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The 3rd Guangdong International CCUS Workshop Successfully Held in Guangzhou

Monday, December 12, 2016

On 12-13 December 2016, the “3rd Guangdong International CCUS Workshop: Accelerate CCUS Technology Innovation, Cost Reduction and Risk Mitigation” was successfully held by UK-China (Guangdong) CCUS Centre and co-organised by National Center for Climate Change Strategy and International Cooperation (NCSC) and China CCUS Centre in Guangzhou. Mr Daowen Wu, Deputy Director of Development and Reform Commission of Guangdong Province, Mr Matthew Rous, Consul-general of British Consulate General Guangzhou, Mr Neal Carlin, Head of Energy and Climate Change, British Embassy Beijing, Mr Li Ma, General Manager of South China Branch of China Resources Power (CRP) and Mr Darshak Mehta, International Consultant, SDAS, Sustainable Development and Climate Change Department, Asian Development Bank (ADB) addressed on the opening session of the workshop.

“As the national low carbon pilot province and carbon emissions trading pilot, Guangdong has gained remarkable achievement in combating climate change. As one of the most important carbon emissions reduction technology, CCUS is essential to substantially lower the energy and carbon intensity per unit of GDP and realise low carbon development.” Mr Daowen Wu, Deputy Director of Development and Reform Commission of Guangdong Province, said, “based on UK-China (Guangdong) CCUS Centre, Guangdong conducted a number of works on CCUS technology industrialization, financing and industrialization demonstration, and etc. which has effectively promoted the preliminary work of CCUS in Guangdong. At present, in terms of system innovation, Guangdong, in combination with the existing electric power system reform, will give appropriate support and policy guidance to enterprises carrying out CCUS.

“Over the past three years, under the support of the National Development and Reform Commission and the Development and Reform Commission of Guangdong Province, through the joint efforts of many participants, major progress has been made in CCUS preliminary study. Currently, we are studying the feasibility of geologic storage under South China Sea and the roadmap of carbon dioxide storage, transport and the industrial utilisation. Mr Matthew Rous, Consul-general of British Consulate General Guangzhou, said the human society has reached a broad consensus on developing CCUS and jointly combating climate change. UK and China has cooperated in various areas including offshore wind, carbon emissions trading, green finance, sustainable urbanization, etc. in Guangdong and south China to promote energy transformation and cope with climate change. The Centre provides a communication platform for professionals in CCUS field, and I look forward to further contribution made by the Centre to the development of CCUS and relevant industries.

Mr Neal Carlin, Head of Energy and Climate Change, British Embassy Beijing, said that some people still consider fossil fuels as an essential part of the energy, so CCUS is the key to limit global average temperature below 2. He introduced that the UK has supported not only the Centre but also the China CCUS Centre, carbon storage projects in Xinjiang and Sichuan and the large-scale deployment of CCUS in China with £35m through ADB’s trust fund.

Mr Li Ma, General Manager of South China Branch of China Resources Power, said the Centre has discussed with CRP on CCUS in coal-fired power plants for many times and completed the feasibility study of carbon capture test platform in August this year. Once the report passes the review, CCUS will move into the real implementation stage and start construction in 2017 as planned.

He stated, “we are also making best efforts to promote the declaration and approval of Unit 3&4 in Haifeng Power Plant to provide guarantee for CCUS application. As the only CCUS demonstration organisation in the five provinces in south China, Haifeng Power Plant shoulders heavy responsibilities and still has a long way to go. We hope that we can demonstrate the low carbon industrialization in Guangdong province with the help of CCUS technology innovation, cost and risk reduction and effective implementation of projects.”

Mr Darshak Mehta, International Consultant, SDAS, Sustainable Development and Climate Change Department, Asian Development Bank (ADB), said China has made great progress in greenhouse gas emission reduction and set an ambitious goal for 2030. ADB has set up a CCUS fund and also support the development of center for excellence in Guangzhou, Shanghai and Indonesia. In the future, ADB will contribute to greenhouse gas emission reduction through the establishment of technical framework and specifications for the centers.

