Global carbon capture projects up in 2010, despite costs

The number of carbon capture and storage (CCS) projects active or planned rose in 2010 despite soaring costs and slow progress in global climate change talks.
According to Reuters, the Global CCS Institute said 234 CCS projects were active or planned worldwide at the end of 2010, a net rise of 26 from 2009 despite cancellations including in the Netherlands and Finland.
CCS aims to capture planet-warming carbon dioxide in fossil fuels, such as from coal-fired power plants or cement factories, and bury it in depleted oil and gas reservoirs or other underground stores. No commercial-scale projects yet exist.
"The global commitment to carbon capture and storage remains strong," according to the Australia-based Institute, whose members include major businesses and governments of top emitters led by China, the United States, Russia and India.
But the study, published on the Institute website, pointed to rising costs that have discouraged investments due to sluggish economic growth in many developed nations.
It said recent reviews suggested costs for CCS, rising in line with those of large-scale energy projects, were "20 to 30 per cent higher than indicated in similar studies undertaken only two to three years ago."
Among big projects in 2010, Chevron began construction on the Gorgon project in Australia, due to be the biggest carbon storage project in the world. Southern Company is going ahead with a major US project.
The Institute also saw progress on promised funds. "As much as $40bn could be available to have large-scale projects up and running this decade," it said.
It listed 77 major projects, either planned or active, at the end of 2010 including 31 in the US. That total was up 13 overall in 2010 despite delays or cancellations to 22.
"There is a shift in focus a little bit from Europe to the United States," said Bob Pegler, general manager-Europe of the Global CCS Institute.
The change was partly because many US projects were also aiming to improve cash flow by injecting carbon dioxide into semi-depleted oilfields to raise output of valuable crude oil.
Among setbacks, in October the Dutch government shelved plans for a demonstration project in Barendrecht after delays and opposition from local people. Finnish energy company Fortum also said in October it was scrapping a Meri-Pori CCS project due to technological and financial risks.
The report said that China, the top emitter of greenhouse gases, "remains focused on research and development" for CCS. Pegler added: "If you look forward 10 or 15 years I can see China being a major, if not the dominant, player."

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...