update of global ccs institue activity€¦ · 2 emissions by industry (2006) source: l.e.k....

GLOBAL CCS INSTITUTE

UPDATE OF GLOBAL CCS INSTITUE ACTIVITY Bob Pegler, Deputy CEOInternational Zero Emission Coal (IZEC) Symposium 200919 Nov 2009WWW.GLOBALCCSINSTITUTE.COM


GLOBAL CCS INSTITUE BACKGROUND

Focus on helping to deliver G8’s goal of +20 large-scale CCS projects prior to 2020

Internationally launched in July 2009 at G8 summit, and invited to work with IEA to accelerate CCS deployment commercially at a magnitude to make a difference

Recent work with Major Economies Forum on Energy and Climate action plan on CCS

Focus on facilitating and accelerating large scale integrated CCS demonstration projects

Recent Members Meeting held in Paris 9-10 November

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CCS: A ROADMAP TO 2050

0

2,000

4,000

6,000

8,000

10,000

12,000

2010 2015 2020 2025 2030 2035 2040 2045 2050

Captured

CO

2(M

tCO

2/yr)

OECD PACIFIC

USA

OTHER OECD N AM

OECD EUROPE

ODA

ME

INDIA

EEU + FSU

CSA

CHINA

AFR

2020100 projectsOECD (50%)Non‐OECD (50%)


20503,400 projectsOECD (35%)Non‐OECD (65%)

20402,100 projectsOECD (40%)Non‐OECD (60%)


Source: IEA, CCS Roadmap .

Urgent need for early confidence to deploy CCS post 2020 at the

scale necessary to make a difference – key role

for large scale demonstration

A 2009 View : IEA


CCS IS NOT JUST ABOUT ‘CLEAN COAL’– BUT COAL IS THE NUT TO CRACK

Sector contributions in 2050 (MtCO2)

Source: IEA, CCS Roadmap .


RECENT WORK LEADING THE WAY WITH VITAL PROJECTS

The Strategic Analysis of the Global Status of CCSA comprehensive audit of the world’s current CCS projects to determine:

Project status The costs involved The impact of the global financial crisis Policy and regulatory frameworks Research and development efforts Commercial and non-commercial gaps in the global deployment of CCS.

Portfolio of CCS ProjectsA key portfolio will include a variety of CCS projects, spanning different technologies and geographic regions, to deliver a comprehensive global approach.A Rationale for Support

CCS ReadyA base line study to establish a clear definition of what it means to be ‘CCS Ready’

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OBJECTIVES OF PARIS MEETING

To inform on outcomes of key inputs to the Strategy of the Global CCS Institute• CCS Strategic Analysis (the ‘Stocktake’ of WorleyParsons) • CCS Portfolio Study (the ‘ideal portfolio’ of L.E.K Consulting)

To inform and receive views on • Project Funding and Engagement Strategy• Knowledge Sharing Strategy

To identify areas of active participation for Members in accelerating CCS projects

To give Members the current status of the structure of the Global CCS Institute and additional enabling activities

5


CURRENT STATUS OF CCS PROJECTS

STRONG BASIS FOR FURTHER ACTION STRONG BASIS FOR FURTHER ACTION


CCS PROJECT ASSET LIFECYCLE

Where can the Global CCS Institute make a difference?

Where can the Global CCS Institute make a difference?


CCS 2009 ‘STOCKTAKE’ PROJECTS: POSITION BY LIFECYCLE STAGE

Prepared for the Global CCS Institute by WorleyParsonsChallenge is to get projects into implementation Challenge is to get projects into implementation


KEY FINDINGS

Storage takes time and can be expensive• Appropriate characterisation of specific sites

Business case for CCS has still not been established• High cost of projects and limited incentives• Limited access to finance• Bridging the gap from demonstration to commercialisation

Regulatory framework uncertain• Liability of storage

Public acceptance of CCS needs to be addressed• Technology and benefits not yet understood

9


CCS ‘2009 STOCKTAKE’ PROJECTS:PROFILE

10

Not all will succeed

Some will be delayed

What can be done toensure maximum success?

Not all will succeed

Some will be delayed

What can be done toensure maximum success?


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0 1 2 3 4 5 6 7 8 9 10 11

Power Generation

Iron & Steel

Cement

Refineries

Chemical and Petrochem.

rrous metals (inc. Alum.)

