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Frontiers of Engineering Management    2019, Vol. 6 Issue (1) : 78-86     https://doi.org/10.1007/s42524-019-0003-x
RESEARCH ARTICLE
An adaptive policy-based framework for China’s Carbon Capture and Storage development
Xiaoliang YANG1(), Wolfgang HEIDUG2, Douglas COOKE2
1. World Resources Institute, Washington D. C., USA; King Abdullah Petroleum Studies and Research Center, Riyadh, Saudi Arabia
2. King Abdullah Petroleum Studies and Research Center, Riyadh, Saudi Arabia
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Abstract：

China’s political leadership has taken an increasingly public and proactive stance on climate change since 2014. This stance includes making a commitment that Chinese carbon dioxide (CO2) emissions will peak around 2030 and enacting measures through the 13th Five-Year Plan to support energy efficiency, clean energy technology, and carbon management. Chinese policymakers consider carbon capture and storage (CCS) a critical bridging technology to help accelerate the decarbonization of its economy. This paper reviews and analyzes Chinese CCS support policies from the perspective of an adaptive policymaking framework, recognizing uncertainty as an inherent element of the policymaking process and drawing general lessons for responding to changing circumstances. Notably, the political support for CCS in China remains fragmented with uncoordinated government leadership, undecided industry players, and even with opposing voices from some leading scientists. There is scope for expanding the framework to provide more granularity, in particular relating to the development of a CCS infrastructure and the development of storage-focused CO2-EOR. Overall, given the role CCS can play to decarbonize China’s power and other industrial sectors, a commitment to CCS from top policymakers and major stakeholders is needed.
Keywords CCS      policy      climate change      China     
在线预览日期:    发布日期: 2019-03-12
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Xiaoliang YANG
Wolfgang HEIDUG
Douglas COOKE
引用本文:   
Xiaoliang YANG,Wolfgang HEIDUG,Douglas COOKE. An adaptive policy-based framework for China’s Carbon Capture and Storage development[J]. Front. Eng, 2019, 6(1): 78-86.
网址:  
https://journal.hep.com.cn/fem/EN/10.1007/s42524-019-0003-x     OR     https://journal.hep.com.cn/fem/EN/Y2019/V6/I1/78
Targets 12th FYP 2011–2015 13th FYP 2016–2020
Energy consumption per unit of GDP 16% reduction (18.2% achieved) 15% reduction
CO2 emissions per unit of GDP 17% reduction (20% achieved) 18% reduction
Non-fossil fuel consumption of primary energy consumption 11.4% at the end of 12th FYP (12% achieved) 15% at the end of 12th FYP
Total energy consumption cap 5 billion tons of coal equivalent
Carbon intensity 40%–45% reduction 2020–2005
Tab.1  Climate change-related targets in the current and recent five-year economic development plans
Fig.1  Energy technology innovation process (adopted from Grübler et al., 2012)
Integrated projects CO2 sources Capture Transport Utilization/storage Operational year
CNPC-Jilin CO2 EOR demonstration Natural gas processing Pre Pipeline (approximately 50 km) EOR (300,000 ton CO2 per year) 2007
CNPC-Daqing Oil Field CO2 EOR demonstration Natural gas processing Pre Truck & Pipeline EOR (200,000 ton CO2 per year) 2003
Sinopec-Shengli CCS Project Power generation Post Trucks (approximately 80 km) EOR (40,000 tons of CO2 per year) 2010
Shenhua Ordos CCS project Coal-to-liquids Pre Truck (approximately 11 km) Saline (100,000 tons of CO2 per year) 2011–2014
Sinopec-Zhongyuan CO2 EOR project Chemical Pre Truck EOR (120,000 tons of CO2 per year) 2015–
Xinjiang Dunhua Petrochemical Post Truck EOR (100,000 tons of CO2 per year) 2015
Tab.2  Operational integrated CCS projects in China (compiled by authors from various sources)
Capture type Cost Scale
Post-combustion- power sector CNY 300/t CO2 (approximately $46/t CO2) 200 kton/year
Pre-combustion- power sector CNY 298/t CO2 (approximately $46/t CO2) 80K–100 kton/year
Oxy-demonstration- power sector CNY 500–600/t CO2 (approximately $75/t CO2) for 35MW (First-of-a-kind power-plant); 100 kton/year (based on the project plan)
Coal-to-chemical CNY 200/t CO2 (approximately $30/t CO2) 460 kton/year
Tab.3  Current CO2 capture cost in China (compiled by authors from various sources)
CO2 supply constrained by availability (million tons CO2) Unlimited CO2 supply (million tons CO2)
Pre-tax 1900 12070
Post-tax 751 10919
Tab.4  Total economic storage (project NPV≥0) when CO2 is delivered free of charge. Storage numbers are for present-day CO2 and for a reference situation of unlimited CO2 supply (Ward 2017)
Fig.2  Potential CCS policy gateways in China
Year Ministry Policy Main Contents
2006 State Council National Medium- and Long-Term Program for Science and Technology Development (2006–2020) Develop highly efficient, clean, and zero-carbon fossil technologies.
2007 State Council China’s National Climate Change Program (2007–2010) Further develop CCUS technologies.
2007 14 ministries including MOST China’s Scientific and Technological Actions on Climate Change (2007–2020) Include CCS in the priority areas.
