Upload
global-ccs-institute
View
983
Download
1
Embed Size (px)
DESCRIPTION
Citation preview
GLOBAL CCS INSTITUTE
THE STATUS OF CCSBarry Jones, General Manager – Policy and Membership
Melbourne Members’ Meeting, 4 October, 2011
WWW.GLOBALCCSINSTITUTE.COM
GLOBAL CCS INSTITUTE
RELEASED TODAY
The Global Status of
CCS: 2011 report.
1
GLOBAL CCS INSTITUTE
MEASURED PROGRESS OF LARGE-SCALE
INTEGRATED PROJECTS SINCE 2009
2
GLOBAL CCS INSTITUTE
GLOBAL SPREAD OF PROJECTS
3
GLOBAL CCS INSTITUTE
PROJECT NUMBERS CONCENTRATED IN THE
UNITED STATES AND EUROPE
4
GLOBAL CCS INSTITUTE
CONCENTRATION ON POWER GENERATION
5
GLOBAL CCS INSTITUTE
PROJECTS ARE SPREAD ACROSS
TECHNOLOGIES
6
GLOBAL CCS INSTITUTE
POWER PROJECTS UNDER CONSTRUCTION
Kemper County
• IGCC with capture (pre-combustion)
• EOR
Boundary Dam
• Retrofit post-combustion capture
• EOR
7
GLOBAL CCS INSTITUTE
ALLOCATED GOVERNMENT FUNDING IS
MOSTLY TO POWER
8
GLOBAL CCS INSTITUTE
THERE IS FUNDING THAT IS STILL TO BE
ALLOCATED
9
GLOBAL CCS INSTITUTE
CO2 IS BEING CAPTURED AND STORED
10
GLOBAL CCS INSTITUTE
REGIONAL BIAS TOWARDS STORAGE
SELECTION
11
GLOBAL CCS INSTITUTE
THE ISSUE OF LONG TERM LIABILITY
12
GLOBAL CCS INSTITUTE
DOES THE POLICY ENVIRONMENT GIVE ADEQUATE SUPPORT – PROJECT RESPONSE
UNFCCC Groups Yes (%) No (%) No comment (%)
Asian States 0-25 0-25 50-75
Eastern Europe 50 -75 50-75 0
Western Europe 25-50 25-50 0-25
Other States 25-50 25-50 0-25Other States 25-50 25-50 0-25
13
Issues raised
• Uncertain policy environment or implementation
• Uncertainty legislation/ regulations
• Uncertain or lack of carbon value
• Insufficient government support
• High cost project economics
GLOBAL CCS INSTITUTE
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 their project was authorised under project-specific or
pre-existing legislation, others raised some issues.
14
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
GLOBAL CCS INSTITUTE
PUBLIC ENGAGEMENT STRATEGIES ARE IN PLACE
� 75% of projects either have a public engagement
strategy in place or under development.
� There has been an increase in the sophistication and
quality of tools and resources to assist CCS
stakeholders. For example the:stakeholders. For example the:
– Public Engagement Self Assessment Tool; and
– Social Site Characterisation Report.
15
GLOBAL CCS INSTITUTE
MAKING THE BUSINESS CASE FOR CCS
Clear business
case
Clear business
case due to climate
policies
Business cases that
requires government support and other revenue
CCS
related project features
•Industrial
separation
already takes
place
•Industrial
separation already
takes place
•Some previous
•CO2 separation at
relatively high cost
(power) and storage site
known–oil field
16
features place
•Storage site
known–oil field
•Some previous
knowledge of
storage site
known–oil field
or•Development of a
greenfield storage site
with industrial
separation
Business
case drivers
•EOR revenues •Reduction in
future/current
carbon cost
liabilities
•Potential carbon
credit markets
•Government funding
•Reduction in
future/current carbon
cost liabilities
•EOR revenues
•Risk sharing
GLOBAL CCS INSTITUTE
KEY MESSAGES
� 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 power projects are on the verge of FID but � A number of power projects are on the verge of FID but
making the business case is proving difficult and time
consuming.
� Greater collaboration and transparency between
government and industry is needed.
� Storage assessments in deep saline formations can
have long lead times – need to start now.
17
GLOBAL CCS INSTITUTE
www.globalccsinstitute.com18