Paper, Pulp & Printing

Food & Tobacco

Bt / y

14.5

3.7

2.6

1.3

1.3

0.4

0.2

0.2

Estimatedemissionsin 2020 (Bt / y)

Largest meeting sectorisa

Net largest sources(smaller, more fragmented)

WORLD CO2 EMISSIONS BY INDUSTRY (2006)

Source: L.E.K. Analysis


IDEAL PORTFOLIO OF CCS PROJECTS

Source: L.E.K. Analysis

26 projects overall

Industry and Capture

Power GenerationPre-combustion 4Oxy-combustion 6Post-combustion 7

Iron & Steel 3

Cement 3

Other Industries 3

Minimum of 26 projects

Transport

Point to point pipeline onshore 1

Point to point pipeline offshore 1

Backbone pipeline – cluster 1

Long distance ship – port-to-offshore site or port-to-port 1

Cross-border pipeline 1

Including 5 solutions

Storage

Structured deep saline aquifers 1

Unstructured deep saline aquifers 1

Depleted oil field 1

Depleted gas field 1

Oil field for EOR 1

Gas field for EGR 1

Including 6 configurations

+ Diversification principles to populate projects beyond this number

Different combinations needed to provide confidence

Different combinations needed to provide confidence


GCI1¥PRESENTATIONS¥FINAL PRES¥FP_FIGURES FOR FINAL

13

Europe JapanPercent

OtherIndiaRussia

+ CISUS + CanadaChina

Note: *Industries selected as priority; **Including other industries, unallocated auto-producer, other energy and fugitive emissions; ***Exc. Polygen;Source: CO2 Emissions from Fuel Combustion IEA© OECD/IEA [2008], IEA Greenhouse Gas R&D Programme, CDIAC, EC-JRC/PBL. EDGAR version 4.0. http://edgar.jrc.ec.europa.eu/ [2009], Worldsteel, L.E.K. Research, Interviews and Analysis

17%29% 14% 10% 5% 5% 20%

0 10020 40 60 800

100

20

40

60

80

Percent

4% 21%7%8%10%13%37%

Estimated share of emissions in 2020

Share of emissions

Power Generation

Other

WORLD CO2 EMISSIONS BY REGION: CCS PROJECT DIVERSITY IS KEY

Iron & SteelCement


AIM: GLOBAL CCS PROJECT PORTFOLIO

Gas Processing to Remove Reservoir CO2Minimal capture cost and possible EOR revenueAccess to petroleum storage data and tenure

Coal Gasification for Chemicals or Liquids Minimal capture cost - higher capital cost than gas processingLarge existing CO2 sources in China and South Africa

Coal and Gas Power Projects High capture cost and capital cost Lead time for new storage tenements and exploration

Steel and Cement PlantsHigh capture cost and capital cost Lead time for new storage tenements and exploration

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FOCUS OF GLOBAL CCS INSTITUTE ACTIVITY

‘Advanced projects’• Assisting with removal of barriers/blockages

1. Work on specific barriers for individual projects 2. Work to breakthrough common barriers to several

particular projects

Early stage and gap/new projects • Kick start • Generate more

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CCS PROJECT STRATEGYIssues/ Key BarriersProjects

1 2 3 4 ...123....nProject

Resource

JIP Action

External Expertis

eIdentification of Remedy Actions

Specific Project

Application

Global CCS Institute Knowledge Exchange

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CCS PROJECT STRATEGY:

Direct approach • Reactive: response to members/consortia• Proactive: country/region action

In conjunction with Strategic Partnerships• Clinton Climate Initiative • The Climate Group • Asian Development Bank • World Bank

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CCS PROJECT FOCUS: APPROACH AND ENGAGEMENT

Global CCS Institute approach: • Open for business • Seeking direct engagement with all CCS commercial sized

projects• Flexible approach reflecting project needs

Global CCS Institute different roles: • Tracker/monitor of the Global Portfolio • Projects enabler/supporter • New project initiator

Assisting CCS projects Breaking through CCS barriers Assisting CCS projects Breaking through CCS barriers

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CCS PROJECT STRATEGY: KNOWLEDGE LINK

Learning by doing critical, in all aspects of a project

IP / knowledge / experience

Global CCS

Institute

Advanced Projects

Early Stage Projects & GapsBest

practiceBest practice

Knowledge Exchange roles

19


PROJECTS AND KNOWLEDGE SHARING

Project Funding & Engagement Strategy

Project Funding & Engagement Strategy

Knowledge SharingStrategy

Knowledge SharingStrategy

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CCS PROJECT APPROACH

Also shaped around the Global CCS Institute budget and organisational structure:

• AUD$30m in direct CCS project support • AUD$30m for indirect CCS project support• Head office in Australia but direct CCS project assistance the focus of

international hubs in Europe, North America and Asia

These factors have shaped focus on target countries and industries for CCS demonstration and deployment

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CCS PROJECT STRATEGY: APPROACH AND ENGAGEMENT

Project Identification

Project Implementation

Project Knowledge

Members

Strategic Partnerships

Regional Offices

Members

Strategic Partnerships

Regional Offices

Individual Projects

Joint Implementation

Partnerships

Project Portfolio Management

Individual Projects

Joint Implementation

Partnerships

Project Portfolio Management

Content

Process

Management

Dissemination

Content

Process

Management

Dissemination

22


STRATEGY: ORGANISATIONAL IMPACT Matrix Approach

Management of the ‘Portfolio’Management of the ‘Portfolio’

23

Financial Commercial Technical Legal and Regulatory

Public Acceptance

Project 1

Project 2

.........

