the status of ccs 2011 report - victor der - global ccs institute – nov 2011 regional meeting
DESCRIPTION
As a part of the Institute's strategic focus on assisting CCS projects through knowledge sharing, three North American roadshow events will help the industry share project experiences and knowledge about CCS. Taking place in the US and Canada, the three events include:• Austin, Texas on November 8, 2011;• Calgary, Canada on 10 November, 2011; and • Washington, D.C. on 19 January, 2012.The first roadshow focused on sharing project experiences and knowledge from the projects in North America but also brought in projects from Europe (Don valley) and Australia (Callide) so that regionally diverse experiences could be shared amongst a global audience. Attendance at the event was around 30 to 35 which allowed open and frank discussions around technical, management, and regulatory issues and how these challenges can impact on a project’s advancement and decision making processes.TRANSCRIPT
GLOBAL CCS INSTITUTE
THE STATUS OF CCS- 2011 ReportPresentation at Projects Events in North America
November 2011
WWW.GLOBALCCSINSTITUTE.COM
GLOBAL CCS INSTITUTE
RELEASED 4 OCTOBER
The Global Status of
CCS: 2011 report.
1
GLOBAL CCS INSTITUTE
MEASURED PROGRESS OF LARGE-SCALE INTEGRATED PROJECTS SINCE 2009
2
GLOBAL CCS INSTITUTE
PROJECT NUMBERS CONCENTRATED IN THE UNITED STATES AND EUROPE
3
GLOBAL CCS INSTITUTE
CONCENTRATION ON POWER GENERATION
4
GLOBAL CCS INSTITUTE
PROJECTS ARE SPREAD ACROSS TECHNOLOGIES
5
GLOBAL CCS INSTITUTE
ALLOCATED GOVERNMENT FUNDING IS MOSTLY TO POWER
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GLOBAL CCS INSTITUTE
REGIONAL BIAS TOWARDS STORAGE SELECTION
7
GLOBAL CCS INSTITUTE
ECONOMIC CONDITIONS
� The EU and the United States introduced stimulus
packages
� Canada and Australia announced specific CCS support
BUT
� Severe (and prolonged) global economic downturn� Severe (and prolonged) global economic downturn
� Carbon prices remain low on the ETS
� Little progress on international climate change treaty
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GLOBAL CCS INSTITUTE
2011 PROJECTS SURVEY: 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
pre-existing legislation, others raised some issues.pre-existing legislation, others raised some issues.
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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
REGULATORY STATUS - NORTH AMERICA
• In the United States
�The EPA has developed regulations under the SWDA
and the UIC programs
�State initiatives are fragmented
• In Canada
�Alberta is undertaking a major review of CCS
regulations
�Saskatchewan will adapt existing regulations
�Federal emissions performance standard
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GLOBAL CCS INSTITUTE
PUBLIC ENGAGEMENT STRATEGIES ARE BEING PUT IN PLACE
• There has been an increase in the sophistication and
quality of tools and resources to assist CCS stakeholders
(for example):
�Public Engagement Self Assessment Tool; and�Public Engagement Self Assessment Tool; and
�Social Site Characterisation Report
• A large source of material is available on the Institute
knowledge platform
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GLOBAL CCS INSTITUTE
KEY MESSAGES FROM THE STATUS REPORT
• 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 projects will in the next ~12 months decide on
whether to progress to a FID but making the business case iswhether to progress to a FID but making the business case is
proving difficult and time consuming.
• Storage assessments in deep saline formations can have
long lead times – need to integrate carefully with capture
planning
• Greater collaboration and transparency between government
and industry is needed.
• Public engagement is a key part of project development
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GLOBAL CCS INSTITUTE
MEMBERSHIP - SEPTEMBER 2011
Industry 48%
Government 12%
Association/NGO 11%Association/NGO 11%
Consultancy 13%
Research/Academia 13%
Finance 3%
The Institute's Membership accounts for over 80 per cent of the world's Carbon Dioxide emissions from energy and industrial sources.
GLOBAL CCS INSTITUTE
NINE TARGETED REPORTS FOR INCLUSION IN 2011/12 PROGRAM
1 2 3 4
Tit
le
Analysis of capture technology
components
Relative permeabilityguideline
Making the business case for CCS projects:
more insights
CO2 networks and hubs: participants, roles & commercial
structures
NA? NA? NA?
5 6 7 8 9
Tit
le CO2 transportation - shipping
Communitycommunication on key risks of CCS
projects
Mitigating unexpected CO2
migration
Balancing Key contracts for CCS
projects
CCS public funding programs – Lessons Learnt
NA? NA?
GLOBAL CCS INSTITUTE
NINE TARGETED REPORTS FOR INCLUSION IN 2011/12 PROGRAM1 2 3 4
Tit
le
Analysis of capture technology
components
Relative permeabilityguideline
Making the business case for CCS projects:
more insights
CO2 networks and hubs: participants, roles & commercial
structures
Targ
et
Deli
vera
ble
s
A literature review at capture technology component level is proposed to establish trends in capital cost and energy reduction potential.
Relative permeability curves of brine-CO2 are important parameters to model plume development in storage reservoirs. Phase 1 will provide a guideline for comparison of current methods and
Building a viablebusiness case for aCCS projects is acomplex process that requires both the projecteconomics and the risks to be understood. It is proposed to review and
The concept of CO2
Networks is a strong driver for CCS developments in Europe, MENA and Australia.
A ‘plug and play’
NA? NA? NA?
Key
Targ
et
Deli
vera
ble
s
The data gathering focus on R&D activity is initially limited to funded or OEM technologies (pre-vetted concepts with real prospect) and will act as a pilot for a technology R&D status review.
provide a library of existing curves suited to different reservoirs, thus complementing the Storage Compendium.Phase 2 will address data gaps identified in Phase 1 by analyzing selected reservoir samples.
compare a project’s:•Overall business plan and project economics
•Risks to private sector investment, including project financing
•Risk management frameworks
•Financing and commercial structures
•Role of government
business modelproviding financing options and commercial structures is proposed; enabling over time each component involved inthe CCS chain / network to be monetized.
So
urc
e
Service Provider / Institute
Research Organisation+ Project proponents
Project proponents / Institute
Financial Institution+ Project proponents
GLOBAL CCS INSTITUTE
5 6 7 8 9T
itle CO2 transportation
- shipping
Communitycommunication on key risks of CCS
projects
Mitigating unexpected CO2
migration
Balancing Key contracts for CCS
projects
CCS public funding programs – Lessons Learnt
Key T
arg
et
Deli
vera
ble
s
In Europe and Australasia, where a great part of the potential storage is offshore, growing attention is being paid to ship
Social science literature provides an understanding how people evaluate project risks – but more work is required in
There are many ways to remediate situations where CO2 is not migrating as expected in the subsurface. This
One or more case studies on how CCS proponents have managed / reached a package of supply and off-take agreements,
Review CCS funding programs around the world to1. create an
overview of their workings and requirements;
NINE TARGETED REPORTS FOR INCLUSION IN 2011/12 PROGRAM
NA? NA?
Key T
arg
et
Deli
vera
ble
s
paid to ship transport. To furtherunderpin its importance, it is proposed to provide more detail to existing ship transportation concepts in terms of their performance, cost and safety issues
work is required in this area to capturelearnings from early CCS projects on what constituteseffective communication of risks and benefits of CCS projects to local communities.
subsurface. This document will provide an overview of methods used to mitigate unwanted CO2 movement and will be of use to regulators and proponents.
take agreements, performance guarantees, warranties, IP and non-disclosure, etc
requirements;2. document
lessons learnt in relation to their effectiveness / implementation
Drawing on interviews with funding program managers and project managers.
So
urc
e Project proponents Researchorganisation + Project proponents
Project proponents Project proponents Service Provider /Institute
GLOBAL CCS INSTITUTE
4 5 6 9
Tit
le
CO2 networks and hubs: participants, roles & commercial
structures
CO2 transportation -shipping
Communitycommunication on key risks of CCS projects
CCS public funding programs – Lessons
Learnt
The concept of CO2
Networks is a strong driver for CCS
In Europe and Australasia, where a great part of the potential
Social science literature provides anunderstanding how
Review CCS funding programs around the world to
REMAINING TARGETED REPORTS
� Would any of these targeted report be of value to NA projects?
� Would your project or organization be interested in being
approached in relation to producing or being involved in the
production of any of these reports ?
Key T
arg
et
Deli
vera
ble
s
driver for CCS developments in Europe, MENA and Australia.
A ‘plug and play’ business modelproviding financing options and commercial structures is proposed; enabling over time each component involved inthe CCS chain / network to be monetized.
great part of the potential storage is offshore, growing attention is being paid to ship transport. To furtherunderpin its importance, it is proposed to provide more detail to existing ship transportation concepts in terms of their performance, cost and safety issues
understanding how people evaluate project risks – but more work is required in this area to capture learnings from early CCS projects on what constitutes effective communication of risks and benefits of CCS projects to local communities.
world to1. create an overview of
their workings and requirements;
2. document lessons learnt in relation to their effectiveness / implementation
Drawing on interviews with funding program managers and project managers.
So
urc
e Financial Institution+ Project proponents
Project proponents Research organisation + Project proponents
Service Provider /Institute
GLOBAL CCS INSTITUTE
CONCLUSIONS
• A number of advanced projects to reach key decision
points in next ~12 months
• Much still needs to done for global CCS Demonstration
at scale
• Growing Institute membership• Growing Institute membership
• Institute has defined three focus areas
• Revised Institute Head Funding Agreement with the
Commonwealth government concluded
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