Carbon capture water impact is a concern

Updated 28 January 2013
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Carbon capture water impact is a concern

LONDON: As well as being extremely costly proposed carbon capture technology could more than double water consumption by conventional coal-fired power plants, adding to reasons for an urgent demonstration program.
Carbon capture and storage (CCS) technology is central to cutting carbon emissions from fossil fuel power plants as the only known way to slash these from gas and coal combustion.
But no commercial-scale demonstration plant exists in the power generation sector, and just one is under construction at Boundary Dam Power Station in Saskatchewan, Canada.
A major problem is the extra capital cost of trapping greenhouse gas emissions, normally vented into the atmosphere, and piping it underground, estimated at about $ 1.5 billion for a medium-sized coal power plant.
There are also public acceptance concerns regarding the possibility that the stored CO2 may leak and suffocate people above ground, a risk often discounted by experts. Another potential deal-breaker, and far less discussed, is a so-called water penalty, which is particularly relevant in water-stressed India and China where most new coal plants will be built in the coming decades.
Concerns about water availability are growing worldwide in response to rising populations, more frequent heatwaves and ground-water depletion.
Ways to mitigate the problem include a parallel support for wind and solar power, which have negligible water consumption.
In thermal power generation, a fuel source such as gas, coal or a nuclear reactor is used to boil steam and drive a turbine-generator.
Typically, steam exhaust from the turbine is condensed and recycled back to the boiler, repeating the process.
That condensation requires significant cooling water, given that more efficient power generation depends on a cooler condensate.
A 500 megawatt coal-fired power plant uses more than 12 million gallons of water per hour, according to U.S. Department of Energy data.
There is an important distinction between water withdrawal and consumption: withdrawal refers to how much water is diverted for example from a river or the sea, while consumption refers to whether that is then made permanently unavailable for example through evaporation, or else returned to its original source.
The two main types of cooling systems are once-through and recirculating.
Once-through cooling pulls in water, to cool the steam exhaust, and then returns it to the river or sea.
Instead of releasing the water back into the environment, wet recirculating systems pump it to a cooling tower or pond where some evaporates and the rest is condensed and recycled.
They have higher consumption and lower withdrawal because of this evaporation and recycling.
At present US power generation is split equally between the two but recirculating systems will increasingly dominate because of the 1972 Clean Water Act, with the aim of protecting aquatic creatures sucked into power plants during water withdrawal, a process which does them no good at all.
CCS adds to water consumption from coal combustion, according to the technology of the original power plant.
In the case of conventional pulverized coal power plants, the CCS process (called post-combustion) uses solvents to absorb the CO2 from the power plant exhaust gases and significantly raises water consumption in two ways.
First, the process requires additional water to cool the power plant exhaust gases to below 40 degrees Celsius, as well as to cool the solvent, and then the concentrated CO2 prior to compression and dehydration.
"The CDR (carbon dioxide recovery) facility requires a significant amount of cooling water for flue gas cooling, water wash cooling, absorber intercooling, reflux condenser duty, reclaimer cooling, the lean solvent cooler, and CO2 compression interstage cooling," reported a US National Energy Technology Laboratory (NETL) study, published in 2010, "Cost and Performance Baseline for Fossil Energy Plants."
Second, the CCS process itself is energy hungry, sapping around a quarter of the power plant output, called "parasitic load" because it cuts net electricity available to the grid.
That raises water consumption per unit of exported power.
Energy is consumed, for example, to strip the CO2 from the solvent by applying heat, to compress the CO2, and then to pump it underground.
In the case of advanced, integrated gasification combined cycle (IGCC) plants, the impact of adding CCS on water consumption is far less.
Higher water demand comes from its reaction with carbon monoxide to produce a hydrogen-rich syngas plus CO2, in a so-called water gas shift reactor, and secondly to cool the power plant gases prior to trapping the CO2.
A NETL study in 2008 estimated that CCS more than doubled the water consumption and withdrawal of conventional coal power plants, but had a far smaller impact on IGCC.
The trouble is that IGCC is still only an emerging technology which is far more expensive than conventional coal.
There are several ways to mitigate the water penalty.
First, carbon injection has long been used to prolong the production of oilfields, by displacing hydrocarbons.
But they also produce water, given an average water-to-oil ratio of 9.5 in 2002 in such operations, according to NETL data.
Such CO2 has historically been derived from purification of natural gas or coal gasification, but could equally come from CCS with power generation.
Water production from such displacement could even exceed consumption by the coal power plant, but there are question marks over its usability and in particular salt water from saline formations.
Another approach is to increase the efficiency of CCS, reducing the sacrificed power generation, focusing on CO2 compression designs and improved solvents.
A third option is to use dry cooling systems instead of wet recirculation, where the exhaust steam is cooled by air rather than water, but such systems are three times more costly.
A fourth is to replace the sacrificed power generation with wind or solar power, which has negligible water consumption.
CCS is in the unusual position of being both critical and undesirable, given its role in avoiding serious climate change, barring miracle geoengineering cures, and cost.
Like its high costs, its water penalty demand an urgent global demonstration program which is still absent.
— The author is a Reuters market analyst. The views expressed are his own.


