1. © IEA/UNIDO 2011 Challenges and Opportunities of CO 2 Capture & Storage in the Iron and Steel Industry Steel Institute VDEh Auditorium Dusseldorf, Germany 8-9 November 2011 Carbon Capture and Storage in Industrial Applications Nathalie Trudeau Sustainable Energy Technology and Policy International Energy Agency

2. © IEA/UNIDO 2011 Focus on five industrial sectors: 1. High-purity sources (gas processing, H 2 production, CtL, ethylene oxide and ammonia production) 2. Cement 3. Iron and steel 4. Biomass conversion 5. Refineries Jointly account for 75% of today’s total industrial and fuel transformation CO 2 emissions

3. © IEA/UNIDO 2011 Challenge of CO 2 emissions from industry Industry accounts for 25% of total global CO 2 emissions Under a baseline scenario, total industrial CO 2 emissions would grow by 120% in the next four decades Emissions from sectors covered in the roadmap would grow by 83%

4. © IEA/UNIDO 2011 ETP BLUE Map Scenario: a portfolio of technologies

5. © IEA/UNIDO 2011 Potential of CCS in industrial applications The IEA ETP BLUE Map scenario (2010) charts a cost- effective pathway to cutting CO 2 emissions by 50% by 2050: Role of CCS in the five covered sectors can be very significant: → CCS could cut emissions by 4 GtCO 2 in 2050 → 9% of the global required emission reductions in 2050

6. © IEA/UNIDO 2011 Varied picture of CCS in industry today High-purity sectors Ongoing experience of operating large-scale projects in gas processing: In Salah, Sleipner, Snohvit, Rangely, Weyburn Gorgon LNG project under construction Biomass conversion Some ongoing pilot-scale experience in bio-ethanol sector (USA)

7. © IEA/UNIDO 2011 Varied picture of CCS in industry today (2) Iron and steel Pilot-scale project experience (SWE) Large demonstration in planning (FRA) Cement No project experience so far Refineries Pilot and demonstration scale projects in operation or in planning (NO, BR, CA, NL…)

8. © IEA/UNIDO 2011 Deployment challenge (1) From 60 projects in 2020 to 1800 projects in 2050

9. © IEA/UNIDO 2011 Deployment challenge (2) 2020203020402050 High purity2987154268 Biomass conversion 553259544 Cement10134313495 Iron & steel14169291411 Refineries2245688 TOTAL6046710731806 Numbers of projects required per sector under BLUE Map scenario (2010)

10. © IEA/UNIDO 2011 Deployment challenge (3) Deployment must move rapidly to non-OECD countries

11. © IEA/UNIDO 2011 Costs (1) The sectors covered will show a wide range of cost of abatement, from under 30 to over 150 USD/tCO 2

12. © IEA/UNIDO 2011 Costs (2) Additional investment cost: USD 882 billion (2% of additional capital cost to reach BLUE Map goal) Total additional costs: USD 3 trillion (6,5% of total additional cost to reach BLUE Map goal)

13. © IEA/UNIDO 2011 Recommendations & milestones: → Technology actions by sector → Recommendations for policy, finance and international collaboration

14. © IEA/UNIDO 2011 Technology: High-purity sectors Compile an inventory of high-purity sector CO 2 capture opportunities and estimate related costs Establish CO 2 transportation and storage demonstration projects involving hydrogen, ammonia and ethylene oxide production processes Realise 29 related production plants with CCS by 2020, and 87 by 2030

15. © IEA/UNIDO 2011 Technology: Biomass conversion Further quantify the total amount of biomass that could be produced in a sustainable manner Continue R&D on key enabling technologies, such as improved biomass gasification processes Realise six commercial-scale biomass conversion plants combining CO 2 compression, transport and storage by 2020, including an industrial-scale biomass gasification demonstration plant

16. © IEA/UNIDO 2011 Technology: Cement Conduct R&D for improving the economics and performance of capture techniques under flue gas conditions that are typical for the cement sector Investigate the potential economic savings of sharing process equipment or capture-related support infrastructure through the co-location of cement and power plants Demonstrate a full-scale post-combustion capture plant in the cement industry between 2015 and 2020

