CO₂ capture and storage (CCS)

In the “Blueprints” scenario, CO₂ is captured and stored at 90% of all coal- and gas-fired power plants in developed countries by 2050, and at least 50% of plants in developing countries. Today, none use CCS because it adds extra costs, uses more energy, and because permit requirements and liability for the CO₂ are not yet clear. So the challenge is enormous. We are determined to help by building our CCS capabilities, in part because we believe CCS will also be important for managing CO₂ emissions from our refineries, chemicals plants, and oil and gas production facilities. It is an area where, with our engineering skills and knowledge of underground geology, we hope to make a big contribution to managing CO₂.

We are encouraging governments to move fast to create the incentives and regulations needed to get CCS demonstration plants up and running so that the technology can be ready for large-scale roll-out around 2020 (see Blueprints advocacy). We are already involved in a number of demonstration projects, like the ZeroGen power project in Australia (see below "Zerogen").

Not all of these will be built, but they provide important learning opportunities. For example, in 2007, Shell and its partners completed feasibility studies on the Halten project to capture CO₂ from a gas-fired power station onshore and use it to enhance oil recovery at the Draugen field, off the coast of Norway. The study concluded that although CO₂ reductions were technically possible, the project did not produce enough extra oil to justify the additional investment. It has however provided valuable knowledge and experience that will be useful in future projects. Shell is also considering plans for a large scale CCS project at Athabasca’s Scotford Upgrader in Canada and we continue to explore CO₂ management opportunities in the Middle East with Mitsubishi Heavy Industries.

Shell scientists have also developed proprietary coal gasification technology that makes capturing the CO₂ from coal-fired power plants cheaper and less energy intensive. The Shell process also lowers air pollution and water use. The technology turns virtually any coal – even the dirtiest grades – into a clean-burning synthetic gas, which can be used as fuel for power generation. It also creates a concentrated, high-pressure stream of CO₂ that is well suited for capture and underground storage. As a result, combining CO₂ storage with coal gasification is nearly 30% more energy efficient than doing the same with the most modern (supercritical) type of coal-fired plant. That means significantly lower CO₂ emissions. To date, 21 plants using Shell’s gasification technology have been (or are being) built, mainly in China but also in the Netherlands, the UK, the USA and Vietnam – to make fertilizer, feedstock for chemicals or fuel for power generation.