Summit Power Group is a developer of clean energy projects including carbon capture and storage (CCS) technologies. Sasha Mackler discussed Summit's focus on developing CCS projects to provide CO2 for enhanced oil recovery and produce low-carbon electricity. Mackler outlined two of Summit's major CCS projects - the Texas Clean Energy Project, a coal gasification facility that will capture 3 million tons of CO2 per year, and the Captain Clean Energy Project in the UK, which will capture over 3.8 million tons of CO2 per year from an integrated gasification combined cycle facility. Mackler noted that while CCS technologies are commercially viable, successful large-scale projects are still needed to demonstrate the business case for implementing C
Business case of CCUS, Sasha Mackler, SUMMIT Carbon Capture
1. SASHA MACKLER
VICE PRESIDENT, SUMMIT CARBON CAPTURE
SUMMIT POWER GROUP, LLC
Advanced Workshop for CO2 Storage
August 26-27, 2014
DF IPN ESIA Ticomán Auditorium
SUPPORTED BY:
2. THE BUSINESS CASE FOR CCUS
1. Background on Summit Power Group
2. CCUS Rationale, Technologies, and Markets
3. Observations on the Business Case
SUPPORTED BY:
3. BACKGROUND ON SUMMIT
SUMMIT POWER GROUP, LLC
• Seattle-based developer of clean energy projects
• Founded 25 ago by former U.S. Secretary of Energy Don Hodel & COO of
Department of Energy Earl Gjelde
• Flexible Development Model from fee-based, to build/own/transfer, to asset
ownership or management
• World class international development team
• Over 9,000 MW developed
• Summit’s capabilities include development, financing, & asset management of
o Wind and solar plants
o High efficiency natural gas fired plants
o Large scale gasification facilities
o CO2 capture for EOR
SUPPORTED BY:
4. BACKGROUND ON SUMMIT
SUMMIT POWER GROUP, LLC
Summit Carbon Capture (SCC) is a vertically integrated developer of industrial CO2
capture and supply assets focused on use in enhanced oil recovery projects and
permanent storage.
SCC Areas of Focus
• Large-scale gasification facilities with CO2 capture
• Natural gas fired power plants with post combustion capture of CO2
• Retrofits of existing coal & gas plants for CO2 capture
• CO2 EOR projects
SCC Competitive Advantage
• Strong partnerships with leading global firms
• Sophistication and flexibility in key areas of finance, policy, stakeholder relations
SUPPORTED BY:
5. BACKGROUND ON SUMMIT
SCC’S FOCUS
Developing ultra low carbon, baseload power projects to meet demand for (1) CO2 for
EOR and (2) clean electricity & fuels
• Focusing on capturing CO2 from either newly built or retrofit power plants
o Based on either coal or natural gas
o Technology agnostic
• Summit is currently developing one of the most advanced carbon capture projects
in the world, the Texas Clean Energy Project, and developing a pipeline of others
o Summit recently bid a CCGT with CCS retrofit project into the Colorado RFP
o Summit is negotiating contract with UK gov’t for CCS project with 4M tpy of CO2
• Summit is involved in shaping regulatory and policy schemes for CCS, including
o Developing new carbon credit methodology for CO2 EOR with American Carbon Registry
o Strong engagement with US EPA and states on emission regs and CO2 storage rules
SUPPORTED BY:
6. BACKGROUND ON SUMMIT
TEXAS CLEAN ENERGY PROJECT (TCEP)
• Under development
• Coal gasification “polygen” facility producing urea,
electricity, and CO2 for EOR
• Will capture 3 million tons of CO2 /year
• 2.2 million tons of CO2 for enhanced oil recovery, yielding
6 to 7.5 million barrels of oil per year
• Fully permitted, without opposition
• Fixed price, turnkey EPC contracts
• $450 Million award from U.S. DOE
• $637 Million in investment tax credits from DOE and
Treasury Department
• 100% of primary outputs already sold on long-term
contracts
• Consists solely of commercially proven technology and
components, all fully guaranteed (no new technology)
SUPPORTED BY:
7. PRB Coal via Railroad High Hydrogen Power
7
TCEP Schematic
Coal
1.75mm tpy
Coal Gasification,
Gas Cleanup, and
Gas Separation
Water
Turbine
~60% of
Syngas
~40% of
Syngas
Main Outputs “High
Hydrogen” Syngas
(~95% H2 / 5% CO) &
Pure CO2
~30% of
CO2
~70% of
CO2
Ammonia / Urea
Complex
CO2 Delivered to Oil
Fields via Pipeline
[200] MW low
carbon power
delivered to City
of San Antonio
930,000 tons/yr
delivered to
CHS Inc.
2.2mm tons per
year delivered
to Oil
Companies
Brackish Water
Purified via Reverse
Osmosis
Oxygen
Air Separation Unit
* Additional revenue from sales of sulfuric acid, argon gas, & minor
products
8. BACKGROUND ON SUMMIT
CAPTAIN CLEAN ENERGY PROJECT
CCEP is a clean coal carbon capture & sequestration
project being developed in the UK by the Summit
Power Group, LLC
The project will consist of two primary parts:
i. an 570 MW integrated gasification combined
cycle (“IGCC”) facility located in Grangemouth,
Scotland; and
ii. off-shore carbon sequestration and storage
facilities in the North Sea, which will capture
and store over 90% of CO2 produced by the
project – over 3.8M tonnes per year.
