cats/ccs – ofgem project discovery mike farley …...doosan babcock post combustion capture...

35
CATs/CCS – OFGEM Project Discovery Mike Farley Doosan Power Systems Presentation to UKCCSC Network Meeting Edinburgh March 31st 2010

Upload: others

Post on 27-Aug-2020

2 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

CA

Ts/

CC

S –

OF

GE

M P

roje

ct D

isco

very

Mik

e F

arle

yD

oo

san

Po

wer

Sys

tem

s

Pre

senta

tion to U

KC

CS

C N

etw

ork

Meeting E

din

burg

h

Marc

h 3

1st 2010

Page 2: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

1

Ou

tlin

e

�K

ey m

essa

ges

�U

pd

ate

on

Do

osa

n P

ow

er S

yste

ms

and

ou

r ac

tivi

ties

�A

mb

itio

ns

for

CC

S a

nd

th

e U

K in

du

stry

�C

om

men

ts o

n p

olic

ies

on

CC

S D

emo

nst

rati

on

an

d C

oal

po

wer

pla

nt

�C

om

men

ts o

n P

roje

ct D

isco

very

�Im

po

rtan

ce o

f a

bal

ance

del

ectr

icit

y g

ener

atio

n p

ort

folio

Page 3: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

2

�K

ey m

essa

ges

�U

pd

ate

on

Do

osa

n P

ow

er S

yste

ms

and

ou

r ac

tivi

ties

�A

mb

itio

ns

for

CC

S a

nd

th

e U

K in

du

stry

�C

om

men

ts o

n p

olic

ies

on

CC

S D

emo

nst

rati

on

an

d C

oal

po

wer

pla

nt

�C

om

men

ts o

n P

roje

ct D

isco

very

�Im

po

rtan

ce o

f a

bal

ance

del

ectr

icit

y g

ener

atio

n p

ort

folio

Ou

tlin

e

Page 4: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

3

Key

Mes

sag

es

�W

e u

nd

erst

and

th

e o

bje

ctiv

es o

f g

lob

al e

ner

gy

and

en

viro

nm

ent

po

licie

s an

d w

ant

to p

lan

ou

r b

usi

nes

s ar

ou

nd

hel

pin

g t

o a

chie

ve t

hem

�W

e ar

e w

ell p

lace

d -

nat

ion

ally

an

d in

tern

atio

nal

ly -

as a

tec

hn

ical

lead

er

and

an

infl

uen

tial

par

t o

f th

e D

oo

san

Gro

up

-to

ro

ll o

ut

low

car

bo

n p

ow

er

gen

erat

ion

tec

hn

olo

gie

s g

lob

ally

�W

e n

eed

to

hav

e co

nfi

den

ce in

th

e im

ple

men

tati

on

of

po

licie

s (g

lob

al a

nd

U

K)

in o

rder

to

pla

n o

ur

ow

n in

vest

men

ts a

nd

bu

sin

ess

–co

al, g

as, C

CS

, n

ucl

ear

and

win

d

�W

e h

ave

gra

ve d

ou

bts

, rei

nfo

rced

by

Pro

ject

Dis

cove

ry, a

bo

ut

wh

eth

er

curr

ent

po

licie

s w

ill d

eliv

er t

he

UK

go

vern

men

t’s

thre

e o

bje

ctiv

es

(sec

uri

ty, d

ecar

bo

nis

atio

n a

nd

aff

ord

abili

ty)

in 2

020

or

2030

Page 5: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

4

We

un

der

stan

d t

he

bac

kgro

un

d (

Clim

ate

Ch

ang

e T

arg

ets)

-U

K

Sou

rce

: U

K N

ationa

l A

tmo

sphe

ric E

mis

sio

ns In

ve

nto

ry (

200

8)

42 98 108

103

134

184

Inte

rnat

ion

al a

viat

ion

&

ship

pin

g*

UK

no

n-C

O2

GH

Gs

Oth

er C

O2

Ind

ust

ry (

hea

t &

in

du

stri

al p

roce

sses

)

Res

iden

tial

&

com

mer

cial

hea

t

Do

mes

tic

tran

spo

rt

Ele

ctri

city

Gen

erat

ion 20

06 e

mis

sio

ns

77%

cu

t (=

80%

vs.

