September 21, 2011 — China Datang Corp. and Alstom have signed a memorandum of understanding to form a long-term strategic partnership and jointly develop carbon capture and storage demonstration projects in China.
Under the terms of the memo, Alstom, together with Datang, will develop two CCS demonstration projects respectively located in China's two biggest oilfields Daqing, Heilongjiang province and Dongying, Shandong province. Alstom offers three technologies for carbon capture: oxy-firing, chilled ammonia and advanced amines.
The 350 MW coal-fired power plant of Daqing will be equipped with Alstom's oxy-firing technology and the 1,000 MWe Dongying coal-fired power plant will also adopt one of Alstom's carbon capture technologies.
Both CCS projects are scheduled for operation in 2015. Once completed, the two CCS demonstration projects will each be able to capture above 1,000,000 metric tons of CO2 annually.
The two projects represent improvement of CCS demonstration projects in China in terms of scale and technology and will further diversify China's CCS technology mix. Economically speaking, the adjacency to oilfields of these projects provides a convenient and cost-effective condition for CO2 transport, use and storage.
In addition, after being compressed and piped deep into the oilfield, the CO2 can serve as effective tool for oil pumping, i.e. enhanced oil recovery, which will increase the financial feasibility of these two demo projects.
For a coal-dependent country like China, carbon capture and storage technology is an essential part of a successful strategy to address climate change while providing cost effective thermal power solution to meet China's energy needs.
The Chinese government has vowed to reduce CO2 emissions per unit of GDP by 40-45 percent by 2020 from 2005 levels, following its promise for a 20 percent cut by 2010. The two demo projects will pave the way for large-scale CCS deployment in China and help the government in honoring its commitment.
Currently Alstom has 16 pilot and demonstration projects all around the world. Earlier this year in June, Alstom has announced that carbon capture technology works and will be cost effective and competitive compared to all other CO2-free technologies.