Baltic Sea Region CCS policies (BASREC)

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1 Baltic Sea Region CCS policies (BASREC) Stockholm, 19 September 2012 Kristoffer Stabrun

2 Norwegian CCS policy CCS enables us to reduce emissions from the production and use of fossil fuels, and must be part of the global climate change response. The Norwegian Government: provides significant public funding, facilitates RD&D on the whole CCS chain, cooperates closely with industrial actors, put in place incentives to act, emphasises international outreach activities. Technology Centre Mongstad (TCM), opened in May Objective: To develop, test and qualify CCS technology. Capacity: 100k t/co2. - Partners: The Norwegian State (Gassnova), Statoil, Shell and Sasol. - Two technologies being tested: Amine and Chilled Ammonia technologies.

3 Norway s unique experience in CO2 storage The Sleipner field: 1 million tons/co2 stored p.a. (since 1996). The Gudrun field: To be connected to Sleipner in The Snøhvit field: tons/co2 injected and stored annually. Norwegian Storage Atlas: Geological mapping of the Norwegian continental shelf for storage purposes (by the NPD). SLEIPNER SNØHVIT

4 Corresponding strategy with the EU Extensive public funding required for demonstration and commercialisation Funding mechanisms EEPR, NER300, PPPs. Incentives that put a value on CO2 (tax or ETS). Initiate and stimulate projects in a demonstration phase To gain experience, to reduce costs in the entire value chain To bridge the commercial gap

5 Norway committed to international cooperation on CCS Objectives : * To make the technology commercially viable * To establish legal and regulatory frameworks * To gain public understanding and acceptance * EU Zero Emission Platform (ZEP) * North Sea Basin Task Force (NSBTF) * Carbon Sequestration Leadership Forum (CSLF) * The Global CCS Institute (GCCSI) * Clean Energy Ministerial * Norway Grants (EEA Financial Mechanism) * EU-China Near Zero Emission Coal (NZEC) * Capacity building initiatives, e.g. through the World Bank * and of coursebasrec, wherenorway is lead country on CCS

6 The BASREC CCS cooperation First two steps findings so far , BASREC project: Carbon Transportation and Storage in the Baltic Sea region * Pre-study on transportation and storage solutions * Conference: A Roadmap for CO 2 Transportation and Storage Solutions in the Baltic Sea Region (Warsaw, March 2012). Findings and conclusions so far: The need for greater co-operation among BASREC countries. The need to strengthen ongoing work on public acceptance. The clear advantages of CCS-clustering. The benefits of extending methodology for geological mapping. The necessity of continuing demonstrations of CCS. -> Clear, strong political support, including funding, is the key. 6

7 Phase 3 The BASREC countries and its ministers remains committed to supporting the development of CCS. In Berlin the ministers confirmed that their co-operation in will include CCS. Suggestion for 3 rd phase of the CCS project: Analyse data availability and quality for geological storage evaluation - identification of gaps for further work Undertake an analysis of the available data of storage potential in the BASREC region. Not an assessment of the physical storage capacity per se, but an analysis of data availability and data quality on storage capacity, any gaps in data coverage, format of the data and an assessment of what needs to be done to make the data compatible. In addition, it seems beneficial to compile a list of national/regional experts. May serve as basis for a loosely based regional expert network. 7

8 Phase 3 The proposal for 3 rd phase was presented at the BASREC ExCom meeting, July 2012 The project should be conducted in cooperation with the EC & IEA. Discussed whether the project may lead to the development of a CO2 storage atlas for most interesting areas of the Baltic Sea region. The work should be undertaken by a consultant/institution in close interaction with national and international experts. It should be organised a technical workshop where relevant experts from the BASREC countries participate/contribute. Budget max EUR. Tentative timeline: final report by 30 th June 2013, and an intermediate report half way through. Decision for possible go ahead expected within 1-2 months. 8

9 Concluding remarks CCS can secure energy supply and simultaneously mitigate climate change. CCS must be part of the global climate change response. To achieve global deployment it is vital to; * show the way -a need for frontrunners, * realize projects -show that it works and that it is safe, * continue demonstration and deployment in the entire CCS chain, * enhance the international cooperative effort. The BASREC CCS project is about to enter its 3rd phase. The ministers have repeated their support for further work. There is need for greater co-operation among BASREC countries, benefits to be made from collective action on transport and storage. Continued political support, including funding, is the key.