Environmental Engineering Reference
In-Depth Information
Table 1. China's major large-scale industrial CCS demonstration projects
Project Feature
GreenGen
(Tianjin)
Shenhua CtL
(Ordos Basin, Inner Mongolia)
Coal combustion tech.
Integrated Gasification Combined Cycle
Coal to synfuels (direct coal liquefaction)
Capture capacity & method
250MW, up to 650MW;
pre-combustion capture.
1 million ton liquid transport fuel/year; during
the liquidation process
Storage target & method
Sequestration with Enhanced Oil Recovery
(EOR)
saline aquifer and depleted oil fields, EOR;3.6
million metric ton/year; 20 years period
Developers
8 largest state-owned energy companies
Shenhua Group
International partners
Peabody Energy (US)
West Virginia University,
US Depart. of Energy
Investment (UD$ billion)
1
1.4
Timeline
Phase I(2006-09): IGCC;
Phase II(2010-2012): 250 MW IGCC plant,
CCS;
Phase III(2013-2015):650 MW IGCC with cap-
ture in 2013; added EOR CCS in about 2015
Operational CCS till 2011
Potential to wide application
high
low
Source: Morse et al., 2009; Zhao, 2009; Friedmann, 2009; CAP, 2009.
decades. The industrial sector has accounted for
about two thirds of primary energy consumption
annually since 1980. The annual average growth
rate of the industrial sector's energy consumption
in 1991-2006 was nearly 29% higher than the one
in 1980-1990(Ni, 2009, p.87). This is one of major
reasons why China has become the biggest carbon
emitter years earlier than expected.
China's energy intensity, primary energy
consumption per unit of GDP grew quickly from
2001 to 2005 according to the International Energy
Statistics of U.S. Energy Information Administra-
tion. Even if the 20% target of energy intensity
reduction by 2010 on the 2005 level is met, the
energy intensity in 2010 would be close to the one
in 2001. Therefore, the 20% policy can largely
be understood as an urgent measurement to bal-
ance the declining economic growth efficiency
in 2000-2005.
It could be too simple to conclude that China
has a good policy circumstance to develop CCS.
Some studies realize the deterrents such as trans-
portation bottleneck of coal, the big gap between
CCS cost and available financial resources, energy
issue and risk of increasing energy price(Morse, et
al, 2009; E3G, 2009). However more significant
barriers are those institutional ones. The problem
of funding gap is not whether future global carbon
market and international mitigation mechanism
such as Clean Development Mechanism(CDM)
may provide enough money, but whether China's
domestic policy and institutional setting are able to
offer both effective and efficient support to fill the
funding gap. For example, not raising electricity
price, but cutting high profit rate of state-owned
power and grid companies, is effective policy to
advance CCS development in China though this
policy would meet great institutional challenge
from electricity market establishment.
IMPACT OF ELECTRICITY
MARKET ESTABLISHMENT
The electricity sector is the main field to deploy
CCS, so the institutional arrangements in the
electricity market are assumed to have significant
influence in CCS development.
 
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