Carbon Capture and Storage enabling a low carbon world

Transcription

1 Carbon Capture and Storage enabling a low carbon world 1

2 Foreword by Lord Oxburgh Our world depends on a plentiful supply of reliable energy particularly electricity. Currently, and for the foreseeable future, most of this will be provided through fossil fuels gas, coal and oil. But fossil fuel combustion produces carbon dioxide, an important greenhouse gas. It accumulates in the atmosphere and contributes to climate change that is the verdict of the overwhelming majority of the world s climate scientists. The difficulty is that today we are almost entirely dependent on fossil fuels and even with the best will in the world it will take decades to move fully to alternatives. The Lord Oxburgh KBE Honorary President Carbon Capture and Storage Association How then do we square the circle? How can we continue to meet our energy needs while preventing further damage to the climate? How can we significantly improve our energy efficiency? The global strategy must have many strands, but one essential strand is Carbon Capture & Storage (CCS). CCS is a way of taking the carbon dioxide produced from energyintensive processes particularly electricity generation but also other energy intensive industries such as steel making, cement production, gas processing, chemical plants, oil refining, etc and storing it long-term in carefully chosen deep geological formations, so preventing it getting into the atmosphere. CCS is a proven technology. It is in operation in plants around the world. But today, we need to step up to a new level. We must scale up the technologies from today s limited number of plants to widespread implementation around the globe. This presents a number of challenges, mainly practical engineering issues associated with the scale of the task but also regulatory, commercial, social and policy issues. Some of these need Government intervention and international support. We are at a critical juncture in developing CCS. In order for CCS to play its full role in the fight against climate change, we need to deploy a large number of CCS plants over the next 20 years. Given the timescales needed to complete heavy industrial projects from initial planning to full scale commissioning we must begin now. However, early movers in implementing any technology have to bear significant technical and financial risk. Governments need to share that risk in the anticipation of the clear benefits that widespread deployment of CCS will bring to society as a whole. 2 Climate change will not wait neither must we as a society. CCS needs to be at the centre of our efforts. CCS is not the only solution to the problem of climate change, but it is hard to see how there can be an effective solution without it.

3 Executive Summary We need Carbon Capture and Storage (CCS) The overwhelming majority of the world s climate scientists and governments agree that climate change is occurring and that the main cause is human use of fossil fuels. The International Energy Agency (IEA) estimates that energy demand could increase by as much as 45% by Much of this will be met by fossil fuels for example, in the developing world, around two new coal-fired power stations are opened every week. While renewables, nuclear power and improvements in energy efficiency will play an increasing role in moving the world towards a low carbon economy, they cannot be the complete answer. In order to keep the lights on we will need fossil-derived electricity. There is one suite of technologies which allows us to continue using fossil fuels while also substantially reducing emissions of greenhouse gases to the atmosphere. That technology suite is Carbon Capture and Storage (CCS). We need it now The Intergovernmental Panel on Climate Change (IPCC) found that to have a reasonable chance that global average temperature increases do not exceed preindustrial levels by more than 2 C then global emissions must be reduced by between % by To achieve this will require the application of all available low-carbon technologies at a scale and rate far greater than current efforts. All the key processes of CCS have been proven over a number of years and there are currently four industrial-scale CCS projects operating worldwide storing around 5 million tonnes of each year. What needs to happen now is to integrate CCS into projects at commercial power stations and at other major -emitting processes to drive the really deep emissions reductions that are needed. Government must act Governments are working to conclude a new global agreement to address climate change. As well as including a formal acknowledgement that CCS is a major weapon in the battle against climate change, the new agreement must include incentive mechanisms that will provide finance to developing countries for the development of CCS projects. Governments around the world must also pick up the challenge of commercialising the use of CCS in the power generation and other intensive industries. If we are to reduce emissions, immediate and significant investment in CCS technology is vital. This requires the development of sound regulatory frameworks so that business can plan for the future, minimising commercial risk and so reducing costs. Also essential is the establishment of financial mechanisms to support a continuing programme of CCS investment. Other key elements of our low carbon future for example, renewables have a long term support structure already in place. A CCS-specific support mechanism is needed to realise the huge potential of CCS by giving investors confidence in the long-term future of the technology. If the first commercial scale power plants fitted with CCS are brought into operation starting from 2015, then CCS can be commercialised and contributing to global reduction by By 2030, CCS could be one of the most important carbon abatement technologies for cutting emissions across a number of -emitting sectors, including power generation, iron and steel production, cement manufacturing and petroleum production and refining. It will not be the sole technology energy efficiency, renewables, nuclear energy and other technologies will all play an important part but CCS must be a fundamental element if the strategy is to be comprehensive and effective. 3

