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Challenges to the Deployment of CCS in the Energy Intensive Industries
(Part 1: General Overview)
Stanley SantosIEA Greenhouse Gas R&D Programme
Cheltenham, UK
7th IEAGHG International Summer School
July 2013
2
WHY WE NEED CO2 CAPTURE AND STORAGE IN THE INDUSTRIAL SECTOR
Introduction
Nearly half of the 123 Gt CO2 by 2050 should be from industrial applications
© OECD/IEA 2012
Note: Capture rates in MtCO2 /year
Mt CO2
Mt CO2
Mt CO2
Mt CO2
Mt CO2
Mt
CO
2
4
Direct CO2 Emissions from Industrial Sources(Data from IEA ETP 2012)
5
IEA Analysis Based on 2DS Scenario
6
Remarks on Key IEA Findings
It could be concluded that CCS is an important part to the reduction of CO2 from the industrial sector.
Technology is may not be the only main barrier to the deployment of CCS in the industrial sector.
Market competitiveness and global nature of some of these industries is an important issues that should be addressed.
7
Presentation Outline
CCS Activities in Industry
Hydrogen Production an example of low hanging fruits of industrial CCS applications
Iron and Steel Production an example of CCS deployment in an integrate industrial site
Concluding Remarks
8
CO2 CAPTURE IN HYDROGEN PRODUCTION EXAMPLE OF EARLY CCS DEPLOYMENT IN INDUSTRY
CCS Application in Industry
9
Direct CTL with CCS Demonstration
Shenhua CTL (Ordos, Inner Mongolia) operational since 2008
Sub-Bit. Coal from Inner Mongolia ~ 3.5 MPTY
~1.08 MMTPY of Oil Productso LPG
o Naptha
o Diesel
o Phenol
CO2 Emission: ~3.5MPTY
10
DCL
Solvent Based DCL Facility
Chinese owned developed catalyst
Reactor build by Chinese Heavy Industry
2 x Shell Gasifiers (@ ~315 TPD H2)
Slip stream CO2 Capture
11
(CO2 Storage Component)
CO2 Storage Demonstration started in 2011!
Data and Pictures from Shenhua & ACCA21
12
Capture of CO2 from Steam
Air Products SMR providing H2 to Valero Oil Refinery
Use of VPSA for CO2 capture (90% recovery with 97% CO2 purity.
~1,000,000 t/y CO2 captured for EOR application
Via Danbury Pipeline off to West Hasting, Texas
Operation started in May 2013
13
Capture of CO2 from Steam
Japan CCS Co. Ltd.
H2 production from SMR
Hokkaido Refinery
EPC awarded to JGC
Capture of 200,000 t/y
Off-shore storage in two separate reservoirs at Hokkaido Subsea Sandstone Bed
Operation starts 2015/2016
14
Capture of CO2 from Steam
Shell Quest CO2 Capture Project
Athabasca Oil Sand Project
Capture of CO2 from 3 units of SMR providing H2 to the Oil Sand Upgrader
Shell Amine Technology (ADIP-X system based on MDEA/Pz)
~1.2 Million Tonne of CO2/y
Saline Acquifer with potential EOR application
Operation starts 2015/16
The Challenges to the Deployment of CCS in the Energy Intensive Industries
(Part 2: Iron and Steel Sector)
Stanley SantosIEA Greenhouse Gas R&D Programme
Cheltenham, UK
16
Blast Furnace at Redcar, Teeside(Picture Courtesy of SSI)
17
CHALLENGES OF DEPLOYING CCS IN AN INTEGRATED STEEL MILL
Overview to the Integrated Steel Mill
18
Integrated Steelmaking Process
Raw Materials Preparation Plants
Coke Production
Ore Agglomerating Plant (Sinter Production)
Lime Production
Ironmaking
Blast Furnace
Hot Metal Desulphurisation
Steelmaking
Basic Oxygen Steelmaking (Primary)
Secondary Steelmaking (Ladle Metallurgy)
Casting
Continuous Casting
Finishing Mills
Hot Rolling Mills (Reheating & Rolling)
ThyssenKrupp Steel Europe
Workshop CCS IEAGHG / VDEh8. - 9. NovemberProf. Dr. Gunnar Still19
Zn
2 cold rolling
finishing shop
4 Blast furnaces
5 BOF
2 coking plant batts
3 casting line + hot strip rolling
or continuous casting line
1 heavy plate mill
3 hot strip
finishing shop
3 pickling
3 cold strip rolling
3 batch annealing
skin pass rolling
4 hot-dip coating
line
3 coating line
2 continuous annealing
oressinter plant
coal
hot metal
crude steel
Zn
heavy plate hot stripcoated / organic
coated sheets
uncoated
sheets
electrolytic coated
sheets
slab
scrap + additives
An integrated steel mill is composed by numerous facilitiesFrom iron ore to steel products
20
First Challenge...
