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GLOBAL CCS INSTITUTE
THE GLOBAL STATUS OF CCS: 2010& FINANCE WORK GOING FORWARDLarry Hegan, Senior Policy Adviser
WWW.GLOBALCCSINSTITUTE.COM
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GLOBAL CCS INSTITUTE
Government FundingProject StatusCO 2 Storage
CO 2 NetworksLegal and RegulatoryDevelopmentsCCS Costs
Knowledge SharingInitiativesPublic Engagement
The Global Status of CCS: 2010 (March 2011)
All these issues have tobe addressed to reducerisks and improverisk/return ratio for
financial sector
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GLOBAL CCS INSTITUTE
. in order to incent and advance projects
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GLOBAL CCS INSTITUTE
. and advance CCS through the overall
technology development cycle
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GLOBAL CCS INSTITUTE
H istory highlights why we need to accelerate CCS
Rubin and all (2007)
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GLOBAL CCS INSTITUTE
H igh costs and low revenues = economic gap
CarbonPrice
$/t
EORRevenue
$/t
EconGap
= Need for PublicFunding
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GLOBAL CCS INSTITUTE
public funding required so far as been large
Power Sector: TransAlta Project Pioneer (Canada) US$770M ROAD Project (Netherlands) US$437.6M Southern Company IGCC (U.S.) US$705M AEP Mountaineer (U.S.) US$334MIndustrial Sector: Quest CCS Project (Canada) US$861M Lake Charles Gasification (US) US$399M Gorgon (Australia) US$59M Only oneto reach
FID
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GLOBAL CCS INSTITUTE
Funding does not necessarily = reducing risks to
help unlock private investment at reasonable costs Cost uncertainty (+/- 40%), cost overruns Technical risk for capture (performance, reliability,
integration) Storage risk (locating and proving viable capacity,
leakage) Sovereign risk (e.g. uncertainty over carbon price) Commercial risk (e.g. fluctuating $/kwh price for
electricity, EOR contracts)
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GLOBAL CCS INSTITUTE
9
Collecting insights from projects, financialcommunity, technology providers, etc.
Includingfrom projectsthe GlobalCCS Instituteis supportingdirectly
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GLOBAL CCS INSTITUTE
Finance knowledge sharing hub on digitalplatform
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GLOBAL CCS INSTITUTE
www.globalccsinstitute.com
THANK [email protected]