20160430-IEA-Insights_Series_2016_-_Ready_for_CCS_Retrofit_100页_8mb

Summary of "Ready for CCS retrofit: The potential for equipping China's existing coal fleet with carbon capture and storage"

Core Content

This document explores the potential for retrofitting existing coal-fired power plants in China with Carbon Capture and Storage (CCS) technology as a means to significantly reduce greenhouse gas emissions while maintaining the country's reliance on coal for electricity generation. China is the world's largest emitter of energy-related CO₂, with coal accounting for the majority of its electricity generation. The report highlights that retrofitting CCS on existing coal plants could reduce their emissions by up to 85%, making it a viable option for achieving climate goals without abandoning coal infrastructure.

Main Points and Key Information

1. China's Energy Mix and Policy Context

• China's coal-fired power plants are among the most efficient globally, with over two-thirds of the fleet built since 2005.
• The average operational efficiency of the Chinese coal fleet increased by six percentage points in the last decade, matching OECD countries.
• China's "Intended Nationally Determined Contribution" (INDC) under the UNFCCC framework commits to peaking CO₂ emissions by 2030.
• Policies to control local pollutants are shaping coal use and making low-carbon electricity and power plant upgrades more attractive.

2. CCS Retrofitting: How and Why

• How CCS is added to a power plant: The process involves CO₂ capture, transport, and storage.
• CO₂ transport and storage: Proximity to suitable storage sites is a key factor in determining the feasibility and cost of retrofitting.
• Costs and benefits: Retrofitting can be cheaper than building new low-carbon generation capacity, and can extend the lifetime of existing plants.
• Emerging practical experience: Early CCS projects in China, such as the Yuhuan project, provide valuable insights into the implementation of retrofits.

3. Factors Influencing CCS Retrofits

• Suitability criteria: Includes plant age, size, load factor, and pollution control measures.
• Cost factors: Cooling type, efficiency, steam turbine design, and access to CO₂ storage.
• Retrofitting potential: Approximately 310 GW of existing coal-fired power capacity in China meets the basic suitability criteria for retrofitting.

4. Assessment of CCS Retrofit Opportunity

• Phase 1: Identified 310 GW of existing coal plants as potentially suitable for retrofitting.
• Phase 2: Analyzed retrofit costs, with some plants showing additional costs as low as USD 34/MWh.
• CO₂ storage capacity: Analysis suggests that 385 GW of coal plants can find suitable storage within a 250 km radius, though longer distances may be acceptable in some cases.
• Feasibility: The IEA 450 scenario estimates that 185 GW of coal capacity will be retrofitted with CCS by 2035, indicating that such a level of retrofitting is technically and economically feasible.

5. Implications for Strategy and Policy

• CO₂ storage exploration: Needs to be prioritized to support large-scale CCS retrofits.
• Technology innovation: Essential for reducing the costs of CCS and making it more attractive for retrofitting.
• CCS readiness: Promoting CCS readiness in new power plants can help ensure future retrofitting opportunities are maximized.
• Policy recommendations:
  • Include CCS in climate policy and retain the option for future retrofits.
  • Continue efforts in technology innovation and cost reduction.
  • Focus on the location of new power plants to minimize future CCS costs.

Conclusion

Retrofitting CCS on China's existing coal fleet offers a significant opportunity to reduce emissions while leveraging the country's extensive coal infrastructure. The study emphasizes the need for a nuanced approach to retrofitting, considering a range of technical, economic, and policy factors. It also highlights the importance of storage site availability, innovation, and strategic planning in ensuring the success of CCS retrofits in China.