Archive for 2.5 “Cleaning Up” Coal & Carbon Capture & Storage (CCS)

Facing Chinas Coal Future: Prospects and Challenges for Carbon Capture and Storage

According to IEA analysis, if there are no major policy changes, carbon‐intensive coal and other fossil fuels will continue to play a significant role in meeting future energy needs, in China and globally. Carbon capture and storage (CCS) is one of the technology options available to reduce carbon dioxide (CO2) emissions from the use of fossil fuels. CCS offers the opportunity to meet climate change objectives while providing energy security, as part of a portfolio of options including energy efficiency, renewable energy, nuclear energy, more efficient coal technologies and fuel switching from coal to gas. To meet the energy challenges of associated CO2 emissions, global deployment of all these technologies will be necessary to achieve a more sustainable future. This paper discusses the status of CCS in China, providing updates on past activities in R&D and on current projects, and an overview of potential and challenges for CCS development in China. It explores China’s energy and emission trends and pathways and the potential role for CCS, and analyses China’s current CCS‐related activities and policies and options for financing of CCS. The paper also provides perspectives on CCS from various Chinese stakeholders, examples of key CCS activities with details on specific projects, and information on the regulatory and policy environment and international co‐operation related to CCS in China. Globally, CCS for facilities using natural gas must be considered, but this report is concerned mainly with technologies using coal, which will remain China’s dominant fuel for some years to come.

2 Coal, 2.5 "Cleaning Up" Coal & Carbon Capture & Storage (CCS)

Sustainable Use of Coal and Pollution Control Policy in China, CCICED Policy Research Report 2009

CCICED 2009 Annual General Meeting November11-13, 2009

2.5 "Cleaning Up" Coal & Carbon Capture & Storage (CCS)

Real Drivers of Carbon Capture and Storage in China and Implications for Climate Policy

The capture and permanent storage of CO2 emissions from coal combustion is now widely viewed as imperative for stabilization of the global climate. Coal is the world’s fastest growing fossil fuel. This trend presents a forceful case for the development and wide dissemination of technologies that can decouple coal consumption from CO2 emissions—the leading candidate technology to do this is carbon capture and storage (CCS). China simultaneously presents the most challenging and critical test for CCS deployment at scale. While China has begun an handful of marquee CCS demonstration projects, the stark reality to be explored in this paper is that China’s incentives for keeping on the forefront of CCS technology learning do not translate into incentives to massively deploy CCS in power plant applications as CO2 mitigation would have it. In fact, fundamental and interrelated Chinese interests—in energy security, economic growth and development, and macroeconomic stability—directly argue against large-scale implementation of CCS in China unless such an implementation can be almost entirely supported by outside funding. This paper considers how these core Chinese goals play out in the specific context of the country’s coal and power markets, and uses this analysis to draw conclusions about the path of CCS implementation in China’s energy sector. Finally, the paper argues that effective climate change policy will require both the vigorous promotion and careful calculation of CCS’s role in Chinese power generation. As the world approaches the end of the Kyoto Protocol in 2012 and crafts a new policy architecture for a global climate deal, international offset policy and potential US offset standards need to create methodologies that directly address CCS funding at scale. The more closely these policies are aligned with China’s own incentives and the unique context of its coal and power markets, the better chance they have of realizing the optimal role for CCS in global climate efforts.

2 Coal, 2.5 "Cleaning Up" Coal & Carbon Capture & Storage (CCS)

Cleaner Coal in China

This report presents an overview of coal in China, examines coal-related policies and issues, and recommends ways the country – both on its own and in co-operation with others – might improve the sustainability of coal use. To help address the challenges, the IEA makes ten key recommendation, together with suggestions on how these might be implemented in China. Each recommendation is important – all the issues must be tackled and none ignored. The challenges created by coal use in China are no longer just a national issue – they transcend boundaries. Finding solutions in our increasingly globalised world demands much greater international engagement. The most powerful form of co-operation is international trade and this forms a central theme to the recommendations. All governments need to make sure that trade, linked to clean energy, grows quickly. This report provides policy makers with the information needed to appreciate the scale of the challenges faced and the role of international co-operation and collaboration in solving them. Providing insight for those outside of China is only one objective of the report; another is to share the experiences of developing coal-related policy in IEA member countries with policy makers in China. These experiences have been distilled into a single chapter, which, of course, cannot do justice to the efforts made over many years to improve the way coal is mined and used.

2 Coal, 2.5 "Cleaning Up" Coal & Carbon Capture & Storage (CCS)

How the People’s Republic of China Is Pursuing Energy Efficiency Initiatives: A Case Study

The Government of the People’s Republic of China (PRC) has been paying increasing attention to enhancing energy efficiency, especially in the wake of rapid expansion of power generating capacity in recent years. The existing even-load power generation scheduling regime, however, fails to contribute toward the objective of energy efficiency in power generation and is now regarded as a major cause of energy inefficiency and environmental problems. Since early 2007, the government has adopted unprecedented actions to reform the scheduling rule and has coupled it with equally strong actions to phase out inefficient power generating units. The initial outcomes indicate that the policy has been effective and successful. Over 500 inefficient small thermal generating units, with the combined generating capacity of 14.4 gigawatts, were decommissioned during the first year of implementation. This has resulted in significant reduction in coal consumption, greenhouse gas, and other pollutant emissions, and impressive improvement in energy efficiency. Why is the policy successful and effective? What challenges lie ahead during further implementation? What lessons can one draw from the experience in the PRC? This paper attempts to address these questions, focusing on the key concern of implementation. Any program, no matter how meticulously designed, amounts to nothing if not implemented carefully.

2 Coal, 2.5 "Cleaning Up" Coal & Carbon Capture & Storage (CCS)