Transport Infrastructure for Carbon Capture and Storage
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Transport Infrastructure for Carbon Capture and Storage WHITEPAPER ON REGIONAL INFRASTRUCTURE FOR MIDCENTURY DECARBONIZATION Authored by Elizabeth Abramson and Dane McFarlane Great Plains Institute Jeff Brown University of Wyoming REGIONAL CARBON CAPTURE DEPLOYMENT JUNE 2020 INITIATIVE
Table of Contents Executive Summary ............................................................... i GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE Analytical Overview ................................................................ 1 Goals and Rationale Study Approach Summary of Findings Full Discussion of Findings & Results Approach, Data, and Tools ................................................. 15 Results ................................................................................. 22 Near- and Medium-Term Opportunities Scenario High-Cost Sensitivity Scenario Midcentury Decarbonization Scenario Discussion of Findings ....................................................... 28 Conclusion ........................................................................... 37 Methodological Appendix....................................................... A1
Executive Summary Analysis by the International Energy Agency in the future.4 Thus, this analysis sought to (IEA) has determined that deployment of answer the question: carbon capture technology is critical to achieve midcentury US and global carbon What is the scale and design reduction goals and temperature targets.1 necessary for regional CO2 Carbon capture enables power and industrial transport infrastructure sectors to reduce or eliminate carbon emissions while protecting and creating high- to meet US midcentury wage employment. For key carbon-intensive decarbonization goals in the industries such as steel and cement, significant industrial and power sectors? CO2 emissions result from the mechanical or chemical nature of the production process As seen in the maps included in this white TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE itself, regardless of the source of process paper, many of the industrial and power energy. Industrial CO2 emissions account for facilities in the United States are located 33% of US stationary emissions.3 Carbon in regions without significant deep saline capture is therefore an essential emissions or hydrocarbon geologic formations. Long reduction tool for industries that are otherwise distance transport infrastructure can unlock difficult to decarbonize even after switching to the economic potential for these facilities to low-carbon electricity. IEA modeling estimates sell captured CO2 and earn tax credits for that more than 28 billion tons of CO2 must be storage under Section 45Q. CO2 transport captured globally from industrial processes infrastructure achieves beneficial economies by 2060 in order to meet international of scale with higher volumes of CO2 delivered. decarbonization goals and temperature Large trunk lines designed to carry CO2 from targets.2 many facilities toward many storage sites can achieve a lower transport cost over long Infrastructure is needed on a significant scale distances than lines with capacity designed to decarbonize the industrial and power for only one or a handful of capture projects. sectors, even when accounting for aggressive Long-term, coordinated planning on regional low-carbon and renewable energy adoption. In CO2 transport corridors will result in optimized, addition to the economy-wide retrofit of carbon regional scale infrastructure that minimizes capture equipment at industrial and power costs, land use, and construction requirements facilities, regional scale transport infrastructure while maximizing decarbonization across will be required to deliver captured CO2 to industrial and power sectors throughout the sites of utilization and long-term storage. United States. This whitepaper presents Previous work by the State Carbon Capture the results of a two-year modeling effort to Work Group, an initiative facilitated by the identify such regional scale CO2 transport Great Plains Institute, identified the limitations infrastructure that would serve existing facilities of building CO2 transport infrastructure on and allow participation by new capture projects a project-by-project basis and explored and facilities in the future. the long-term benefit of “super-sizing” CO2 infrastructure to enable expanded capacity This analysis identified the most feasible i
near- and medium-term opportunities for of anthropogenic CO2 based on near- and deployment of carbon capture equipment at medium-term economics that include the individual emitting facilities and focused on the Section 45Q tax credit. Cost estimates indicate Western, Midwestern, Plains, and Gulf regions that beneficial economies of scale are achieved of the US. The technological and economic via large shared trunk lines that reduce the per- limitations of deploying carbon capture at each emitting facility This whitepaper presents the results of were considered. Los Alamos a two-year modeling effort to identify National Laboratory's SimCCS regional scale CO2 transport infrastructure model was deployed to create theoretical CO2 transport that would serve existing facilities and networks that minimized costs allow participation by new capture projects and maximized storage while and facilities in the future. protecting natural resources, public lands, population centers, indigenous or ton cost of CO2 transport. Analysis indicated GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE tribal lands, and a variety of other geographic that smaller pipelines built for single projects, factors. The scenarios presented here are or small feeder lines that connect individual only for theoretical consideration across broad facilities, result in relatively higher per-ton geographic areas and are not meant to identify transport costs along those segments. These or proscribe the specific location of CO2 cost estimates were conducted using average transport infrastructure. rates of return for capital investments and show potential to enable capture at facilities This process identified 1,517 45Q-eligible that have moderate to relatively high capture facilities across the United States that emit cost through policies that provide low cost a total of 2,352 million metric tons of CO2 financing or other support. annually. This accounts for 89% of total US stationary CO2 emissions.5 A facility-specific Further sensitivity studies revealed two technical and financial screening then identified findings: 418 facilities as near- and medium-term candidates for capture retrofit within the study First, that near-term potential currently exists region. More detail on this facility selection for industrial sectors with relatively low costs of process is included in the methodological capture (e.g. ethanol) to participate in a shared appendix. These near- and medium-term transport corridor to sites of storage in Kansas, facilities emit 797 million metric tons of CO2 per Oklahoma, and Texas. year, of which 358 million metric tons can be feasibly captured at relatively low cost under Second, that technical storage potential in today’s policy context and with conservative deep saline formations nationwide offers a economic assumptions. low-cost opportunity for local storage, pending site-specific geological characterization, that Using the SimCCS model, this analysis will allow full buildout to nearly any facility identified a regional network of CO2 transport that qualifies for 45Q under currently defined infrastructure that can achieve the capture, minimum thresholds for CO2 emissions. delivery, and storage of nearly 300 million tons ii
