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Technology Collaboration Programme by IEA

Future role of CCS technologies in the power sector

Technical Report

1 August 2020

Capture

Emrah Durusut, Yorukcan Erbay, Michael Joos

Citation: IEAGHG, "Future role of CCS technologies in the power sector", 2020-08, August 2020.

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Publication Overview

Carbon capture and storage (CCS) technologies are essential for meeting global temperature targets at least cost. They have the ability to decarbonise several sectors, including power. Low-carbon, dispatchable, power generation plants with CCS can operate at baseload and also flexibly. Importantly, their ability to operate flexibly not only allows them to complement output from intermittent renewables but also to facilitate increased capacity of intermittent renewables on the grid. For a number of reasons, however, the commercial deployment of power CCS has been slow and must accelerate if the technology is to achieve its potential and contribute effectively to mitigating climate change. Using Australia, China, the United Kingdom and the United Sates as case studies, this study demonstrates the viability of a set of power CCS technologies to cost-effectively decarbonise baseload, mid-merit and peaking generation in distinct power markets. To realise this potential, however, general, technology-specific and country-specific CCS challenges must be addressed urgently with policy and regulatory actions.

Publication Summary

  • Carbon capture and storage (CCS) technologies are essential for meeting globaltemperature targets at least cost. With power, as with the other sectors, the technologieshave the ability to decarbonise but deployment rates are currently far ‘off track’. Tomeet the targets required to mitigate temperature rises effectively, it is important tounderstand the specific role CCS technologies can play.
  • Power CCS technologies can fulfil different operational roles. As low-carbon,dispatchable plants, they can operate at baseload, provide necessary security of supplyand system strength services, and are also able to operate flexibly, i.e. they can rampup and down to operate effectively at lower loads, for example.
  • Significantly, as intermittent renewable technologies gain further traction, the ability ofCCS plants to operate flexibly at lower loads will allow them not only to complementoutput from intermittent renewables but also to facilitate increased capacity ofintermittent renewables on the grid.
  • CCS technologies may be used in conjunction with bioenergy (BECCS) to provide net-negative emissions. They may also be utilised to sustainably produce hydrogen fromcoal, natural gas and biomass, where the hydrogen may then be used in several sectorsincluding power generation.
  • The main drivers behind the evolution of a power market in a country or region arethe extent of its domestic fossil fuel resources, its economic growth and itsenvironmental regulations or ambitions.
  • Most regional power CCS outlooks focus on coal and gas CCS options operatingmainly at high load factors1. The IEA’s Sustainable Development Scenario2 (SDS)projects a global coal and gas CCS capacity of 320 GW by 2040, divided roughlyequally between coal and gas CCS technologies and working at around 68% load factor.
  • A techno-economic analysis was undertaken to establish the likely roles of CCStechnologies in the 4 study regions, Australia, China, the UK and the United States.Carbon prices were used to represent a wide range of potential policy incentives. CCSoptions for baseload, mid-merit and peaking operations were considered, as well asthe case for retrofit.
  • Results suggest that:
  • Globally BECCS, gas CCS and hydrogen are viable options for baseload, mid-merit and peaking generation, respectively.
  • Hydrogen power generation is the lowest cost low-carbon option for flexiblebackup generation for sustained periods (>8 hours) of high demand,complementing batteries which are cheaper for shorter periods.
  • Gas CCS is likely to be one of the most economic mid-merit and baseloadtechnologies, even in regions without domestic resources due to its lower coststhan alternatives.
  • In this study, operation at ‘high load factors’ or ‘close to baseload’ implies operation at load factors higher than 60%

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