New Technology to Avoid CO2 Emissions in Electricity Generation from Natural Gas

On several occasions, the European Energy Foundation has been organising discussions on the subject of reducing CO2 emissions through innovative technologies. This subject is of particular interest after the Kyoto greenhouse gas reduction targets to which countries world-wide have committed themselves. In the case of Norway, for example, the government aims at “zero emission” power generation. However, in view of a growing power consumption, the government expects a power shortage by 2010 given the fact that installed hydropower resources, the currently sole indigenous primary power supply in Norway, will not be sufficient to cover the increasing demand.

Norway, the largest gas exporting country in Europe, does currently not use any natural gas for its own power production and therefore has to find other solutions to achieve the so-called “zero emission” policy.

The Norwegian company Norsk Hydro has developed a technology called “Hydrokraft” which was presented during the debate on “new technology to avoid CO2 emissions in electricity generation from natural gas” by their Senior Vice President Energy, Mr Ole R¯ NNING.

This technology consists of combining natural gas and water at very high temperature in a reformer plant in order to produce Hydrogen and CO2. Hydrogen will be used for electricity generation in a combined cycle power plant with a 1300 MW installed capacity.* CO2 will be injected in suitable oil reservoirs with the aim of enhancing the oil recovery rate.

The cost-effectiveness of the project will be guaranteed through the sale of CO2 to offshore companies. In fact, in the offshore business, natural gas is currently used for injection in oil reservoirs for increasing the oil recovery rate. Supercritical CO2 has the same recovery capacities and could therefore be used in suitable oil reservoirs, i.e. reservoirs without a natural gas cap. CO2 sales to the offshore market will thus cover the initial cost of producing hydrogen in a reformer plant.

The cost for electricity produced from hydrogen is identical with electricity produced from natural gas.

In the long term, there are different arguments in favour of using CO2 for injection rather than natural gas.

CO2 is a waste product with no other application possibilities, while natural gas is a primary fuel and can be used for thermal processes. Furthermore, natural gas once injected in oil reservoirs can only be reused by 70% of its original volume, i.e. 30% of it are wasted.

The “Hydrokraft” technology could be transferred to other countries if certain geo-economical conditions are fulfilled, such as a nearby offshore field and a nearby electricity consumer market.

Professor Jorma Routti, Director General for Science, Research and Technology of the European Commission insisted on the need for a diversified global approach for assuring a sustainable energy supply in a deregulated energy market in the European Union. He added that reaching post Kyoto targets will require the combination of adequate economical and policy instruments. In this context emission trading permits will be a suitable instrument as they can render investments outside the EU in sectors such as energy conservation, clean coal and other new technologies cost-effective and beneficial to greenhouse gas reductions. He therefore encouraged the development of such technologies which in the end will positively contribute to implementing flexible trading mechanisms.

Commenting on the 5th Framework Programme for research and technological development (5th FPRTD), he underlined that an integrated approach, i.e. a full analysis of cost-effectiveness, climate impact issues and macroeconomic aspects, will be focused on within FPRTD studies.

(*The effluent gases will contain a residual amount of carbon dioxide of less than 10% of the average content in traditional combined cycle power plants based on natural gas).