02 decc ukccsc_winter_school_2012_updated
TRANSCRIPT
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UKCCSC Winter School 2012,
University of Cambridge
10th January 2012
CCS status in the UK – DECC perspective
Mervyn Wright, Industry & Technical AdviserOffice of Carbon Capture and StorageDepartment of Energy & Climate Change
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• UK context for CCS
• What’s been done so far
– First Demonstration Competition
– Other enablers
• Next steps
Content
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UK energy challenges
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0
100
200
300
400
500
600
700
800
900
1,000
TW
h / y
ea
r
Scenario for electricity generation capacity to 2050 Electricity
imports / exports
Non-thermal renewable generation
Nuclear power
Combustion + CCS
Conventional thermal plant
Domestic demand
Around a quarter of our plant will
close by 2020
Electricity demand could double by 2050
Up to £110bn investment in new generation and transmission to 2020 likely to
be required – over double the investment that has come forward in the last
decade.
Need to decarbonise – 80% reduction by 2050
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UK distinctive advantage
for CCS
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CCS Demonstration
Competition 1
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2007 2011
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• Front End Engineering and Design is an intermediate step in defining scope
and reducing uncertainty ahead of major financial commitment
• The typical scope of an integrated chain FEED programme for CCS is
– Capture plant design; Transport (pipeline) routing/ design/ easements;
Storage development plan and Power station integration plan
– Project execution plan (including scope, programme, cost, procurement
strategy, risk management and organisation)
– Commissioning and start up plan, Operations philosophies and Design
HSE case
– Regulatory compliance and permitting plan and Consent/ permit
applications
– Knowledge Transfer plan and Stakeholder engagement plan
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What is FEED?
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E.ON
Kingsnorth to Hewett project
Hewett
Dawn
Big Dotty
DierdreDeborah
Delilah
Della
Little Dotty
Pr
op
os
ed
Lo
ca
tio
n
48
/3
0-
W
3kms
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ScottishPower Consortium
Longannet to Goldeneye project
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Full chain FEEDs for
2 contrasting projects
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• CCS specific areas of technical focus beyond FEED ‘business as usual’
– CO2 safety considerations
– CO2 fluid phase behaviour
– Introduction of new regulations for CO2
– CO2 corrosion
– Reversal of normal flow
• The FEED studies generated
– Improved cost and risk understanding to inform decisions
– Insights into commercial and technical integration of complex supply chain
– Regulatory progress enabled by real projects
– Experience from engagement with local stakeholders
– Learning to improve future CCS delivery programme procurement
• CCS specific knowledge is publicly available
Benefits from FEED stage
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http://www.decc.gov.uk/en/content/cms/emissions/ccs/demo_prog/feed/feed.aspx
• 2 reports on website in October ‘11
• >2,400 visits in first week
• 6 continents (not Antarctica!)
• 30% outside UK
~60% Other Europe
~20% North America
~10% Australasia
• 2 day technical workshop in December ‘11
>200 attendees
CCS knowledge dissemination
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• Up to £1billion capital support for the future CCS programme
• Submitted NER 300 bids to European Commission
• Opened up the process for future projects to include gas
• Wider reforms introduced to underpin deployment of CCS:
– Implementation of EU CCS Directive
– Electricity Market Reform
– Energy Act 2011 CCS reforms to make re-use of existing
capital assets more straightforward
– Carbon Price Floor
– Emissions Performance Standard
Other progress in past year
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Delivering a specific outcome…
“As a result of the intervention, private sector electricity companies
can take investment decisions to build CCS equipped fossil fuel power
stations, in the early 2020s, without Government capital subsidy, at an
agreed CfD strike price that is competitive with the strike prices for
other low carbon generation technologies”
by…
• CCS Roadmap (to be published Q1 2012)
• Reducing costs:
– The CCS Delivery Programme
– £125m CCS small scale R&D Programme
– CCS Cost-reduction taskforce group
• Establishing a regulatory framework
• Sharing knowledge and working with international partners
Purpose of the Government
CCS programme
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Projects:
– Plan to support portfolio of commercial-scale projects
Scope:
– Point to point full chain demonstrators, and possibly also…
– Part chain (if prospect of full chain in future)/ Clusters/ Industrial emitters
Funding:
– £1bn to contribute to capital cost;
– Contract for difference to recoup investment and operational costs
Timing:
– Industry Day in Feb 2012
– Operational 2016-2020
Delivery Programme overview
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OCCS organisation
Adam Dawson
(Chief Executive)
Mark Pedlingham
(Strategic Delivery Director)
Jonathan Holyoak
(Head of CCS Policy)
Patrick Dixon
(Expert Chair)
• Strategy
• Outreach and Collaboration
• R&D and Innovation
• Supply chain/ skills
• Infrastructure
• Delivery programme
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