OPPORTUNITIES FOR CARBON CAPTURE, STORAGE, AND REGIONAL CO2 TRANSPORT INFRASTRUCTURE This analysis identified 1,517 industrial and medium-term potential for carbon capture power facilities throughout the United States retrofit under today’s policy landscape and where stationary CO2 emissions are sufficient with conservative economic assumptions. to meet minimum thresholds for the Section The quantity of capturable CO2 at optimized 45Q tax credit (100,000 metric tons per year capture costs from these near- and medium- and 500,000 metric tons per year for industrial term facilities was estimated at approximately and power facilities, respectively). These 358 million tons per year. The number of facilities emit an approximate total of 2.3 billion facilities, quantity of emissions, and estimated tons of CO2 annually. Of those that would theoretical cost of capture for each industrial qualify for 45Q, 418 facilities met additional sector are listed in Table ii. screening criteria to determine near- and TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE Figure i. Emitting facilities: 45Q Eligibility and near-term capture opportunities NEAR- AND MEDIUM-TERM FACILITIES REMAINING 45Q-ELIGIBLE FACILITIES ALL INDUSTRIAL AND POWER FACILITIES STUDY REGION Figure authored by GPI based on data from EPA FLIGHT 2018. iii
Table i. 45Q-Qualifying facilities and emissions by industry Share of Number of 45Q-Eligible Biogenic Nitrous Industry CO2 Methane Facilities Facility CO2 Oxide Emissions Coal Power Plant 308 53.8% 1,269.6 0.3 3.0 6.2 Gas Power Plant 571 23.8% 565.4 0.7 0.4 0.4 Refineries 78 6.9% 163.3 - 0.6 0.4 Cement 135 3.7% 88.8 0.9 0.1 0.2 Hydrogen 57 2.7% 64.3 - 0.1 0.1 Steel 31 2.3% 54.0 - 0.2 - Ethanol 173 1.3% 31.0 8.97 0.1 0.1 Ammonia 21 1.2% 25.1 0.0 0.0 4.1 Petrochemicals 30 1.1% 26.0 0.1 0.4 0.1 Metals, Minerals & 37 0.9% 19.5 - 0.4 - Other GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE Gas Processing 40 0.9% 19.9 - 0.7 - Chemicals 16 0.8% 8.7 - 0.0 10.4 Pulp & Paper 18 0.4% 7.8 25.5 2.4 0.1 Waste 2 0.1% 0.8 1.2 0.6 - Grand Total 1,517 100% 2,344.2 29.3 9.1 22.1 All emissions are in million metric tons. Table ii. Near- and medium-term facilities, capture targets, and cost estimates Estimated Share of Total Average Range of Cost Number of Industry Capturable CO2 Capturable Estimated Cost Estimates Facilities mmt/year Estimate $/ton $/ton Coal Power Plant 58 143.4 40.1% $56 $46 - $60 Gas Power Plant 60 67.9 19.0% $57 $53 - $63 Ethanol 150 50.6 14.1% $17 $12 - $30 Cement 45 32.7 9.1% $56 $40 - $75 Refineries 38 26.5 7.4% $56 $43 - $68 Steel 6 14.6 4.1% $59 $55 - $64 Hydrogen 34 14.4 4.0% $44 $36 - $57 Gas Processing 20 4.5 1.3% $14 $11 - $16 Petrochemicals 2 1.7 0.5% $59 $57 - $60 Ammonia 3 0.9 0.3% $17 $15 - $21 Chemicals 2 0.7 0.2% $30 $19 - $40 Grand Total 418 357.8 100.0% $39 $11 - 75 All emissions are in million metric tons. iv
Figure ii. Optimized transport network for economy-wide CO2 capture and storage EOR FIELD WITH POTENTIAL TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE CO2 DEMAND POTENTIAL SALINE EMITTING FACILITIES INJECTION AREA AMMONIA REGIONAL CO2 INFRASTRUCTURE GAS POWER (MODELED) CEMENT PLANT Pipeline capacity (mtpa) GAS PETROCHEMICALS
REGIONAL CARBON CAPTURE DEPLOYMENT INITIATIVE ABOUT THE REGIONAL CARBON CAPTURE DEPLOYMENT INITIATIVE GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE The Regional Carbon Capture Deployment Initiative is a network of 25 states, and growing, that work together to help ensure near-term deployment of carbon capture projects that will reduce carbon emissions, benefit domestic energy and industrial production, and protect and create high- wage jobs. The Initiative provides unique and valuable opportunities for governors, state officials, legislators, and other stakeholders to engage at the state, regional, and national levels. The Regional Carbon Capture Deployment Initiative is staffed by the Great Plains Institute (GPI) at the invitation and direction of the State Carbon Capture Work Group. CONTRIBUTORS Many thanks to the following individuals for their significant contributions, input, and feedback in this effort: Richard Middleton Los Alamos National Laboratory Sean Yaw Montana State University Jeff Brown University of Wyoming Jessi Wyatt Great Plains Institute Mike Godec Advanced Resources International Kevin Ellett Indiana University Ryan Kammer Indiana University Steve Carpenter Enhanced Oil Recovery Institute – University of Wyoming The study authors also acknowledge numerous staff and faculty from the US Department of Energy, National Energy Technology Laboratory, Los Alamos National Laboratory, Indiana University, Princeton University, Massachusetts Institute of Technology, and industry and NGO participants of the Regional Carbon Capture Deployment Initiative. vi
ACRONYM GUIDE ARI – Advanced Resources International IPCC – Intergovernmental Panel on 45Q – Section 45Q Tax Credit for Climate Change Carbon Oxide Sequestration kW – Kilowatt CCS – Carbon capture & storage MT – Metric ton CO2 – Carbon dioxide MMT – Million metric tons (also as mmt) CRF – Capital recovery factor MTPA – Metric tons per annum DOE – US Department of Energy MW – Megawatt eGRID – EPA’s Emissions & Generation NATCARB – National Carbon Sequestration Resource Integrated Database Database and Geographic EIA – US Energy Information Information System Administration NETL – National Energy Technology EOR – Enhanced oil recovery Laboratory EPA – US Environmental Protection O&M – Operations & maintenance TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE Agency SCO2T – Sequestration of CO2 Tool FLIGHT – EPA's Facility Level Information on SMR – Steam Methane Reformer GreenHouse gases Tool Ton – All instances of “ton” in this paper GHG – Greenhouse gas are considered metric ton IEA – International Energy Agency USGS – United States Geological Survey EXECUTIVE SUMMARY REFERENCES 1 International Energy Agency, 20 Years of Carbon Capture and Storage: Accelerating Future Deployment (2016). 2 International Energy Agency, Transforming Industry through CCUS. May 2019. https://www.iea.org/re- ports/transforming-industry-through-ccus 3 United States Environmental Protection Agency, Sum- mary GHG Data 2016 (as of August 19, 2018), August 19, 2018, https://www.epa.gov/sites/production/ files/2018-10/ghgp_data_2016_8_19_2018.xlsx. 4 State CO2-EOR Deployment Work Group, 21st Century Infrastructure. February 2017. https://www.betteren- ergy.org/wp-content/uploads/2018/01/White_Pa- per_21st_Century_Infrastructure_CO2_Pipelines_0.pdf 5 United States Environmental Protection Agency, Sum- mary GHG Data 2016 (as of August 19, 2018), 2018. 6 National Energy Technology Laboratory. A Re- view of the CO2 Pipeline Infrastructure in the U.S. April 21, 2015. https://www.energy.gov/sites/prod/ files/2015/04/f22/QER%20Analysis%20-%20A%20 Review%20of%20the%20CO2%20Pipeline%20Infra- structure%20in%20the%20U.S_0.pdf vii