Gold, silver, aluminum and coal gain as Middle East tensions stir supply concerns 

Updated 13 sec ago
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Gold, silver, aluminum and coal gain as Middle East tensions stir supply concerns 

RIYADH: Commodities such as aluminum, gold, coal, and silver have seen prices rise after US-Israeli strikes on Iran triggered supply chain concerns and prompted countries to consider shifting away from oil and gas. 

Gold and silver rose on March 10, supported by a weaker US dollar and easing energy costs after US President Donald Trump suggested that the war in the Middle East could end soon, Reuters reported. 

The increases have not been as dramatic as those seen on the oil markets, which saw the cost of barrel of Brent surpass $119 on March 9, before falling back below the $100 threshold the next day.

Abdulrahman Al-Sudairy, CEO of Vault Saudi, told Arab News: “Beyond oil and gas, gold is seeing the clearest safe-haven demand as Iran tensions escalate, with prices rising on investor rotation into traditional hedges.” 

He added that the Strait of Hormuz is the critical chokepoint to watch, as any disruption threatens not just oil flows, but Qatari liquified natural gas exports and the ammonia and urea derivatives that feed global fertilizer markets.

“Shipping rates and insurance premiums in the tanker and LNG carrier segments are already reacting, serving as a real-time gauge of how seriously markets are pricing the risk of escalation,” Al-Sudairy said.

Vijay Valecha, chief investment officer at Century Financial, said that as of March 10, gold climbed 0.76 percent to $5,177, while silver surged 2.27 percent to $89. 

“Signs that the US–Iran standoff may be moving toward a resolution sent oil sharply lower and softened the dollar, aiding the yellow metal after weeks of volatile, liquidity‐driven selling,” Valecha said. 

He added that, impacted by geopolitical risk, higher oil prices and sticky inflation, gold prices have suffered from dwindling expectations for aggressive rate cuts, leading to exchange-traded fund outflows and investors selling gold to cover other positions in the equity market.

“The multi-year buying streak by central banks, led by China, has continued to underpin prices structurally as it remains firm in its role as an alternative to the dollar-based system,” Valecha said. 

Similarly, aluminum prices surged to their highest level in nearly four years before erasing gains, as escalating conflict in the Middle East worsened supply prospects from the region, according to Al-Eqtisadiah. 

The metal rose as much as 2.8 percent to $3,544 a tonne in London, its highest level since March 2022, before retreating to trade about $100 lower.

The spread between spot and three-month aluminum contracts closed at $47.40 a ton on March 6, also the widest level since 2022, indicating tight immediate supplies. 

Aluminum had already jumped nearly 10 percent in the week ending March 6 after the conflict disrupted shipments from the Arabian Gulf, which accounts for about 9 percent of global supply. 

Buyers in the US rushed to secure alternative shipments from Asia after at least two major smelters in the Middle East — one in Qatar and the other in Bahrain — were forced to suspend deliveries. 

Copper and other industrial metals also declined due to reduced risk appetite. 

Coal prices jumped to their highest level since November 2024 as military strikes continued in the Middle East, prompting countries around the world to consider shifting away from oil and gas tied to the region. 

Newcastle coal futures, the Asian benchmark, climbed 9.3 percent to $150 a tonne on March 9, according to Al-Eqtisadiah. 

This coincided with a surge in crude oil prices, which approached $120 a barrel after producers in the Arabian Gulf cut output. 

An Iranian drone attack last week forced Qatar to shut down the world’s largest LNG export facility, which accounts for about 20 percent of global supply. 

This prompted buyers to seek alternatives, with some importers, such as Taiwan, considering increasing reliance on coal-fired facilities if gas supply disruptions persist. 

Gas prices have also risen, with natural gas prices in Europe jumping as much as 30 percent on March 9, while spot prices in Asia have doubled over the past week and remain elevated.