PRE220_Nick Horler CCS Forum_20091125 25th November 2009 Carbon Capture and Storage Forum 2009 Making the UK a world leader in CCS technology Nick Horler,

PRE220_Nick Horler CCS Forum_20091125

25th November 2009

Carbon Capture and Storage Forum 2009Making the UK a world leader in CCS technology

Nick Horler, CEO ScottishPower

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The race to deliver CCS - 2007

We’re in a real race to deliver CCSWe’re in a real race to deliver CCS

The UK announces the CCS Demonstration Competition

2007 2015

•Few projects globally

•CCS relatively unknown

•UK CCS Demonstration competition launched, 9 entrants

•The UK is in a promising position to lead in a new technology

2008 2009

Delivering full chain commercial scale CCS

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The race to deliver CCS - 2008

We’re in a real race to deliver CCSWe’re in a real race to deliver CCS

The UK Competition keeps the UK in the lead

2007 2015

•5 fully integrated projects globally

•CCS competition launched in Canada. Combined efforts of Alberta Government and Canadian Government to fund 3 to 5 full scale demonstrations by 2015

•UK CCS competition down to 4 pre-qualifiers

•The UK still holds a strong lead in developing CCS

2008 2009

Delivering full chain commercial scale CCS

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The race to deliver CCS - today

We’re in a real race to deliver CCSWe’re in a real race to deliver CCS

The UK’s lead in CCS is slipping

2007 2008 2015

•70 projects in planning or underway

•Canada has named 2 full scale projects to be operational by 2015. More is expected

•The Mountaineer pilot demonstration has kicked-off. Full scale is expected by 2015

•First fully integrated project in Lacq, France expected

•Australia has committed over 2 billion Australian dollars to fund up to 20 projects by 2020

•UK CCS competition is down to 2

2009

Delivering full chain commercial scale CCS

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Lacq, France

Not yet storing capture CONot yet storing capture CO22

Full chain CCS pilot

Transport via existing 27km pipeline; storage in depleted onshore gas reservoir.

Delay in storing capture CO2.

30MW capture, transport and storage.

Claiming to be first full chain CCS pilot demonstration.

120,000 tonnes of CO2 over a 2 year testing period.

Prove 50% CO2 capture from oxy-combustion, reduce capture cost 50%.

Source, Total

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Capture and storage – Mountaineer, US

Full scale by 2015Full scale by 2015

Small scale retrofit up-and-running

CO2 is injected into saline aquifer 2,700 metres below power station.

Application for $334 million – about half of the estimated cost of full scale.

20MW capture plant commissioned, capturing over 100,000 tonnes per year.

1300MW existing coal power station.

12 to 18 month testing period.

Full scale (235MW) by 2015, capturing 1.5 million tonnes of CO2 per year.

Construction of Mountaineer pilot plant

Source, Alstom Power

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Canada – taking the lead?

3 full scale demonstrations by 20153 full scale demonstrations by 2015

Fast tracking CCS development

Over 1.6 billion Canadian dollars already committed to 2 projects.

1 more is expected by the end of 2009.

Ambition to fund 3 to 5 full demonstrations by 2015.

Combined efforts of Canadian Federal Government and Alberta Government.

Competition launched in July 2008, 3.5 Canadian dollars put forward.

Shell’s Quest Project (oil) & TransAlta’s Project Pioneer (coal new build).

Construction of Project Pioneeer

Source, TransAlta

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LongannetLongannet

CentralNorthSea

A viable scheme capable of delivery by 2014

FEED study worth up to £90m to be announced early next year.

Funding mechanism – CCS Incentive established within Coal Policy Framework.

Clean coal technology valued at £2-4Bn by 2030.

SP consortium bid able to deliver commercial scale full chain CCS by 2014.

60,000 jobs in clean coal sector by 2030.

UK CCS Competition down to final 2.

World’s first full scale CCS demonstration

The UK

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Our credentials…

The ScottishPower optionThe ScottishPower option

Longannet is situated close to the Central North Sea’s proven CO2 storage sites

We have achieved a significant breakthrough in our testing programme at Longannet that will substantially reduce the CCS ‘energy penalty’

There will be a ready made skills base left over from the UK’s illustrious oil and gas industry

Our retrofit solution can be applied to the tens of thousands of power stations operational right now and is essential if we are to avoid carbon ‘lock-in’

We are demonstrating on coal, which is essential to UK and global security of supply

Our world class knowledge transfer scheme will be driven by Accenture

Sharing what we learn - www.scottishpowerccs.tv/

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The Mobile Test Unit (MTU)

Essential step to achieving capture plant operating cost certaintyEssential step to achieving capture plant operating cost certainty

Bringing CCS out of the laboratory and into reality…

First time it has been fitted to a coal-fired power station.

A 7 month testing programme that has been capturing CO2 for over 2000 hours.

A cutting edge carbon capture research facility.

The programme has achieved an energy reduction of 30%.

Tests the complex chemistry in capturing CO2 from power stations.

Exact small-scale replica of a commercial capture plant.

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Our credentials…

The ScottishPower optionThe ScottishPower option

By demonstrating at Longannet, the second largest power station in the UK will remain operational beyond the end of the next decade

Longannet is situated close to the Central North Sea’s proven CO2 storage sites

We have achieved a significant breakthrough in our testing programme at Longannet that will substantially reduce the CCS ‘energy penalty’

There will be a ready made skills base left over from the UK’s illustrious oil and gas industry

Our retrofit solution can be applied to the tens of thousands of power stations operational right now and is essential if we are to avoid carbon ‘lock-in’

We are demonstrating on coal, which is essential to UK and global security of supply

Our world class knowledge transfer scheme will be driven by Accenture

Sharing what we learn - www.scottishpowerccs.tv/

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A Vision of the Future

An integrated capture, transport and storage network for Europe

Scotland has unique natural COScotland has unique natural CO22 storage sites storage sites

PRE220_Nick Horler CCS Forum_20091125

25th November 2009

Carbon Capture and Storage Forum 2009Making the UK a world leader in CCS technology

Nick Horler, CEO ScottishPower