Legal, policy or regulatory framework passes through relevant government process.

Transcription

1 Logframe: International Carbon Capture, Usage and Storage (CCUS) Programme IMPACT Impact Indicator 1 Baseline Milestone 1 (End of 2017) Milestone 2 (End of 2018) Milestone 3 (End of 2019) Milestone 4 (End of 2020) Target (End of 2023) No developing country has a legal framework to support the safe development of CCUS technologies. Announcement by developing country government of intent to produce a legal, policy or regulatory framework. Legal, framework passes through relevant government process. Developing countries recognise the role that CCUS must play in delivering a cost effective emissions reduction strategy and take action to promote deployment country establishes a legal, framework for CCUS in order to enable projects to move forward Achieved Achieved in China, Mexico and South Africa, and on track in Indonesia. China - CCUS roadmap published; Mexico - report on the development of a regulatory framework for CCUS published; Indonesia - consultation for draft regulatory framework for CCUS was initiated at a workshop in October 2017 with inputs from international experts and Indonesian government officials. The BEIS Programme Manager attended this workshop. Views on the first draft will be discussed with the COE and work program for On track. Indonesia - CO2 storage regulatory framework drafted; India - has prepared draft regulation on Enhanced Oil Recovery through Director general of hydrocarbon. CO2 based EOR / EGR is part of the draft regulation. Bangladesh - initiated a understand the possibility of Enhanced Gas Recovery in Bangladesh. The draft report will be discussed with the authorities in Bangladesh in first quarter of South 2018 will be reported; South Africa - Africa - currently discussing the South African Government have options for a regulatory named CCUS as a National framework for CO2 storage; Flagship Priority Programme and Mexico - currently discussing established an Interdepartmental options for strengthening CCUS Task Team. The South CCUS commitment; China - African Government, with support currently discussing options for from the World Bank, have also strengthening CCUS undertaken a study looking at the commitment. options for a CCUS legal and regulatory framework which identifies 4 possible approaches. SACCCUS has also published a roadmap for demonstrating the first commercialisation of CCUS which has been endorsed by the South African Cabinet. Indonesia - implements storage to enable pilot projects to begin test injections; India - implements regulation for Enhanced Oil Recovery; Bangladesh - drafts CCUS frameworks for CCUS; South Africa - identifies a suitable option for developing a storage; Mexico - to be confirmed; China - to be confirmed. All supported countries include CCUS in their Nationally Determined Contributions (NDCs) and implement a legal, framework to support the development of CCUS. Shift the focus beyond CO2 utilisation (such as Enhanced oil Recovery) and support development of policy incentives capable of supporting CCUS and deliver larger-scale climate benefits (such as geological storage). FCO Network / Delivery partners - World Bank and ADB / CCUS industry players Impact Indicator 2 Baseline Milestone 1 (End of 2015) Milestone 2 (End of 2017) Milestone 3 (End of 2018) Milestone 4 (End of 2019) Target (End of 2023) No demonstrations exist. Demonstration launched on power Commence CO2 test injection plant including construction of CO2 (storage) project. capture plant. country takes forward a fullchain CCUS demonstration project at scale (Shaanxi- Yanchang project in China) Achieved Achieved in China (the Tianjin- GreenGen project and the pilot plant (0.05 mtco2/year) of the Shaanxi-Yanchang project). Not achieved. Indonesia - CO2 storage pilot test injections delayed due to well-integrity issues; South Africa - CO2 storage pilot test injections delayed due technical issues and local community engagement issues. country decides to construct a full-chain large-scale CCUS project. On track. China - is planning a full-chain, large-scale CCUS project at the Shaanxi- Yanchang coal-to-chemical plant (0.36 mtco2/year). The final investment decision will be made following the completion of the TA activities. country completes the construction of a full-chain large-scale CCUS project. country constructs and operates a fullchain CCUS demonstration project at scale. OUTCOME Outcome Indicator 1 Baseline Milestone 1 (End of 2016) Milestone 2 (End of 2017) Milestone 3 (End of 2018) Milestone 4 (End of 2019) Target (End of 2023) Assumptions Private R&D support (including Private companies (including stateowned Private sector support Private sector support beyond Private sector support beyond Private sector support beyond in- from state-owned enterprises) enterprises) in at least one committed (such as finance, in-kind contributions provided state-owned companies kind contributions provided provided towards CCUS is very key developing market make public labour, land, expertise, etc.) in towards CCUS RD&D provided towards CCUS towards CCUS RD&D activities in limited (scale unknown at this time) statement of support for CCUS R&D all of the supported countries. activities in all of the supported countries. RD&D activities in at least half supported developing countries. of the supported countries. Increased level of private sector support (such as labour, land, finance, etc.) provided towards CCUS research, demonstration and deployment activities in key developing countries Contingent on successful outcomes, on small scale demonstration and capacity and knowledge, and in

2 key developing countries (Mexico, China, South Africa and Indonesia) Achieved Achieved. South Africa - SACCCUS was established with financial support from Sasol, Eskom, AngloAmerican, and other state-owned and non-state-owned companies. This support was publicised through the CCUS Roadmap, on the SACCCUS website and through public conferences and media Achieved. Indonesia - output of reports by LEMIGAS on the ranking of oil and gas projects for CCUS, the development of new capture processes and working on CCUS regulations, LEMIGAS and the ITB are providing support to the two planned CO2 storage pilot projects with Pertamina engagement. Elsewhere - achieved contracted to deliver the for state-owned oil and gas Gundih pilot CO2 storage companies but not achieved for nonstate-owned project; India - one private private companies. sector CCUS project operating Indonesia - Pertamina contracted to in India and the ADB has deliver the pilot project. LEMIGAS is a state-owned research and initiated discussion with NTPC on their work on CCUS in development institute in the oil and India; South Africa - Anglo gas sector in Indonesia - ADB has engaged them as knowledge partners for CCUS development and they are actively working on ranking oil and gas projects for CCUS, the development of new capture processes and working on regulations. Mexico - ENEL and PEMEX are providing support to the pilot projects. Coal, Sasol, Petrol SA and ESKOM are providing support to the pilot projects; Mexico - ENEL and PEMEX are providing support to the pilot projects; China - the Yanchang Petroleum Group is providing support for the Shaanxi- Yanchang full-chain, largescale CCUS project. knowledge, and in context with an overall global mitigation strategy to limit climate change, will lead to the establishment of the necessary policy frameworks and incentive structures to support CCUS demonstration on commercial scale and ultimately the deployment. ICF funds are accompanied by Norwegian and GCCUSI investment and suitable commercial and academic expertise. 1. Industrial & organisational preparedness to deploy CCUS when technology is sufficiently mature 2. Introduction of a government plan demonstrating the commitment of one or more developing countries in supporting the deployment of CCUS Outcome Indicator 2 Baseline Milestone 1 (End of 2017) Milestone 2 (End of 2018) Milestone 3 (End of 2019) Milestone 4 (End of 2020) Target (End of 2023) country develops a legal, framework for CCUS No developing country has a legal framework to support the safe development of CCUS technologies. Announcement by developing country government of intent to produce a legal, policy or regulatory framework. Legal, framework passes through relevant government process. Indonesia - implements storage to enable pilot projects to begin test injections; India - implements regulation for Enhanced Oil Recovery; Bangladesh - drafts CCUS frameworks for CCUS; South Africa - identifies a suitable option for developing a storage; Mexico - to be confirmed; China - to be confirmed. All supported countries include CCUS in their Nationally Determined Contributions (NDCs) and implement a legal, framework to support the development of CCUS. Shift the focus beyond CO2 utilisation (such as Enhanced oil Recovery) and support development of policy incentives capable of supporting CCUS and deliver larger-scale climate benefits (such as geological storage). Achieved Achieved in China, Mexico and South Africa, and on track in Indonesia. China - CCUS roadmap published; Mexico - report on the development of a regulatory framework for CCUS published; Indonesia - consultation for draft regulatory framework for CCUS was initiated at a workshop in October 2017 with inputs from international experts and Indonesian government officials. The BEIS Programme Manager attended this workshop. Views on the first draft will be discussed with the COE and work program for On track. Indonesia - CO2 storage regulatory framework drafted; India - has prepared draft regulation on Enhanced Oil Recovery through Director general of hydrocarbon. CO2 based EOR / EGR is part of the draft regulation. Bangladesh - initiated a understand the possibility of Enhanced Gas Recovery in Bangladesh. The draft report will be discussed with the authorities in Bangladesh in first quarter of South 2018 will be reported; South Africa - Africa - currently discussing the South African Government have options for a regulatory named CCUS as a National framework for CO2 storage; Flagship Priority Programme and Mexico - currently discussing established an Interdepartmental options for strengthening CCUS Task Team. The South CCUS commitment; China - African Government, with support currently discussing options for from the World Bank, have also strengthening CCUS undertaken a study looking at the commitment. options for a CCUS legal and regulatory framework which identifies 4 possible approaches. SACCCUS has also published a roadmap for demonstrating the first commercialisation of CCUS which has been endorsed by the South African Cabinet.