4 Why do we need Carbon Capture & Storage now? The climate is changing and the vast majority of the world s scientists agree that the prime cause is humanity s use of fossil fuels. While the world has been caught in a financial credit crunch, it faces a much longer-term energy and climate change crunch. The International Energy Agency estimates that energy demand will soar by 45% between now and 2030 if nothing is done to rein it in. Meeting this rise in energy consumption will inevitably lead to an increase in the use of fossil fuels resulting in a rise in emissions of nearly 50%. Unless we address this now, we risk severe environmental damage. Indeed, there is an increasing consensus that to reduce the likelihood of what scientists term dangerous climate change it is necessary to limit average global temperature rises to 2 C by limiting concentrations in the atmosphere to 450ppm. We are approaching that level now the latest figures from the US National Oceanic & Atmospheric Administration at Mauna Loa observatory in Hawaii for 2009 give the concentration at 387 ppm. In 1959 it was just 316 ppm. Clearly action needs to be taken and taken now. We cannot delay any longer. Fossil fuels Many countries are heavily dependent on fossil fuels for energy generation. Fossil fuels remain a vast energy resource that is distributed widely around the world. Coal in particular is abundant in regions with large existing or projected energy demand and limited alternative energy options. With an average of two coal-fired power stations a week being built in the developing world, fossil fuels will remain the energy source of choice for large parts of the world. Even countries with nuclear power and renewables, are still maintaining fossil fuels in the energy mix in order to diversify their access to energy sources and contribute to secure and affordable energy supply. 4

5 Fossil fuels are not only used to generate electricity, they are also vitally important for a number of other industrial sectors, including iron and steel production, cement manufacturing, chemicals production and transportation and heating sectors. In many cases reliable non-fossil energy sources for these sectors are not technically or commercially feasible. Carbon Capture & Storage There is a suite of technologies that can allow countries to continue using fossil fuels as we move to a low carbon world. This suite of technologies is known as Carbon Capture & Storage (CCS). CCS captures up to 90% of the produced in electricity generation, transports and then stores it securely and permanently in deep geological formations rather than releasing it to the atmosphere. In future, CCS will also be vital to decarbonise other industrial sectors that are major emitters of, many of which have no option to reduce emissions other than CCS. The use of CCS with renewable biomass is one of the few carbon abatement technologies that can be used in a carbon-negative mode actually taking carbon dioxide out of the atmosphere. If we are to move to lower stabilisation targets than 450 ppm to avoid dangerous climate change then the use of CCS with biomass could be critical to reaching this goal. All the elements of the technology have been tried and tested. Worldwide there are currently four industrial scale CCS projects that are collectively storing over 5 million tonnes of every year. Now we need to integrate the different elements and scale them up to work on conventional commercial scale power stations and other industrial sources of. The U.S. has a 35 year history of experience safely producing, transporting and injecting for enhanced oil recovery (EOR). The oil and gas industry operates over 13,000 wells, over 3500 miles of high pressure pipelines and has injected and injected over 600 million tons of for EOR alone, while maintaining an excellent health, environment and safety record. CCS must be part and a large part of any carbon abatement strategy. For those countries dependent on the use of fossil fuels in their power and industrial sector it will be a vital component in efforts to meet the target of dramatically reducing greenhouse gas emissions. Gt Baseline emissions 57 Gt BLUE Map emissions 14 Gt 10 5 WEO ppm case ETP 2010 analysis CCS (19%) Renewables (17%) Nuclear (6%) Power generation efficiency and fuel switching (5%) End use fuel switching (15%) End use fuels and electricity efficiency (38%) Key technologies for reducing emissions under the BLUE Map scenario Source: International Energy Agency Energy Technology Perspectives 2010 Mtoe Other renewables Hydro Nuclear Biomass World primary energy demand for business-as-usual scenario. Source: International Energy Agency World Energy Outlook 2008 Gas Coal Oil 5