CO2 will be transported from the IGCC to the off-shore
storage facility via National Grid’s Feeder 10
pipeline that is anticipated to be repurposed for this
Project.
SUPPORTED BY:
St Fergus
No10 Feeder
Caledonia
IGCC Plant
New build pipeline
Existing pipeline
Power station
SAGE terminal
Avonbridge
570MW
IGCC
9. THE BUSINESS CASE FOR CCUS
1. Background on Summit Power Group
2. CCUS Rationale, Technologies, and Markets
3. Observations on the CCUS Business Case
SUPPORTED BY:
10. CCUS RATIONALE
ENVIRONMENTAL RATIONALE
• IEA World Energy Outlook, 2013 – “‘Carbon capture and storage (CCS) has
been identified as an essential technology to meet the internationally
agreed goal of limiting the temperature increase to 2°C.”
• Stanford Energy Modeling Forum 27 – “‘A robust finding [of the study] is
that the unavailability of carbon capture and storage and limited
availability of bioenergy have the largest impact on feasibility and
macroeconomic costs for stabilizing atmospheric concentrations at low
levels” and “..a substantial number of models were not able to produce
450 ppm without CCS.”
• Regulatory drivers, public support, and commercial opportunities are
emerging…
SUPPORTED BY:
11. CCUS RATIONALE
COMMERCIAL RATIONALE
• CO2 is in high demand for enhanced oil recovery (EOR)
• Yields economic value by producing more oil, reversing field declines, and leveraging
existing infrastructure
SUPPORTED BY:
12. CCUS TECHNOLOGY
OBSERVATIONS ON CAPTURE TECHNOLOGY “READINESS”
• CO2 capture systems (pre and post) are widely used in the refining and chemicals
industry for CO2 separation and cleanup
Extensive commercial experience in industrial settings
• Amines are adequate technologies to TRANSFER to power industry for post-combustion
capture of CO2 from power plant flue streams
Subsequent technologies (fine tuned for power) will be better
• General confidence that these technologies can work in the power sector,
reinforced by (1) extensive pilot projects and (2) large scale projects underway
Equipment providers are pursuing more projects, offering warranties
• Commercial experience now is vital to inform the key questions on PCC viability, eg
Can the cost & performance of these projects be compelling in a power
industry setting? (should not be asking “will they work?” – see above)
SUPPORTED BY:
13. CCUS MARKETS
OBSERVATIONS ON THE “EMERGING” CCUS MARKETS
• CCS is a portfolio of technologies with differing levels of experience
o Pre-combustion, Post-combustion, Oxy combustion
o CO2 transportation, utilization, storage via EOR or Saline
• Commercial Drivers – Strong oil sector demand for more CO2 supplies
o Not new; 40 years of commercial experience handling and injecting CO2 for EOR
o Existing infrastructure (in many places) and known “sinks”
o Workable and well-understand regulatory framework for EOR in US
• Regulatory Drivers – Strong trend toward clean energy and reductions in GHGs
o In US, EPA has (1) declared CO2 a pollutant , (2) concluded CO2 can be “incidentally
stored” in an EOR flood, and (3) determined that CCS is commercially viable today
and is currently working on federally enforceable emission performance standards
for fossil fired power plants
SUPPORTED BY:
14. THE BUSINESS CASE FOR CCUS
1. Background on Summit Power Group
2. CCUS Rationale, Technologies, and Markets
3. Observations on the CCUS Business Case
SUPPORTED BY:
15. BUSINESS CASE FOR CCUS
GENERAL BUSINESS CASE OBSERVATIONS
• As with other technologies, the commercialization of CCUS will be regional
• Mexico appears to be especially well-suited for CCUS
• Technologies and commercial players are ready for the marketplace
• The economic proposition of CCUS projects is significant, however
o The value spans sectors, therefore requires broad energy market
perspective and sophisticated partners
o Requires clear and workable regulatory treatment
for CO2 injection and demonstration of storage
for “Clean Energy” treatment
o Avoided cost of CO2 reductions compares favorably to alternatives
o Reverses declines and extends life of existing producing oil fields
SUPPORTED BY:
16. BUSINESS CASE FOR CCUS
OPPORTUNITIES FOR MEXICAN CCUS PROGRESS
• Excellent fundamentals for international (commercial and political) collaboration
• CCUS via EOR reinforces Mexico’s strategic energy priorities
o Energy reforms – very positive developments with significant new
investment forthcoming
o Clean energy policies – GHG and renewable energy commitments could be
supported by CCUS projects
• Near term project possibilities
o EOR should drive decisions now
o Polygen: Solid fuel gasification & upgrading (similar to TCEP structure)
o Power: New natural gas based power and cogen plants built near EOR sites
o Retrofitting existing facilities
SUPPORTED BY:
17. THE BUSINESS CASE FOR CCUS
Sasha Mackler
Vice President, Summit Carbon Capture
Summit Power Group
Tel: (202) 630 5585
Email: smackler@summitpower.com
SUPPORTED BY: