GLOBAL STATUS OF CCS: FEBRUARY BARRY JONES, GENERAL MANAGER, ASIA PACIFIC Jeju, Korea, February 2014

Transcription

1 GLOBAL STATUS OF CCS: FEBRUARY 2014 BARRY JONES, GENERAL MANAGER, ASIA PACIFIC Jeju, Korea, February 2014

2 The role of the Global CCS Institute 2

3 CCS is vital CCS identified as an essential technology in limiting temperature increase to 2 C Wide adoption of CCS part of the scenario that achieves 450 ppm atmospheric stabilization level for CO 2 World Energy Council International Energy Agency Availability of CCS is critical for producing 450 ppm Energy Modeling Forum 27 Study Importance of CCS acknowledged CCS is an important technology in the long run deployment to drive down costs is desirable UK Committee on Climate Change Commercial demonstration of CCS essential for deployment in the 2030 timeframe European Commission CCS to be cost effective when transformational technologies emerge US Climate Action Report 2014

4 Large-scale CCS projects by project lifecycle and year 21 projects in operation or under construction 50% increase since 2011

5 CO 2 capture capacity by actual or expected year of operation CCS is a reality with 40 Mtpa of CO 2 that can be captured by active projects

6 Large-scale CCS projects in key markets by project lifecycle North America continues to dominate the projects landscape; China increasing in importance; project progress has stalled in Europe

7 Large-scale CCS projects proceeding to Operate and Execute since 2011 Majority of projects in operation, construction or close to FID use or intend to use CO 2 for EOR

8 Actual and expected operation dates for CCS projects in Operate, Execute and Define stages Power generation Coal-to-liquids Chemical production Iron and steel production Kemper Boundary Dam Illinois Industrial Sinopec Shengli Sinopec Qilu NRG TCEP ESI FutureGen 2.0 ROAD Yanchang HECA Medicine Bow Don Valley Low Impact Steel White Rose Syngas Fertiliser production Oil refining Great Plains Enid Fertilizer Century Plant Shute Creek ACTL Agrium Coffeyville Lost Cabin Gorgon Lake Charles ACTL Sturgeon EOR Dedicated Geological Natural gas processing Snøhvit Lula PetroChina Jilin Spectra Hydrogen production Val Verde Sleipner In Salah* Quest Uthmaniyah Air Products * Injection suspended Pre = 1Mtpa of CO 2 (areas of circle are proportional to capacity) CCS projects in the power and industrial sectors and projects utilising dedicated geologic storage options becoming more important

9 Significant global policy and regulatory developments Canada Alberta Government releases final draft of the Regulatory Framework Assessment report United Kingdom UK Energy Act receives Royal Assent and becomes law Continental Europe EC proposes climate targets out to 2030 European Parliament supports MEP Chris Davies report on CCS in Europe United States US EPA releases proposals dealing with power plant CO 2 emissions and geologic carbon storage Global COP 19 held in Warsaw Focus on universal post-2020 climate agreement in Paris, in 2015

10 Technology ASSESSMENT Individual components are well understood. Many aspects are already technically mature. Safe storage demonstrated by projects for over a decade. Pilot and larger scale test facilities are important contributors to knowledge. Confidence that the remaining technical challenges can be met over time. OPPORTUNITIES Integrated operation at large scale in power and industrial processes is key: o initial CCS demonstrations in power plants starting in 2014 in Americas o positive perception of CCS as a proven technology, building public confidence through large-scale projects in new applications o learning by doing cost savings o more early mover projects will confirm effectiveness, establish best practices. R&D (collaboration) to advance technologies is a game changer. The rocks are also important identification of viable storage sites. 10

11 Policy and markets ASSESSMENT International policy discussions consistently acknowledge importance of CCS but Industry highlights that national climate and energy policies do not provide long term clarity to support widespread adoption of CCS projects. CCS is often not treated equivalently to other low carbon technologies. National regulations have advanced but critical uncertainties remain: o in the US, for example, impact of recent EPA proposals o more broadly, addressing long-term liability issues Existing CCS funding programs for large-scale projects mostly exhausted. OPPORTUNITIES Re-invigorated policy incentives ( and regulation) to maintain momentum. Continued development of low-carbon future roadmaps for CCS. Post Kyoto 2020 agreement for decision in Capacity development scope is significant all can learn from what has worked, building capacity in developing countries is critical for longer-term deployment. 11

12 Understanding and acceptance ASSESSMENT Stakeholder relationship management accepted as critical to project delivery. Global awareness and understanding of CCS context is low. Focus of CCS communication is on risks and challenges not value and benefits. Perception of CCS as experimental, not cost competitive and associated with fossil fuel instead of role in low-carbon energy. Building a trusting relationship with key stakeholders is critical for projects. OPPORTUNITIES Successful global large-scale integrated projects is critical to establish public and political confidence in CCS. CCS projects are demonstrating improved sharing and use of best practice. Encourage public advocacy of CCS from trusted groups academics and NGOs. Improve access to education materials and experts. 12

13 GLOBALCCSINSTITUTE.COM