Available online at Energy Procedia 1 (2009) (2008) GHGT-9

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1 Available nline at Energy Prcedia 1 (2009) (2008) Energy Prcedia GHGT-9 Implementing CCS in Eurpe: ZEP s Visin f Zer Emissins Pwer by 2020 Gardiner Hill* Directr CCS Technlgy, Alternative Energy, BP Vice-Chair, Eurpean Technlgy Platfrm fr Zer Emissin Fssil Fuel Pwer Plants Elsevier use nly: Received date here; revised date here; accepted date here Abstract The EU has made a cmmitment t the deplyment f CCS in Eurpe as a key slutin fr cmbatting climate change and achieving the regin's CO2 reductin targets. The questin is: hw? What is required t ensure the safe, cst effective and rapid deplyment f CCS, including a cmprehensive legal framewrk and financial supprt fr early demnstratin prjects? Mr. Hill will utline ZEP's "rad map" fr the rapid implementatin f large-scale CCS demnstratin plants and the rapidly changing Eurpean landscape against which CCS seeks t make its cntributin t cmbatting climate change. c 2009 Elsevier Ltd. Open access under CC BY-NC-ND license. 1. Intrductin The EU has made its psitin n CO 2 Capture and Strage (CCS) very clear: as a critical slutin t cmbating climate change, its wide-scale deplyment is essential. Withut CCS, the EU s CO 2 emissin targets are simply nt achievable. In March 2007, the Eurpean Cuncil (heads f state) cnfirmed that up t 12 demnstratin prjects shuld be peratinal by 2015 t ensure CCS is cmmercially viable by While delivering peratinal demnstratin prjects by 2015 represents a significant challenge fr industry, it has respnded psitively thrugh the intermediary f the Eurpean Technlgy Platfrm fr Zer Emissin Fssil Fuel Pwer Plants (ZEP). ZEP was funded in 2005, bringing tgether a unique and brad calitin f stakehlders, including Eurpean utilities, petrleum cmpanies, equipment suppliers, scientists, gelgists and envirnmental NGOs. As a Eurpean * Crrespnding authr. Tel.: address: gardiner.hill@uk.bp.cm di: /j.egypr

2 2858 G. Hill / Energy Prcedia 1 (2009) Gardiner Hill/ Energy Prcedia 00 (2008) Technlgy Platfrm, ZEP s rle is t define a strategic agenda fr the develpment and deplyment f technlgies invlving majr ecnmic r scietal challenges, and share their findings and recmmendatins with the Eurpean Cmmissin t feed int the EU decisin-making prcess. With ver 200 peple in 19 different cuntries cntributing t ZEP s wrk, the platfrm s bard cnsists f 35 different cmpanies and rganizatins, all dedicated t enabling the cmmercial viability f CCS by On Nvember 10, 2008, ZEP delivered a grund-breaking reprt designed t achieve this gal. Entitled EU Demnstratin Prgramme fr CO 2 Capture and Strage ZEP s Prpsal, the reprt prvides a detailed picture f such a prgramme and the necessity fr its creatin t: validate the technlgy behind CCS, explre and bring dwn csts and risks and cntribute t public acceptance f CCS. ZEP cnsulted an extensive range f experts and stakehlders n every aspect f CCS demnstratin t establish the ptimal prtfli f prjects acrss Eurpe necessary t cver a full range f CCS technlgies and fuel types, gegraphies and gelgies. It means implementing an EU-wide initiative which integrates all aspects f CO2 capture, transprt and strage. Withut a demnstratin prgramme, the cmmercialisatin f CCS will undubtedly be delayed until at least 2030 in Eurpe. The principal cnclusins reached in the reprt are: 1. A ttal f demnstratin prjects will be required t test a variety f technlgies t reduce csts and risks and cntribute t public understanding and awareness, and that currently prpsed CCS prjects acrss the EU can satisfy the majrity f the criteria that need t be tested. 2. In additin t the base cst f the pwer plants ( 10 billin - 12 billin), industry is prepared t take n the cmmercial and technical risks assciated with building the integrated demnstratin prjects. Hwever, a funding gap f 7 billin - 12 billin will remain t meet the csts f building and running the additinal CCS installatins and reduced plant efficiency. 3. The cntributin f industry t filling this gap will be determined thrugh a rigrus tender prcess. 4. The speeding up f the tendering and permitting prcess, and creating an apprpriate regulatry climate, is integral t ensuring the EU CCS Demnstratin Prgramme delivers CCS as a cmmercially viable technlgy by EU-wide crdinatin and implementatin fr the Demnstratin Prgramme will prvide significant advantages, including: the ptimisatin f a diverse prtfli; facilitatin f the rapid and widespread applicatin f CCS in the EU and the establishment f a tangible Eurpean leadership psitin in the battle against climate change. Establishing the criteria t select the prjects fr the EU CCS Demnstratin Prgramme resulted in unprecedented wrk by experts within ZEP and the wider CCS cmmunity. The selectin criteria fr an EU Demnstratin Prgramme address all f the links in the CCS value chain and the required cntext. Specifically, this will require the testing f: Varius emissins surces, including pwer plants with different fuels and the CO 2 streams frm ther industries, like steel r cement plants. The three primary means f capturing CO 2 - pre- and pst-cmbustin and xyfuel. Different mdes f transprting CO 2 - pipelines n- and ffshre and acrss brders, and transprt by ship. The tw primary means f string CO 2 - depleted il and gas fields and different saline aquifers. The prcess t select the ptimal prjects fr an EU Demnstratin Prgramme is a staged prcess, which allws fr a stepwise selectin f the mst suitable prjects. In this prcess f selectin, 3 types f criteria are used:

3 G. Hill / Energy Prcedia 1 (2009) Authr name / Energy Prcedia 00 (2008) Eligibility criteria (5 in ttal) - brad set f cnditins which any prpsal must meet, including if yu dn t share knwledge, yu can t be part f the Demnstratin Prgramme and if yu dn t perfrm, yu wn t get paid. Prtfli criteria (16 in ttal) - which must be met by the Prgramme as a whle e.g. including a set f different technlgies in each f the steps f the CCS value chain, a variety f hard cal and lignite pwer plants and sufficient gegraphical spread. Prject criteria (11 in ttal) - against which individual prjects will assessed e.g. if tw prjects are equal, a prject is preferred ver anther if it has an earlier peratinal start date. Experts within ZEP and the wider CCS cmmunity have identified the functinal, peratinal and technical specificatins fr the technlgies that require validatin and integratin within the CCS value chain. ZEP calls these Technlgy Blcks, and they cver capture, transprt, strage and imprvements in plant efficiency and define what needs t be tested, at what scale, in the demnstratin prgramme frm a technlgy pint f view. After having defined what needs t be tested, we designed prtflis able t test all f these elements. Our wrk cncluded that a ttal f demnstratin prjects are required t achieve the gal f an EU CCS Demnstratin Prgramme and make CCS cmmercially viable by T test the implicatins fr a required prtfli, ZEP cllected all available infrmatin n demnstratin prjects prpsed in the EU & EEA. This resulted in the mst cmprehensive list available. Starting frm the set f building blcks that need t be tested (as develped in the previus step), we then checked thse against this prject list. With eight f the currently prpsed prjects, the vast majrity f the criteria can be satisfied. T cver the remaining elements that require testing, ZEP expects an additinal 2-4 prjects t be required. This includes fr example testing f crss-brder pipeline, internatinal cperatin (r prject in an emerging ecnmy) and different capture technlgy variants (2 variants per technlgy). It is wrth nting that even befre these criteria have been published, the market has prpsed 34 prjects which are able t fulfil almst all f these prjects a clear indicatin f their feasibility. These prpsed prjects are currently awaiting further decisins n funding and legislatin. Knwledge sharing is central t the EU CCS Demnstratin Prgramme and its desire t accelerate technlgy develpment and drive dwn csts. Indeed, future investment decisins will depend n the experience gained by the demnstratin prjects, the ability t imprve the design and peratin f future prjects and build cmpetitive advantage. Beynd the statutry/ regulatry requirements, ZEP s EU CCS Demnstratin Prgramme prpses t ffer additinal knwledge sharing: Public, the gvernment/eu and all entities: general synthesized dem plant findings, including timely disclsure f any safety-related peratinal issues. Entities willing t share relevant knwledge: relevant knwledge n a reciprcal basis. Cnsrtia participating in the prgramme: Detailed demnstratin plant findings, including timely disclsure f relevant peratinal data. It will als facilitate public supprt fr the demnstratin prgramme and enable the effectiveness f public funding t be prperly evaluated. Its scpe will therefre extend beynd existing natinal and EU legal requirements (including EU Directives). Fllwing an utline f what the prtfli in the EU CCS Demnstratin Prgramme wuld lk like, ZEP examined what was required t make it successful: Sufficient funding t cver the incremental csts f CCS Apprpriate legislatin in bth EU and Member States