17. © IEA/UNIDO 2011 Technology: Iron and steel Stimulate further research into the most cost-effective and energy-efficient capture techniques to use for iron and steel production Equip 75% of the new iron and steel production through large scale blast furnaces and direct reduction iron units in OECD countries with CCS by 2030, and 50% in non-OECD member countries

18. © IEA/UNIDO 2011 Technology: Refineries Assess the potential for using waste heat from various refinery processes for reducing the energy penalty by CO 2 capture Implement CCS as soon as possible on hydrogen production facilities that emit high-purity CO 2 Develop an industrial scale oxyfuelled fluid catalytic converter demonstration project by 2020

19. © IEA/UNIDO 2011 Actions for policy Challenge: a varied picture, many sectors, no one- size-fits-all policy possible Need for national analysis of industry-CCS options AND policies Governments and industry should raise awareness of CCS as a mitigation option Governments to develop incentive policy mechanisms to suit maturity of technology from pilot/demo projects to fully commercial deployment

20. © IEA/UNIDO 2011 Actions for finance Include CCS in CDM Create international financial mechanisms for demonstrating CCS in developing countries Raise awareness of industrial CCS in financing community, incl. international development banks Start developing financing products suited for industrial CCS Consider aspects of CCS-readiness for industrial CCS projects

21. © IEA/UNIDO 2011 Actions for international collaboration Continue to investigate sector-specific approaches for trade-sensitive sectors Ratify London Protocol amendments to enable cross-border transport of CO 2 Develop capacity-building and education programmes for universities and schools Collect and register emissions data Disseminate best practice among industry, governments and stakeholders

22. © IEA/UNIDO 2011 Business opportunities for industry-CCS Industrial projects in conjunction with EOR - a “market pull” for CO 2 capture deployment Industrial agglomerations and clusters - several CO 2 sources to be matched with a suitable sink or reutilisation opportunity, reducing costs Innovation and CCS supply chain – in a forward looking view CCS deployment results in positive spill-overs to all the CO 2 capture, transport and storage supply chain providers

23. © IEA/UNIDO 2011 Key messages CCS is not only about electric power: it can be a cost- effective option to reduce emissions in industry CCS could reduce up to 4 GtCO 2 emissions from industrial sources by 2050, equaling 9% of total required reductions in 2050 Sectors will vary in speed and cost of deployment Total additional costs could amount to USD 3 trillion between 2010-2050 Variety of incentive mechanisms needed for varying maturity of technology

24. © IEA/UNIDO 2011 The next ten years are crucial Improve data on emissions, technologies and costs Governments need to ensure adequate funding for CCS demonstration projects in industrial applications Governments and financiers need to ensure funding mechanisms are in place to support demonstration and deployment of CCS in developing countries Public research and development programmes are required to bring more information in the public domain Global assessments of CO 2 sources and potential reservoirs are needed

25. © IEA/UNIDO 2011 Thank you! Nathalie.trudeau@iea.org Further information: www.iea.org/roadmaps www.unido.org/ccs

26. © IEA/UNIDO 2011 Back-up slides

27. © IEA/UNIDO 2011 Deployment in high-purity sectors From 29 projects in 2020 to 268 projects in 2050 750 Mt of CO 2 captured in 2050 Additional investment cost 56bn USD (268 projects) Could represent an early opportunity sector

28. © IEA/UNIDO 2011 Deployment in biomass conversion From 5 projects in 2020 to 544 projects in 2050 1.7 Gt of CO 2 captured in 2050 Total additional investment cost USD 212bn

29. © IEA/UNIDO 2011 Deployment in the cement sector From 10 projects in 2020 to 495 projects in 2050 500 Mt of CO 2 captured in 2050 Additional investment cost USD 300bn

30. © IEA/UNIDO 2011 Deployment in iron and steel From 14 projects in 2020 to 411 projects in 2050 900 Mt of CO 2 captured in 2050 Additional investment cost USD 260bn

31. © IEA/UNIDO 2011 Deployment in refineries From 2 projects in 2020 to 88 projects in 2050 165 Mt of CO 2 captured in 2050 Additional investment cost USD 57bn