Carbon Capture and Storage

Transcription

1 Carbon Capture and Storage Bali, April 29, 2013 Deputy Director General Tone Skogen

2 Outline 1. Why CCS? 2. CCS in Norway 3. Way forward 2

3 Why CCS? Emissions of GHGs continues to increase The world needs energy, and fossil fuels continues to dominate the energy-mix. CCS is the only available technology that enables us to reduce emissions from the production and use of fossil fuels. The global potential for CCS is unevenly distributed and depends on national circumstances CCS must be deployed globally to reach the full potential 3

4 The Norwegian CCS policy ambitious goals for broad deployment of CCS all new gas fired power plants shall be based on CCS facilitate R&D on CCS (CLIMIT) cooperate closely with industrial actors provide public funding 4

5 CCS in Norway National circumstances are the determining factors for CCS Norway as an example: A Government with ambitious climate change policy CO 2 tax introduced in 1991 Access to storage reservoirs (suitable geology) Industrial structure - a large petroleum sector (21% of GDP) 5

6 Norwegian storage projects in operation Sleipner (1996) 1.0 mill tonnes CO 2 stored annually Snøhvit (2008) 0.7 mill tonnes CO 2 stored annually Statoil

7 National Storage Atlas NPD 7

8 The Norwegian RD&D CCS programme Started 2005 About 900 M NOK (125 M euro) in public funding for about 200 projects since 2005 Administrated by Gassnova and the Research Council of Norway CLIMIT consists of 2 sub-programmes: CLIMIT Demonstration and CLIMIT R&D Climit-R&D Administrated by the Research Council of Norway Funding of R&D Budget 2013: 90 M NOK (12 M euro) Climit-Demo Administrated by Gassnova Funding of innovative projects, pilots and demonstration activities 81 M NOK (11 M euro) is transferred to the program from public funds each year 8

9 CO 2 Technology Centre Mongstad (TCM) A partnership between the Norwegian state (Gassnova), Statoil, Shell and Sasol Main objectives: Reduce cost and technical, environmental and financial risks related to large scale CO 2 capture Test, verify and demonstrate CO 2 capture technologies Encourage development of technology and vendors Learning and dissemination of experience Two CO 2 sources with differing CO 2 content; capacity 100,000 tonnes per year Two capture technologies currently being tested Infrastructure to accommodate testing of other technologies, incl. smaller scale 9

10 Next step: How to realise CCS globally? International climate policy is not ambitious enough to realise CCS Cooperation is essential Globally, regionally, bilaterally Success factors Political commitment Incentives Broad involvement Acknowledge differences between countries 10

11 Capacity building There are a number of pieces that must be matched to disseminate and deploy CCS at a global scale Transfer of information, knowledge, and experience Need for a variety of funding mechanisms and incentives Substantial funding both at home and in relevant developing countries Political commitment Administrative framework Legal framework Commercialisation Experience Funding Competence Involvement Sharing Demonstration Knowledge Regulation Incentives Information Cooperate on real projects Technology Centre Mongstad (Sasol, Shell, Statoil and Norwegian Government) 11

12 Thank you for your attention 12

13 Current challenges for CCS Costs uneconomic in its current form? How to realise projects? Legal aspects Public perception Is CCS competing with renewable energy? CCS is risky : This is new business! Critical role for government at the early stage of ccs-demonstration 13