After the opening address, Prof Charles Hendry, Visiting Professor of the University of Edinburgh and Former UK State Minister of Energy and Climate Change, gave a keynote speech on the future of fossil fuels. He considered this workshop as an opportunity to bring together the experts from the University of Edinburgh and other universities and organisations to further promote the changes in the future. “As we can notice that some large companies, regional policy decision-makers, investors and all countries in the world including the largest fossil fuel emitters are heading towards low carbon development. Fossil fuels will still comprise 45% of the energy production in the next 20 years, and we must recognize its important role in combating climate change and make greater efforts to advance CCUS development. In this field, we must work together and share our expertise and resources.”

Mr Bixiong Luo, Founding Director of UK-China (Guangdong) CCUS Centre, briefly reviewed the development of the Centre in the past three years on platform building, demonstration project, researches, international communications, Centre web sites and publications and propaganda. He introduced that, the Centre has completed the first carbon capture ready report for large scale power plant and feasibility report of the carbon capture test platform in China; and carried out projects of the linkage of carbon capture and carbon emissions trading, offshore carbon storage and CO2 utilisation; and discussed the cooperating opportunities with Dongguan municipal government, the University of Edinburgh, Hong Kong University, Shanghai Jiaotong University and Dongguan University of Technology in scientific research, education and training.

Mr Luo said, the Centre has gradually built its international influence through active international communication and cooperation, and promoted the cooperation of organisations at home and abroad in and the industrialization of CCUS and clean coal.

Dr Xi Liang, Secretary General of the Centre, chaired the opening session and expressed his gratitude to the support of the Centre Management Committee, Advisory Committee, enterprises participating in this cause and the government over the past three years. He promised that he would continue to improve the management system of the Centre and listen to the opinions of all the parties to promote the Centre’s work.

After that, the Centre signed an collaboration MOU with UK enterprise Pale Blue Dot Energy on behalf of the attendees of the workshop.

Following the signing ceremony, Mr Heping Zhu, Chief Development Officer of Planning Department, South China Region, China Resources Power Holdings, said, “CRP Haifeng Plant is the leading organisation of CCUS demonstration supported by Development and Reform Commission of Guangdong Province, and we have started research on the CCUS demonstration project with the University of Edinburgh and Guangdong Electric Power Design Institute since June 2013.”

As he introduced, future CCUS demonstration is carried out in three steps: first, the feasibility study of CCUS ready for Unit 3&4 has been completed in March 2015; second, the feasibility study of carbon capture test platform on operating units in Haifeng Plant has been submitted to CRP by December 2016; and third, the investment, project construction and the third-party inspection of the test results will be completed by 2018.

Prof Jia Li and Associate Prof Pengchun Li introduced the capture and storage part of the findings of Pre-feasibility Study on Large-scale Carbon Capture supported by Development and Reform Commission of Guangdong Province with Special Fund for Low Carbon Development.

Prof Jia Li said that this project mainly studied the energy efficiency of a 1000MW unit and designed its carbon capture process for future use by computer modeling. It is found that the retrofit cost of a 1000MW unit is around 1billion RMB; and about 40% of the power plants in Guangdong need to be retrofitted with limited influence on their economic benefits. There will be 10% of the power plants need to be retrofitted by 2020 and will be more during 2021-2030 as China promised to peak its emissions by 2030.

Prof Pengchun Li introduced that they have assessed and selected the suitable storage sites: HZ21-1, XJ24-3 and HZ32-2 oilfields in Pearl River Mouth Basin. They also found through simulation that about 30 oil reservoirs were suitable for CO2-EOR and carbon storage; they considered the best EOR method to be miscible flooding with two wells; and they found it was feasible to recycle existing offshore oil exploitation facilities.

Dr Xi Liang concluded the findings of Research on the Linkage of CCUS and Carbon Market in Guangdong supported by Development and Reform Commission of Guangdong Province with Special Fund for Low Carbon Development.

He said the project focused on reorganising the whole system and regulatory approach and the project managing departments of carbon emissions trading to find out how to reasonably and legally include carbon emissions reduction in carbon emissions trading system and provide suggestions for managing early stage demonstration projects in Guangdong. CCUS projects can get potential support from the carbon market through emission control of the key emission enterprises and auction revenue of the allowances. He also suggested issuing the carbon transport, storage related certificates according to the CO2 end use. Linking CO2 storage and green power certification system will also promote the CCUS deployment.

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