4 2860 G. Hill / Energy Prcedia 1 (2009) Gardiner Hill/ Energy Prcedia 00 (2008) Sufficient measures t ensure speed. This includes: A fast permitting prcess by lcal authrities Industry speeding up prjects, such as starting a cmmercial prject as early as pssible during the building f the demnstratin prject, s that build can begin after ne year f the demnstratin plant being in peratin Accelerating feasibility studies, Making faster investment decisins An apprpriately fast tendering prcess CCS is nt ecnmically viable tday, hence the need t pair public funding with crprate investments. Like all majr new technlgy initiatives, the cst f an EU CCS Demnstratin Prgramme will be high and unrecverable, but the prgramme will be the catalyst t kick-start CCS by delivering experience, technlgy develpment and ecnmies f scale which will drive the csts f CCS dwn. Indeed, the current cst f per tnne f CO 2 using CCS is expected t fall t tnne per f CO 2 in the early cmmercial phase (2020+), when the ttal installed capacity will be ~20 GW. A further increase in the installed capacity t ~80GW will mature the learning curve, after which CCS csts are expected t fall even further t per tnne f CO 2. Every demnstratin plant in the EU CCS Demnstratin Prgramme plant will face a number f risks assciated with their cnstructin and peratin, including: building delays increases in capital and peratinal expenses greater inefficiency and, hwever unlikely, the risk f a majr technlgical failure, leading t the writing ff f the entire plant Industry is prepared t manage these risks alng with the csts fr building the actual demnstratin plants. In return, public funding is requested t cver the expected incremental csts f CCS. A cmpetitive tender prcess will incentivise parties t hand in bids with their best ffer fr risk/ cst sharing. It is helpful t put these csts in perspective: accrding t the Eurpean Cmmissin, the csts f meeting a reductin in the regin f 30% GHG in 2030 in the EU culd be up t 40% higher than with CCS. The earlier Eurpe starts investing in CCS, the greater the benefit it will derive frm these investments, until renewables are sufficiently develped t play a fuller rle. The speeding up f the tendering and permitting prcess is integral t ensuring the Demnstratin Prgramme delivers CCS as a cmmercially viable technlgy by While the tender prcess fr participatin in the EU CCS Demnstratin Prgramme must fllw certain key steps, thse currently underway in Canada and the UK indicate that this culd take anything frm 9 mnths t ver 2 years respectively, due t the level f detail required frm participants and their interactin with Gvernment during the prcess. An accelerated tender prcess is essential if a EU CCS Demnstratin Prgramme is t be up and running by Taking the best f bth the UK and Canada s prpsals, it is estimated that this can be reduced t mnths excluding the set up f the tender rganisatin. ZEP will seek t engage the Eurpean Cmmissin and EU Member States t identify ptins and ways t shrten the tender prcess, withut sacrificing quality, t satisfy the timeline fr the EU CCS Demnstratin Prgramme. CCS recgnises the reality that fssil fuels are with us fr sme time lnger and seeks t aggressively diminish their impact n the envirnment. The ptential f CCS is undeniably enrmus, requiring that we take a first, bld step tward establishing an EU-wide CCS Demnstratin Prgramme if we are t make CCS a cmmercial reality by 2020.

5 G. Hill / Energy Prcedia 1 (2009) Authr name / Energy Prcedia 00 (2008) In 2007, the EU first highlighted the need fr a CCS demnstratin prgramme f up t 12 prjects. This led ZEP t ensure that its prpsal fr a EU CCS Demnstratin Prgramme addressed: exactly what needs t be tested t ensure CCS is cmmercially viable by 2020 the criteria (eligibility, prtfli, prject) t select the mst apprpriate prjects befre cncluding demnstratin prjects are required ZEP reached its cnclusins thrugh heated, lengthy and ften diametrically ppsed discussins that tk place between the utilities, petrleum cmpanies, equipment suppliers, scientists, gelgists and envirnmental NGOs that make up ur platfrm. But if cmmn grund was fund between us, then surely it is nt a stretch t ask fr the supprt f the EU, Member States and the public t ensure that we have ne mre slutin n the table in ur bid t reverse the effects f climate change: CO2 Capture and Strage.