Innovative Carbon Capture and Storage Solutions to Prevent Global Warming
Case Study

Innovative Carbon Capture and Storage Solutions to Prevent Global Warming

From Carbon Capture and Storage (CCS) to LCO2 shipping, technology is there to help meet the SDGs

BACKGROUND

Meeting global targets for climate change mitigation is one of the biggest challenges of our time. To prevent global warming from deteriorating while realizing sustainable economic growth is a challenge for most sectors. But it is particularly difficult for carbon-intensive industries such as oil and gas, heavy industry, and shipping.

These heavy emitters need to adopt radical CO2 reduction solutions and quickly, given that the Paris Agreement’s 2050 emissions target deadline – supported by national net-zero emissions targets and the International Maritime Organization’s goal of halving shipping emissions – is moving closer.

The IEA has suggested several options, including switching fuel to renewables, improving energy efficiency, or deploying Carbon Capture and Storage (CCS).

In selecting new technologies, carbon-intensive industries must ensure that whatever choices they make will help them reach these targets within the next 30 years.

For sectors that cannot be electrified easily or which cannot reduce emissions by being more energy-efficient, one of the most promising solutions is CCS.

The Intergovernmental Panel on Climate Change (IPCC) has suggested that it will be difficult to keep the rise in temperatures within the 2% set out by the Paris Agreement unless industry around the globe invests in CCS.

The IEA has also shown that CCS could be responsible for around 14% of the cumulative carbon reduction to 2060 required to keep emissions within the 2°C Scenario.

Photo 1@2x
ISSUES

Establishing the CCS Value Chain

These statistics underline that widespread implementation of CCS for carbon-intensive industries such as natural gas mining, thermal power generation, steelmaking, and chemical production industries is crucial to our ability to limit the effects of climate change.

However, some distinct obstacles need to be overcome. A report published by IPCC outlines that the main issues for its widespread deployment are technical maturity, costs, environmental issues, and public perception.

Once captured from the exhaust gases of a power plant or factory, CO2 is compressed and liquefied, reducing its volume to approximately 0.2% of its original gaseous volume.

Then, the CO2 is stored temporarily on-site and transferred by ship and pipeline to a long-term storage facility, or to where it will be utilized. The transport method depends on the location and distance between the place of capture and the location of the storage or end-use facility.

The complexity and cost of developing such processes and infrastructure is the main barrier to widespread adoption of CCS. To install CCS, carbon-intensive industries inevitably need to optimize the whole CCS value chain and its cost, ensuring that they can process emitted CO2 with high and stable efficiency.

Optimizing ROI Is Crucial for Widespread Adoption

For developers of CCS projects and technologies, reducing the total cost and maximizing ROI for the plant operator will, therefore, be fundmanetal to driving greater take-up of CCS around the world.

To optimize the performance in the entire CCS value chain effectively, reducing the costs of sequestration, capture, and transportation is critical as they make up more than half of the overall cost.

Compared to a standalone deployment of CCS, combining it with an application that makes use of the sequestered CO2 will also contribute to cost reductions. By setting off investments in CCS against revenues from the onward usage of CO2, for example for EOR (Enhanced Oil Recovery), the total cost of ownership can be lowered (Carbon Capture, Utilization, and Storage).

POINTS TO BE ADDRESSED
Rolling out CCS and its associated value chain is essential to preventing climate change
ROI optimization is critical to nurture widespread adoption of CCS across industries
Reducing the total cost of ownership of CCS solutions
SOLUTIONS
KEY POINTS TO THE SOLUTIONS
Given the economics outlined above, and the need to optimize each process in the value chain, it makes sense to work closely with a small number of stakeholders who have in-depth expertise and proven technology solutions in the CCS arena.
To optimize the performance in the entire CCS value chain effectively, reducing the costs of sequestration, capture, and transportation is critical as they make up more than half of the overall cost.

MHI Provides Solutions that Enable Cost Optimization Across the Most Demanding Processes in the CCS Value Chain

To optimize performance and cost management for each process strategically, MHI can supply appropriate technologies for each process in CCS value chain: CO2 capture, compression, transportation, regasification, and pressurization. For CCUS, MHI also supports Enhanced Oil Recovery implementations.

MHI Delivered the World's Largest CO2 Capture Plant

In 2017, MHI America, collaborating with a partner firm, completed the construction of the world’s largest carbon capture plant in Texas, U.S.A. as the turnkey contractor. At the plant, 4,776 metric tons per day of CO2 is captured from a coal-fired thermal power plant to use for EOR.

Today, MHI has 13 commercial plants in operation and two under construction.

Photo 2@2x
MHI delivered the world's largest CO2 capture plant

Shipbuilding Expertise Supports Effective CO2 Transportation

MHI’s renowned shipbuilding business is responding to the industrial demands for long-distance CO2 transport and flexible ship sizes.

For more than 150 years, MHI has been at the cutting edge of ship-building and innovative technology development for the shipping sector.

For transporting sequestered carbon, the company can draw on its expertise of building liquefied petroleum gas (LPG) carriers as these have the same architectural model as the LCO2 ships needed in the CCS value chain.

To reduce the cost of long-distance transportation, it is desirable to increase the size of the vessel. But liquefied CO2 needs to be stored under low temperature and high-pressure conditions. To avoid it solidifying and to maximize the size of the vessel, it is necessary to adopt low-pressure LCO2 handling technology.

MHI has been contributing to the development of LCO2 shipping technology for more than 20 years, working on both the company’s own and government-led R&D projects.

MHI is transferring its expertise in LPG and LNG handling technology to low-pressure LCO2 handling on land and offshore, working on this new technology development with its group companies and its research and innovation center. Initial plans for an LCO2 ship capable of both domestic shipping (approximately 6,000 km) to ocean-going shipping (more than 20,000 km) are complete.

Photo 3@2x
Shipping CO2 is a critical stage in the CCS value chain

A Partner for the Carbon Capture Journey

In applying its many years of experience - gained as part of large projects in the U.S. and Europe - and innovation capabilities in the CCS value chain, MHI is dedicated to contributing to the prevention of global warming.