199

0)77

% c

ut

(=80

% v

s. 1

990)

159

Mt

CO

2e

2050

ob

ject

ive

* B

un

ke

r fu

els

ba

sis

695

Mt

CO

2e

�D

ecar

bo

nis

e th

e el

ectr

icit

y sy

stem

by

2030

, an

d t

hen

uti

lise

clea

n e

lect

rici

ty t

o

dec

arb

on

ise

tran

spo

rt

and

res

iden

tial

h

eati

ng

, wit

h a

n

ove

rall

targ

et t

o

red

uce

CO

2 em

issi

on

s b

y 80

% in

20

50�

Imp

ort

ant

role

fo

r C

CS

, alo

ng

sid

e re

new

able

s (l

arg

ely

win

d)

and

nu

clea

r

Page 6: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

5

We

un

der

stan

d t

he

bac

kgro

un

d (

Clim

ate

Ch

ang

e T

arg

ets)

-G

lob

al

�IE

A h

ave

map

ped

th

e ab

atem

ent

tech

no

log

ies

to

ach

ieve

50%

red

uct

ion

in

glo

bal

CO

2 em

issi

on

s b

y 20

50

�Im

po

rtan

t ro

les

for

CA

Ts,

re

new

able

s an

d n

ucl

ear

26%

31%

15%

8%

12%

8%

CC

S

Re

ne

wa

ble

s

Nucle

ar

Bio

ma

ss

Ga

s e

ffic

iency a

nd f

ue

l sw

itchin

g t

o g

as

IGC

C/S

upe

rcri

tica

l co

al

Page 7: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

6

�K

ey m

essa

ges

�U

pd

ate

on

Do

osa

n P

ow

er S

yste

ms

and

ou

r ac

tivi

ties

�A

mb

itio

ns

for

CC

S a

nd

th

e U

K in

du

stry

�C

om

men

ts o

n p

olic

ies

on

CC

S D

emo

nst

rati

on

an

d C

oal

po

wer

pla

nt

�C

om

men

ts o

n P

roje

ct D

isco

very

�Im

po

rtan

ce o

f a

bal

ance

del

ectr

icit

y g

ener

atio

n p

ort

folio

Ou

tlin

e

Page 8: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

7

Do

osa

n P

ow

er S

yste

ms

Op

erat

ion

Do

osa

n H

eavy

Ind

ust

ry O

per

atio

n

Do

osa

n B

abco

ck

HQ

: R

en

frew

, U

K

R&

D C

en

tre

: R

en

frew

, U

KC

arb

on

Cap

ture

CO

E: R

en

frew

, U

K

Wo

rld

wid

e D

oo

san

Op

erat

ion

s

Do

osa

n P

ow

er S

yste

ms,

hea

dq

uar

tere

d in

UK

, alo

ng

wit

h D

oo

san

Hea

vy,

hea

dq

uar

tere

d in

So

uth

Ko

rea,

hav

e w

orl

dw

ide

op

erat

ion

al a

nd

sal

es c

ove

rag

e to

m

eet

ou

r C

lien

ts r

equ

irem

ents

Do

osa

n P

ow

er S

yste

ms

Co

rpo

rate

HQ

: C

raw

ley,

UK

Do

osa

n P

ow

er S

yste

ms

-A

mer

icas

H

Q:

New

Je

rse

y,

U.S

.A.

Se

rvic

e C

en

tre

: A

tla

nta

, U

.S.A

Do

osa

n H

eavy

Co

rpo

rate

HQ

: S

eou

l, S

ou

th K

ore

aM

anu

f: C

hangw

on

, S

ou

th K

ore

aM

anu

f: V

ina

, V

ietn

am

Ško

da

Po

wer

H

Q:

Plz

e�

, C

ze

ch

Repub

lic

Do

osa

n P

ow

er S

yste

ms

–E

uro

pe

HQ

: C

raw

ley,

UK

S

erv

ice

Ce

ntr

e:

Esse

n, G

erm

an

yS

erv

ice

Ce

ntr

e:

Rybn

ik,

Po

lan

d

Page 9: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

8

OE

M P

rod

uct

Co

mp

anie

s

Do

osa

n P

ow

er S

yste

ms

Do

osa

nP

ow

er S

yste

ms

Do

osa

nP

ow

er S

yste

ms

•T

urb

ine

OE

M•

Aft

erm

arke

t

S

ervi

ces

•N

ew B

uild

•R

&D

•T

urb

ine

OE

M•

Aft

erm

arke

t

S

ervi

ces

•N

ew B

uild

•R

&D

•B

oile

r O

EM

•A

fter

mar

ket

Ser

vice

s •

CC

S•

New

Bu

ild•

R&

D

•B

oile

r O

EM

•A

fter

mar

ket

Ser

vice

s •

CC

S•

New

Bu

ild•

R&

D

•Bo

iler

& T

urb

ine

serv

ices

to

E

uro

pe

reg

ion

•Bo

iler

& T

urb

ine

serv

ices

to

E

uro

pe

reg

ion

•Bo

iler

& T

urb

ine

serv

ices

to

A

mer

icas

reg

ion

•Bo

iler

& T

urb

ine

serv

ices

to

A

mer

icas

reg

ion

Do

osa

n P

ow

er S

yste

ms

colle

ctiv

ely

off

ers

BT

G s

up

ply

cap

abili

ty a

s a

sin

gle

so

urc

e ac

ross

th

e w

orl

d

Do

osa

n

Po

wer

Sys

tem

s(A

mer

icas

)

Do

osa

n

Po

wer

Sys

tem

s(A

mer

icas

)

Do

osa

n

Po

wer

Sys

tem

s(E

uro

pe)

Do

osa

n

Po

wer

Sys

tem

s(E

uro

pe)

Do

osa

n B

abco

ckD

oo

san

Bab

cock

Ško

da

Po

wer

Ško

da

Po

wer

Page 10: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

9

Do

osa

n P

ow

er S

yste

ms

�D

oo

san

Po

wer

Sys

tem

s�

A s

ubsid

iary

of

Doosan o

f S

outh

Kore

a,

a m

ark

et

lead

er

in t

he E

nerg

y s

ecto

r

�H

Q in U

K;

inco

rpora

tes D

oosan B

abcock a

nd S

koda P

ow

er

�E

mplo

ys 6

000 p

eop

le (

50

00 in U

K),

>£1bn b

usin

ess

�H

eavy investm

ent

in a

dva

nce

d t

echnolo

gie

s (

inclu

din

g C

CS

)

�D

edic

ate

d R

&D

gro

ups in U

K a

nd C

zech R

epublic

�H

eavy investm

ent

in p

eo

ple

(re

cru

itm

ent

an

d t

rain

ing o

f ap

pre

ntices,

technic

ians a

nd g

radu

ate

s)

�W

ill b

e a

majo

r E

PC

contr

acto

r fo

r com

ple

te p

ow

er

pla

nt

with C

arb

on C

aptu

re

Nu

clea

rT

her

mal

Tu

rbin

e &

G

ener

ato

rD

esal

inat

ion

Cas

tin

g &

Fo

rgin

gC

on

stru

ctio

n

Page 11: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

10

Hig

hlig

hts

�T

her

e ar

e n

ow

alm

ost

50

x 60

0MW

su

per

crit

ical

co

al b

oile

rs o

f D

oo

san

Bab

cock

d

esig

n c

om

mis

sio

ned

in C

hin

a

�T

he

firs

t E

PC

(E

ng

inee

r-P

rocu

re-C

on

stru

ct)

con

trac

t aw

ard

ed t

o D

oo

san

Hea

vy

Ind

ust

ries

an

d C

on

stru

ctio

n f

or

a fu

ll su

per

crit

ical

bo

iler

and

tu

rbin

e m

ega

pro

ject

(2

x 68

5MW

) fo

r th

e R

aip

ur

-C

hh

atti

sgar

h c

oal

-fir

ed t

her

mal

po

wer

pla

nt

in In

dia

�O

rder

fo

r th

e fi

rst

sup

ercr

itic

al o

il fi

red

bo

ilers

to

be

inst

alle

d in

Eg

ypt

�O

rder

to

a K

ore

an c

on

sort

ium

fo

r a

$40b

n c

on

trac

t fo

r A

PR

1400

nu

clea

r p

ow

er

pla

nts

in t

he

Un

ited

Ara

b E

mir

ates

. D

HIC

will

su

pp

ly t

he

mai

n e

qu

ipm

ent

incl

ud

ing

th

e re

acto

r p

ress

ure

ves

sel,

stea

m g

ener

ato

rs a

nd

tu

rbo

gen

erat

ors

for

the

pro

ject

.

�D

oo

san

Win

DS

3000

off

sho

re w

ind

tu

rbin

e u

nd

erg

oin

g c

erti

fica

tio

n t

rial

s in

K

ore

a

Page 12: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

11

Hig

hlig

hts

-C

CS

�O

xyC

oal

TM

pilo

t d

emo

nst

rati

ng

saf

e an

d s

tab

le

com

bu

stio

n a

t 40

MW

wit

h 9

0% c

on

cen

trat

ion

of

CO

2 at

ou

r R

enfr

ew C

lean

Co

mb

ust

ion

Tes

t F

acili

ty

�D

oo

san

Bab

cock

po

st c

om

bu

stio

n c

aptu

re

tech

no

log

y se

lect

ed f

or

Bas

in R

iver

CC

S

dem

on

stra

tio

n in

No

rth

Dak

ota

, US

A -

125

MW

�C

CP

ilot1

00+

, a

100t

/d d

emo

nst

rati

on

of

CO

2ca

ptu

re b

y p

ost

co

mb

ust

ion

cap

ture

is t

o b

e d

esig

ned

, bu

ilt a

nd

co

mm

issi

on

ed b

y D

oo

san

B

abco

ck a

t F

erry

bri

dg

e P

ow

er S

tati

on

. Th

e p

roje

ct w

ill b

e jo

intl

y fu

nd

ed b

y th

e T

SB

, DE

CC

, T

he

No

rth

ern

Way

, Do

osa

n B

abco

ck, S

SE

an

d

Vat

ten

fall.