6 How CCS works At every point in the CCS chain, from capture to storage, industry has a number of technologies that are well understood. CCS can capture up to 90% of the produced from the use of fossil fuels, preventing it from entering the atmosphere. Capture technologies separate carbon dioxide from gases in electricity generation or industrial processes and may be done in at least three different ways: post-combustion capture, pre-combustion capture and oxyfuel combustion. is then transported by pipeline or by shipping for safe storage in carefully selected geological rock formations that typically are located several kilometres below the earth s surface. Capturing Post-combustion capture involves removing from the exhaust of a combustion process by absorbing it in a suitable solvent. Absorbed is then liberated from the solvent and is compressed for transportation and storage. Other post-combustion methods for separating are under development including high-pressure membrane filtration, adsorption/desorption processes and cryogenic separation. In a pre-combustion capture system, solid, liquid or gaseous fuel is first converted to a mixture of hydrogen and carbon dioxide by a process of either gasification or reforming. Gasification is widely practised around the world and is similar in some respects to the process used for many years to make town gas; reforming of gas is similarly well-established and in use at scale at refineries and chemical plants around the world. The hydrogen produced by either of these processes may be used, not only for electricity production, but also in the future to directly power our cars and heat our homes with near-zero emissions. In oxyfuel combustion, the fuel is combusted in oxygen diluted with recycled flue-gas rather than by air. This oxygen-rich, nitrogenfree atmosphere results in final flue-gases consisting mainly of and H 2 O (water) and ready to be dried and compressed for storage. Transporting Captured must then be transported by pipeline or ship for storage at a suitable site. The technologies involved in pipeline transportation are the same as those used extensively for transporting natural gas, oil and many other fluids around the world. 6

7 Indeed in some cases it may be possible to re-use existing but redundant pipeline assets. is currently transported for commercial purposes by road tanker, by ship and by pipeline. Although all these methods are appropriate based upon the circumstances, CCS application will entail movement of very large quantities of. Therefore it is most likely that local and regional infrastructures of pipelines will ultimately be developed. Large commercial networks of pipelines have been in operation for more than 30 years with excellent safety and reliability records. Storing is stored in porous geological formations that are typically located several kilometres under the earth s surface. Suitable storage sites include former gas and oil fields, deep saline formations (porous rocks filled with very salty water), or depleting oil fields where the injected may increases the amount of oil recovered. At the storage site the is injected under pressure into the geological formation. Once injected, the moves up through the storage site until it reaches an impermeable layer of rock overlaying the storage site; this layer is known as the cap rock and traps the in the storage formation. This storage mechanism is called structural storage. Structural storage is the primary storage mechanism in CCS and is the same process that has kept oil and natural gas securely trapped under the ground for millions of years providing confidence that CO2 can be safely stored indefinitely. As the injected moves up through the geological storage site towards the cap rock some of it is left behind in the microscopic pore spaces of the rock. This is tightly trapped in the pore spaces by a mechanism known as residual storage. Over time the stored in a geological formation will begin to dissolve into the surrounding salty water. This makes the salty water denser and it begins to sink down to the bottom of the storage site. This is known as dissolution storage. Finally mineral storage occurs when the held within the storage site binds chemically and irreversibly to the surrounding rock. As the storage mechanisms change over time from structural to residual, dissolution and then mineral storage the becomes less and less mobile. Therefore the longer is stored the lower the risk of any leakage. There is already considerable experience with injecting deep underground for storage at a number of industrial-scale CCS Example of a CCS project. Source: Hydrogen Energy projects (see below). These storage sites have been carefully selected and the evidence from monitoring suggests that the has been completely and safely locked into the geological formations. CCS costs The cost of a CCS project can vary substantially depending on the source of the to be captured, the distance to the storage site 7

8 Post-combustion capture. Source: Doosan Babcock Example of a capture system. Source: HTC Purenergy 1 McKinsey & Company, Carbon Capture and Storage: Assessing the Economics (2008) and the characteristics of the storage site. The cost of capturing the is typically the greatest cost of a CCS project. Recent studies conclude that the first CCS projects in the power sector are likely to cost between per tonne of abated although these costs are expected to decline significantly reaching in the early 2020s primarily as a result of cost reductions for capture 1. Deploying CCS on coal fired power plants is already cost-competitive (per tonne of emission abated) with other forms of low-carbon energy. Our next step should be to build commercial-scale power plants with CCS to optimise operations and so realise future cost reductions. Low-cost CCS projects can be developed where is already separated as part of an existing industrial process, resulting in a 8

