the status of ccs 2011 report - victor der - global ccs institute – nov 2011 regional meeting

GLOBAL CCS INSTITUTE

THE STATUS OF CCS- 2011 ReportPresentation at Projects Events in North America

November 2011

WWW.GLOBALCCSINSTITUTE.COM


RELEASED 4 OCTOBER

The Global Status of

CCS: 2011 report.

1


MEASURED PROGRESS OF LARGE-SCALE INTEGRATED PROJECTS SINCE 2009

2


PROJECT NUMBERS CONCENTRATED IN THE UNITED STATES AND EUROPE

3


CONCENTRATION ON POWER GENERATION

4


PROJECTS ARE SPREAD ACROSS TECHNOLOGIES

5


ALLOCATED GOVERNMENT FUNDING IS MOSTLY TO POWER

6


REGIONAL BIAS TOWARDS STORAGE SELECTION

7


ECONOMIC CONDITIONS

� The EU and the United States introduced stimulus

packages

� Canada and Australia announced specific CCS support

BUT

� Severe (and prolonged) global economic downturn� Severe (and prolonged) global economic downturn

� Carbon prices remain low on the ETS

� Little progress on international climate change treaty

8


2011 PROJECTS SURVEY: REGULATORY QUESTION RESPONSES

• Question: Do the current regulatory requirements

facilitate an investment decision within your organisation?

�While many projects across regions responded that

their project was authorised under project-specific or

pre-existing legislation, others raised some issues.pre-existing legislation, others raised some issues.

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Issues raised by more than one region

• Incomplete in nature or delay to regulation

• Uncertainty surrounding long-term liability

• Uncertainty surrounding the regulation of CO2

• General site-specific regulatory issues


REGULATORY STATUS - NORTH AMERICA

• In the United States

�The EPA has developed regulations under the SWDA

and the UIC programs

�State initiatives are fragmented

• In Canada

�Alberta is undertaking a major review of CCS

regulations

�Saskatchewan will adapt existing regulations

�Federal emissions performance standard

10


PUBLIC ENGAGEMENT STRATEGIES ARE BEING PUT IN PLACE

• There has been an increase in the sophistication and

quality of tools and resources to assist CCS stakeholders

(for example):

�Public Engagement Self Assessment Tool; and�Public Engagement Self Assessment Tool; and

�Social Site Characterisation Report

• A large source of material is available on the Institute

knowledge platform

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KEY MESSAGES FROM THE STATUS REPORT

• Early mover projects are found in industrial applications and

with EOR for storage.

• Two power projects are now under construction with aid of

government funding and EOR revenue.

• A number of projects will in the next ~12 months decide on

whether to progress to a FID but making the business case iswhether to progress to a FID but making the business case is

proving difficult and time consuming.

• Storage assessments in deep saline formations can have

long lead times – need to integrate carefully with capture

planning

• Greater collaboration and transparency between government

and industry is needed.

• Public engagement is a key part of project development

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MEMBERSHIP - SEPTEMBER 2011

Industry 48%

Government 12%

Association/NGO 11%Association/NGO 11%

Consultancy 13%

Research/Academia 13%

Finance 3%

The Institute's Membership accounts for over 80 per cent of the world's Carbon Dioxide emissions from energy and industrial sources.


NINE TARGETED REPORTS FOR INCLUSION IN 2011/12 PROGRAM

1 2 3 4

Tit

le

Analysis of capture technology

components

Relative permeabilityguideline

Making the business case for CCS projects:

more insights

CO2 networks and hubs: participants, roles & commercial

structures

NA? NA? NA?

5 6 7 8 9

Tit

le CO2 transportation - shipping

Communitycommunication on key risks of CCS

projects

Mitigating unexpected CO2

migration

Balancing Key contracts for CCS

projects

CCS public funding programs – Lessons Learnt

NA? NA?


NINE TARGETED REPORTS FOR INCLUSION IN 2011/12 PROGRAM1 2 3 4

Tit

le

Analysis of capture technology

components

Relative permeabilityguideline

Making the business case for CCS projects:

more insights


structures

Targ

et

Deli

vera

ble

s

A literature review at capture technology component level is proposed to establish trends in capital cost and energy reduction potential.

Relative permeability curves of brine-CO2 are important parameters to model plume development in storage reservoirs. Phase 1 will provide a guideline for comparison of current methods and

Building a viablebusiness case for aCCS projects is acomplex process that requires both the projecteconomics and the risks to be understood. It is proposed to review and

The concept of CO2

Networks is a strong driver for CCS developments in Europe, MENA and Australia.

