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The Carbon Corner - Issue #66

Published 4 months ago • 5 min read

Happy New Year! As we step into a new year filled with promise and possibilities, let's take a closer look at some exciting developments in the world of carbon capture and storage (CCUS). In our latest blog roundup, we'll explore three captivating stories that underscore the growing significance of CCUS in the fight against climate change and our journey towards achieving net-zero emissions.

DOE-Funded Carbon Capture Projects Set to Transform Energy Landscape

The Department of Energy is set to fund three carbon capture projects, one of which has a long-term partnership with California's Sacramento Municipal Utility District (SMUD).

The Sutter Decarbonization Project, located at the Sutter Energy Center, aims to deploy a commercial-scale carbon capture system at a 550-megawatt natural gas combined-cycle power plant. SMUD emphasizes that the project will bring tangible benefits to its customers, particularly disadvantaged communities. After capturing CO2, the project will permanently store it more than half a mile underground in saline geologic formations, making it an eco-friendly initiative. Remarkably, it will be the world's first carbon capture facility to use an air-cooling system, significantly reducing freshwater usage, which is a major concern for the local community. The project also plans to engage with labor organizations and educational institutions and negotiate a robust Community Benefits Agreement. The DOE is providing up to $270 million in federal funding for this California project, with Sutter CCUS LLC, a Calpine subsidiary, as the prime contractor.

The other funded projects include the Baytown Carbon Capture and Storage Project in Texas and Project Tundra in North Dakota, each receiving up to $270 million and $350 million in federal cost share, respectively. These initiatives represent a significant step toward carbon emissions reduction and sustainable energy solutions.

Florida's Groundbreaking Carbon Storage Hub: A Key Step Towards Carbon Neutrality

A groundbreaking study is underway to assess the feasibility of establishing an intermediate carbon dioxide (CO2) storage hub at Port Tampa Bay in Florida. Known as T-RICH, this project aims to receive, store, and process a substantial two million metric tons of CO2 annually, sourced from industrial emitters across the state. Once processed, the CO2 will be transported via Overseas Shipholding Group (OSG) vessels across the Gulf of Mexico for permanent underground storage, marking the first hub of its kind in the nation. The hub's scalability allows it to accommodate increased volumes of captured CO2 over time. This initiative responds to Florida's significant CO2 emissions from power generation and industry, offering an innovative solution as the state lacks a CO2 transport pipeline system.

The U.S. Department of Energy (DOE) supports such carbon capture and storage systems as part of the country's mission to achieve net-zero carbon emissions by 2050. CO2 transport plays a crucial role by connecting various sectors and redirecting emissions from industrial processes and energy production away from the atmosphere. It enables the capture of CO2 emissions at their source and directs them to designated storage sites. This infrastructure will contribute significantly to the circular economy, with captured CO2 potentially repurposed as a feedstock for green fuels. Carbon capture and storage systems are expected to make up to 30% of the total carbon emission reduction efforts in the U.S. The T-RICH project will not only link Florida to the growing CO2 industry but also improve air quality and create numerous job opportunities in the state related to carbon capture, storage, and transport systems.

Air Liquide Announces Innovative Carbon Capture Project in Rotterdam, Netherlands

Air Liquide SA has announced its plans to build and operate a world-scale carbon capture unit in Rotterdam, Netherlands, with a focus on reducing emissions within its operations and for its customers. The company will utilize its advanced Cryocap technology for the project, placing the unit at its hydrogen production plant in Rotterdam's industrial area, with a connection to the Porthos carbon capture and storage (CCS) infrastructure in Europe.

Cryocap is an innovative carbon capture solution that employs a cryogenic process to extract carbon dioxide. The carbon capture process will commence at Air Liquide's hydrogen plant in Rotterdam and then utilize the Porthos infrastructure to permanently store the captured carbon dioxide in depleted gas fields located about 12.4 miles (20 kilometers) off the North Sea coast. The unit is expected to be operational by 2026 and is part of Air Liquide's commitment to providing significantly decarbonized hydrogen to its long-term customers.

The collaboration with Porthos, or the Port of Rotterdam CO2 Transport Hub and Offshore Storage, involves partnerships with Energie Beheer Nederland (EBN), Nederlandse Gasunie NV, and the Port of Rotterdam Authority. Porthos, recognized by the European Union as a critical project in achieving climate targets, has received substantial funding and is set to begin construction in Rotterdam in 2024, targeting operational status by 2026.

Porthos is dedicated to providing carbon transportation and storage services, facilitating the movement of carbon dioxide from the Rotterdam port to depleted gas fields in the North Sea. These offshore fields will serve as the permanent storage location, with depths ranging from 1.9 to 2.5 miles (three to four kilometers) beneath the seabed, with plans to store approximately 2.5 million metric tons per year for 15 years. The system aims to accumulate around 37 million metric tons at full storage capacity. Additionally, the onshore transport system is being developed to accommodate future carbon storage projects.

The European Union's recognition of Porthos as a Project of Common Interest underscores its pivotal role in advancing carbon capture and storage solutions. Companies like Air Liquide, Air Products, ExxonMobil, and Shell have expressed interest in the project, signaling the industry's commitment to sustainable practices and emissions reduction.

UK Unveils Ambitious CCUS Vision to Lead in Carbon Capture Technology

The UK government has unveiled its CCUS (Carbon Capture, Usage, and Storage) Vision, outlining plans to establish a world-leading carbon capture industry in the country. The goal is to make the UK a competitive CCUS market by 2035, creating growth, attracting investment, and generating tens of thousands of jobs. CCUS is recognized as a vital element in achieving national decarbonization objectives and global net-zero targets. The government has committed £20 billion in funding to support early CCUS development, expected to create up to 50,000 jobs and capture 20–30 million metric tons of CO2 annually by 2030.

The plan envisions an annual carbon capture capacity of at least 50 million metric tons by 2035, with UK companies competing globally to build CCUS facilities. The measures include introducing a competitive allocation process for carbon capture projects starting in 2027 and enabling projects unable to transport CO2 via pipelines to enter the market using alternative transport methods like ships, roads, and rails from 2025 onwards. The government will also streamline leasing, licensing, and permitting processes to support carbon storage expansion. Additionally, a working group led by the industry will seek solutions to reduce carbon capture costs.

Capsol Technologies Signs Agreement for Full-Scale Carbon Capture Projects with European Utility

Capsol Technologies has signed a Frame License Agreement for the use of CapsolEoP® in full-scale carbon capture projects with a European utility that owns numerous waste-to-energy (WtE) and biomass plants across Europe. The initial projects expected to be executed under this agreement will have a combined planned capacity of around 550,000 tonnes of CO2 per year. While the license fee falls within the previously communicated range, the Final Investment Decision (FID), which triggers a license fee payment to Capsol, is anticipated within approximately 24 months, with engineering packages provided on a paid basis.

Schaper Energy Consulting is a professional engineering firm offering carbon strategy services to CCS site developers. Check out some examples of our projects here: https://schaperintl.com/carbon-strategies/

If you have questions or comments, please contact us at info@schaperintl.com.

We hope you enjoyed reading this week and hope to see you back next week for more!

Schaper Energy Consulting

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