China continues to take a systematic approach to the deployment of CCS, focusing on research and development followed by the roll out of pilot projects and demonstration projects. Seven of these projects have been included in the Institute’s 2012 annual survey and are listed at Appendix A. Progress has been made with the successful demonstration of smaller-scale pilot projects. As evidenced by the growing number of planned LSIPs, government and industry recognise the importance of CCS for the country’s energy future (Figure 13). The growing number of proposals involving CO2 utilisation and EOR highlight the commercial challenges faced by projects and the importance of establishing a business case for CCS. Cross-sectoral collaboration also remains a challenge for CCS project developers, particularly for power generators that do not have access to a suitable CO2 storage site.

Material changes since the release of the Global Status of CCS: 2011 report include the identification of five new LSIPs, as discussed previously in this chapter. There are now 11 LSIPs in China which are all in the early development stages (nine in Identify and two in Evaluate). Most of these projects involve major state-owned power, oil, or coal companies, as well as a wide array of international partners.

China Datang Corporation is a large state-owned power generation enterprise whose project, the Datang Daqing Oxyfuel Combustion CCS Demo, was added to the Institute’s LSIP listing in December 2011. Datang Heilongjiang Power Generation Co Ltd (a subsidiary of China Datang Corporation) is developing this new-build super-critical coal-fired power plant near Daqing city in Heilongjiang province. Around 1 Mtpa of CO2 is planned to be captured through oxyfuel combustion from one of two 350 MWe cogeneration of heat and power units at the plant. Options for the storage of CO2 include deep saline formations and the use of CO2 for EOR in nearby oil fields.

In addition to the Daqing CCS project, Datang intends to build a 1000 MW coal-fired power plant in Dongying, Shandong province. In November 2011 Alstom signed an agreement with Datang for Alstom to develop the CCS facilities, including feasibility studies. This project plans to capture 1 Mtpa of CO2 from 2020.

In another newly identified LSIP this year, the Shanxi International Energy Group (SIEG) intends to build a 350 MW oxyfuel combustion power plant with CO2 capture, utilisation, and storage facilities. Air Products has been awarded a contract from SIEG to perform a feasibility study and detailed cost estimates this year. The project plans include the capture of 2 Mtpa CO2 using Air Products’ oxyfuel CO2 purification technology.

The China National Petroleum Company (CNPC) continues demonstration of small-scale operations. CNPC’s project has seen the pilot plant of the Jilin oil field successfully inject around 200,000 tpa of CO2 from a natural gas processing facility for EOR by the end of 2011. The planned next phase is to expand capacity to 0.8–1 Mtpa by 2015 (WorleyParsons 2012).

FIGURE 13 China map of LSIPs