the status of ccs
TRANSCRIPT
GLOBAL CCS INSTITUTE
THE STATUS OF CCSBob Pegler, General Manager – EuropeCCS, Legal Framework Development and Supply Chain Perspectives, Rome, 18 October, 2011
WWW.GLOBALCCSINSTITUTE.COM
Wormser Energy
GLOBAL CCS INSTITUTE
POWER PROJECTS UNDER CONSTRUCTION
Boundary Dam Retrofit post-
combustion capture EOR
Kemper County IGCC with capture
(pre-combustion) EOR
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GLOBAL CCS INSTITUTE
FUNDING STILL TO BE ALLOCATED
91Does not include UK commitment to projects 2-4.
GLOBAL CCS INSTITUTE
REGULATORY QUESTION RESPONSES
Question: Do the current regulatory requirements facilitate an investment decision
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Issues raised:
• Incomplete in nature or delay to regulation• Uncertainty surrounding long-term liability• Uncertainty surrounding the regulation of CO2• General site-specific regulatory issues
GLOBAL CCS INSTITUTE
PUBLIC ENGAGEMENT STRATEGIES ARE IN PLACE 75% of projects have or are developing public
engagement strategies. An increase in the sophistication and quality of
tools and resources to assist:– Public Engagement Self Assessment Tool
– Social Site Characterisation Report
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GLOBAL CCS INSTITUTE
MAKING THE BUSINESS CASE FOR CCS
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Clear business case
Clear business case due to climate policies
Business cases that requires government support and other revenue
CCS related project features
•Industrial separation already takes place
•Storage site known–oil field
•Industrial separation already takes place
•Some previous knowledge of storage site
•CO2 separation at relatively high cost (power) and storage site known–oil field
or•Development of a greenfield storage site with industrial separation
Business case drivers
•EOR revenues •Reduction in future/current carbon cost liabilities
•Potential carbon credit markets
•Government funding•Reduction in future/current carbon cost liabilities
•EOR revenues•Risk sharing
GLOBAL CCS INSTITUTE
KEY MESSAGES
Early mover projects - industrial applications and EOR storage.
Two power projects under construction - with government funding and EOR revenue.
A number of power projects are on the verge of FID but making the business case is difficult.
Greater collaboration and transparency between government and industry is needed.
Storage assessments in deep saline formations can have long lead times – need to start now.
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