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Facing China’s Coal Future: Prospects and Challenges for CCS © OECD/IEA 2011 Page | 24 are applicable to a range of industrial sectors and applications, with the potential to develop cobenefits and encourage technology crossover for applications in related industries. It will be crucial to identify near‐term opportunities that may provide incentives for early demonstration and deployment of CCS technologies without losing sight of climate mitigation objectives. However, officials from NDRC have indicated that the focus is on utilisation of CO 2 as a commercial opportunity rather than storage without any economic benefits (NDRC, 2011) (Figure 10 and Table 4). Figure 10 CO 2 utilisation by classification of application Source: Ai Ying Ying, 2010, IEA China’s RD&D programmes in support of CCUS currently focus on carbon capture from advanced power generation (i.e. IGCC); oxy‐fuel combustion and chemical looping, and high‐purity industrial CO 2 sources (i.e. coal‐to‐liquids, hydrogen production for refineries, coal‐to‐chemicals and ammonia production). In terms of CO 2 utilisation, EOR and ECBM recovery are current areas of focus for government‐funded CCUS research projects. As funding for R&D and demonstration in this area grows, it is important to consider the development of a path that will lead to maximised mitigation of CO 2 emissions and permanence of CO 2 sequestration at a reduced cost. Many existing and potential uses of CO 2 do not ensure the permanent removal of CO 2 from the atmosphere. While current CCUS activity, both globally and in China, focuses on enhancing the commercial viability of projects, it is important not to lose sight of the ultimate goal to permanently contain the CO 2 . CO 2 utilisation in chemicals production Use of CO 2 as a raw material in the chemical industry may also offer utilisation potential in China. By means of catalytic direct synthesis, catalytic hydrogenation and catalytic reforming, CO 2 may be transformed into urea, an important product used as a chemical raw material, along with dimethyl carbonate, low‐carbon hydrocarbons, aldehydes and derivatives, oxygenated alternative fuels, reformed methane and other chemical products. (Shen Guoliang, 2009).
© OECD/IEA 2012 Facing China’s Coal Future Prospects and Challenges for Carbon Capture and Storage China has also launched industrial CO 2 utilisation demonstration projects to produce biodegradable plastics. A few operators including China National Offshore Oil Corporation’s (CNOOC)’s Oriental Chemical Industry City in Hainan, have developed a 3 000 tonne per year (t/yr) project in Hainan, as well as Beijing (3 000 t/yr), Inner Mongolia and Jinlong (10 000 t/yr), as well as an application for carbonation in the food and beverage industries in a project linked to Huaneng’s Bejing and Shanghai facilities. Enhanced oil and coalbed methane recovery There is considerable interest and activity in China in using CO 2 for EOR (CO 2 ‐EOR) and ECBM recovery (CO 2 ‐ECBMR). The use of CO 2 for enhanced oil (and gas) recovery or enhanced coalbed methane recovery may provide the most significant opportunity for CO 2 utilisation. EOR can provide an option to offset costs and support the economics of CCS projects (Fig. 11). However, ensuring permanence of storage must be prioritised to meet the intended purpose of CCS deployment. Some utilisation methods would still allow for CO 2 leakage back into the atmosphere. 4 Page | 25 Figure 11 CO 2 injection for EOR Source: IPCC, 2005. China’s oil and gas industry is dominated by three state‐owned holding companies: the CNPC; the China Petroleum and Chemical Corporation (SINOPEC) and CNOOC. PetroChina, an arm of CNPC, is the industry lead in CO 2 ‐EOR and has conducted CO 2 injections in its oilfields and worked in cooperation with MOST and several research universities. Experimentation with EOR has been conducted in the fields of Jiangsu, Jilin, Changun and Zhongyuan, as well as in the Ordos Basin, Inner Mongolia, and the northern Tarim Basin, Xinjiang Province, (Liu, et al., 2008; Friedmann, 2009). PetroChina has also experimented with CO 2 injection for enhanced coalbed methane recovery (Friedmann, 2009). 4 Note. Petrochina’s research arm in the Research Institute for Petroleum Exploration and Development (RIPED) has conducted research in this field.
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