Analytical Overview GOALS AND RATIONALE Meeting decarbonization goals in the United Through the identification and assessment States will require significant investment and of existing CO2 capture opportunities and effort to retrofit carbon capture equipment on storage potential and location, as well as the industrial and power operations where simply modeling of regional transport infrastructure, switching to low-carbon energy sources will this analysis aimed to study the following not address emissions from the chemical and research questions: mechanical aspects of industrial production processes. 1. What is the total potential for CO2 capture at industrial and power facilities where capture The United States has a vast abundance of retrofit is technically and economically CO2 storage potential in geologic formations in feasible? TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE many areas throughout the country, including in deep saline and petroleum basins. In 2. Where are the existing opportunities for safe, many cases, it makes economic sense to secure, and long-term geologic CO2 storage store captured CO2 in deep saline formations in deep saline formations and petroleum within the vicinity of capture facilities. Where basins? Where are these areas in relation to emissions occur in regions without significant capture opportunities? geologic opportunity, however, CO2 transport infrastructure is required to deliver captured 3. What is the scale and design required CO2 to markets for utilization and storage. for regional CO2 transport infrastructure to deliver CO2 from sources identified in Under today’s policy context, which includes Question 1 to the markets and storage the Section 45Q tax credit, it is already a locations identified in Question 2? positive economic proposition in some areas Furthermore, what investment, scale, and and industry sectors to finance regional CO2 planning are required to build regional CO2 transport infrastructure that will essentially transport infrastructure that enables the be paid for through sales revenue and tax economy-wide capture of CO2 required by credits. As nationwide efforts and investment in US midcentury decarbonization goals and decarbonization continue toward midcentury, global temperature targets? additional capture facilities will benefit from regional transport infrastructure and STUDY APPROACH storage locations for captured CO2. Regional This analysis was conducted on the behalf transport infrastructure that is planned and of the Regional Carbon Capture Deployment built to allow for additional future capacity will Initiative through a collaboration of the contribute to maximizing CO2 storage and Great Plains Institute, Los Alamos National minimizing transport costs, capital investment Laboratory, Montana State University, Stanford requirements, and land use impact. University, Indiana University, the University 1
of Wyoming Enhanced Oil Recovery Institute, Environmental Protection Agency’s (EPA) and numerous others. Data, technical Greenhouse Gas Reporting Program were support, and consultation were provided by collected using the Facility Level Information Advanced Resourced International, Inc., the on GreenHouse Gases Tool (FLIGHT). FLIGHT National Energy Technology Laboratory, and publishes emission levels for criteria pollutants participants from a broad variety of industry specific to each applicable GHG Reporting and nongovernmental organizations through Subpart activity, such as electricity generation, the Regional Carbon Capture Deployment ammonia manufacturing, cement production, Initiative. and iron and steel production, among others.3 Direct CO2 emission levels were used to Nationwide storage potential in deep saline determine facility eligibility for Section 45Q tax geologic formations was determined using credits for CO2 capture at minimum thresholds the Sequestration of CO2 Tool (SCO2T), a of 100,000 tons and 500,000 tons per year for reduced order model created by Los Alamos industrial and power facilities, respectively.4 National Laboratory and Indiana University GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE that integrates data from the US Department These 45Q-eligible facilities and their of Energy’s National Carbon Sequestration process-specific emissions were compiled into Database and Geographic Information System a database, against which a screening process (NATCARB) Carbon Storage Atlas and United was applied based on facility operation, States Geological Survey (USGS).1 SCO2T production, energy use, heat rate, and other provides estimates for technical storage factors. This screening process was intended potential, porosity, thickness, and theoretical to identify potential near- and medium-term storage costs for each significant saline facilities that could participate in regional formation across the US on a geographic grid CO2 transport infrastructure networks for of 10 km2 cells. capture and delivery of CO2 under today’s market and policy context. EPA’s Emissions Potential demand for anthropogenic CO2 & Generation Resource Integrated Database from existing enhanced oil recovery (EOR) (eGRID)5 provided unit- and generator-specific operations was calculated by Advanced operational data and was supplemented by Resources International, Inc. (ARI), according power plant information from the proprietary to a proprietary model based on petroleum ABB Ability Velocity Suite.6 basin geology and historic operations.2 For this analysis, average annual rates of purchase A meta-study and literature review of published for CO2 at $20 per ton were estimated by capture costs, as well as capital, financing, ARI for existing operations under two oil price and operation and maintenance costs for scenarios, at $40 per barrel and $60 per capture equipment such as amine solvent units barrel. For near- and medium-term scenarios, and compressor systems, was conducted to this study relied on estimates based on the calculate theoretical capture costs based more conservative $40 per barrel oil price on the emission quantity, operational patterns, scenario. and energy costs of each facility. A detailed description of screening process criteria Stationary emissions from industrial and capture cost estimation can be found in and power facilities published by the US the methodological appendix of this report. 2