A ‘plug and play’

NA? NA? NA?

Key

Targ

et

Deli

vera

ble

s

The data gathering focus on R&D activity is initially limited to funded or OEM technologies (pre-vetted concepts with real prospect) and will act as a pilot for a technology R&D status review.

provide a library of existing curves suited to different reservoirs, thus complementing the Storage Compendium.Phase 2 will address data gaps identified in Phase 1 by analyzing selected reservoir samples.

compare a project’s:•Overall business plan and project economics

•Risks to private sector investment, including project financing

•Risk management frameworks

•Financing and commercial structures

•Role of government

business modelproviding financing options and commercial structures is proposed; enabling over time each component involved inthe CCS chain / network to be monetized.

So

urc

e

Service Provider / Institute

Research Organisation+ Project proponents

Project proponents / Institute

Financial Institution+ Project proponents


5 6 7 8 9T

itle CO2 transportation

- shipping

Communitycommunication on key risks of CCS

projects

Mitigating unexpected CO2

migration

Balancing Key contracts for CCS

projects

CCS public funding programs – Lessons Learnt

Key T

arg

et

Deli

vera

ble

s

In Europe and Australasia, where a great part of the potential storage is offshore, growing attention is being paid to ship

Social science literature provides an understanding how people evaluate project risks – but more work is required in

There are many ways to remediate situations where CO2 is not migrating as expected in the subsurface. This

One or more case studies on how CCS proponents have managed / reached a package of supply and off-take agreements,

Review CCS funding programs around the world to1. create an

overview of their workings and requirements;

NINE TARGETED REPORTS FOR INCLUSION IN 2011/12 PROGRAM

NA? NA?

Key T

arg

et

Deli

vera

ble

s

paid to ship transport. To furtherunderpin its importance, it is proposed to provide more detail to existing ship transportation concepts in terms of their performance, cost and safety issues

work is required in this area to capturelearnings from early CCS projects on what constituteseffective communication of risks and benefits of CCS projects to local communities.

subsurface. This document will provide an overview of methods used to mitigate unwanted CO2 movement and will be of use to regulators and proponents.

take agreements, performance guarantees, warranties, IP and non-disclosure, etc

requirements;2. document

lessons learnt in relation to their effectiveness / implementation

Drawing on interviews with funding program managers and project managers.

So

urc

e Project proponents Researchorganisation + Project proponents

Project proponents Project proponents Service Provider /Institute


4 5 6 9

Tit

le


structures

CO2 transportation -shipping

Communitycommunication on key risks of CCS projects

CCS public funding programs – Lessons

Learnt

The concept of CO2

Networks is a strong driver for CCS

In Europe and Australasia, where a great part of the potential

Social science literature provides anunderstanding how

Review CCS funding programs around the world to

REMAINING TARGETED REPORTS

� Would any of these targeted report be of value to NA projects?

� Would your project or organization be interested in being

approached in relation to producing or being involved in the

production of any of these reports ?

Key T

arg

et

Deli

vera

ble

s

driver for CCS developments in Europe, MENA and Australia.

A ‘plug and play’ business modelproviding financing options and commercial structures is proposed; enabling over time each component involved inthe CCS chain / network to be monetized.

great part of the potential storage is offshore, growing attention is being paid to ship transport. To furtherunderpin its importance, it is proposed to provide more detail to existing ship transportation concepts in terms of their performance, cost and safety issues

understanding how people evaluate project risks – but more work is required in this area to capture learnings from early CCS projects on what constitutes effective communication of risks and benefits of CCS projects to local communities.

world to1. create an overview of

their workings and requirements;

2. document lessons learnt in relation to their effectiveness / implementation

Drawing on interviews with funding program managers and project managers.

So

urc

e Financial Institution+ Project proponents

Project proponents Research organisation + Project proponents

Service Provider /Institute


CONCLUSIONS

• A number of advanced projects to reach key decision

points in next ~12 months

• Much still needs to done for global CCS Demonstration

at scale

• Growing Institute membership• Growing Institute membership

• Institute has defined three focus areas

• Revised Institute Head Funding Agreement with the

Commonwealth government concluded

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the status of ccs 2011 report - victor der - global ccs institute – nov 2011 regional meeting

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