Page 13: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

12

�K

ey m

essa

ges

�U

pd

ate

on

Do

osa

n P

ow

er S

yste

ms

and

ou

r ac

tivi

ties

�A

mb

itio

ns

for

CC

S a

nd

th

e U

K in

du

stry

�C

om

men

ts o

n p

olic

ies

on

CC

S D

emo

nst

rati

on

an

d C

oal

po

wer

pla

nt

�C

om

men

ts o

n P

roje

ct D

isco

very

�Im

po

rtan

ce o

f a

bal

ance

del

ectr

icit

y g

ener

atio

n p

ort

folio

Ou

tlin

e

Page 14: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

13

Co

al a

nd

CC

S is

a C

ost

-Co

mp

etit

ive

Lo

w C

arb

on

Op

tio

n

107.

010

7.0

107.

0O

ffsh

ore

Win

d

75.0

75.0

75.0

On

sho

re W

ind

70.7

69.2

67.7

Co

al +

CC

S

70.8

56.4

41.7

Co

al

59.3

51.8

44.3

CC

GT

(g

as)

Incl

ud

ing

Co

st

of

Car

bo

n

Allo

wan

ces

€40/

te

Incl

ud

ing

Co

st o

f C

arb

on

A

llow

ance

s €2

0/te

Exc

lud

ing

co

st o

f C

arb

on

A

llow

ance

s

£/M

Wh

Co

al +

CC

S c

om

pet

itiv

e th

an o

ther

low

car

bo

n o

pti

on

s!

Bu

t m

ore

exp

ensi

ve t

han

un

abat

ed g

as!

Sou

rce

: E

.ON

, Ju

ly 2

008

.

Re

cen

t da

ta f

rom

Pa

rson

s B

rin

ke

rhoff

“P

ow

erin

g t

he

Na

tio

n U

pda

te 2

010

”h

as o

ffsh

ore

win

d £

150

-210

/ M

Wh

Page 15: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

14

Glo

bal

CC

S d

eplo

ymen

t in

th

e IE

A B

LU

E M

ap S

cen

ario

Number of Projects

MtCO2/year Captured

Th

ere

is a

n a

mb

itio

us

gro

wth

pat

h f

or

CC

S f

rom

201

0 to

205

0T

her

e is

an

am

bit

iou

s g

row

th p

ath

fo

r C

CS

fro

m 2

010

to 2

050

Sou

rce

: IE

A C

lean

Coa

l C

en

tre

Page 16: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

15

Glo

bal

Tre

nd

in C

CS

an

d A

mb

itio

n f

or

UK

Ind

ust

ry

160

KW

e E

RT

F a

t D

oo

san

B

abco

ck

Cu

rren

t te

st r

ig

scal

e tr

ials

40M

Wth

O

xyC

oal

5 M

We

SS

E

CC

Pilo

t100

+ a

t F

erry

bri

dg

e

Pilo

t sc

ale

tria

ls a

t P

ow

er

pla

nt

1MW

e u

pw

ard

s

2009

-20

12

At

leas

t th

ree

Dem

on

stra

tio

ns

pro

ject

s in

th

e fi

rst

tran

che

20+

full

scal

e C

CS

d

emo

nst

rati

on

s g

lob

ally

(10

-12

in

the

EU

),

op

erat

ion

al b

y 20

15/6

100M

W t

o 4

00M

W

Tar

get

bet

wee

n

5 an

d 1

0 p

roje

cts

by

2020

IEA

-10

0 fu

ll sc

ale

earl

y st

age

dep

loym

ent

pro

ject

s n

eed

ed b

y 20

20

Tar

get

10%

m

arke

t sh

are

of

po

wer

/CC

S

pro

ject

s,

aro

un

d 5

/yea

r

IEA

-10

0 C

CS

p

roje

cts/

year

Glo

bal

tr

end

Am

bit

ion

for

CC

S

for

UK

in

du

stry

2009

2020

2015

Page 17: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

16

�K

ey m

essa

ges

�U

pd

ate

on

Do

osa

n P

ow

er S

yste

ms

and

ou

r ac

tivi

ties

�A

mb

itio

ns

for

CC

S a

nd

th

e U

K in

du

stry

�C

om

men

ts o

n p

olic

ies

on

CC

S D

emo

nst

rati

on

an

d C

oal

po

wer

pla

nt

�C

om

men

ts o

n P

roje

ct D

isco

very

�Im

po

rtan

ce o

f a

bal

ance

del

ectr

icit

y g

ener

atio

n p

ort

folio

Ou

tlin

e

Page 18: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

17

CC

S -

Wh

at is

th

e U

K d

oin

g a

nd

Wh

at s

ho

uld

it b

e d

oin

g?

�S

up

po

rt f

or

R+

D a

nd

pilo

t sc

ale

pro

ject

s

�R

egu

lati

on

s fo

r C

arb

on

Dio

xid

e st

ora

ge

�M

ult

iple

ear

ly d

emo

nst

rati

on

s o

f co

al a

nd

gas

CC

S

�A

pla

n f

or

roll-

ou

t o

f C

CS

bey

on

d t

he

firs

t tr

anch

e o

f d

emo

nst

rati

on

s

�C

arb

on

Cap

ture

an

d S

tora

ge

Rea

din

ess

(CC

R)

Page 19: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

18

Wh

at is

th

e U

K d

oin

g a

nd

Wh

at s

ho

uld

it b

e d

oin

g?

�S

up

po

rt f

or

R+

D a

nd

pilo

t sc

ale

pro

ject

s–

We a

re p

lease

d t

hat

DE

CC

,TS

B,

ET

I and t

he R

esearc

h C

ouncils

UK

are

deliv

eri

ng g

ood s

upport

–Im

port

ant

that

this

contin

ues

–N

eed m

ore

larg

e s

cale

R+

D o

n s

tora

ge

Page 20: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

19

Wh

at is

th

e U

K d

oin

g a

nd

wh

at s

ho

uld

it b

e d

oin

g?

�R

egu

lati

on

s fo

r C

arb

on

Dio

xid

e st

ora

ge

–W

e b

elie

ve t

he

UK

is leadin

g in t

his

fie

ld

–W

e s

hould

su

pport

oth

er

coun

try’s

work

in t

his

are

a

–W

e h

ave t

o h

ave t

he r

ight

bala

nce b

etw

een c

ontr

ol an

d s

trangu

latio

n

Page 21: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

20

Wh

at is

th

e U

K d

oin

g a

nd

wh

at s

ho

uld

it b

e d

oin

g?

�M

ult

iple

ear

ly d

emo

nst

rati

on

s o

f C

CS

via

DE

CC

co

mp

etit

ion

an

d t

he

pro

po

sed

levy

–W

e w

elc

om

e U

K p

lan t

o e

sta

blis

h n

ationa

l fu

ndin

g b

ut

are

concern

ed a

bou

t

the p

ace

–G

overn

ment

needs t

o p

rovid

e m

ore

cla

rity

on s

upp

ort

for

full

CC

Sre

trofits

–G

overn

ment

(and E

U)

nee

d t

o b

e c

are

ful -

if e

lectr

icity c

om

panie

s a

re

expose

d t

o t

oo m

uch r

isk v

ers

us t

he p

ote

ntia

l re

wa

rd t

he

y w

ill n

ot

be a

ble

to invest

–G

overn

ment

needs t

o e

nsure

its

obje

ctive t

o a

chie

ve “

econ

om

ic b

en

efit”

in

the U

K is d

eliv

ere

d

•N

eed c

om

petition b

etw

een s

upplie

rs

•N

eed “

econom

ic b

enefit”

as a

n e

valu

ation e

xplic

it c

rite

rion f

or

the

com

petitio

n

Page 22: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

21

Wh

at is

th

e U

K d

oin

g a

nd

Wh

at s

ho

uld

it b

e d

oin

g?

�A

pla

n f

or

roll-

ou

t o

f C

CS

bey

on

d t

he

firs

t tr

anch

e o

f d

emo

nst

rati

on

s–

We h

ave b

ee

n p

ressin

g f

or

this

for

som

e t

ime

–U

nle

ss t

here

is c

ontinuity t

he lessons o

f th

e e

arl

y p

roje

cts

will

be lost

–N

eed e

arl

y r

evie

w o

f te

chnic

al via

bili

ty a

nd r

equire

d f

inancia

l support

for

next

ph

ase o

f in

vestm

ent

-no late

r th

an 2

016 t

o s

upp

ort

ne

xt

investm

ents

fro

m 2

018

–T

his

is w

ell

illu

str

ate

d b

y t

he f

ollo

win

g s

lides f

rom

EP

PS

A

Page 23: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

22

CC

S:

To

war

ds

Ear

ly Im

ple

men

tati

on

En

gin

ee

rin

g r

esou

rces to

bu

ild C

O2

ca

ptu

re p

lan

ts in

EU

27

1) F

igu

res

for

eng

inee

rin

g r

eso

urc

es a

re

ind

icat

ive

to s

ho

w r

elat

ion

s o

nly

Sou

rce

: E

PP

SA

Page 24: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

23

CC

S:

To

war

ds

Ear

ly Im

ple

men

tati

on

En

gin

ee

rin

g r

esou

rces to

bu

ild C

O2

ca

ptu

re p

lan

ts in

EU

27

Sou

rce

: E

PP

SA

Page 25: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

24

05

10

15

20

25 201

4201

5201

6201

7201

8201

9202

0202

1202

2202

3202

4202

5202

6202

7202

8202

9203

0

Ro

llou

t o

f C

CS

into

Op

erat

ion

in U

K t

o M

eet

Tar

get

s

Tar

get

fo

r C

CS

o

n c

oal

DE

CC

2 p

roje

cts

DE

CC

4 p

roje

cts

DE

CC

4 p

roje

cts

+ r

etro

fit

Nee

ded

We

nee

d t

o b

e h

ere

(5G

W C

CS

) in

20

20 n

ot

2025

!

Installed CCS Capacity (GW)F

irst

Tra

nche

of

De

mo

nstr

atio

ns

Se

co

nd T

ranche

of

De

mo

nstr

atio

ns

Co

mm

erc

ial R

ollo

ut

Page 26: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

25

Wh

at is

th

e U

K d

oin

g a

nd

wh

at s

ho

uld

it b

e d

oin

g?

�C

arb

on

Cap

ture

an

d S

tora

ge

Rea

din

ess

–W

e a

re s

upport

ive o

f E

uro

pe –

wid

e r

equir

em

ents

for

CC

R f

or

ne

w

coal an

d g

as p

ow

er

pla

nt

–C

CR

po

we

r pla

nt

plu

s C

CS

de

monstr

ations p

lus a

polic

y t

o

support

com

ple

tion o

f fu

ll C

CS

can a

ccele

rate

decarb

onis

ation o

f

the e

lectr

icity s

ecto

r

Page 27: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

26

Cap

ital

Inve

stm

ent

�N

eed

hu

ge

cap

ital

inve

stm

ent

to r

epla

ce a

gei

ng

pla

nt

and

dec

arb

on

ise

elec

tric

ity

�In

vest

ors

nee

d c

on

fid

ence

in t

he

pay

bac

k fr

om

th

eir

inve

stm

ents

–ex

pec

t h

igh

load

fac

tors

fo

r la

rge

cap

ital

inve

stm

ents

, bu

t…

Po

yry

rep

ort

�A

naly

ses t

he im

pact

of

30 G

W o

f w

ind o

n t

he U

K g

en

era

tion s

yste

m

�C

oncern

s b

oth

wh

en t

he w

ind b

low

ing a

nd a

lmost

all

oth

er

pla

nt

has t

o

be t

urn

ed o

ff ,

negative e

lectr

icity p

rices,

investm

ent

case f

or

nucle

ar

and C

CS

unde

rmin

ed

�C

oncern

s w

he

n n

o w

ind b

low

ing a

nd 3

0 G

W o

f backup p

lan

t could

be

need

ed

Po

yry

rep

ort

�A

naly

ses t

he im

pact

of

30 G

W o

f w

ind o

n t

he U

K g

en

era

tion s

yste

m

�C

oncern

s b

oth

wh

en t

he w

ind b

low

ing a

nd a

lmost

all

oth

er

pla

nt

has t

o

be t

urn

ed o

ff ,

negative e

lectr

icity p

rices,

investm

ent

case f

or

nucle

ar

and C

CS

unde

rmin

ed

�C

oncern

s w

he

n n

o w

ind b

low

ing a

nd 3

0 G

W o

f backup p

lan

t could

be

need

ed

Page 28: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

27

Gen

erat

ion

Pla

nt

Dis

pat

ch in

Jan

uar

y

0

10

20

30

40

50

60

70 01

-Ja

n0

4-J

an

07

-Ja

n1

0-J

an

13

-Ja

n1

6-J

an

19

-Ja

n2

2-J

an

25

-Ja

n2

8-J

an

31

-Ja

n

Generation (GW)

Nu

cle

ar

Bio

ma

ss

Co

al

CH

PC

CG

TO

the

r re

ne

wa

ble

sD

em

an

dP

ea

kin

g p

lan

tsIm

po

rts

0

10

20

30

40

50

60

70 01

-Ja

n0

4-J

an

07

-Ja

n1

0-J

an

13

-Ja

n1

6-J

an

19

-Ja

n2

2-J

an

25

-Ja

n2

8-J

an

31

-Ja

n

Generation (GW)

Nu

cle

ar

Bio

ma

ss

CC

SC

oa

lC

oa

lC

HP

CC

GT

Oth

er

ren

ew

ab

les

De

ma

nd

Pe

ak

ing

pla

nts

Imp

ort

s

2010

wit

h a

mo

des

t am

ou

nt

of

Win

d c

apac

ity

2010

wit

h a

mo

des

t am

ou

nt

of

Win

d c

apac

ity

Sou

rce

: P

oyry

2030

wit

h 3

0GW

of

Win

d c

apac

ity

2030

wit

h 3

0GW

of

Win

d c

apac

ity

Page 29: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

28

�O

n lo

w w

ind

day

s th

e w

ho

le c

apac

ity

of

the

win

d f

arm

s m

ust

be

sub

stit

ute

d b

y al

tern

ativ

e re

liab

le g

ener

atio

n c

apac

ity,

ap

pro

xim

atel

y d

ou

blin

g t

he

cap

ital

inve

stm

ent

req

uir

ed.

�O

n h

igh

win

d d

ays

ther

e w

ill b

e el

ectr

icit

y ca

pac

ity

wel

l in

exc

ess

of

dem

and

an

d o

ther

fo

rms

of

gen

erat

ion

will

hav

e to

be

turn

ed o

ff a

nd

el

ectr

icit

y p

rice

s w

ill p

lum

met

.

�T

oo

mu

ch w

ind

cap

acit

y o

n t

he

syst

em u

nd

erm

ines

th

e in

vest

men

t ca

se

for

Nu

clea

r, C

oal

or

gas

wit

h C

CS

�W

e n

eed

a m

ore

sen

sib

le b

alan

ce b

etw

een

nu

clea

r, C

CS

an

d r

enew

able

s

Page 30: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

29

�K

ey m

essa

ges

�U

pd

ate

on

Do

osa

n P

ow

er S

yste

ms

and

ou

r ac

tivi

ties

�A

mb

itio

ns

for

CC

S a

nd

th

e U

K in

du

stry

�C

om

men

ts o

n p

olic

ies

on

CC

S D

emo

nst

rati

on

an

d C

oal

po

wer

pla

nt

�C

om

men

ts o

n P

roje

ct D

isco

very

�Im

po

rtan

ce o

f a

bal

ance

del

ectr

icit

y g

ener

atio

n p

ort

folio

Ou

tlin

e

Page 31: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

30

Co

mm

ents

on

OF

GE

M P

roje

ct D

isco

very

�C

on

clu

sio

ns

are

no

t a

surp

rise

–m

any

of

us

hav

e b

een

exp

ress

ing

re

serv

atio

ns

abo

ut

the

go

vern

men

t’s

ener

gy

po

licie

s fo

r so

me

year

s

�N

ot

surp

rise

d t

hat

OF

GE

M h

ave

con

clu

ded

th

at t

hey

hav

e co

nce

rns

abo

ut

wh

eth

er t

he

pre

sen

t ar

ran

gem

ents

will

del

iver

th

e n

eces

sary

inve

stm

ent

in

new

gen

erat

ion

cap

acit

y an

d t

hat

sig

nif

ican

t ac

tio

n w

ill b

e ca

lled

fo

r g

iven

th

e “u

np

rece

den

ted

ch

alle

ng

es f

acin

g t

he

gas

an

d e

lect

rici

ty in

du

stri

es”.

�In

th

e tw

o “

Gre

en S

cen

ario

s”co

nsi

der

ed b

y O

FG

EM

, wh

ich

mo

st n

earl

y re

pre

sen

t g

ove

rnm

ent

po

licie

s, t

he

Key

Su

pp

ly R

isk

is “

gen

erat

ion

va

riab

ility

”, d

ue

to t

he

hig

h p

enet

rati

on

of

inte

rmit

ten

t re

new

able

s

�P

rese

nt

po

licie

s le

adin

g t

o i

nte

rmit

ten

t w

ind

an

d u

nab

ated

gas

CC

GT

s

Page 32: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

31

En

erg

y P

olic

ies

in U

K –

Ris

k an

d S

olu

tio

n

�O

FG

EM

Pro

ject

Dis

cove

ry s

tro

ng

ly r

ein

forc

es o

ur

view

s�

Pro

ble

ms

aris

e b

ecau

se g

ove

rnm

ent

po

licie

s ar

e d

rivi

ng

to

war

ds

ag

ross

ly

imb

alan

ced

gen

erat

ion

po

rtfo

lio w

hic

h w

ill n

ot

mee

t an

y o

f it

s th

ree

ob

ject

ives

-C

O2,

sec

uri

ty o

r co

sts

�T

his

is a

res

ult

of

the

pre

scri

pti

on

of

ren

ewab

les

(Ren

ewab

les

Ob

ligat

ion

) b

ut

no

co

mp

arab

le p

resc

rip

tio

n o

r in

cen

tive

s fo

r n

ucl

ear

or

CC

S

We r

ecom

men

d m

odelli

ng o

f ele

ctr

icity s

yste

m t

akin

g a

ccou

nt

of

the f

eatu

res

of

diffe

rent

typ

es o

f pla

nt

(ba

selo

ad,

ram

p r

ate

s,

capacity,

cost)

and t

he

diffe

rent

featu

res o

f dem

and s

ide m

easure

s )

to e

sta

blis

h w

hat

abala

nced

port

folio

wo

uld

look lik

e.

This

work

shou

ld b

e c

om

ple

ted b

efo

re d

esig

nin

g a

ny m

ajo

r changes

to t

he

ele

ctr

icity m

ark

et

We r

ecom

men

d m

odelli

ng o

f ele

ctr

icity s

yste

m t

akin

g a

ccou

nt

of

the f

eatu

res

of

diffe

rent

typ

es o

f pla

nt

(ba

selo

ad,

ram

p r

ate

s,

capacity,

cost)

and t

he

diffe

rent

featu

res o

f dem

and s

ide m

easure

s )

to e

sta

blis

h w

hat

abala

nced

port

folio

wo

uld

look lik

e.

This

work

shou

ld b

e c

om

ple

ted b

efo

re d

esig

nin

g a

ny m

ajo

r changes

to t

he

ele

ctr

icity m

ark

et

Page 33: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

32

�K

ey m

essa

ges

�U

pd

ate

on

Do

osa

n P

ow

er S

yste

ms

and

ou

r ac

tivi

ties

�A

mb

itio

ns

for

CC

S a

nd

th

e U

K in

du

stry

�C

om

men

ts o

n p

olic

ies

on

CC

S D

emo

nst

rati

on

an

d C

oal

po

wer

pla

nt

�C

om

men

ts o

n P

roje

ct D

isco

very

�Im

po

rtan

ce o

f a

bal

ance

del

ectr

icit

y g

ener

atio

n p

ort

folio

Ou

tlin

e

Page 34: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

33

Sh

apin

g F

utu

re E

ner

gy

Po

licie

s –

Th

e N

ext

Ste

ps

�W

e w

ill c

on

tin

ue

to p

ress

fo

r cr

edib

le p

olic

ies

incl

ud

ing

gu

idan

ce t

o t

he

Infr

astr

uct

ure

Pla

nn

ing

Co

mm

issi

on

th

at w

ill le

ad t

o a

bal

ance

d p

ort

folio

of

low

car

bo

n e

lect

rici

ty g

ener

atio

n w

ith

an

am

bit

ion

of

sub

stan

tial

ly

dec

arb

on

isin

g t

he

elec

tric

ity

sect

or

by

2030

.

�T

his

will

req

uir

e ra

pid

pro

gre

ss o

n n

ucl

ear

and

CC

S a

s w

ell a

s re

new

able

s,

par

ticu

larl

y th

e im

ple

men

tati

on

of

the

CC

S le

vy f

or

the

fou

r d

emo

nst

rati

on

s an

d f

utu

re r

etro

fits

.

�W

e w

ill r

emin

d t

he

go

vern

men

t o

f it

s o

bje

ctiv

e to

del

iver

eco

no

mic

ben

efit

s fr

om

CC

S in

th

e U

K g

iven

th

e h

ug

e p

ote

nti

al m

arke

t an

d t

he

stro

ng

po

siti

on

o

f co

mp

anie

s lik

e D

oo

san

Po

wer

Sys

tem

s.

�W

e w

ill s

eek

po

licie

s –

agai

nst

wh

ich

we

can

pla

n o

ur

inve

stm

ents

in R

+D

, p

eop

le a

nd

cap

acit

y -

for

the

roll-

ou

t o

f co

al a

nd

gas

CC

S t

ech

no

log

y in

th

e 20

16 t

o 2

020

tim

efra

me.

Page 35: CATs/CCS – OFGEM Project Discovery Mike Farley …...Doosan Babcock post combustion capture technology selected for Basin River CCS demonstration in North Dakota, USA - 125 MW CCPilot100+

Pa

ge

34

�D

oo

san

Bab

cock

are

co

mm

itte

d t

o

dev

elo

pm

ent

an

d g

lob

al

imp

lem

enta

tio

n o

f cl

ean

er p

ow

er

pla

nts

-cl

ean

co

al, c

lean

gas

, n

ucl

ear

and

ren

ewab

le a

s ra

pid

ly

as t

he

mar

ket

allo

ws

�W

e n

eed

a f

irm

bas

is o

n w

hic

h t

o

pla

n o

ur

bu

sin

ess

�T

han

k yo

u f

or

you

r at

ten

tio

n