ccs policy: is it on track? chris short

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CCS Policy: Is it on track?Christopher Short– Chief EconomistJune 2011

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GLOBAL STATUS OF CCS

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WORLD CARBON INTENSITY – THE CHALLENGE

World US EU World 20500

100

200

300

400

500

600

700

766

560

454

6

Mt/

000U

S$

GLOBAL CCS INSTITUTEGLOBAL CCS INSTITUTE

WORLD CARBON INTENSITY – THE CHALLENGE

World US EU World 20500

100

200

300

400

500

600

700

766

560

454

6

Mt/

000U

S$

Complete decarbonisation of energy production

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ONE POSSIBLE SCENARIO

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CCS POLICY FRAMEWORKS

• Accelerating innovation and CCS development:– demonstrate safe, secure, long term storage of

CO2

– understanding and improving large scale cost and performance

– increasing R&D activities– Accelerate the sharing of lessons learnt

• Identifying viable geological storage areas• Developing legal and regulatory frameworks• Improving public awareness and consultation

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PUBLIC FUNDING SUPPORT COMMITMENTS TO CCS BY COUNTRY

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PUBLIC FUNDING ALLOCATED TO LARGE PROJECTS

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PUBLIC FUNDING ALLOCATED TO LARGE PROJECTS

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GLOBAL STORAGE ASSESSMENT

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REGIONAL ASSESSMENTS

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DESIGN STUDIES VS REAL PROJECTS

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CONTRASTING EMERGING PROJECT COSTS

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INSTALLED CAPTIAL COSTS FOR 550MW NET GENERATION

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LEVELISED CCS COSTS ACROSS DIFFERENT CAPTURE TECHNOLOGIES

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LEVELISED COSTS AS A FUNCTION OF LOCATION

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IS CCS POLICY ON TRACK?

• It’s not just about prices

• The size of the market matters for innovation

• Relatively low patent activity in most low carbon technologies technologies

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