D02 - Offshore CO2 Transport and Storage Options for a Deep Cut of GHG Emissions in Guangdong i

The ARP2 report forthe ADB CCS Center for
Excellence (Guangdong) Project RDTA8714-D02

Offshore CO₂ Transport and Storage Options for a Deep Cut of
Greenhouse Gas Emissions in Guangdong in 2030 and 2050

Di Zhou^1,2, Pengchun Li^1,2, Xi Liang^1,3,Li Wang¹, Muxin Liu¹

¹UK-China(Guangdong) CCUS Centre, Guangzhou, China

²South ChinaSea Institute of Oceanology, Chinese Academy of Sciences

³BusinessSchool, University of Edinburgh

Summaryfor Policy Makers

There are a series of LPSs of CO₂ emissions in Guangdong province which could be stored in depleted oil and gas fields and deep saline formations in two offshore basins, the Pearl River Mouth Basin (PRMB) and the Beibuwan Basin (BBWBB) in the northern South China Sea. There is potential, at least in the initial stages of this plan, to use CO₂-EOR which impliesutilisation as well as storage.

Adevelopment plan of offshore CO₂ storage and transport in the northern South China Sea for Guangdong in 2030 and 2050 is proposed in this report, as one of the deliverables of the ADB funded RDTA8714 project (2016-2017).

The principles of our planning are being ambitious and achievable in accordance with the demand and ability of Guangdong, and to minimize the total CCUS cost. Then we adopted a two-phase and dual-track approach, which consists of alow-cost CCUS Phase I and a cost-competitive CCUS phase II, with a track of projects and a track of researches in eachphases. To reduce the total cost, the cluster-hub model of sources and sinks is adopted in the planning, and reuse of existing infrastructures is preferred.

The targets of CCUS development in Guangdong by 2050 proposed in this reportare about 8% of the CCS targets in China proposed in the roadmap published by ADB (2015). Only the projected CO₂ avoidance in 2050 was reduced to ~4.6% of China, which is ~32% of the total LPSs CO₂ emission in Guangdong in 2050, taken into consideration of the cost-effectiveness of the CCUS chain.

The proposed plan on offshore CO₂ storage and transport for Guangdong in 2030 and 2050 is schematically generalized in the figure below.

The low-cost CCUS Phase I before 2030 is characterized by the CO₂ capture mainly from the petrochemical industry and CO₂ storagemainly related to CO₂-EOR. The target of CCUS in this phase is ~1Mtpa in 2020 and ~3 Mtpa in 2030. These will lead to the cumulative CO₂ avoidance of ~1MtCO₂ by 2020 and~12 MtCO₂ for 2020-2030. This will be accomplished by the source-sink match A1, which consists of the CO₂ captured from the Huizhou area of the Pearl River Delta with Hub A, the storagein one or two oil fields in the Pearl River Mouth Basin with Hub 1 at the HZ21-1 field, and a stem pipeline connecting hubs A and 1.

The Phase II from 2030 to 2050 is characterized by a wider deployment of cost-competitive CCUS. The target of CCUS in Guangdong is ~35 Mtpa in 2040 and~110 Mtpa in 2050, leading to the cumulative CO₂ avoidance of ~187MtCO₂ for 2031-2040 and ~730MtCO₂ for 2041- 2050. Four source-sink matches are proposed for thisphase, including (in the order of expected entry time) the A1, B2, C3, and D4 matches. Among these, the A1 matches the hub A of the large point source (LPSs) cluster in the east Pearl River Delta with the sink hub 1 in the storage site cluster of the Huizhou Sag, the B2 matches the source hub B of the LPSs cluster in the east coast with the hub 2 in the storage site cluster of the Lufeng Sag, the C3 matches the source hub C of the LPSs cluster in the west Pearl River Delta with the hub 3 in the storage site cluster of the Xijiang Sag, and the D4 matches the source hub D of the LPSs cluster in the west coast with the hub 4 in the storage site cluster of the Wenchang Sag. For the D4 match, we proposed alternative matches of D’5 or D6.

Researches are essential to accompanying the development phases. Databases need to be built on the large point sources of CO₂ emission, on the potential storage sites, and on existing infrastructures in the potential sites. Feasibility of CO₂-EOR and reuse existing infrastructure needs to be evaluated. The storage sites need to be selected and characterized. The offshore transport and injection system need to be optimized in the front end engineering design. The cost need to be estimated. The monitoring, reporting, and verification system need to be built. These researches must be conductedwith enough lead time, so that the research results can guide and support the fulfillment of the CCUS development targets in each phase.

As the years of 2030 and 2050 are too far and too un uncertain, and this report was written based on published data only, we are fully aware that the planning presented in this report is rather general and hypothetic. The plan need to berevised over the entire course of CCUS development in terms of feasibility, cost effectiveness, and socio-environmental impacts based on improved understandings and new findings from research and development.