Summit Power- Sasha Mackler - United States Energy Association

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Transcript Summit Power- Sasha Mackler - United States Energy Association

Summit Carbon Capture
A business of the Summit Power Group, LLC
Commercialization of CCS on NGCC Power Systems
USEA Workshop | April 2014
Sasha Mackler, Vice President, Summit Power Group
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
Summit Carbon Capture, LLC
Summit Carbon Capture (SCC) is a vertically integrated developer of CO2 assets
specializing in the industrial capture of CO2 for 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
Summit’s Carbon Capture 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 NGCC 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
Importance of CCS
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
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…
Observations on PCC Technology “Readiness”
• Amine based capture systems 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 postcombustion capture of CO2 from power plant flue streams
 Next generation technologies (designed 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)
Observations on the “Emerging” CCS Market
• CCS is a portfolio of technologies, some better understood than others
o Pre-combustion, Post-combustion, Oxy combustion
o CO2 transportation, utilization, storage via EOR or Saline
• Commercial Drivers – Strong EOR demand for more CO2 supplies
40 years of commercial experience handling and injecting CO2 for EOR
Existing infrastructure and known “sinks”
Workable and well-understand regulatory framework for EOR
But anxieties over shifting rules could jeopardize EOR as enabler
• Regulatory Drivers - 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
o These federal rules will unavoidably become a driver for CCS
o States also active
CCS on NGCC Power Systems
• The focus on CCS from research and policy bodies has been on coal plants
• But commercial players in market are also interested in NGCC with CCS
• No fundamental challenges for NGCC vs Coal
o Pro: Clean flue gas stream that is consistent across projects (simplifying engineering
and enabling more standard designs)
o Con: Less concentrated CO2 in exhaust gas
• For new plants, the economics appear to favor NGCC relative to coal with CCS
o NGCC CCS can be commercially developed in smaller units than new coal with CCS
and with less technology integration than IGCC
• For retrofits of existing plants, either coal or NGCC could make sense
o Economic comparison depends other installed emission controls, plant dispatch,
specific geography
o Some regions with CO2 demand have more NGCC plants to target
CCS Deployment
NGCC with CCS is viable and compares with other low-CO2 technologies
EOR will be a vital driver
Innovation in technology & in business arrangements critically important
Public support needed to (1) close cost gap between uncontrolled NGCC & with
CCS and (2) accommodate baseload dispatch
• There are precedents for this if we look elsewhere
o Renewables, Combined Heat & Power
• Just as we have seen for wind and solar over last decade, NGCC with CCS costs will
come down as
Capital structure improves
Commercial learning occurs, which drives down technology costs and project
implementation costs
Market internalizes policies and financing becomes standardized
Contact Information
Sasha Mackler
Vice President, Summit Carbon Capture
Summit Power Group
(202) 630 5585
Email: [email protected]