Project n

ProjectLeaders

JIP actions

JIP actions

Teams with appropriate skills established to work with/embed in specific project action

Teams with appropriate skills established to work with/embed in specific project action


CAPACITY BUILDING AND OTHER ENABLER ACTIVITIES – KEY PARTNERS

Carbon Sequestration Leadership Forum

World Bank

Asian Development Bank

International Energy Agency

International Energy Forum

Asia Pacific Economic Cooperation

South African National Energy Research Institute

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FUTURE ACTIVIES –TWO STREAM STRATERGY

STREAM 1

TAILORED PROJECT SPECIFIC CAPACITY BUILDING PROGRAM

STREAM 2

BROAD CAPACITY BUILDING PROGRAM

Step 1 Identify which projects, in which countries,

the Global CCS Institute wants to focus on Identify countries where the Global CCS Institute wants to focus development

Step 2 Analyse the capacity and capacity gaps of these projects, and the countries they are located in

Analyse the capacity and capacity gaps within these countries/regions

Step 3 Tailor capacity building programs around capacity gaps

Develop a capacity building program for country and/or region

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WORK PROGRAM ACTIVIESENABLING ACTIONS ACTIVITY

Activities elevating CCS as a global issue include:

community engagement and public awareness;characterisation of geological storage sites;supporting a global dialogue on ‘CCS Ready’;facilitation of CCS advocacy including development of country specific CCS roadmaps; andstrategic relationships to take forward CCS in the international scene.

26


CCS PROJECT STRATEGY: APPROACH AND ENGAGEMENT

Global CCS Institute approach: • ‘Open for business’• Seeking direct engagement with all CCS commercial sized

projects• Flexible approach reflecting project needs

Global CCS Institute different roles: • Tracker/monitor of the Global Portfolio • Projects enabler/supporter • New project initiator

Regular ‘stock take’ updates to monitor progress

Regular ‘stock take’ updates to monitor progress

27


OVERALL STRATEGY

Enablers

Knowledge

Projects

‘Stocktake’‘Stocktake’ ‘Ideal Portfolio’

‘Ideal Portfolio’

28


ENDORSEMENT OF PROJECT ENGAGEMENT AND FUNDING STRATEGY SUPPORT

0 10 20 30 40 50

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

Based on returned questionnaires29


OVERALL MEETING OBJECTIVES –ACHIEVED

Given a greater insight into the position of CCS projects worldwide and the targets we need to aspire to

Provided greater understanding and support for the Global CCS Institute’s Project Funding and Engagement Strategy and Knowledge Sharing Strategy

Indication of a greater membership participation, engagement andinteraction and where this can be done ....... a good basis on which to build

• Provided understanding of the status of the Global CCS Instituteincluding its other activities and governance structure

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CCS FORWARD HORIZONS

CCS ACTION

20252010 2015 2020

I -FOUNDATION

I -FOUNDATION

II - LARGE SCALE DEMONSTRATION II - LARGE SCALE DEMONSTRATION

III – COMMERCIAL DEPLOYMENT

III – COMMERCIAL DEPLOYMENT

Key initial focus for the Global CCS Institute

Key initial focus for the Global CCS Institute

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CCS PROJECT STRATEGY:FUNDING SUPPORT

Principles that will inform the application process:

Knowledge Sharing – mandatory

Overcoming Barriers – all have challenges

Diversification – limited duplication desirable

Timeliness – speed

Project ‘Pipeline’ – encourage and develop

32


CCS PROJECT STRATEGY: APPLICATION PROCESS

Project Submissions

Member Consortia Outside Consortia

Global CCS Institute

Assessment

TAC Review

Board Approval

Rolling Process

33


CCS PROJECT STRATEGY: APPLICATION PROCESS

Funding application process which will be available at www.globalccsinstitute.com

Main mechanism is this application process – open, rolling and ongoing

First cohort of funding will be from applications received by 31 December 2009 and will be committed in the first half of 2010

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2010 MEETINGS

10-11 May 2010, Australia • Members Meeting

11-12 October 2010 • North America – most likely New York • Annual General Meeting

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update of global ccs institue activity€¦ · 2 emissions by industry (2006) source: l.e.k....

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