9 Close up showing the individual grains and pore spaces of a typical rock that can store. Source: British Geological Survey Magnified image showing the pores in a very thin slice of the rock (dyed blue) that will store. Source: British Geological Survey CCS project in California. Source: Hydrogen Energy pure stream with very low capture costs. Where these pure streams are located close to suitable geological storage sites, the complete CCS project chain can be developed at a relatively low cost. Natural gas processing and ammonia plants are examples of industrial activities that separate as part of standard industrial activity and which may be suitable for developing low-cost CCS projects. If expected cost reductions are realised, CCS is projected to offer even greater cost savings relative to other sources of low-carbon energy enabling countries securely and safely to achieve their reduction goals at lower costs. The IEA has concluded that tackling climate change with CCS is 70% cheaper than not using the technology. As with other forms of low-carbon generation, first-of-a-kind CCS projects will be subject to higher costs and somewhat greater technical uncertainties and therefore need additional incentives as with the exception of some of the low-cost CCS opportunities they cannot be developed based on current prices. CCS should be treated similar to other low-carbon technologies; it needs only a long-term support structure equivalent to that which has been given to other lowcarbon technologies in recent years. 9

10 CCS around the world CCS is already contributing to the fight against climate change by reducing emissions of to the atmosphere. There are currently four industrial scale CCS projects in operation across the world with many more at the planning stage. The deployment of future CCS projects is supported by an active technology development programme. The next step is to roll out a programme of CCS plants fitted to commercial-scale power plants and other industrial sources of in order to realise efficiency gains and bring the cost of the technology down. Current CCS projects Sleipner, Norway The Sleipner CCS project, operated by Statoil, was the world s first industrial scale CCS project and began storing in Sleipner is a natural gas field located in the North Sea; has to be separated from the gas for the natural gas to meet market specifications. Around one million tonnes of is injected annually into a saline formation located one kilometre below the seabed. In Salah, Algeria BP, Sonatrach and Statoil operate a natural gas development which removes one million tonnes a year of from natural gas. Since 2004 the project has compressed, dehydrated, transported (via two pipelines) and stored the in a deep saline formation close to the gas-field. Three state-of-the-art horizontal wells are used to store the 2km below ground. The storage formation is a low-permeability Carboniferous Sandstone, which is commonly found in the USA, northwest Europe and China regions with high emissions. Snøhvit, Norway Statoil operates a CCS project at the Snøhvit Liquefied Natural Gas (LNG) plant. The is separated from natural gas before the gas is liquefied as LNG. The project began operation in 2008 and stores up to 700,000 tonnes of per year in a depleted natural gas reservoir deep below the seabed. Weyburn, Canada Three million tonnes of are captured annually from the Dakota Laying of the pipeline at Snøhvit. Source: Statoil Gasification Company s Great Plains Synfuels Plant in the USA and transported several hundred kilometres by pipeline to the Weyburn oil field in Saskatchewan, Canada, for enhanced oil recovery and storage in a depleted oil field. Over 15 million tonnes of have been stored to date in the Weyburn field. 10

11 What we need to do now To achieve the necessary emissions reduction, critical steps need to be taken now. Globally Governments are working to conclude a new global agreement to address climate change. As well as including a formal acknowledgement that CCS is a major weapon in the battle against climate change, the new agreement must include incentive mechanisms that will provide financial support to developing countries for the development of CCS projects. CCS has not been included in the Clean Development Mechanism during the Kyoto Protocol s first commitment period and this has been a significant barrier to the develop- ment of CCS. The new climate change agreement must rectify this and include an incentive mechanism to deploy CCS in developing countries if there is to be an effective global response to climate change. In addition, significant public finance must be made available for CCS demonstration projects in those sectors where market support will not be, in itself, sufficient to encourage early, large-scale demonstrations. Governments around the world must work together to pick up the challenge of capturing and storing the produced from power generation and other -intensive industries. If we are to reduce emissions in the short term and the need is urgent then early investment in CCS demonstration is vital. Developed Countries Developed countries have agreed to fund a number of large-scale CCS projects and to have these in operation by At the G8 Hokkaido Summit in 2008 the Parties agreed The Sleipner project. Source: Statoil to strongly support the launching of 20 large-scale CCS demonstration projects globally by 2010, with a view to beginning broad deployment of CCS by It is essential that these early CCS projects begin operating at the earliest opportunity preferably from 2015 to accelerate the commercialisation of CCS and to demonstrate to fossil-fueldependent developing countries that fossil fuels can be compatible with climate change objectives in a cost-effective manner. 11