3 INPUTS ( ) INPUTS (HR) OUTPUT 1 (impact weighting = 50%) Delivery partners / FCO network DECC ( ) Other Donor(s) funding to CCUS TFs Host Govt Bilateral funding by other donors Total DECC SHARE (%) 60m ($95m) $40m Up to $40m $5m $180m 53% DECC (FTEs) 0.5 Output Indicator 1.1 Baseline Milestone 1 (End of 2018) Milestone 2 (End of 2019) Milestone 3 (End of 2020) Milestone 4 (End of 2021) Target (End of 2023) Assumption Number of pilot projects established in developing countries China is currently the only one of South Africa - completes the the four target countries to have any CCUS demonstrations. None are full-chain and are applied to power station technologies planning phase for a pilot CO2 storage project (KwaZulu-Natal); Indonesia - completes the planning phase for a pilot CO2 storage project (Gundih); China - completes the TA activities for a full-chain, large-scale CCUS project (Shaanxi- Yanchang); Mexico - completes the planning phase for a pilot CO2 capture project (Poza Rica). Mexico - a pilot CO2 capture project (5MWe) begins construction; Indonesia - test injections begin for a pilot CO2 storage project (Gundih); China - completes construction for a full-chain, large-scale CCUS project (Shaanxi- Yanchang); South Africa - for All supported countries have at least one pilot project operational (Mexico, South Africa, China and Indonesia). 8 pilot projects established in China (x2 - capture and fullchain), Indonesia (x2 - storage), South Africa (x2 - capture and storage), Mexico (x2 - capture and storage). Increased technical capacity and institutional awareness will enable CCUS physical deployment. This assumption needs to be tested through an evaluation. Increased capacity in industry and key institutions to aid the development of CCUS Achieved Output Indicator 1.2 Baseline Milestone 1 (End of 2015) Milestone 2 (End of 2016) for for Target (End of 2016) No assessment has been carried out on the potential to deploy CCUS on a natural gas plant Potential natural gas plant identified Develop a proposal to fund a CCUS pilot capture plant on a natural gas plant. Technical assessment of the potential to deploy CCUS on a natural gas plant completed MDBs to carry out a technical assessment of the potential to deploy CCUS on natural gas plant completed Achieved Achieved. Mexico - feasbility studies completed for the Poza Rica pilot CCUS capture gas plant. China - Study on Carbon Capture and Storage in Natural Gas-Based Power Plants completed. Achieved. The Poza Rica gas plant has been chosen for the CCUS pilot capture plant. Achieved. Proposal produced and the World Bank is currently agreeing a 50:50 co-financing arrangement with the Government of Mexico by September OUTPUT 2 (impact weighting = 20%) Increased knowledge of and support for the implementation of CCUS pilot projects within the targeted governments (Mexico, China, South Africa and Indonesia) Output Indicator 2.1 Baseline Milestone 1 (End of 2014) Milestone 2 (End of 2016) Milestone 3 (End of 2017) Milestone 4 (End of 2018) Milestone 5 (End of 2019) Milestone 6 (End of 2020) Target (End of 2023) Assumptions Number of well-attended workshops and events on CCUS focusing on demonstration and lesson learning (cumulative) (including government officials from the targeted countries) Achieved Exceeded. 5 achieved to date: 3 in China (April 2013, October 2013 and January 2014), 2 in Indonesia (November 2013 and March 2014). Exceeded. Numerous workshops/events/meetings held in South Africa (including the South Africa CCUS Conference, which is held every 2 years. The conference and other workshops are attended by an audience of national, provincial and municiple government officials as well as industry and academia). On track. South Africa - the 5th CCUS Conference in South Africa was held in October 2017 (the BEIS Programme Manager attended this), CCUS visits of officials from the Governments of South Africa, Mexico and Pakistan to Canada took place, officials from the Government of Botswana visited