2011 MOST The 12th Five-Year Plan on Science and Technology Regard CCUS as one of the strategic low-carbon technologies.
2011 State Council The 12th Five-Year Plan on Greenhouse Gas Reduction Demonstrate CCUS technologies in the power sector, steel industry, cement industry, and coal-chemical industry.
2012 16 ministries led by MOST The 12th Five-Year Plan on Climate Change Science Program Focus on cost reductions and business model of CCUS technologies; further enhance international cooperation, including capacity building and technology standardization.
2012 4 ministries Blueprint for Climate Action in Industrial Sector Explore CCUS technologies under the Chinese context.
2013 NDRC Promoting CCUS Industrial Demonstration Encourage industrial players to demonstrate CCUS technologies.
2013 State Council National Medium and Long-term Plan on Major Scientific and Technological Infrastructure Further study and develop CCUS technologies for climate change.
2013 Ministry of Environmental Protection Calling for Environmental Protection for CCUS Demonstration Projects Environmental guidelines.
2014 NDRC National Climate Change Action Plan 2014–2020 Implement integrated CCUS demonstration projects; include CCUS as an important low-carbon technology.
2014 MOST and MIIT Special Program for Energy Saving and Emissions Reduction Technology
2014 NDRC Upgrading and reforming of Energy Saving and Emissions Reduction of Coal Power Sector 2014–2020 Further study of CCUS technologies.
  Overview of policies to “push” CCS in China (compiled by authors from various sources)
1 Asian Development Bank (ADB) (2015). Roadmap for carbon capture and storage demonstration and deployment in the People’s Republic of China. , 2017–7-24
2 China National Bureau of Statics (2017). The second quarter and the first half of 2017 of China’s GDP preliminary accounting results., 2017–7-24
3 Council on Foreign Relations (2017). China’s environmental crisis., 2017–7-25
4 RFalkner (2016). The Paris Agreement and the new logic of international climate politics. International Affairs, 92(5): 1107–1125
https://doi.org/10.1111/1468-2346.12708
5 MGrubb (2014). Planetary Economics – Energy, Climate Change and the Three Domains of Sustainable Development. London: Routledge
6 AGrübler, F Aguayo, KGallagher, MHekkert, K JJiang, LMytelka, LNeij, G Nemet, CWilson (2012). Policies for the Energy Technology Innovation System. In: Johansson T B, Patwardhan A P, Nakićenović N, Gomez-Echeverri L, eds. Global Energy Assessment. Cambridge: Cambridge University Press
7 J QGuo, D G Wen, S Q Zhang, T F Xu, X F Li, Y J Diao, X F Jia (2015). Potential and suitability evaluation of CO2 geological storage in major sedimentary basins of China, and the demonstration project in Ordos Basin. Acta Geologica Sinica (English Edition), 89(4): 1319–1332
https://doi.org/10.1111/1755-6724.12531
8 Intergovernmental Panel on Climate Change Climate (IPCC) (2014). Climate Change 2014: Mitigation of Climate Change: Working Group III Contribution to the IPCC Fifth Assessment Report. Cambridge and New York: Cambridge University Press
9 International Energy Agency (IEA) (2012). A policy strategy for carbon capture and storage. Information Paper
10 International Energy Agency (IEA) (2016). The Potential for Equipping China’s Existing Coal Fleet with Carbon Capture and Storage. Paris: OECD/IEA
11 International Energy Agency (IEA) (2017). Energy Technology Perspectives 2017: Catalysing Energy Technology Transformations. Paris: OECD/IEA
12 MKrahé, W Heidug, JWard, RSmale (2013). From demonstration to deployment: An economic analysis of support policies for carbon capture and storage. Energy Policy, 60: 753–763
https://doi.org/10.1016/j.enpol.2013.05.019
13 BMetz, O Davidson, Hde Coninck, MLoos, L A Meyer (2005). IPCC Special Report on Carbon Dioxide Capture and Storage. Cambridge: Cambridge University Press
14 DSwanson, S Barg, STyler, HVenema, STomar, SBhadwal, SNair, D Roy, JDrexhage (2010). Seven tools for creating adaptive policies. Technological Forecasting and Social Change, 77(6): 924–939
https://doi.org/10.1016/j.techfore.2010.04.005
15 UNFCCC (2010). Communication of the Department of Climate Change, National Development and Reform Commission of China to the UNFCCC Secretariat, 28 January 2010., 2017–6-18
16 U.S. Energy Information Administration EIA (2016). China. , 2017–11–18
17 W EWalker, S A Rahman, J Cave (2001). Adaptive policies, policy analysis, and policy-making. European Journal of Operational Research, 128(2): 282–289
https://doi.org/10.1016/S0377-2217(00)00071-0
18 CWard, W Heidug, N HBjurstrom (2018). Enhanced oil recovery and global CO2 storage potential: an economic assessment. KAPSARC, KS-2018–DP27., 2018–2-18
19 White House (2014). U.S.-China Joint Announcement on Climate Change., 2017–6-17
20 White House (2015). U.S.-China Joint Presidential Statement on Climate Change., 2017–6-18
21 Zero Emissions Platform (ZEP) (2013). Building a CO2 transport infrastructure in Europe., 2017–2-18
22 H RZhao, S Guo, L WFu (2014). Review on the cost and benefits of renewable energy power subsidy in China. Renewable & Sustainable Energy Reviews, 37: 538–549
https://doi.org/10.1016/j.rser.2014.05.061
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