July 31, 2019 - 4:00 AM EDT
Print Email Article Font Down Font Up
CRU: Carbon Capture and Storage in China

LONDON, July 31, 2019 /PRNewswire/ -- Carbon capture and storage (CCS) could potentially help China to achieve its long term carbon dioxide (CO2) emission target, whilst also supporting coal demand.

Carbon capture and storage in China

However, currently, carbon capture technology is only economically viable in cases where the CO2 can be sold and used by other industries, that is, referred to as carbon capture and use or CCU, but this limits the volumes that can be viably captured currently. In order for CCS (i.e. the storage option) to be more generally economically viable, we estimate that costs need to fall by ~50% from recent levels. This indicates that carbon capture capacity will be limited in the near term, as will its shielding effect on coal consumption.

Deeper carbon cut is required to meet stricter carbon emission target

Chinese CO2 emissions targets are most frequently presented in relation to economic output. For example, a target was set in 2015 for CO2 emissions per unit of GDP in 2020 to be 40–45% lower compared with 2005. In 2017, Chinese CO2 emissions per unit of GDP were, in fact, 46% lower than the 2005 level, demonstrating that the target has been achieved ahead of schedule absolute CO2 emissions have increased over this period).

On the one hand, China cut its primary energy intensity of GDP by 40% from 2005 to 2017 through energy efficiency policies and its stronger growth in services. On the other hand, coal's share of power generation reduced from 80% to 63% over the same period. Nonetheless, continued efforts to reduce carbon emissions, especially in the power generation sector, are required in order for the 2030 and 2050 targets to be achieved.

As illustrated in the graph below, to meet the target of limiting global temperature rises to 2ºC, as stipulated under the Paris Agreement, a conservative estimate for Chinese responsibility suggests that the carbon intensity of GDP needs to fall by 4–7%/y by 2030 and then by a further 3–12%/y between 2030 and 2050. This indicates that, up to 2050, Chinese carbon intensity needs to continue falling by at least the same pace compared with the past 15 years. Moreover, stricter constraints are likely to be imposed to meet the more onerous 1.5ºC target, as suggested by the 2018 IPCC special report. This suggests that harder efforts to control carbon emissions will be needed, which will likely require the development of new technologies.

Read the full story: https://www.crugroup.com/knowledge-and-insights/insights/2019/carbon-capture-and-storage-in-china/ 

Read more about CRU: http://bit.ly/About_CRU

About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 280 experts and has more than 11 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004 and Singapore in 2018.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.

CRU Logo

Photo: https://mma.prnewswire.com/media/954089/CRU_Carbon_China.jpg
Logo: http://mma.prnewswire.com/media/536199/CRU_Logo.jpg

Source: PR Newswire (July 31, 2019 - 4:00 AM EDT)

News by QuoteMedia

Legal Notice