Global Status of CCS: February 2014 - Japan

GLOBAL STATUS OF CCS: FEBRUARY 2014

STUDY MEETING, JAPAN REGIONAL OFFICE - APRIL 17, 2014

• URL- in Japanesehttp://www.globalccsinstitute.com/publications/global-status-ccs-february-2014-jp

- in Englishhttp://www.globalccsinstitute.com/publications/global-status-ccs-february-2014

GLOBAL STATUS OF CCS: FEBRUARY 2014

CCS is vital

Importance of CCS

acknowledged

CCS identified as an essential technology in limiting temperature

increase to 2°C

International Energy Agency

Wide adoption of CCS part of the scenario that achieves 450 ppm atmospheric stabilization level for CO2

World Energy Council

Availability of CCS is critical for producing 450 ppm

Energy Modeling Forum 27 Study

CCS is an important technology in the long run…deployment to drive

down costs is desirable

UK Committee on Climate Change

Commercial demonstration of CCS essential for deployment in the 2030 timeframe

European Commission

CCS to be cost effective when transformational technologies emerge

US Climate Action Report 2014

CSLF stresses importance of CCS and of collaboration

‘We…are convinced that the research and development, demonstration and global

deployment of {CCS} must be accelerated… We are committed

to taking necessary actions internationally and collaboratively

to promote the further development and deployment of

CCS.’

‘We believe that the increasing number of {such} collaborations

reflects the growing global recognition of the criticality of

CCS…’

Carbon Sequestration Leadership Forum, extract from the Communique following the 5th Meeting of the CSLF

Ministers, November 2013

TECHNOLOGY

UNDERSTANDING AND ACCEPTANCE

POLICY AND MARKETS

Business case for CCS

Collaboration and aligning three pillars of the business case for CCS

CSLF stresses importance of CCS and of collaboration

‘We……are convinced that the research and development (R&D), demonstration and global deployment of Carbon Capture and Storage (CCS) must be accelerated…. We are committed to taking necessary actions internationally and collaboratively to promote the further development and deployment of CCS.’

‘We believe that the increasing number of {such} collaborations reflects the growing global recognition of the criticality of CCS…’

Carbon Sequestration Leadership Forum, extract from the Communique following the 5th Meeting of the CSLF

Ministers in November 2013

Large-scale CCS projects by project lifecycle and year

21 projects in operation or under construction – 50% increase since 2011

CO2 capture capacity by actual or expected year of operation

CCS is a reality with 40 Mtpa of CO2 that can be captured by active

projects

Large-scale CCS projects in key markets by project lifecycle

North America continues to dominate the projects landscape; China increasing in importance; project progress has stalled in Europe

Large-scale CCS projects proceeding to ‘Operate’ and ‘Execute’ since 2011

Majority of projects in operation, construction or close to FID use or intend to use CO2 for EOR

Actual and expected operation dates for CCS projects in ‘Operate’, ‘Execute’ and ‘Define’ stages

Air Products

Century PlantCoffeyville

Enid Fertilizer

Great Plains

Lost Cabin

Lula

Shute Creek

SleipnerIn Salah*

Snøhvit

Val Verde

ACTL Agrium

Kemper

ACTL Sturgeon

Boundary Dam

ESI

Gorgon

Illinois Industrial

QuestUthmaniyah

Don ValleyHECA

Lake Charles

Low Impact Steel

TCEP Medicine Bow

FutureGen 2.0

NRG

PetroChina Jilin

ROAD

Sinopec Qilu

Spectra

Yanchang

Sinopec Shengli

2015

EOR

地層貯留

Pre-2014

Power generation

20172016

Hydrogen production

Natural gas processing

Chemical production

Iron and steel production

Syngas

Fertiliser production

Oil refining

2014 2018 2019 2020

= 1Mtpa of CO2 (areas of circle are proportional to capacity)

Coal-to-liquids

White Rose

CCS projects in the power and industrial sectors and projects utilising dedicated geologic storage options becoming more important

* Injection suspended

Peterhead

Significant global policy and regulatory developments

• US EPA releases proposals dealing with power plant CO2 emissions and geologic carbon storage

United States

• Alberta Government releases final draft of the Regulatory Framework Assessment report

Canada

• COP 19 held in Warsaw

• Focus on universal post-2020 climate agreement in Paris, in 2015

Global

• UK Energy Act receives Royal Assent and becomes law

United Kingdom

• EC proposes climate targets out to 2030

• European Parliament supports MEP Chris Davies’ report on CCS in Europe

Continental Europe

‘Three pillars’ of the business case for CCS -reprise

Technology

Understanding and acceptance

Policy and markets

Business case for CCS

Technology

ASSESSMENT Individual components are well understood. Many aspects are already technically mature. Safe storage demonstrated by projects for over a decade. Pilot and larger scale test facilities are important contributors to knowledge. Confidence that the remaining technical challenges can be met over time.

OPPORTUNITIES Integrated operation at large scale in power and industrial processes is key:

o initial CCS demonstrations in power plants – starting in 2014 in Americas o positive perception of CCS as a ‘proven’ technology, building public

confidence through large-scale projects in new applicationso learning by doing cost savingso more early mover projects will confirm effectiveness, establish best

practices. R&D (collaboration) to advance technologies is a ‘game changer’. The ‘rocks’ are also important – identification of viable storage sites.

13

Policy and markets

14

ASSESSMENT International policy discussions consistently acknowledge importance of CCS

but… Industry highlights that national climate and energy policies do not provide long

term clarity to support widespread adoption of CCS projects. CCS is often not treated equivalently to other low carbon technologies. National regulations have advanced but critical uncertainties remain:

o in the US, for example, impact of recent EPA proposalso more broadly, addressing long-term liability issues

Existing CCS funding programs for large-scale projects mostly exhausted.

OPPORTUNITIES Re-invigorated policy incentives ( and regulation) to maintain momentum. Continued development of low-carbon future roadmaps for CCS. Post Kyoto 2020 agreement for decision in 2015. Capacity development scope is significant – all can learn from what has worked,

building capacity in developing countries is critical for longer-term deployment.

Understanding and acceptance

15

ASSESSMENT Stakeholder relationship management accepted as critical to project delivery. Global awareness and understanding of CCS context is low. Focus of CCS communication is on risks and challenges not value and benefits. Perception of CCS as experimental, not cost competitive and associated with

fossil fuel instead of role in low-carbon energy. Building a trusting relationship with key stakeholders is critical for projects.

OPPORTUNITIES Successful global large-scale integrated projects is critical to establish public and

political confidence in CCS. CCS projects are demonstrating improved sharing and use of best practice. Encourage public advocacy of CCS from trusted groups – academics and NGOs. Improve access to education materials and experts.

Conclusions (from Executive Summary)

Notwithstanding the significant progress in CCS development in recent years, the momentum for further development and widespread deployment must be increased. CCS has a vital role to play in a portfolio of low-carbon technologies to tackle climate change at least cost to the world economy.

Key Action that would act as a stimulus to momentum include：• boosting short-term support for the implementation of demonstration

projects globally, especially in continental Europe where project development has stalled

• introducing long-term commitments to climate change mitigation and strong policy action and market-based mechanisms that ensure CCS is not disadvantaged compared to other low-carbon technologies

• implementing measures to deal with the remaining critical regulatory uncertainties, such as long-term liabilities, and

• Continuing funding support for CCS research and development activities along with fostering collaborative approaches to knowledge

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