System integration linking CO2 Sources, Sinks, and Infrastructure for the Ordos Basin, China

Abstract

In this work, we present a collaborative effort between US and Chinese ACTC scientists to create the first comprehensive study of what a large and integrated commercial scale CCUS system could look like in China. We focus on the Ordos Basin, which is slightly larger than New Mexico, the fifth largest state in the US. The basin has a large number of chemical and power industries found within its perimeter, which generate 100s MT of CO2 per year, and has the potential capacity to store CO2 in a wide range of target formations including CO2 utilization. Oil fields and unminable coal seams in the area have been identified targets for enhanced oil recovery (EOR) and enhanced coal bed methane recovery (ECBM) using available waste CO2 streams., As the Ordos Basin shares many key characteristics with the Illinois Basin in the US, we have leveraged experience and understanding of the sequestration potential of the Illinois Basin to enhance and accelerate the assessment of the Ordos Basin. Using the SimCCS decision model on this candidate network, we developed optimized combinations of CCS infrastructure in response to (1) a CO2 capture target amount and (2) a CO2 tax on emissions. Example results show an emissions penalty below $24/tCO2 does not stimulate any CO2 capture; that is, all industries emit their entire CO2 emissions because it is cheaper than capturing. From $24/tCO2 until $52/tCO2, approximately 50 MtCO2/yr is capture system wide from the cheapest sources (e.g., coal to liquid plants). Beyond $52/tCO2, it becomes economical to capture CO2 from coal-fired power plants. Results from this study show that candidate pipeline routes in the Ordos Basin could avoid high cost areas such as population centers and topographically complex terrain, particularly in the southern portion of the Ordos Basin toward the city of Xi’an.