There are no steel mill in this world which are alike...
Steel are produced with different processes
Steel are produced with different type of finished or semi-finished products
Steel are produced with different grades
...
ThyssenKrupp Steel Europe
Workshop CCS IEAGHG / VDEh8. - 9. NovemberProf. Dr. Gunnar Still21
2 Coke Plant Batt
3 Hot Rolling, 3 Cold Rolling,div. Annealing
etc.
2 BOF Shops
4 Blast Furnaces
6 Power Plants
Coal
Coke
CO2
CO2
CO2CO2
CO2
external
BF Top Gas
30%48%
11%
~2% ~9%
<0-1%
1%
0,1%
9%
74%4%
Carbon in
liquid phase
Coal-
injection
BOFgasCokeovengas
x%
y%
CO2-emissionsAbsolut Part /t-CO2
CO2-source% Carbon Input
ThyssenKrupp Steel Europe – Main CO2-Emitters
(schematically)up to 20 mio t CO2 p.a.
23
2nd and 3rd Challenges...
There are no steel mill which are alike...
Emissions from the Integrated Steel Mills comes from multiple sources.
The source of CO2 may not be the emitter of the CO2.
Strongly dependent on how you define Boundary Limit
In addition to the direct use of fossil fuels, the emissions is also strongly dependent on the management of the use of By-Product Gases
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Carbon Input(kg C/thm)
Carbon Output(kg C/thm)
Coke 312.4 Hot Metal 47.0
Limestone 1.5BF Screen Undersize
6.3
PCI Coal 132.2 Dust & Sludge 8.0
COG 1.3 BFG Export 266.4
BFG Flared 5.4
HotGas
114.1
Total 447.5 Total 447.2
Direct CO2 Emissions of an Integrated Steel Mill
(REFERENCE) Producing 4 MTPY Hot Rolled Coil2090 kg CO2/t HRC (2107 kg CO2/thm )
Carbon Balance of Ironmaking Process
For this case study, it was demonstrated that the ironmaking process is responsible for
78% of the total carbon input of the steel mill. BUT only 21% of the carbon emitted as CO2
emissions is attributed to this process. The rest of the carbon emitted as CO2 are
accounted to other processes (mostly end users of the by-product fuel gases) within the
steel mill.
Carbon Balance of Ironmaking Process
25
4th Challenge...BF Technology is already near the Theoretical Limit of Efficiency
475 kg/t HM
Challenges & Opportunities of CCS in the Iron & Steel Industry, IEA-GHG, Düsseldorf, 8-9 November
2011
26
Challenges & Opportunities of CCS in the Iron & Steel Industry, IEA-GHG, Düsseldorf, 8-9 November
2011
27
Coal & sustainable biomass Natural gas Electricity
Revamped BF Greenfield Revamped DR Greenfield
ULCOS-BF HIsarna ULCORED ULCOWIN
ULCOLYSIS
Pilot tests (1.5 t/h)
Demonstration
under way
Pilot plant (8 t/h)
start-up 2010
Pilot plant (1 t/h) to
be erected in 2013?