12 A sound regulatory framework needs to be put in place urgently so that business can plan for the future, minimising commercial risk and so reducing costs. A number of countries are developing CCS regulatory frameworks and it is vitally important that other countries follow suit to create a solid legal basis for investment in CCS. The regulatory framework must also provide the financial basis for a continuing programme of CCS investment. Until this is in place, industry will be unable to commit funds for the long term. Other key elements of our low-carbon future for example, renewables often have long-term support structures in place. A similar CCS-specific support mechanism is needed to realise the huge potential of CCS by giving investors confidence in the long-term future of the technology. At a minimum, countries must include CCS in their emissions trading schemes which are eventually expected to be the primary support mechanism for CCS. However, current prices (for example in the EU ETS) are insufficient to support the early deployment of CCS so additional funding is needed to accelerate deployment. Countries that choose not to establish emissions trading schemes will need to develop alternative support mechanisms that drive the deployment of CCS and other low-carbon technology. Developing Countries Developing countries will need additional support, knowledge sharing and technology demonstration to deploy CCS quickly. Countries that are willing and able to develop CCS must establish the regulatory frameworks and institutions necessary to enable CCS projects to be developed. Where necessary, developed countries should assist developing countries in these activities and use their experiences to build the capacity that will enable this technology to be deployed. The post-2012 climate agreement should include market-based incentives that enable developing countries to develop low-cost CCS opportunities, begin early reductions of emissions and generate important learning-by-doing. Inclusion of CCS in the Clean Development Mechanism could immediately allow viable projects in the oil and gas sector to go ahead. For those developing countries that are heavily reliant on fossil fuels it will also be necessary to initiate a demonstration programme of power plants and other large industrial sources of fitted with CCS. The scope and objectives of the demonstration programme should be of a similar scale and ambition to the demonstration programmes being undertaken in developed countries and should seek to have these plants operating by The longer term If commercial scale power plants fitted with CCS are brought into operation from 2015 then CCS can be commercialised and making a material contribution to global reduction by By 2030, CCS could be one of the most important carbon abatement technologies employed to cut our emissions and be widely deployed across a number of emitting sectors, including power generation, iron and steel production, cement manufacturing and petroleum production and refining. It will not be the only solution energy efficiency, renewables, nuclear energy and other technologies will all play an important part but CCS will be a fundamental element in any comprehensive and effective strategy. Globally, the International Energy Agency estimates that to reach our global 2050 climate change targets, we will need over 100 CCS projects brought into operation every year from 2030 (alongside an ambitious deployment of other low-carbon technologies). The key question for policy makers is: how to get to this point. Industry is ready to begin the wide scale deployment of CCS plants immediately. None of the technologies that are used in the CCS process is completely new. They have all been engineered and constructed before and CCS chains are already operating at an industrial scale around the world. Industrial scale CCS projects are already contributing to the reduction of global emissions and are storing that would otherwise be vented to the atmosphere. The next step now is to deploy CCS on full-scale power plants and other important industrial sources of and drive the really deep reductions in emissions that are needed. 12

13 The dangers of delay For those countries that are setting timetables for carbon reductions, any delay in implementing CCS technologies is likely to make it much more difficult to achieve targets cost-effectively by the set dates. Delaying the widespread deployment of CCS will result in higher atmospheric concentrations of, making subsequent attempts to limit temperature rises to less than 2⁰C increasingly difficult. For every year that widespread deployment of CCS is delayed after 2020 it has been calculated that the long-term atmospheric stabilisation level of increases by 1 ppm. Therefore delays in the deployment of CCS by more than a decade would make the stabilisation of atmospheric concentrations of at lower levels essentially impossible. many of which are more expensive than CCS, thus raising the costs of meeting climate change goals significantly. The International Energy Agency estimates that without CCS, the costs of abating global emissions will increase by over 70% each year. This is the equivalent of $1.3 trillion annually in Failure to deploy CCS will require countries to significantly reduce using fossil fuels if they are to still achieve their climate change objectives. This will have a profoundly negative impact on their economies and on the security of energy supply with the risk that energy supply will become unreliable and prohibitively expensive. Delaying the deployment of CCS also means that the emissions reductions achieved by storing will instead have to be made using alternative low-carbon technologies, purification and storage system at the oxyfuel CCS plant in Schwarze Pumpe. Source: The Linde Group. 13