Average estimated capture costs for each Through an iterative process, a series of industrial sector considered by this study are scenarios were constructed to explore the published in the Summary of Findings section research questions outlined in the previous on the following pages of this report. section of this report. These research questions focus on identifying broad Los Alamos National Laboratory’s SimCCS geographic corridors for regional CO2 model 7 was used to simulate optimized transport; modeling which facilities and CO2 transport infrastructure to link cost segments of pipeline might break even or effective sources of CO2 to locations of produce revenue within the existing and potential economic demand for utilization near-term economic context; determining and storage. SimCCS minimizes the cost how potential economic demand for CO2 at of CO2 transport routes over a cost surface existing EOR operations and technical storage based on numerous layers of geographic potential in nearby deep saline formations can information and right-of-way concerns such as provide opportunities for CO2 capture retrofit; urban areas, bodies of water, publicly-owned assessing the overall opportunity for carbon TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE lands and natural resources, indigenous capture and storage under the Section 45Q or tribal lands, and existing infrastructure. tax credit; and finally, identifying the remaining The physical and financial requirements of barriers and areas in need of support to fully transport infrastructure were calculated and realize the potential for economy-wide capture analyzed using the National Energy Technology and storage of CO2 to meet midcentury Laboratory (NETL) CO2 Transport Cost Model, decarbonization goals. which were also integrated into the cost calculations of SimCCS.8 3
SUMMARY OF FINDINGS Capture Feasibility: Potential Sources of CO2 Each year, stationary power sources in the reported by the US EPA, 1,517 are likely US emit nearly 2 billion metric tons of GHG eligible for the 45Q tax credit. These emissions, while US industrial facilities emit 45Q-eligible facilities make up 89% of all nearly 1 billion metric tons of GHG emissions. CO2 emissions from US power and industrial Combined emissions from these power and facilities. This analysis identified 418 facilities industrial facilities comprise roughly half of all as candidates for near- and medium-term US GHG emissions.9 deployment, with the combined potential to capture 358 million metric tons of CO2 Of the 6,586 power and industrial facilities emissions annually. Table 3. Stationary emissions from US industrial and power facilities GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE Share of US Number of Biogenic Nitrous Industry Stationary CO2 CO2 Methane Facilities CO2 Oxide Emissions Coal Power Plant 336 45% 1,270.6 0.4 3.0 6.2 Gas Power Plant 963 21% 581.3 0.9 0.5 0.4 Refineries 121 6% 171.3 0.0 0.7 0.4 Metals, Minerals & 1,511 5% 101.1 5.3 42.3 0.4 Other Gas Processing 1,246 4% 88.9 0.2 9.9 0.1 Waste 1,225 4% 11.1 17.5 86.7 0.4 Cement 149 3% 90.4 0.9 0.1 0.2 Hydrogen 79 2% 66.2 - 0.1 0.1 Steel 82 2% 58.5 - 0.3 0.0 Chemicals 266 2% 30.4 0.7 0.1 13.1 Petrochemicals 61 2% 46.1 0.1 0.5 0.1 Pulp & Paper 225 2% 37.1 112.2 5.2 0.5 Other Power Plant 118 1% 36.4 9.2 0.2 0.2 Ethanol 181 1% 31.2 9.2 0.1 0.1 Ammonia 23 1% 25.21 - - 4.1 Grand Total 6,586 100% 2,645.8 147.9 149.5 26.2 All emissions are in million metric tons. 45Q-eligible facilities make up 89% of all CO2 emissions from US power and industrial facilities. This analysis identified 418 facilities as candidates for near- and medium-term deployment, with the combined potential to capture 358 million metric tons of CO2 emissions annually. 4
Summary of Findings: 45Q Eligibility Figure 3. 45Q-eligible facilities by industry and emissions TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE Emitting Facilities METALS, MINERALS AMMONIA ETHANOL & OTHER GAS POWER CEMENT PETROCHEMICALS PLANT GAS PULP & CHEMICALS PROCESSING PAPER STEEL Figure authored by GPI based COAL POWER on data from EPA FLIGHT 2018. HYDROGEN REFINERIES WASTE PLANT Table 4. 45Q-eligible facilities by industry and emissions Share of Number of Biogenic Nitrous Industry 45Q-Eligible CO2 Methane Facilities CO2 Oxide Emissions Coal Power Plant 308 53.8% 1,269.6 0.3 3.0 6.2 Gas Power Plant 571 23.8% 565.4 0.7 0.4 0.4 Refineries 78 6.9% 163.3 - 0.6 0.4 Cement 135 3.7% 88.8 0.9 0.1 0.2 Hydrogen 57 2.7% 64.3 - 0.1 0.1 Steel 31 2.3% 54.0 - 0.2 - Ethanol 173 1.3% 31.0 8.97 0.1 0.1 Ammonia 21 1.2% 25.1 0.0 0.0 4.1 Petrochemicals 30 1.1% 26.0 0.1 0.4 0.1 Metals, Minerals & 37 0.9% 19.5 - 0.4 - Other Gas Processing 40 0.9% 19.9 - 0.7 - Chemicals 16 0.8% 8.7 - 0.0 10.4 Pulp & Paper 18 0.4% 7.8 25.5 2.4 0.1 Waste 2 0.1% 0.8 1.2 0.6 - Grand Total 1,517 100% 2,344.2 29.3 9.1 22.1 All emissions are in million metric tons. 5
Summary of Findings: Near- and Medium-Term Potential Capture Retrofit Figure 4. Identified near- and medium-term capture facilities within study region GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE Emitting Facilities AMMONIA ETHANOL PETROCHEMICALS GAS POWER CEMENT REFINERIES PLANT GAS STEEL CHEMICALS PROCESSING Figure authored by GPI based COAL POWER PLANT HYDROGEN on data from EPA FLIGHT 2018. Table 5. Identified near- and medium-term capture facilities Average Share of Total Number of Estimated Industry Estimated Cost Capturable Facilities Capturable CO2 $/ton Estimate Coal Power Plant 58 $56 143.4 40.1% Gas Power Plant 60 $57 67.9 19.0% Ethanol 150 $17 50.6 14.1% Cement 45 $56 32.7 9.1% Refineries 38 $56 26.5 7.4% Steel 6 $59 14.6 4.1% Hydrogen 34 $44 14.4 4.0% Gas Processing 20 $14 4.5 1.3% Petrochemicals 2 $59 1.7 0.5% Ammonia 3 $17 0.9 0.3% Chemicals 2 $30 0.7 0.2% Grand Total 418 $39 357.8 100.0% All emissions are in million metric tons. 6
This analysis included a literature review and optimizing cost of capture on a per ton meta-study of published costs of capture basis. Table 6 reports the average and range for a variety of industries and equipment of estimated capture costs calculated for configurations. Unit- and process-specific this study. A full description of the sources, emissions were identified to determine optimal equipment, capital financing scenarios, capture quantities while minimizing overall and cost calculations can be found in the capital investment requirements, thereby methodological appendix of this report. Figure 5 & Table 6. Estimated capture cost per industry for near-term facilities in study area $80 Average Range of Cost Industry Estimated Cost Estimates $70 $/ton $/ton Gas Processing $14 $11 - $16 $60 Ethanol $17 $12 - $30 TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE $50 Ammonia $17 $15 - $21 Chemicals $30 $19 - $40 $40 Hydrogen $44 $36 - $57 Refineries $56 $43 - $68 $30 Coal Power Plant $56 $46 - $60 $20 Cement $56 $40 - $75 Gas Power Plant $57 $53 - $63 $10 Steel $59 $55 - $64 Petrochemicals $59 $57 - $60 $0 ing ol nia ls n s nt el als er er Figure authored by GPI based on data from EPA FLIGHT 2018. rie ge ica an Ste me ow ow mic ess mo fine dro Eth em al P sP Ce Am che roc Hy Re Ch Ga Co sP tro Pe Ga 7
