Importance of Carbon Capture and Storage in De-Carbonising the Chinese Economy
10 Pages Posted: 15 Apr 2019 Last revised: 14 May 2019
Abstract
While China ranks behind the United States and European Union in terms of cumulative CO2 emissions, its current high level of emissions of over 10 gigatonnes per annum means that China plays a pivotal role in meeting the objectives of the Paris Agreement. China is unique among the major global economies in that its power generation and industrial processes are predominantly based around coal combustion. The widespread deployment of carbon capture and storage (CCS) is essential if China is to combine economic prosperity with emissions reduction and energy security goals.
This paper provides an overview of CCS in China. CCS facilities in China have developed in a low-key manner, mainly at demonstration scale, and several have been of global significance. Currently as at the end of 2018, there is one large-scale CCS facility in operation, two in construction, and six at various development phases in China. The scale of coal-based infrastructure in China in both industry and power is vast. At present, operational CCS capacity in China is no more than 2 million tonnes per annum of CO2 capture. This needs to increase by many magnitudes over the next 15 years. The Paris Agreement has refocused attention on emissions reduction and CCS is becoming a more prominent part of that conversation in China.
Salient features for CCS developments in China include:
• Enhanced oil recovery (EOR) is a strong enabler for CCS deployment.
• High storage potential for EOR and dedicated geological reservoirs
• Use of smaller scale demonstrations to de-risk large-scale deployment.
• Increased emphasis on industrial CCS facilities, especially linked with CO2-EOR systems.
• Reliance on road tankers for CO2 transportation.
As in the rest of the world, a supportive business case must be made for CCS to be widely deployed in China. At its heart, this involves three intertwined factors: the setting of national emission reduction targets consistent with the aims of the Paris Agreement, the inclusion of CCS in national Climate Actions Plans, and the delivery of policy confidence for CCS – equitable consideration, recognition and support with other low-carbon technologies.
There is no CCS without the ‘S’. The development of CO2 storage resources outside EOR in China must be prioritised, not to do so raises the risk of CCS deployment being slowed by uncertainty over available storage (at a time when CCS is most needed). An important aspect of CCS deployment in China is the development CCS-specific legal and regulatory regimes that will support the hundreds of projects (indeed thousands in International Energy Agency’s 2 Degree Celsius Scenarios) that must emerge over the course of the next few decades if China is to play its part in meeting ambitious climate targets agreed in Paris.
Keywords: GHGT-14, Carbon Capture and Storage, China, project, EOR, policy, legal and regulatory
Suggested Citation: Suggested Citation