14 Making it happen Firm policy commitments required There must be global recognition of the part that CCS can play in reducing greenhouse gas emissions. That role needs to be formally recognised in any agreement achieved at the climate change summit in Copenhagen this year, and must include incentives that enable developing countries to deploy CCS. To develop CCS at a commercial scale in developed countries, we need commitments from governments regarding the detailed long-term stable policy framework within which a development and deployment programme can begin. We need to ensure an immediate commitment for a funding mechanism for commercial-scale plants to be developed. Without economic incentives, it will not be financially possible to invest in CCS technology Regulatory frameworks established and investment decisions needed Decisions must be made urgently on the first generation of projects to be supported in developed countries. The process for selecting CCS demonstration projects must be rulesand evidence-based. The process should be designed to enable a variety of CCS technologies from different countries to be considered and should enable as many projects as possible to come forward as early as possible. CCS pilot plant at Longannet in Scotland. Source: ScottishPower 14

15 To ensure regulatory certainty and provide business with the clarity necessary to commit to investing in CCS projects, countries hosting early projects will need to put regulatory frameworks in place. Early mover countries must share regulatory experiences with other countries seeking to deploy CCS to enable them to put their own effective regulatory frameworks in place. Developing countries should commence the development of CCS regulatory frameworks. Were CCS to be recognised under a marketbased mechanism for developing countries in Copenhagen then low-cost CCS opportunities such as those from natural gas processing could commence swiftly onwards Commence operation of commercial scale plants. Establish infrastructure The first 20 commercial-scale CCS plants should begin operation in developed countries to ensure the objective of widespread commercial deployment of CCS in the early 2020s can be reached. A programme to demonstrate commercialscale power plants fitted with CCS in key developing countries must be initiated. For many regions the transition from one-off CCS projects to widespread deployment will be less costly and happen more quickly if transport and storage infrastructure hubs and clusters are developed alongside the deployment of the first commercial-scale plants. The development of transportation and storage infrastructure provide the basis for the future widespread use of CCS by both the power sector and -intensive industries Commercial deployment of CCS on new plants By 2020, CCS should move to commercial deployment in developed countries. A programme for deploying CCS in fossil-fueldependent developing countries should also be well underway and capacity-building programmes implemented to develop the required expertise to enable deployment. Worldwide around 100 commercial-scale CCS projects should be in operation. Action will have to be taken by governments to ensure the availability of the huge amount of expertise, resource and productive capacity to build CCS industries Widespread diffusion of CCS technology As emissions reductions become tighter it will be necessary for CCS technology to be used more widely. Those fossil-fuel-dependent countries that have not participated in the development of the early CCS plants will need to begin deploying CCS. From , developing countries will need to fit increasing numbers of CCS plants. By 2030 it is likely that the majority of CCS plants will be located in developing countries whose rapidly increasing energy needs require the construction of large numbers of new power plants. Countries with a large number of existing unabated coal plants will need to begin retrofitting these plants with CCS Decarbonisation of electricity supply CCS should be fitted to all coal power stations in developed countries by Globally, emissions will be drastically reduced, slowing the impact of climate change. With the advent of other low-carbon energy technologies for transport and domestic applications, electricity from CCS-equipped power stations will play an important role in decarbonising these sectors as well Global goals met CCS should be capturing and storing over 10 gigatonnes CO2 per year equivalent to over three thousand CCS projects operating around the world. Approximately half of the CCS projects will be operating in the fossil fuel power sector and half in industrial, -intensive sectors. If we can achieve the kind of reductions in greenhouse gas emissions highlighted by the IPCC some of the worst effects of climate change can be avoided. However, the 2050 goal is only achievable if we start now. 15

