CCS - A Solution to Poland's Energy Dilemmas
Ecoal, October 2010, Vol.72
Originally published on the 'Climate Answers' website, below is a shorter version of the World Coal Institute editorial on the potential offered by CCS in Poland.
With around 95% of its electricity generated from coal, Poland comes up higher in many coal statistics than Australia, the United States, South Africa, or even China. The coal intensity of electricity generation in Poland is not only a legacy of the past, but also a conscious choice of consecutive Polish governments. As the most abundant energy resource in the country, coal is considered an important pillar of Poland's energy security. "Polish Energy Policy until 2030", a document published in 2008 by the Ministry of Economy, states that "National resources of hard and brown coal play an important role of energy security stabilisers".
Yet, despite the central position of coal in the energy sector and environmental pressure from Brussels, there is little enthusiasm for carbon capture and storage (CCS) technology in Poland. Even though Poland is hosting one of the six CCS demonstration projects financed by the European Union through the Economic Recovery Plan, strategic government documents envisage merely 1-2 CCS demonstration plants through to 2030 and there is no mention of deployment once the technology is demonstrated.
Given the carbon intensity of Poland's electricity mix, weak CCS policy could not only prevent Poland from reaching its climate targets, but also prove harmful for electricity consumers and the energy security of the country. Stronger support for CCS could bring many benefits to electricity consumers and to the Polish economy, not to mention the country's carbon footprint. Yet still CCS is not considered a top priority by decision makers. Instead, the technology is often dismissed as costly, inefficient and immature. This criticism is usually based on four myths which are addressed below.
Myth 1- Nuclear power can solve Poland's energy problems
According to Polish energy policy targets, nuclear power should account for 15% of electricity produced in 2030. The first nuclear project is expected to add 3 GW to Polish generation capacity in around 10 years and another nuclear power plant is planned shortly after that. This will allow for greater diversification of energy resources, but it will not provide enough electricity to fill the emerging electricity generation gap. Since 60% of the entire electricity generation capacity of the country needs to be replaced by 2030, nuclear projects planned by the Polish government only represent a quarter of replacements needed. Political vision and guidance are needed for the remaining three quarters of investments to take place within this essentially state-driven energy market. CCS should be part of this vision.
Myth 2- CCS is too expensive
When compared to other low-carbon energy technologies, CCS comes out as a cost competitive option. CCS costs are expected to go down as more experience is gained from demonstration projects and technological progress allows more efficient CO2 capture. If the technology develops according to the expected learning curve, coal-fired power plants with CCS will generate electricity at a competitive cost in comparison to gas-fired power stations or wind turbines.
The International Energy Agency (IEA) states in its 2010 report "Projected Costs of Generating Electricity" that generating electricity from natural gas and from wind now costs €70/MWh and €110/MWh respectively, while electricity from coal-fired power plants costs €45/MWh. This is without CCS. The IEA's report "CO2 capture and storage - a key carbon abatement option" (2008) forecast that the additional cost associated with CCS technology for coal-fired power plants could be €23 per MWh. Coal power plants with CCS could therefore generate electricity for €68/MWh, which is less than gas power plants or wind turbines. In addition, the necessary capturing of CO2 from gas power plants will further increase the competitiveness of coal as an energy resource in the future.
Myth 3 - CO2 cannot be stored in Poland
Poland has exceptionally favourable conditions for storing CO2. According to European Commission (EC) data, Poland has enough storage capacity to store CO2 from the widespread deployment of CCS within its energy sector.
The only issue identified so far is that CO2 from emission points, situated mainly in the south and in the central part of the country, will have to be transported to relatively distant storage points (EC "CCS directive - Impact Assessment", 2008). However, this challenge can be overcome with the existing technology and the EC is already working on a European CO2 transport network which could significantly decrease the overall cost of transporting CO2.
Myth 4- Poland cannot be a CCS leader
Some people argue that Poland does not have enough resources to excel in CCS. However, even without being home to large energy companies, a country can envision itself as a CCS champion.
In a speech in the House of Commons, the former UK Secretary for Energy and Climate Change, Ed Miliband, said he expected 50,000 jobs to be created within the next 20 years in the UK thanks to CCS technology development. This activism on CCS came in the midst of a severe economic crisis. The UK's example proves that there should be no obstacles stopping Poland from aspiring to become a leader in CCS technology.
Perhaps, instead of proving that there are no barriers to Poland's success in CCS, it is more important to put emphasis on what could ease Poland's position as a CCS front-runner. In fact, with its long term tradition in mining engineering and research, as well as its coal mining industry, Poland has the right know-how and the energy context needed for clean coal technologies to thrive.
