You are on page 1of 17

Financing Advanced, Low-Emission

Coal-Fired Power Generation


Technologies and Carbon Capture and
Storage Projects
Annika Seiler
November 18, 2013

Disclaimer

The views expressed in this presentation are the views


of the ADB mission members and DO NOT necessarily
reflect the views or policies of the Asian Development
Bank, its Board of Director or the Governments they
represent.

Content
Introduction to ADB
Rising Reliance on Coal for Power Generation in the
Asia Pacific Region
ADBs Approach to Financing Coal Fired Power Plants
Examples of ADBs Support to Low-Emission Coal
Technologies
ADBs support to Carbon Capture and Storage
Demonstration in Asia

Asian Development Bank An Introduction


ADBs Vision:
Asia Pacific Region Free of
Poverty

ADBs Strategic
Direction:

Founded in 1966 with


Headquarters in Manila
67 Member countries with 26
country offices
With a triple A credit rating,
ADB is mobilizing low-cost funds
for development
In 2012, ADB assistance totaled
$21.57 billion including $13.30
billion financed by ADB and
$8.27 billion in co-financing

Status of Electricity Access in Developing countries


of Asia and the Pacific Region, 2010

About 675 million people still suffer from a lack of


access to electricity. An incremental generation capacity
of additional 125 GW is needed to achieve MDG

Coal Demand For Power Generation and CO2


Emission for Developing Asia, 1990-2035
Electricity demand is
projected to double
between 2010 and
2035.
Investments in coalfired power plants are
a strategic choice for
policy makers to
strengthen energy
security, also in
traditionally non-coalbased economies.
Source: Asian Development Bank estimates, 2013.

Expansion of coal-fired generation pose major concerns


for environmentally sustainable growth and climate
change mitigation in ADBs DMC.

ADBs Energy Policy 2009

Objective:
Assist ADB Developing Member Countries in providing to their
population reliable, adequate, and affordable energy for inclusive
growth in a socially and environmentally sustainable manner.
ADBs Clean Energy Program target impact :
First of all contribute to improved access to energy and energy security
in DMCs and second decrease the rate of climate change.
Tangible Outputs wrt cleaner coal & CCS technologies:
Investments in clean energy projects: $1 billion p.a. up to 2013 & $2
billion p.a. from 2013 onwards & leverage public & private sector CE
investments
Deployment of new technologies with strong demonstration effect
Approaches to promote clean energy / CCS introduced;
Barriers to clean energy/CCS technology investments lowered.

ADB s Approach to Financing Coal fired Power


Plants (CFPP)

ADBs Energy Policy 2009 allows for financing of

retrofitting of CFPP for improving efficiency,


reliability, and operating life and to comply with
current higher environmental standards;
new plants under the condition
As a minimum super-critical, wherever feasible
Improvement of Energy Security
Ongoing policy-dialogue with relevant
government

Examples of CFPP Projects Co-Financed by ADB


over the past 10 years

Coal Mine Methane (CMM) Development, PRC, $187.4m, 2004


Demonstration of CMM for power generation (120 MW CMM power plant)
and urban residential gas supply

NTPC Capacity Expansion Facility, India, 2006


Construction of Indias first super-critical power plant

Mong Duong 1 Thermal Power, Vie, $930.71m, 2007 and 2010


Construction of low emission CFPP using CFB boiler technology

Tianjin IGCC Power Plant Project, PRC, $140m, 2010


Construction of first IGCC in developing Asia

ADB supports first of its kind technologies in its member


countries to support development of advanced, low
emission technologies, instil sound environmental
management and other safeguard practices

ADBs Approach to foster low emissions coal fired


power generation technologies
Capacity
development

Loan
projects

Policy
dialogue &
consultation

ADB seeks to pave the way for low emission technologies and
promote environmentally sustainable investment decisions by
financing demonstration projects, engaging in policy dialogue
and strengthen capacity of relevant stakeholders

ADB CCS Fund


In June 2009, ADB established a CCS Fund with an

initial contribution of AUD 21.5 million from the


Global CCS Institute, Australia. In 2012, Government
of the United Kingdom also pledged 35 million in the
fund.
Specific Eligibility Criteria
Accelerate demonstration of CCS technologies
Identify, lower and / or eliminate general or country

specific barriers for CCS demonstration


Identify, eliminate or mitigate risks in capture,

transport and storage technology demonstration

Barriers to CCS in Developing


Countries

Low Policy Priority for DMC governments


Storage exploration is a long expensive
process; not much information is in public domain
Existing institutional setup in developing countries do not match the
requirements of the whole CCS chain
Unfair comparison with without CCS power plants; CCS is not
included in the developing countries low-carbon technology portfolio
No economic drivers / Commercial gap due to

High LCOE

Gaps in regulatory framework

Lack of fiscal and financial support mechanisms

Fuel subsidies & no carbon penalty


Insufficient commercial & public financing facilities
Public Awareness

Capacity
strengtheni
ng,
technology
roadmaps
and policy
advisory
services for
key policy
makers and
major
energy
groups in
the PRC

Financing of CCUS pilot plant:

Assessing
potential
and
providing
initial
strategic
assessment
in
PRC
South East
Asian
Economies

Target initial activities in large


coal-based economies:

ADB is a
stakeholder
in the CSLF
member of
the Global
CCS
Institute

Assessing the Potential for CCS

Partnerships:

CCS in Developing Asia ADBs Approach and


Activities
Supporting
CCS pilot
testing and
demonstrati
on in the
PRC and
Indonesia;
Grant
support to

ADB Approach to Support CCS Development in


the PRC
Upstream analysis and pilot testing of available technologies
for energy companies and dissemination of lessons learnt:
Strengthen
Capacity of Datang
International to
assess, pilot-test,
and apply postcombustion
method in gas-fired
power plant and to
establish CCSready criteria power
plants

Oxyfuelcombustion
CCS

Postcombustion CCS

Financial and technical assistance to


China Huaneng Group to study the
technology, build and operate an IGCC
power plant with a CCUS

Assess feasibility
and establish
technical
standards for a
200MW
demonstration
coal-fired power
plant

Precombustion
CCS

14

ADB Approach to Support CCS Development in


the PRC

ADB in
consultation with
major oil, gas, coal
mining, and power
industries seeks to
identify and
facilitate joint
ventures for early
stage
demonstration
projects

Knowledge transfer:

ADB is working
with the National
Development and
Reform
Commission to
formulate a
comprehensive
roadmap, policy,
and regulations to
enable CCS
demonstration and
deployment

Business Models:

Policy & regulatory


framework:

Establishing an Enabling Environment for CCS


Demonstration:

ADB organizes
international
conferences or site
visits for PRC
stakeholders to
facilitate
knowledge sharing
and exchange on
good practices in
CCS development

15

Conclusions
Coal is and will be a key energy security solution to
the region but environmental foot print of coal usage
especially from power plants must be reduced
Advanced,
low-emission
coal-fired
generation
technologies will have to be demonstrated and
deployed, and innovations in clean coal technologies
have to be advanced.
Development banks can support change to business as
usual (sub-critical) CFPP development by
financing highly efficient coal-based power plants
fostering CCS demonstration & deployment

For more information please


contact:
Annika Seiler, Finance Specialist (Energy)
Address:
6, ADB Avenue
Mandaluyong City
1550 Metro Manila,
Philippines
Email:
aseiler@adb.org
Tel:
+632.683.1512
Web site:
www.adb.org

You might also like