16 Timeline for commercial deployment of CCS onwards Firm policy commitments required Immediate commitment to funding mechanisms and economic incentives Regulatory frameworks established and investment decisions needed Ensure regulatory certainty to drive investment and enable a variety of CCS technologies 20 projects worldwide by 2015 Commence operation of commercial scale plants. Establish infrastructure 100 plants operating worldwide Commercial deployment on new plants Programme for deploying CCS in fossil-fuel dependent developing nations should be in place 2030: large scale deployment of CCS Widespread diffusion of CCS technology Retrofitting onto extant fossil-fuel generation Those developing countries that have not participated in early development of CCS will need to begin deployment 100 CCS plants deployed annually CCS to be fitted to all coal fired power stations 50% reduction in emissions Global goals met CCS capturing and storing over 10 Gigatonnes per year equivalent to over three thousand CCS projects operating worldwide 16

17 CCS brings other significant benefits In addition to safeguarding the environment, the implementation of Carbon Capture & Storage brings with it a number of other important benefits: Security of supply The world has large reserves of coal as well as oil and gas; CCS allows these supplies to continue to contribute to meeting energy demand in a clean and sustainable manner. Coal reserves in particular are situated close to major centres of energy demand. Diversity The benefits of CCS are not confined to decarbonising electricity generation; CCS has the potential to massively reduce emissions from the construction and manufacturing sectors, by eliminating emissions from steel and cement production. In some sectors, CCS represents the sole option for reducing emissions at the scale necessary. CCS can also help drive emissions reductions in energy end-use sectors. For example the electrification of homes, industry and transport with the electricity provided by low carbon power generation technologies, including CCS could result in significant emissions reductions. The development of CCS is also crucial to any future hydrogen economy. Hydrogen produced in pre-combustion capture installations can be used to power vehicles, homes and commercial buildings. More skilled jobs Countries that become the centres of the CCS industry will attract development work and technology expertise thus creating jobs in a new industry that will grow rapidly over the coming decades. The future CCS industry will require a trained and skilled workforce that will itself bring significant economic benefits to those countries and regions. 17

18 CCS will also require investment in a network of pipelines and local transport networks from power stations to storage sites. These networks can be used to help kick-start the development of wider local transport networks, bringing regional benefits, including employment. These networks will attract other industries (some of which are large emitters) as well as power plants for which access to storage sites might otherwise be difficult. The potential for linking to networks in other countries brings the possibility of an international market in transport and storage. Countries that develop CCS early will enjoy a first-mover advantage and benefit from the export of skills and technology internationally. The huge contribution that CCS will make to global emissions reductions will result in the development of an enormous new industrial sector potentially worth trillions of dollars annually. Countries blessed with suitable storage capacity as well as those that take the early steps to develop CCS will have a unique opportunity to benefit from this emerging sector. A valuable export market With many countries heavily dependent on coal and oil for their electricity production, there is an opportunity for countries that are early developers of CCS to lead the global fight against climate change. injection. Source: StatoilHydro 18

19 The CCSA The Carbon Capture and Storage Association (CCSA) exists to promote the deployment of Carbon Capture and Storage (CCS) technology as a means of abating atmospheric emissions of carbon dioxide. From its base in London the CCSA brings together specialist companies in manufacturing & processing, power generation, engineering & contracting, oil, gas & minerals as well as a wide range of support services to the energy sector such as law, banking, consultancy and project management. The Association is a model for sectoral cooperation in business development and its existence is welcomed by governments. We work to raise awareness of the benefits of CCS as an important climate change mitigation technology. The CCSA is unique in its focus on the business side of CCS and efforts to ensure commercial-scale CCS projects can play a part in moving towards a low-carbon global economy. Aims of the CCSA: To encourage development of CCS in the UK, Europe and internationally and to support business interests in global developments. To inform the public, professions and policy makers about the environmental, technical, socio-economic and commercial benefits of carbon capture and storage. To provide advice to policy makers on regulatory issues and potential incentive mechanisms associated with CCS. To promote industry priorities on financial, technical, research and policy issues related to CCS. To liaise with other industry and professional groupings having interests in energy conservation and CCS. To provide a forum to encourage information exchange, networking and enhanced capability in relation to CCS. Proposed Storage Hub for the North Sea. Source: Scottish Power To find out more about our work please visit our website: 19

20 Further information For more information on the CCSA, the work we do and how to join visit our website Or contact us at The Carbon Capture & Storage Association Suites , 4th Floor, Grosvenor Gardens House Grosvenor Gardens London, SW1W 0BS Tel +44 (0) Fax +44 (0)