Lasse Sander Tobiasen
October 8, 2024
6 tips to de-risk carbon capture at cement plants
Carbon capture utilisation and storage (CCUS) helps cement producers when it comes to closing in on decarbonisation, but its adoption is challenged by technical and commercial risks. Here are our expert’s top 6 tips to manage risks using well-tested project delivery models.
- Identify potential technological and operational limitations, and environmental impacts
- Make more informed decisions
- Allocate resources efficiently
- Design strategies for long-term viability
- Boost investor confidence
- Minimise energy waste
- Reduce environmental footprint
- Reduce operational costs
- Demonstrate commitment to sustainability and responsible business practices
- Enhance relationship with investors
- Documenting the best and safest physical intermediate on-site storage of liquified pressurised CO2 requires dedicated risk assessments, or a computational fluid dynamic model of worst-case scenarios to determine if mitigations are needed or to document the risks to authorities and internal stakeholders
- Air-borne pollutants are impacted partly due to a smaller volume flow of flue gas once CO2 is removed (affecting flue gas dispersion), and partly due to the risk of new pollutants that must be managed. For example, degradation amine products, like nitrosamines, which environmental authorities may focus on.
- Air dispersion modelling is helpful at early project stages to determine if reusing existing stacks is viable or to clarify options and constraints for a new stack or point source of emission. Later in project development, it is important to get requirements from authorities for monitoring emissions and limits in the cleaned flue gas. Each country may have different requirements.
- Cement plant pollution emission limit values (e.g., for nitrogen oxides and sulphur oxides) may strengthen in the future, so carbon capture flue gas integration must consider requirements for future abatement technologies.
- Planning and permitting activities must take place prior to final investment decisions to avoid the risk of additional environmental requirements (and cost overruns or delays) during project execution.
Three major aspects of developing a carbon capture business case:
- :
Carbon capture technology
The capture technology and its integration with existing assets as well as the technology’s associated investment and operational costs
- :
Utilisation or storage proximity
The associated market drivers including transportation options and costs. Transport and storage costs are a large part of overall CCUS OPEX costs. Commercial arrangements with storage providers are needed before final investment decisions can be made.
- :
Finance options
Finance options are often split between balance sheet equity, project finance, and grant funding.
- Acts as a guide through all project stages from feasibility, design, financial close, and commercial operation
- Informs key stakeholders about development costs and risks, which helps for go/no-go decisions
- Keeps a time schedule
- If you are able and willing to procure parts of the project yourself to cut costs, e.g. CO2 storage tanks, balance of plant, jetty infrastructure, or civil infrastructure
- If your project financials require de-risking to a degree where a fixed price/turn-key contractor is needed
- If you need long-term operation and maintenance contracts for operating the carbon capture plant
Want to know more?
Burçin Temel McKenna
Global Head of Carbon Capture
+45 51 61 40 19