Chinese development of CCS project was spurred in 2005 through the formation of GreenGen, mentioned later, and the EU-China Near Zero Emissions Coal (NZEC) agreement. The latter was formed with the aim of demonstrating advanced, near zero emissions coal technology through carbon capture and storage (CCS) in China and the EU by 2020. To support this, a UK-China bilateral NZEC initiative was formed with an ambitious three phase process with the intention of commissioning a demonstration plant in 2014. Project players include nine Chinese partners (GreenGen, IET, THCEC, DTE, DCE, ZJU, NCEPU, WHU and TPRI) and four UK partners (IMP, DB, Alstom and Shell).
Shareholders from the energy sector including five power companies, two coal production companies and one investment company set up GreenGen, to promote high efficiency, low environmental emission plants. The group is developing a pilot IGCC demonstration project in the Tianjin Binhai New Development Zone. Many are also collaborating with international players to develop CCS such as the Huadian group and Duke Energy.
It is estimated that CO2 could be used to simultaneously recover more than 40 million barrels of oil and more than 12 gigatonnes of CO2 could be stored. The two sites with the most potential for both oil recovery and CO2 storage are Bohaiwan and Songlio of 18 billion barrels and 9 billion barrels respectively, and a storage potential of 5.4 gigatonnes and 2.4 gigatonnes.
For 90% of large stationary emitters it is estimated that a storage option is within 100 miles and for 85% within 50 miles. This includes 2,300 gigatonnes of onshore CO2 storage capacity in deep saline formations (2,290 gigatonnes), coal seams (12 gigatonnes), oil fields (4.6 gigatonnes) and gas fields (4.3 gigatonnes), and 780 gigatonnes of offshore storage.
However, re-combustion capture and the use of oxyfuels have the most potential due to their expected lower capital costs, levelised. CO2 could also be used for energy intensive industries such as iron and steel, ammonia, cement and ethylene production. The Chinese government is expected to introduce a target to reduce the country’s energy intensity by 20% in its eleventh five year plan. This roughly equates to a 306 mega tonne reduction in CO2 emissions.