Figure 6. Estimated capture target and cost of capture per industry for near- and medium- term capture opportunities in study area CHEMICALS Figure authored by GPI based on $19 - $40 data from EPA FLIGHT 2018. AMMONIA $15 - $21 PETROCHEMICALS $57 - $60 1.7 14 MT .4 14 MT 14 .6 GAS PROCESSING CO MT 3.4 $11 - $16 AL MT HYDROGEN $4 $36 - $57 6- 26.5 STEEL $60 MT $55 - $64 GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE REFINERIES $43 - $68 CEMENT 32.7 MT $40 - $75 ET NO HA 6 3 L$ -$ 50 12 53 - $3 E R$ .6 0 G AS PO W MT .9 MT 67 Each piece of the outer ring Potential capture amounts and proportionally represents an range of estimated capture individual facility in each sector costs in each sector MT: Million metric tons CO2 8
Summary of Findings: CO2 Storage Opportunities Figure 7. Geologic deep saline formations and existing oil fields with CO2 storage potential TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE FIELD WITH TECHNICAL POTENTIAL FOR EOR SALINE FORMATION EXISTING CO2 PIPELINE Figure authored by GPI based on data from ARI and NATCARB. A total technical potential for storage in deep report focus on EOR operations and locations saline formations of over 4.5 trillion metric within deep saline formations that present tons was identified within the study region. feasible economics under today’s policy and Meanwhile, existing EOR operations within market context, accounting for estimated this same region may have the potential to costs of capture, the Section 45Q tax credit, store over 500 million metric tons of CO2 transportation costs, injection and storage per year, or over 10 billion metric tons over costs, the delivered price of CO2, and potential 20 years. These estimates refer to technical oil revenue. This study was not intended to potential without consideration of costs and perform further geologic characterization of economic feasibility. For modeling, this analysis deep saline formations to identify specific did consider the likely market price of CO2 for injection sites. Local planning and geologic utilization and storage by EOR, as well as the characterization must be performed to identify estimated cost of injection, storage, and long- feasible injection sites within broader geologic term monitoring in deep saline formations. formations. The modeling scenarios presented in this 9
Summary of Findings: CO2 Transport Infrastructure for Economy-Wide Deployment As outlined in the sections above, and detailed and international temperature targets, shared in the methodological appendix of this paper, regional CO2 transport infrastructure will this analysis identified near- and medium- minimize investment requirements, transport term opportunities for capture at industrial costs, and land use. Los Alamos National and power facilities along with likely geologic Laboratory’s SimCCS model was used to storage opportunities in deep saline formations identify optimal regional scale transport and existing EOR operations. To maximize networks that deliver CO2 from capture CO2 capture and storage and approach the facilities to storage locations identified by this scale needed for US decarbonization targets analysis, resulting in Figure 8. Figure 8. Optimized transport network for economy-wide CO2 capture and storage GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE EOR FIELD WITH POTENTIAL CO2 DEMAND POTENTIAL SALINE EMITTING FACILITIES INJECTION AREA AMMONIA REGIONAL CO2 INFRASTRUCTURE GAS POWER (MODELED) CEMENT PLANT Pipeline capacity (mtpa) GAS PETROCHEMICALS
Summary of Findings: Transport Costs The NETL CO2 Transport Cost Model facilities had moderately high per-ton transport was used to estimate capital investment, costs due to relatively lower volume (100,000 operational, and maintenance costs of each to 4 million metric tons per year). segment of the transport network according to its capacity and length. Costs were calculated Under current economic conditions, transport at expected private sector rates of return on costs would ideally fall between $10 and $20 capital investment without additional support per ton in order for capture and storage to or low-cost financing. economically break-even under Section 45Q. The higher per-ton delivered cost of individual As expected, costs on a per-ton basis are facility feeder lines indicates that shared or much lower for large shared trunk lines that coordinated investment of CO2 transport transport huge volumes of CO2 (more than infrastructure, and/or supportive policies 12 million metric tons per year), commonly such as low-cost financing, may be needed TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE achieving transport costs well below $10 per to achieve optimal regional scale transport ton. Segments that transport between 4 and infrastructure that minimizes total system cost 12 million tons per year had estimated costs while maximizing economy-wide CO2 capture generally between $10 and $20 per ton. Small and storage. feeder lines that connect to individual capture Figure 9. Relative transport cost of network segments REGIONAL CO2 INFRASTRUCTURE (MODELED) Estimated cost per ton transported Cost Length Very low Low to moderate Range miles Moderate to high Pipeline capacity (million tons per year) Very Low 18,006
Summary of Findings: High-Cost Sensitivity Scenario Achieving US economy-wide decarbonization with economic demand for CO2, or to store in goals will likely require capital investment nearby saline formations at a cost (for injection, across numerous sectors and industries. storage, and monitoring). Analysis from the IPCC found that carbon mitigation under the 2 degree C scenario The results of this high-cost sensitivity show would cost 138% more if carbon capture two things: First, that there is immediate were not included as an emissions reduction economic potential for geographically strategy.10 As shown above, while CO2 concentrated, low-cost industrial sources transport infrastructure does represent a in the Midwest (e.g., ethanol facilities) to significant cost, the buildout of a shared aggregate their CO2 supply and deliver to regional-scale transport network will minimize storage locations at petroleum basins in the overall capital investment required. Kansas, Oklahoma, and Texas. Second, in areas with sufficient storage potential in GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE To identify near-term opportunities for early deep saline formations, a variety of industries stage buildout of this regional network, this with low and moderate capture costs have study ran SimCCS in a strict economic pricing economic potential to claim Section 45Q tax mode in which all infrastructure investment credits for local storage in nearby deep saline must be paid for by the sale of CO2. Near- formations. This is also true for these same term candidates for capture retrofit were industries in areas with storage potential provided the option to invest in transport in petroleum basins, such as Louisiana, infrastructure to reach distant EOR operations Oklahoma, Texas, and parts of the Rockies. Figure 10. High-cost sensitivity with economic break-even EOR FIELD WITH POTENTIAL CO2 DEMAND POTENTIAL SALINE EMITTING FACILITIES INJECTION AREA AMMONIA REGIONAL CO2 INFRASTRUCTURE (MODELED) GAS POWER CEMENT Pipeline capacity (mtpa) PLANT GAS
Summary of Findings: Expansion of Storage in Deep Saline Formations Based on the findings of the initial transport states, and various locations throughout the network optimization modeling and the Rockies. This scenario achieved 669 million following high-cost sensitivity model run, metric tons of CO2 capture and storage, which identified additional economic potential enabled by saline storage for an expanded for CO2 storage in deep saline formations set of 45Q-eligible facilities in addition to nearby capture facilities, a final regional-scale the near- and medium-term facilities. network scenario was modeled to optimize capture and transport infrastructure for storage This study used geologic data for deep saline at previously identified EOR operations and formations from NATCARB and the SCO2T additional deep saline formations. saline storage database, as detailed in this paper’s Study Approach section and the This aggressive saline scenario, illustrated in Methodological Appendix. Further geologic Figure 11, resulted in a regional CO2 transport characterization of deep saline formations TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE network similar to the initial scenario but with must be performed in order to identify actual expanded storage in saline formations in the injection and storage sites within local areas. eastern parts of the Midwest, Gulf Coast Figure 11. Expanded storage in deep saline formations and petroleum basins EOR FIELD WITH POTENTIAL CO2 DEMAND EMITTING FACILITIES POTENTIAL SALINE INJECTION AREA AMMONIA REGIONAL CO2 INFRASTRUCTURE CEMENT (MODELED) GAS Pipeline capacity (mtpa) CHEMICALS PROCESSING
Full Discussion of Findings and Results US DECARBONIZATION GOALS AND POLICY CONTEXT Analysis by the International Energy Agency key carbon-intensive industries such as steel (IEA) has determined that deployment of and cement, significant CO2 emissions result carbon capture technology is critical to achieve from the mechanical or chemical nature of the midcentury US and global carbon reduction production process itself, regardless of the and temperature targets.11 IEA’s modeling source of process energy. Carbon capture estimates that more than 28 billion enables industrial sectors, which account for tons of CO2 must be captured globally 33% of US stationary emissions, to reduce or from industrial processes by 2060.12 eliminate carbon emissions while protecting Decarbonizing the US and global economy and creating high-wage employment.14 Carbon will require significant capital investment. capture is therefore an essential emissions However, IPCC modeling suggests that reduction tool for industries that are otherwise GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE pursuing decarbonization would cost 138% difficult to decarbonize even after switching to more without the use of carbon capture.13 For low-carbon electricity. Figure 12. All major emitter facilities by industry and emissions Emitting Facilities GAS POWER PETROCHEMICALS AMMONIA PLANT GAS PULP & CEMENT PROCESSING PAPER CHEMICALS HYDROGEN REFINERIES COAL POWER METALS, MINERALS PLANT STEEL & OTHER OTHER POWER ETHANOL WASTE PLANT Figure authored by GPI based on data from EPA FLIGHT 2018. 14
Section 45Q Tax Credit an eligible project is ultimately used. Projects Section 45Q of the US tax code provides storing CO2 geologically through EOR, and a performance-based tax credit for carbon projects using CO2 or CO for other beneficial capture projects that can be claimed when uses, such as converting carbon emissions an eligible project has securely stored the into fuels, chemicals, or useful products like captured carbon dioxide (CO2) in geologic concrete, generate $35 per ton of CO2 stored formations, such as deep saline formations or utilized. Projects storing CO2 in other and petroleum basins, or beneficially used geologic formations and not used in EOR captured CO2 or its precursor carbon generate $50 per ton of CO2 stored. monoxide (CO) as a feedstock to produce fuels, chemicals, and products such as This analysis focused on industrial and power concrete in a way that results in emissions facilities that would meet the minimum capture reductions as defined by federal requirements. thresholds for eligibility. It is important to note that eligible projects that begin construction within six years of the TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE IEA’s modeling estimates that more than FUTURE Act’s enactment (i.e., 28 billion tons of CO2 must be captured before January 1, 2024) can globally from industrial processes by 2060. claim the credit for up to 12 years after being placed in The availability of the newly expanded and service. This timeline underscores the urgency reformed 45Q tax credit reduces the cost of this analysis, and of action on the part of and risk to private capital of investing in the commercial entities and other stakeholders. deployment of carbon capture technology across a range of industries, including electric APPROACH, DATA, AND TOOLS power generation, ethanol and fertilizer As summarized previously in this paper, this production, natural gas processing, refining, analysis relied on data and tools available from chemicals production, and the manufacture of federal institutions and national laboratories to steel and cement. study power and industrial facility operations, geologic storage potential, and CO2 transport Eligibility is extended to three categories of routing and logistics. carbon capture project, each with their own threshold for eligibility: Projects capturing Power and Industrial Facilities: carbon for a beneficial use other than EOR EPA FLIGHT and eGRID are eligible if they capture between 25,000 Since 2010, the United States Environmental 500,000 metric tons of CO2/CO per year. All Protection Agency (EPA) Greenhouse Gas other industrial facilities (other than electric Reporting Program (GHGRP) has collected generating units), including direct air capture and published greenhouse gas emissions are eligible if they capture at least 100,000 data from large emitting facilities, suppliers metric tons of CO2/CO per year. Electric of fossil fuels, and industrial gases that result generating units are eligible if they capture at in greenhouse gas (GHG) emissions when least 500,000 metric tons of CO2/CO per year. used, and facilities that inject carbon dioxide Meanwhile, the amount of credit generated underground. Sources whose emissions is determined by how the CO2 captured from are equal to or surpass 25,000 metric tons 15
of CO2 equivalent are required by law to Opportunities for Long-Term Storage submit emissions data to the GHGRP. In of CO2: SCO2T Saline Data total, EPA’s GHGRP gathers GHG data from The Sequestration of CO2 Tool (SCO2T), over 8,000 facilities.15 This data is published created by Los Alamos National Laboratory online as a resources called the EPA Facility and Indiana University, provided nation-wide Level Information on Greenhouse Gases Tool assessment of geologic deep saline formations (FLIGHT). for CO2 storage potential.19 SCO2T compiles data from the USGS and the National Carbon This analysis utilized EPA FLIGHT data Sequestration Database and Geographic to provide detailed information about the Information System (NATCARB). NATCARB emissions profile and other characteristics is administered by the US DOE’s National of emitter facilities in order to assess each Energy Technology Laboratory and contains emitter for potential carbon capture retrofit data provided by several Regional Carbon viability. This analysis did not consider smaller Sequestration Partnerships (RCSP). emitters that would not qualify for the 45Q GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE tax credit, nor facilities that would suffer SCO2T employs reduced-order models scale diseconomies if application of capture to calculate physical characteristics and technology were to be retrofitted. Direct CO2 engineering estimates for drilling, injection, emission levels were used to determine facility and storage, such as well injection rate, CO2 eligibility for Section 45Q tax credits for CO2 plume area, and injection costs. A depiction capture at minimum thresholds of 100,000 of SCO2T’s current data coverage (at the time tons and 500,000 tons per year for industrial of writing) for 10 km2 grid-cells is provided and power facilities, respectively.16 in Figure 13, which reports relative storage potential for each geologic formation at each These 45Q-eligible facilities and their process- cell. The location, annual injection potential, specific emissions were compiled into a and estimated total injection and storage database, against which a screening process cost from SCO2T were primary inputs into was applied based on facility operation, the capture, storage, and transport modeling production, energy use, heat rate, and other conducted for this analysis. factors. This screening process was intended to identify potential near- and medium-term facilities that might feasibly participate in regional CO2 transport infrastructure networks for capture and delivery of CO2 under today’s market and policy context. The full screening methodology, criteria, and cost components are provided in the appendix of this document. EPA’s Emissions & Generation Resource Integrated Database (eGRID)17 provided unit- and generator-specific operational data and was supplemented by power plant information from the proprietary ABB Ability Velocity Suite.18 16
Figure 13: Relative CO2 storage potential by geologic formation and 10 km2 grid-cell provided by SCO2T TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE Very Low Storage Cost Figure authored by GPI Low Storage Cost based on data from Moderate to High Storage Cost SCO2T and NATCARB. Not yet characterized Storage potential and economic criteria storage of tremendous amounts of CO2. for CO2 injection at enhanced oil recovery Figure 13 shows that deep saline formations operations was provided by the Advanced with CO2 storage potential exist throughout Resources International, Inc. (ARI) proprietary large areas of the US. Once injected into a Big Oil Fields Database.20 This database contains detailed North American CO2 storage potential information on over 6,000 oil is estimated to be as high as 22 trillion reservoirs, accounting for over 75% metric tons, enough to store nearly of all oil expected to be ultimately 3,500 years of US CO2 emissions. produced in the US through primary and secondary recovery processes. The saline formation, CO2 is secured by physical database reports information on reservoir and chemical trapping mechanisms. The volume, cumulative oil production to-date of IPCC reports that well-selected and managed each reservoir, and remaining potential for geologic sites are likely to retain over 99% of injection and storage of CO2. Reservoir-specific injected CO2 over 1,000 years. North American data also includes key geologic properties and CO2 storage potential alone is estimated to existing field infrastructure and activities that be as high as 22 trillion metric tons, which could influence the performance of a CO2-EOR could store nearly 3,500 years of US CO2 project. emissions.21 Injection of CO2 into geologic reservoirs As demonstrated in Figure 14, many potential provides an opportunity for the permanent candidates for carbon capture are co-located 17
in areas of opportunity for geologic storage. scale infrastructure that will later be used by This allows capture facilities to permanently expanded saline storage activity. While the store CO2 with minimal transport and may existing Section 45Q tax policy creates the even allow facilities to inject CO2 on or near opportunity for this, additional support or their existing property. In contrast, many low cost financing may be required to plan industrial and power facilities are located “supersized” CO2 transport infrastructure with in areas without significant deep saline capacity to take on additional volumes in the formations. Any effort to meet decarbonization future, rather than being fit for only a handful of goals while maintaining production at these near-term projects. facilities will likely need regional scale transport infrastructure to unlock delivery markets and As shown in Figure 14, major US oil fields economic value for captured CO2. are generally clustered in the Texas Gulf and Permian Basin of Western Texas and stretch The current Section 45Q tax policy provides up through the Western Plains and Northern an incentive for long-term CO2 storage in Rockies. There are also notable clusters in and GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE both deep saline formations and hydrocarbon around Illinois, Ohio, and Michigan. Of these basins where EOR operations utilize CO2. The oil fields, only some have sufficient demand for US oil and gas industry has significant current CO2 to create feasible economic conditions to EOR operations that utilize millions of tons of act as potential sites for CO2 storage through naturally occurring CO2 per year from geologic, CO2-EOR. Oil fields where CO2 demand would rather than anthropogenic, sources. With likely enable costs of transport and injection to respect to EOR, Section 45Q can provide a break even or create a profit were selected as two-fold benefit. Not only does the tax credit storage locations in our modeling scenarios. create an incentive for EOR operators to Overall, large-scale storage in oil fields would switch from geologic CO2 to anthropogenic require the establishment of sizeable trunk CO2, it creates a market for source facilities corridors, connecting regions with many CO2 to deliver captured CO2. This is especially sources to regions with many oil fields and helpful for potential source facilities located in other geologic sinks. areas without nearby deep saline formations. The combination of existing market demand and additional supportive tax incentives for the utilization of anthropogenic CO2 provides Maintaining industrial near-term economic rationale to build regional production while meeting infrastructure for the transport of CO2. decarbonization targets Because CO2 storage in deep saline incurs will require regional scale a cost for drilling, injection, and monitoring, transport infrastructure it may be a difficult economic proposition to to unlock delivery markets build dedicated transport infrastructure without and economic value for the revenue from sales to EOR operations. captured CO2. Thus, the purchase of CO2 for existing EOR operations can effectively finance regional- 18
Figure 14. CO2 sources and oil fields with CO2 injection potential TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE POWER PLANT EOR FIELD WITH INDUSTRIAL CO2 DEMAND > $20/TON FACILITY SALINE FORMATION SIZE OF PLANT EXISTING CO2 PIPELINE Figure authored by GPI based on results from NATCARB, EPA. Table 7. Storage potential in saline formations and EOR operations in study focus states State Saline EOR State Saline EOR Alabama 274,909.7 - North Dakota 132,978.0 148.6 Arkansas 18,111.3 106.4 Nebraska 51,580.9 28.8 Colorado 123,441.8 163.2 New Mexico 122,968.2 515.4 Illinois 74,294.9 130 Ohio 8,801.0 119.4 Indiana 59,738.1 10.2 Oklahoma 73,191.0 1,322.6 Kansas 32,231.3 366.8 South Dakota 5,047.3 2.8 Kentucky 40,460.8 - Tennessee 1,468.3 - Louisiana 660,992.5 1,096.2 Texas 1,372,789.7 4,875.4 Michigan 41,033.0 57.4 Utah 84,077.4 395.6 Mississippi 414,287.9 98 Wyoming 611,222.2 522.6 Montana 365,441.4 184.2 Table continued from previous Million metric tons storage potential 19
Pipeline Routing, Logistics, and GPI worked with Los Alamos researchers Scenario Development: SimCCS to accurately incorporate cost components SimCCS, created by Los Alamos National from NETL’s CO2 Transport Cost Model Laboratory in collaboration with Indiana into SimCCS, allowing the model to use University and Montana State University, is an comparative transport network cost estimates open-source software tool for designing CO2 in real time while determining routes for CO2 capture, transport, and storage infrastructure. transport. This analysis utilized SimCCS 2.0, which was released in January 2018, to determine GPI also used the NETL CO2 Transport Cost which power and industrial facilities would Model to calculate in-depth cost results and participate in an optimized capture network, determine physical characteristics of CO2 which locations are best positioned for low transport segments generated by SimCCS. cost injection and storage, and importantly, SimCCS reports the length and CO2 capacity to find the most efficient network to connect of each pipeline, allowing the NETL model to generate feasible diameters and a detailed GREAT PLAINS INSTITUTE TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE CO2 sources to sinks. SimCCS 2.0 integrates economic and geospatial considerations and breakdown of investment required for capital addresses critical parts of the CCS supply construction, materials, labor, operation, and chain simultaneously, identifying key cost maintenance. The resulting cost per ton of savings, revenue streams, and risks. SimCCS CO2 transported for each segment is a crucial minimizes the cost of CO2 transport routes component in modeling the economics of over a cost surface based on numerous CO2 capture, transport, and storage, as it layers of geographic information and right-of- indicates the likely transport tariff that a seller way concerns such as urban areas, bodies or buyer would need to pay in order to deliver of water, publicly-owned lands and natural CO2 to storage locations. In general, cost per resources, indigenous or tribal lands, and ton of CO2 transported decreased as pipeline existing infrastructure. diameter increased, given that more CO2 could be delivered with a greater-diameter pipeline. To create an optimized pipeline network, the model finds the shortest paths between all Regional CO2 Capture and Storage source and storage locations, while minimizing Transport Networks sharp angles in the routes and identifying the To optimize the design of a regional CO2 least expensive infrastructure to meet user- transport corridor suitable for economy- specified capture goals. The model also allows wide deployment, a series of scenarios users to project solutions across multiple time were devised that build out capture retrofits periods, proposing early stage infrastructure over time at industrial and power facilities. development to meet longer term capacity The datasets in Table 8 provided a range needs. of configurations for input data in these scenarios. The results from these scenarios The US DOE’s NETL CO2 Transport were provided in the first summary section of Cost Model was used to assess costs of this paper and are discussed in more detail in transporting CO2 between sources and sinks.22 the following pages. 20
Table 8. Primary input data sources per scenario CAPTURE STORAGE TRANSPORT Industrial and power Deep saline geologic NEAR- AND MEDIUM-TERM facilities within the study formations with estimated region identified as injection and storage near- or medium-term costs of less than $5 per opportunities for capture metric ton. retrofit. Data source: SCO2T, based Data source: EPA on NATCARB, RCSP, FLIGHT 2018 screened USGS. for economic capture opportunity. Petroleum basins: existing operations with potential demand for CO2 at oil TRANSPORT INFRASTRUCTURE FOR CARBON CAPTURE AND STORAGE GREAT PLAINS INSTITUTE prices of at least $40 per Trunk and feeder line barrel. route optimization and capacity determination Data source: ARI 2018. performed by SimCCS. Cost optimization and calculation performed by SimCCS based on costs published in the NETL CO2 Transport Cost Model. All US industrial and power Deep saline geologic MIDCENTURY HORIZON facilities with annual CO2 formations with estimated Further cost components emissions that qualify for injection and storage and financing 45Q. costs of less than $5 per considerations calculated Data source: EPA FLIGHT metric ton. by the NETL CO2 Transport 2018 screened for 45Q Data source: SCO2T, based Cost Model based on threshold emission levels. on NATCARB, RCSP, SimCCS output. USGS. Petroleum basins: existing operations with potential demand for CO2 at oil prices of at least $60 per barrel. Data source: ARI 2018. 21
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