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An Economic Assessment and Feasibility Study of a Full Chain First-of-a-Kind (FOAK) 100ktpa Steel Sector CCS-EOR Project

Research output: Working paper

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Original languageEnglish
Publication statusPublished - 2020

Abstract

The Blast Furnace - Basic Oxygen Furnace (BF-BOF) process is the most common method for producing steel in China. Blast furnace gas (BFG) is the largest source with low concentration of carbon dioxide (CO2) in the BF-BOF process. Capture technology can be directly applied to purify the CO2 in BFG thus providing a large-scale and direct emission reduction option for the iron/steel industry in China. Previous studies on BFG focused mostly on the development of technologies and the economic assessment of capture costs. There is a lack of economic assessment and feasibility studies based on a full-chain CCUS project and in particular within China’s engineering context.
The shortage resulted in decision-making difficulties by the government, industry and investors for promoting CCS/CCUS demonstration for the iron/steel industry and of formulating incentive policies by the Chinese Government to drive CCS/CCUS project demonstration. Therefore, with the financial support of the BHP-Peking University Carbon Dioxide Capture Project and in collaboration with the University of Edinburgh Business School and Guanghua School of Management of Peking University, the objective of this study is to undertake an economic assessment and feasibility study of a full chain First-of-a-Kind (FOAK) 100ktpa steel sector CCS Enhanced Oil Recovery (CCS-EOR) project based on Chinese engineering background.
Through the identification of low-cost capture, transportation and utilisation/storage options for a FOAK project in China and its economic analysis and feasibility study, it is suggested that:
• Capturing CO2 from BFG will result in the co-benefit of increasing the calorific value (CV) along with CO2 internal use of nitrogen replacement and external sales for industrial utilisation and EOR.
• When considering environmental issues and the system complexity associated with chemical absorption technology, and in the view that an existing Blast Furnace Top Gas Recovery Turbine Unit (TRT) could be used to recover high pressure energy by capturing CO2 from the BFG, membrane, pressure swing adsorption (PSA), cryogenic and their integration technologies are technically feasible for a 100ktpa FOAK in China to meet the capture requirement of 90% capture rate and 99% CO2 concentration and transportation to external utilisation and storage site.
• Considering the flexibility of internal and external uses of captured CO2 and the mobility of the FOAK facility to other iron/steel plants with a shorter transportation distance to storage sites, the 100ktpa FOAK CCUS project is proposed with the capacity of 50ktpa gaseous CO2 of 95% concentration captured by an integrated PSA-Membrane unit for internal use and the capacity of 50ktpa liquid CO2 of 99% concentration captured by an integrated Membrane-PSA and cryogenic distillation unit for external uses. The use of a truck is recommended to transport the liquefied CO2 to either external industrial users with an average of 100km distance or an EOR user in Jiangsu province with a distance of 250km.
• The FOAK 100ktpa CCS-EOR project can be economically feasible when a subsidy for CO2 storage reaches US$15.0/tCO2, funding support is over 80% of capital investment, the sale price exceeds US$45.0/tCO2 and transportation distance is within 250km.

ID: 135313530