The companies have signed a Memorandum of Understanding (MoU) on a long-term strategic partnership during the Carbon Sequestration Leadership Forum in Beijing last week. The meeting was attended by key governmental and corporate energy decision-makers.

Under the terms of the MoU, Alstom, together with Datang, will develop two CCS demonstration projects respectively located in China’s two biggest oilfields Daqing, Heilongjiang province and Dongying, Shandong province. The 350 MW 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 carbon dioxide capture technologies. Both CCS projects are scheduled for operation in 2015. Once completed, the two CCS demonstration projects will each be able to capture above 1 million tonnes of  CO₂ annually. 

These projects provide a convenient and cost-effective condition for CO2 transport, utilisation and storage due to their adjacency to oilfields. In addition, after being compressed and piped deep into the oilfield, the CO2 can serve as an effective tool for Enhanced Oil Recovery (EOR) which will increase the financial feasibility of these two projects.

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.”

The two projects will further diversify China’s CCS technology mix, pave the way for large-scale CCS deployment in China and help the government in reaching its commitment – reducing CO2 emissions per unit of GDP by 40-45% by 2020 from 2005 levels.