The TA focuses on the feasibility assessment of a large-scale CCUS demonstration project at a coal-chemical plant of Yanchang Petroleum Group (YPG), which is identified in the road map and by NDRC as a priority demonstration project and is currently under development. The TA is well aligned with ADB's Strategy 2020 and its development agenda of achieving environmentally sustainable growth. ADB s country operations business plan, 2017-2019 named managing climate change and environmentally sustainable growth as strategic priorities of ADB assistance to the PRC.
|Project Name||Promoting and Scaling Up Carbon Capture and Storage Demonstration-Feasibility Assessment of a Large-Scale Carbon Capture and Storage Demonstration Project and Development Support to Yanchang Petroleum Group (Subproject 2)|
|Country||China, People's Republic of
|Project Type / Modality of Assistance||Technical Assistance
|Source of Funding / Amount||
|Strategic Agendas||Environmentally sustainable growth
Inclusive economic growth
|Drivers of Change||Governance and capacity development
Private sector development
|Sector / Subsector||
Energy / Energy efficiency and conservation
Industry and trade / Large and medium industries
|Gender Equity and Mainstreaming||No gender elements|
|Description||The TA focuses on the feasibility assessment of a large-scale CCUS demonstration project at a coal-chemical plant of Yanchang Petroleum Group (YPG), which is identified in the road map and by NDRC as a priority demonstration project and is currently under development. The TA is well aligned with ADB's Strategy 2020 and its development agenda of achieving environmentally sustainable growth. ADB s country operations business plan, 2017-2019 named managing climate change and environmentally sustainable growth as strategic priorities of ADB assistance to the PRC.|
|Project Rationale and Linkage to Country/Regional Strategy||To meet its nationally determined contributions in line with the Paris Climate Agreement of 2015, the PRC has committed to achieve peaking of carbon dioxide (CO2) emissions by around 2030 and, by the same year, to decrease its carbon intensity by 60%-65% from its 2005 levels. The PRC is one of the few countries that have included CCUS in their nationally determined contributions. The PRC depends heavily on fossil fuels, which account for more than 85% of primary energy supply in the PRC. To diversify its energy mix, it has committed to increase the share of renewable energy to 15% by 2020, and to 20% by 2030. The government may also consider reining in emissions from fossil-fuel-based industrial and power plants by announcing more stringent emission standards. Since CCUS is currently the only available near-commercial technology that can abate 90% or more of CO2 emissions from fossil-fuel-based industrial and power plants, its early demonstration in multiple applications will help its timely deployment.|
|Impact||Innovative climate change mitigation technology of CCUS successfully demonstrated for further deployment in the PRC|
|Description of Outcome||Feasibility assessment for large-scale YCCUSP completed|
|Progress Toward Outcome|
|Description of Project Outputs||
Technical support to 0.36 million tpa YCCUSP provided
Techno-economic feasibility of the 1 million tpa YCCUSP appraised
Capability of YPG in the field of sustainable project development as well as technical assessment of CO2 flooding and storage developed
Competence of YPG for safely implementing and operating the YCCUS project strengthened
Knowledge products on the YCCUSP shared and disseminated
|Status of Implementation Progress (Outputs, Activities, and Issues)|
|Geographical Location||Nation-wide, Shaanxi, Xi'an|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design|
|During Project Implementation|
|Consulting Services||The TA will engage widely respected experts in the field of CO2 capture, CO2-transport, CO2-EOR, CO2 sequestration, finance, economics, as well as social and environmental safeguards. ADB will be responsible for the selection and supervision of consultants engaged under the TA. In this regard, ADB will engage up to two firms under quality- and cost-based selection on an output-based lump-sum contract to deliver the two contract packages listed in the table. To facilitate TA management, four individual consultants will be hired using individual consultant selection (ICS) method. ADB will engage the consultants in accordance with ADB Procurement Policy (2017, as amended from time to time) and the associated project administration and TA staff instructions. In addition to the ADB project manager, one additional project manager will be hired for MEE DCC to (i) facilitate TA management; (ii) track and promote the implementation of the TA; (iii) coordinate the work of TA international and national consultants; (iv) facilitate the exchange of information, dialogue, and discussions between executing agency, implementing agency, consultants, and stakeholders; and (v) assist the day-to-day management of the TA. The project manager will be supported by two national project coordinators.|
|Responsible ADB Officer||Atsumasa Sakai|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||EASI|
Ministry of Ecology and Environment former "Ministry of Environmental Protection"
115 Xizhimen Nanxiaojie, Beijing Ministry of Ecology and Environment, Department of Climate Change
No.115 Nanxiaojie Xizhimen Beijing National Development and Reform Commission
No. 38 South Yuetan St.
|Approval||09 Jul 2019|
|Last Review Mission||-|
|Last PDS Update||13 Jun 2019|
|Approval||Signing Date||Effectivity Date||Closing|
|07 Jun 2019||-||09 Jul 2019||31 Oct 2021||-||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||4,300,000.00||0.00||0.00||0.00||0.00||4,300,000.00||07 Jun 2019||0.00|
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