the South Africa project; Bangladesh - an introductory workshop was in Bangladesh in May 2017, preliminary discussions held with the officials of Niti Aayog in June 2017 and the Ministry of Power and the Ministry of Petroleum in 2017, workshop hosted in Shanghai (PRC) with attendance by Indonesian officials; Indonesia - legal and regulatory framework for CCUS workshop held in October 2018 (the BEIS Programme Manager attended this); Mexico - for 2017; China - a workshop hosted in Shanghai (PRC). On track. Bangladesh - workshop planned in the first quarter of 2018 to discuss the potential of Enhanced Gas Recovery; All countries - a deep dive workshop on CCUS in the Asia Clean Energy Forum was held in June 2018 with participants from Bangladesh, India, Indonesia, South Africa and China (but not Mexico), a meeting of the CCUS Centres of Excellence took place in June 2018; Mexico - a capacity building training week on CCUS took place in January 2018, a kickoff meeting for the signing of the CCUS grant agreements is planned for the summer of 2018; Indonesia - for 2018; China - CCUS conference held in Guangdong in April Output Indicator 2.2 Baseline Milestone 1 (End of 2013) Milestone 2 (End of 2016) for for Target (End of 2016) Capacity building accelerate the demonstration of CCUS technology, and there is government buy in and a pipeline to take projects forward to demonstration. The quality of the workshops in disseminating information and lessons learned effectively is based on the judgement of the BEIS Programme Manager, who will attend at least one workshop or event per year in each of the countries supported and will seek to capture feedback from participants either through a workshop evaluation form or through interviewing participants. The World Bank and the ADB will be expected to help

4 Africa and Indonesia) Cost benefit analysis of technology options for CO2 capture produced No country specific analysis of CO2 capture options has been produced for target countries Published a report on the potential for CCUS in Southeast Asia Achieved Achieved. Report published in September Complete feasibility study for a CO2 capture plant in Mexico Achieved. Mexico - study completed for the CCUS pilot CO2 capture pilot on the Poza Rica gas power plant; South Africa - a techno-economic analysis of CCUS in South Africa completed that assessed all CO2 sources over 100,000tCO2/year. Cost benefit analysis of technology options for CO2 capture produced. Achieved. expected to help to facilitate appropriate workshops/events /site visits for the BEIS Programme Manager to attend. OUTPUT 3 (impact weighting = 10%) Increased understanding of regional geology and storage potential Delivery partners / FCO network Output Indicator 2.3 Baseline Milestone 1 (End of 2018) Milestone 2 (End of 2019) Target (End of 2019) for for New joint-report published No new joint-report published by World Bank and the ADB publish World Bank and the ADB World Bank and the ADB by the World Bank and the ADB on revising the case for CCUS in certain sectors the World Bank and the ADB on revising the case for CCUS in certain sectors. the terms of reference for a joint decarbonisign gas study. publish a joint-report on decarbonising natural gas. publish a joint-report on decarbonising natural gas. Achieved On track. The World Bank and the ADB have agreed to do a joint report on decarbonising natural gas, which was approved at the World Bank annual donors meeting. The terms of reference are due to be published in July Output Indicator 3.1 Baseline Milestone 1 (End of 2014) Milestone 2 (End of 2017) Milestone 3 (End of 2018) Milestone 4 (End of 2019) Milestone 5 (End of 2020) Target (End of 2020) Assumption Appropriate number of seismic tests leading to the selection of suitable storage sites undertaken No seismic tests have been carried out. Locations for seismic testing identified in Indonesia. Achieved Achieved. Location identified in Indonesia. Commence pilot CO2 storage project to inject CO2 