China, People's Republic of: 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)
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.
East Asia Department
Request for information
China, People's Republic of
|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 / Economy||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.|
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||
Majority of the required deliverables have been either completed or under review.
- Completed: 18 deliverables.
- Under review: 2 deliverables.
- Completed: 10 deliverables.
- For preparation: 2 deliverables.
|Description of Project Outputs||
Technical support to 0.36 million tpa YCCUSP provided
Techno-economic feasibility of the 1.6 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)||
The consulting firm, Battelle Memorial Institute, has been engaged since September 2020. Four individual consultants have also been engaged since January 2022 so that they can support the project executing agency and ADB to facilitate TA management and coordinate dialogue among the TA stakeholders. The TA has been back on track. The progress of each output by performance indicator is shown below.
1a. FEED study: Achieved (3 deliverables completed).
1b. Development of environmental and social impact assessment: To be achieved (TBA). 1 deliverable under preparation, and 1 deliverable completed.
1c. Preparation of safety assessment: TBA (1 deliverable under preparation).
1d&1e. Establishment of a technical optimization and risk assessment study on YCCUSP CO2-transportation pipeline: Achieved (1 deliverable completed).
1f. Report on innovative CO2-EOR technologies for enhancing recovery of immiscible oil: Achieved (1 combined deliverable completed)
1g. Establishment of a project implementation plan: Achieved (2 deliverables completed).
2a. Feasibility study report for 1.6 Mtpa project: Achieved (1 deliverable completed).
3a. Establishment of a measurement, monitoring, verification: Achieved (1 deliverable completed).
3b. Develop a mathematical model for immiscible CO2-EOR and storage in low permeability oil field in Ordos Basin: Achieved (1 deliverable completed).
3c. Prepare a report analyzing the CO2 storage potential of the oil field: Achieved (1 deliverable completed).
3d. Establish the energy penalty and net storage amount of the 1 million tpa YCCUSP: TBA (1 ongoing report review).
3e. Development of accounting and reporting methodologies on carbon reduction of YCCUSP: Achieved (1 deliverable completed).
3f. Establishment of a sustainable business model for YCCUSP: Achieved (2 deliverables completed).
3g. Preparation of a public acceptance and community involvement study: TBA (1 ongoing report review).
4a-4d: Achieved. All the 4 deliverables completed under the comprehensive capacity building session on 24-25 August 2022. More than 100 participants from MEE-DCC and YPG participated in the session. The participants benefitted from the knowledge shared by the TA consultants and prominent guest speakers in the field of CCUS from Canada and the United States. The training covered comprehensive topics on PRC's carbon neutrality policy, CCS business models, MMV (measurement, monitoring, and verification) and accounting methodologies, and the virtual project overview.
5a. 10 participants in international workshops increased understanding of CCUS: Achieved (6 deliverables completed under the combined capacity building session on 24-25 August 2022).
5b. Knowledge products produced: Achieved (2 knowledge products completed).
|Geographical Location||Nation-wide, Shaanxi, Xi'an|
|Summary of Environmental and Social Aspects|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Keep close communication with the executing agency (the Ministry of Ecology and Environment, Department of Climate Change) and the implementing agency (Yanchang Petroleum Group).|
|During Project Implementation||In close consultation and coordination with MEE and YPG, the TA made minor scope change in February 2022, after having extended the TA completion date to 16 October 2022. To expedite the implementation, multiple tripartite report review meetings were organized among MEE, YPG, the consultant, and ADB in February, July, and September 2022. Consolidated capacity building session was held on 24-25 August 2022 with more than 100 participants from MEE and YPG.|
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 a consulting firm under quality- and cost-based selection on an output-based lump-sum contract to deliver outputs and activities under the TA._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.
The TA has engaged the consulting firm, Battelle Memorial Institute, in September 2021 and the individual consultants required for TA management have been advertised.
|Responsible ADB Officer||Sakai, Atsumasa|
|Responsible ADB Department||East Asia Department|
|Responsible ADB Division||EASI|
Ministry of Ecology and Environment former "Ministry of Environmental Protection"
Ministry of Ecology and Environment, Department of Climate Change
National Development and Reform Commission
|Approval||09 Jul 2019|
|Last Review Mission||-|
|Last PDS Update||26 Sep 2022|
|Approval||Signing Date||Effectivity Date||Closing|
|07 Jun 2019||09 Jul 2019||09 Jul 2019||31 Oct 2021||16 Oct 2022||-|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||4,300,000.00||0.00||0.00||0.00||0.00||4,300,000.00||26 Sep 2022||1,787,189.19|
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|Tender Title||Type||Status||Posting Date||Deadline|
|National Project Manager||Individual - Consulting||Closed||02 Sep 2021||08 Sep 2021|
|National Project Coordinator 1||Individual - Consulting||Closed||02 Sep 2021||08 Sep 2021|
|National Project Coordinator 2||Individual - Consulting||Closed||19 Jul 2021||01 Aug 2021|
|National Project Coordinator 1||Individual - Consulting||Closed||19 Jul 2021||01 Aug 2021|
|International Project Manager||Individual - Consulting||Closed||19 Jul 2021||01 Aug 2021|
|National Project Manager||Individual - Consulting||Closed||19 Jul 2021||01 Aug 2021|
|Component 1: Carbon Storage and Enhanced Oil Recovery and Component 2: Carbon Capture||Firm - Consulting||Closed||17 Dec 2019||31 Jan 2020|
|Storage and Enhanced-Oil-Recovery Component||Firm - Consulting||Closed||11 Jun 2019||31 Jul 2019|
|Carbon Capture Component||Firm - Consulting||Closed||11 Jun 2019||31 Jul 2019|
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Capacity Development||Technical Assistance 9745||10 Sep 2020||Battelle Memorial Institute(UNITED STATES) | 505 King Avenue, United States Columbus OH 43201-2696 United States||Min of Ecology &Environment,Dept of Climate Change||3,842,724.00||—|
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