Laboratory
The 4 process routes
Challenges & Opportunities of CCS in the Iron & Steel Industry, IEA-GHG, Düsseldorf, 8-9 November
2011 2
8
The Ulcos Blast Furnace Concepts
Gas
cleaning
CO2 400 Nm3/tCO2
scrubber
Oxygen
PCI
Gas
heater
Coke Top gas
(CO, CO2, H2, N2)
Re-injection
Gas net
(N2 purge)
CO, H2, N2
V4900 °C
1250 °C
V3
1250 °C
XV1900 °C
25 °C
Expected C-savings
25 % 24 % 21 %
Gas
cleaning
CO2 400 Nm3/tCO2
scrubber
Oxygen
PCI
Gas
heater
Coke Top gas
(CO, CO2, H2, N2)
Re-injection
Gas net
(N2 purge)
CO, H2, N2
V4900 °C
1250 °C
V4900 °C
1250 °C
V3
1250 °C
XV3
1250 °C
XV1900 °C
25 °C
V1900 °C
25 °C
Expected C-savings
25 % 24 % 21 %
Expected C-savings
25 % 24 % 21 %
29
Carbon Input(kg C/thm)
Carbon Output(kg C/thm)
Coke 227.7 Hot Metal 47.0
Limestone 0.7 BF Screen Undersize 4.6
PCI Coal 132.2 Dust & Sludge 8.0
Natural Gas 12.0 OBF PG Export 64.5
PG Heater Flue Gas 12.0
CO2 Captured 236.3
Total 372.7 Total 372.4
Direct CO2 Emissions of an Integrated Steel Mill (with OBF & MDEA
CO2 Capture) Producing 4 MTPY Hot Rolled Coil1115 kg CO2/t HRC (1124 kg CO2/thm )
Carbon Balance of Ironmaking Process
For this case study, the Oxy-Blast Furnace has the potential to reduce carbon input
to the iron making process by 17% as compared to the REFERENCE case (@447.5
kg C/thm). This is due to the reduced consumption of the coke. ULCOS has
reported a higher carbon input reduction potential of up to ~28%. Further reduction
of CO2 emissions could only be achieved by CCS.
Coke Plant11.22%
Sinter Plant23.83%
Iron Making4.65%
Steelmaking4.58%
Slab Casting0.07%
Reheating & HRM5.18%
Lime Plant6.41%
Power Plant18.94%
Steam Generation Plant
25.13%
Direct CO2 Emission of the Integrated Steel Mill with OBF & CO2 Capture(1115 kg CO2 per tonne of HRC)
563 Nm3900oC
Raw Materials
BF Slag
CO2 Capture & Compression Plant
OBF Process Gas Fired Heaters
Hot Metal
Natural Gas
OBF Process Gas
OBF-PG to Steel Works
PCI Coal
Oxygen
OBF Top Gas
1000 kg1470oC
Carbon Dioxide
152 kg
235 kg
Flue Gas
Top Gas Cleaning
352 Nm3
BF Dust
BF Sludge
Air
15 kg
4 kg
253 Nm3
205 Nm341oC
332 Nm3 18 Nm3
938 Nm3
1385 Nm3
867 kg
171 Nm3
Coke 253 kgSinter 1096 kg (70%)Pellets 353 kg (22%)Lump 125 kg (8%)Limestone 6 kgQuartzite 3 kg
Steam2.0 GJ
DRR: 11%FT: 2140oCTGT: 170oCHM Si: 0.5%HM C:4.7%
OBF Screen Undersize21 kg
Nitrogen5 Nm3
Nitrogen5 Nm3
Carbon Balance of Ironmaking Process(Equipped with OBF and MDEA/Pz CO2 Capture)
Challenges & Opportunities of CCS in the Iron & Steel Industry, IEA-GHG, Düsseldorf, 8-9 November
2011P 30
COURSE50 ／ CO2 Ultimate Reduction in Steelmaking Process by Innovative Technology for
Cool Earth 50
(1) Technologies to reduce CO2 emissions from blast furnace (2) Technologies for CO2 capture
・Chemical absorptionReduction of coke
Iron ore
H2 amplification
H2
BOF
Electricity
High strength & high reactivity coke
Coking plant
Coke BFG
BF
Shaft furnace
・Physical adsorption
CO-rich gas
Regeneration
Tower
Reboiler
Absorption
Tower
Steam
Hot metal
Cold air
Hot air
Sensible heat recovery from slag (example) Waste heat recovery boiler
CO2 storage
technology
Kalina cycle
Power generation
Slag
Iron ore pre-reduction
technology Coke substitution
reducing agent production technology CO2 capture technology
Coke production technology for BF hydrogen reduction
