China Datang Corporation (HKSE: 1798.HK) and Alstom (Paris: ALO.PA) have signed a memorandum of understanding (MoU) to form a long-term strategic partnership that will develop carbon capture and storage (CCS) projects in China.
Under the MoU terms, the two companies will develop two CCS demonstration projects in the country’s two biggest oilfields – Daqing in Heilongjiang province and Dongying, Shandong province.
The 350MW coal-fired power plant of Daqing will be equipped with Alstom’s oxy-firing technology and the 1000 MWe Dongying coal-fired power plant will also adopt one of Alstom’s leading carbon capture technologies.
Economically speaking, the adjacency to oilfields of these projects provides a convenient and cost-effective condition for CO2 transport, utilisation and storage. In addition, after being compressed and piped deep into the oilfield, the CO2 can serve as effective tool for oil pumping. This enhanced oil recovery increases the financial feasibility of these two demo projects.
Both CCS projects are scheduled for operation in 2015. Once completed, the two CCS demonstration projects will each be able to capture above 1Mta of CO2.
“The two projects represent significant improvement of CCS demonstration projects in China in terms of scale and technology and will further diversify China’s CCS technology mix,” said Alstom in a press statement. Philippe Joubert, deputy CEO of Alstom said, “As a proven leader in the development of CCS technology, we are pleased and proud to partner with Datang in CCS deployment in China and to be able to use our leading edge technology in supporting China to combat climate change.”