into a saline aquifer formation (Indonesia). Not achieved. Indonesia - wellintegrity issues have delayed the commencement of CO2 test injections; South Africa - technical issues and local community engagement issues have delayed the commencement of CO2 test injections (this is covered under output 4.2). Indonesia - complete feasibility studies for the new CO2 storage site in Gundih and the proposed additional CO2 storage pilot project in South Sumatra; South Africa - this is covered under output 4.2. On track. Indonesia - due to well-integrity issues in the proposed site for CO2 storage a new site has been proposed (still within the Gundih area with deeper injection and closer to the source of CO2) - feasibility studies will be undertaken by ITB, an additional CO2 storage pilot project has been identified in South Sumatra and feasibility studies will be undertaken. Bangladesh - plan a Indonesia - test injections occurring in both of the proposed understand the geology of pilot CO2 storage projects Bangladesh and its suitability (Gundih and South Sumatra). for implementing a CCUS project, such as an Enhanced Gas Recovery (EGR) project; Indonesia - begins test injections in at least one of the proposed pilot CO2 storage projects (Gundih or South Sumatra). Appropriate number of seismic and related tests undertaken for all supported pilot projects to enable pilot projects to be constructed and to begin operations. Capacity building will facilitate many activities, including develop the information, tools, skills, expertise and institutions of individuals, organisations, industry and governments required to increase understanding of regional geology and storage potential. Delivery partners / SACCCUS / FCO network / Industry partners OUTPUT 4 (impact weighting = 20%) Output Indicator 4.1 Baseline Milestone 1 (End of 2013) Milestone 2 (End of 2015) Milestone 3 (End of 2017) Milestone 4 (End of 2018) Target (End of 2019) Assumptions Study to determine scope of South African test injection project Study yet to be carried out. Commence pre-feasibility studies. Pre-feasibility studies completed. Achieved Achieved. Achieved. Achieved. South Africa - final feasibility studies for the pilot Commence feasibility studies. Feasibility studies completed. All feasibility studies completed to enable the pilot CO2 storage project to begin test injections. CO2 storage project (KwaZulu- Natal) have begun (seismic survey, aeromagnetic survey and slim-hole drilling). On track. South Africa - final feasibility studies for the pilot CO2 storage project (KwaZulu- Natal) have been procured and are being carried out (seismic survey, aeromagnetic survey and slim-hole drilling). South African government continues to support the SACCCUS work programme. SACCCUS / FCO network Output Indicator 4.2 Baseline Milestone 1 (End of 2015) Milestone 2 (End of 2017) Milestone 2 (End of 2020) Milestone 3 (End of 2023) Target (End of 2023)

5 South Africa undertakes test injections South Africa undertakes test injection on accelerated timeline Current plans makes provision for test injection in 2017 (South Capital spend associated with test injections made in 2015 (South Test injections commence (South Achieved Achieved. Not achieved. South Africa - technical issues and local community engagement issues have delayed the commencement of test injections. Test injections commence (South Pilot CO2 storage project Pilot CO2 storage project World Bank / SACCCUS / FCO network Output Indicator 4.3 Baseline Milestone 1 (End of 2018) Milestone 2 (End of 2019) Milestone 3 (End of 2020) Milestone 4 (End of 2021) Target (End of 2023) South Africa undertakes a No pilot capture plant is built. Site for a pilot CO2 capture project Planning studies for a pilot Planning studies for a pilot A pilot CO2 capture project Pilot CO2 capture project pilot capture plant identified and confirmed (South CO2 capture project commence. CO2 capture project completed. begins construction. Achieved World Bank / SACCCUS / FCO network