for BF hydrogen reduction Reaction control technology
Technology for utilization of unused waste heat
Other project
COG reformer
Japanese “Course 50 Programme”
Ideas/Projects for CO2 Reduction
(1) CO2 Capture from BFG stream using aqueous ammonia
(2) Waste heat recovery from molten slag and hot sinter
(3) CO2 utilization
CO2Emissions
Iron-making:
melting/reduction
91%
Hot Milling
4%Cold Milling
3%
Steel-making 1%
Iron Ore
Sinter Process
(2)
Hydrocarbons
(3)
(2)
Coal Cokes
CO
CO
Powe
r
Plant
BFG
CO2
(1)
ConcentratorRegeneratorAbsorber
Rich Solution Lean solution
BFG inlet
Washingwater
Drum
Reboiler
Reboiler
Washingwater
Wastewater
Product CO2Processed BFG
(Washing/Waste) Water
(BF/Ammonia)Gas
Aqueous ammoniaBlow-down
(Low/High P) Steam
Research Activities of CO2 Project in RIST
Research Scope
31
32
33
$575.23
$55
$70
$12
$11
$53
$120
$118
$135
$0.0 $100.0 $200.0 $300.0 $400.0 $500.0 $600.0
Maintenance & Other O&M
Labour
Other Raw Mat'l & Consummables
Fluxes
Purchased Scrap & FerroAlloys
Iron Ore (Fines, Lumps & Pellets)
Fuel & Reductant
Capital Cost
Break Even Price
Breakeven Price of HRC & Breakdown ($/t)
Cost of Steel Production BreakdownBreakeven Price of $575.23
55% of the Cost is related to
Raw Materials, Energy and Reductant
34
Relative Cost Competitiveness of Steel Production with CO2 Capture(2010 Global Cost Curve Data from
REFERENCE Steel Mill (@ US$575/t HRC)
Integrated Steel Mill with Post Combustion CO2 Capture
(@US$ 653/t HRC)
Integrated Steel Mill with OBF/MDEA CO2 Capture
(@US$ 630/t HRC)
35
Evolution of Coking Coal Price(Data provided by P. Baruya IEA CCC)
36
$-
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
0.5P 1P 1.5P 2P 2.5P
CO
2A
vo
ida
nce
Co
st (
US
$/t
)
Price of Coking Coal
OBF/MDEA Case
EOP-L1 Case
Summary of Results(Sensitivity to Coke Price)
+ $92/t Coke
OBF Base CaseCO2 Avoidance Cost = ~$56.4/t
It should be noted that Steel Mill used a significant variety of coking coal depending on market price (low to high quality coking coal)
COKE is a tradable commodity
37
Key Message from this Study
Key to the deployment of CO2 capture technologies using top gas recycle to a blast furnace should also maximise the reduction in the coke consumption to make it cost competitive.
Post-Combustion CO2 Capture i.e. capture of CO2 from the flue gas of different stacks within the integrated steel mill - is not a cost competitive option!
This is not the options considered by the global steel community.
REPORTING CO2 Avoidance Cost for a complex industrial processes is meaningless without establishing the assumptions used for the REFERENCE Plant without CO2 Capture.
This is not a good indicator for these cases yet we are trapped in it...
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Challenges to CCS Deployment
Economic Carbon Leakage
Any price disadvantage could force you to move the production
penalise CO2 emissions
39
Challenges to CCS Deployment
Technical Carbon Leakage
Depends on the Regulation where alternative production or additional process could be deployed to reduce on-site emission only
This is a transfer of the responsibility to users of the by-products
40
Steel Production
Availability and Cost of Scrap will
play an important dynamics to the
future deployment of CCS
