table B.5: CO2 Storage Options, Volumes, and Costs for Southern Africa
Table B.6: CO2 Transport Options for the Southern African Region
Assumptions in the Model for the Balkan Region
Table B.7: Comparison of Results across Scenarios for Southern African Region
Table B.8: Fuel Prices Used in Simulation for the Balkan Region
Table B.9: Generic Energy Technology Options Available in the Region and Associated Model Input Parameters for the Balkan Region
Table B.10: CO2 Storage Options, Volumes, and Costs for Balkan Region
Table B.11: Descriptions of CO2 Price Scenarios in the Balkan Region
Table B.12: Comparison of Results across Scenarios for the Balkan Region
Appendix C Assessment of Legal and Regulatory Frameworks Applicable to Potential CCS Deployment in Southern Africa and the Balkans
Table C.1: Summary of Legal Obligations of the Reviewed Countries under Relevant International Conventions
Table C.2: Summary of the EU CCS Directive
Key Findings and Recommendations
Key Findings and Recommendations at the Domestic Level—Southern African Region
Key Findings and Recommendations at the Domestic Level—the Balkan Region
Table C.3: Key Findings for Botswana, Mozambique, and South Africa
Table C.4: Key Findings for Bosnia and Herzegovina, Kosovo, and Serbia
Note
Reference
Appendix D The Role of Climate Finance Sources in Accelerating Carbon Capture and Storage Demonstration and Deployment in Developing Countries
Table D.1: Summary of Near-Term Demonstration Challenges for CCS
Table D.2: Status of CCS in Developing Countries: Policy Initiatives, Project Implementation, and Other Enabling Activities, Select Examples
Box D.1: Metrics Used to Describe CCS Deployment in This Report
Table D.3: Main Components for Good Practice for CCS Project Design and Operation
Table D.4: Focus Areas for CCS Capacity Building Efforts in Developing Countries
References
Appendix E Project Finance Structures and Their Impacts on the Levelized Cost of Electricity for Power Plants with CCS
Technology Assumptions
Table E.1: Financial Assumptions Used in LCOE Model
Table E.2: Cost and Technical Assumptions for PC Technologies in Model
Table E.3: Cost and Technical Assumptions for IGCC Technologies in Model
Table E.4: Cost and Technical Assumptions for Oxy-fuel Technologies in Model
Table E.5: Explanation of Varied Parameters and Justifications
Table E.6: Oil and Methane Recovery Rates Assumed for EOR/ECBM
Additional Results
Figure E.1: Percentage Change in LCOE from Reference Plant without CCS to Plant with CCS with Enhanced Hydrocarbon Recovery and CO2 Price
Table E.7: Assumed Revenue Streams for EOR and ECBM Recovery
References
Bibliography
