International workshop on power generation with CCS

in India

22 January 2008

Rachel Crisp

Deputy Director, CCS team, Department of Business and Enterprise

The importance of CCS

• Under business as usual, global emissions from the energy sector will rise by 57% by 2030.

• Global primary energy needs are predicted to grow by 55% between 2005 and 2030. Coal demand is predicted to increase by over 70% in real terms in response.

• CCS technology has the potential to reduce CO2 emissions from fossil fuel power stations by as much as 90%.

• Could contribute up to 28% of global CO2 mitigation by 2050.

Rationale for demonstration project

• Acknowledgement of role CCS could play in achieving twin objectives of tackling climate change and ensuring energy security

• Recognition that the next step in developing CCS is testing full chain on commercial-scale power station

• CCS has UK and international relevance

• Aid development of effective regulatory framework

Rationale for using a competition

• Significant investment by UK Government

• Competition best way to get value for money

• Aware of several potential projects – competition for funds should deliver better value projects

Timescales for demonstration

• Currently in pre-qualifying phase

• Enter competitive phase in April 08

• Aim to name preferred bidder by May/June 09

• Project to be demonstrating full chain of CCS by 2014.

Objectives of UK demonstration

• 2 key objectives –

– Deliver successful demonstration of full chain of CCS technologies on a power plant at commercial scale

– Demonstrate technology that is relevant and transferable to key global markets

What UK Government is funding

• One project – post-combustion capture on commercial-scale coal power plant

• Carbon dioxide stored offshore

• Prepared to fund up to 100% of the capital and operating costs of CCS elements of the project (not the power plant)

Focus on post combustion• Pulverised fuel accounts for vast majority of

existing and planned coal-fired plant globally

• Only post-combustion can be retro-fitted to tackle carbon dioxide emissions already locked-in

• Proposals for new and retro-fit coal capacity in UK are supercritical pulverised fuel

• Complements other international projects – US (IGCC), Norway (post-combustion gas)

EU Ambitions for CCS

• 2007 Spring Council welcomed the Commission’s intention to stimulate the operation by 2015 of up to 12 CCS demonstration plants with the ambition for all new fossil-fuel plants to be fitted with CCS by 2020, if feasible

• Zero Emission Platform – EU Technology Platform for CCS

• ZEP Flagship programme – ambition to bring forward up to 12 CCS projects in Europe

ZEP Flagship Programme

Sharing information

• Cannot promote CCS globally without sharing information and learning from our demonstrations

• Knowledge transfer is a key element of the UK demonstration

• Likely to have minimum requirement for levels of knowledge transfer

• Need to ensure arrangements proposed meet needs of third countries

Conclusion

• CCS has key role to play in allowing continued use of cheap and abundant fossil fuels whilst tackling climate change

• Next step in development is commercial-scale demonstration

• Important that learning from demonstrations is shared to facilitate more commercial-scale projects globally

International workshop on power generation with CCS

in India

22 January 2008

Rachel Crisp

Deputy Director, CCS team, Department of Business and Enterprise