1. Rome, December 2014Slide 1 CO 2 transport infrastructure in Germany– Necessity and boundary conditions up to 2050 Study by DNV GL

2. Aims of the study on “CO 2 transport infrastructure in Germany” Rome, December 2014Slide 2 Determine Germany’s CO 2 infrastructure needs by 2050: Comparing transportation options: pipeline and ship Technical demands, sizing, costing Identify the timeframe for building the CO 2 infrastructure and the key factors: Lead-in time Regulatory requirements Background to the analysis: how to determine Germany’s CCS needs: Projecting CO 2 emissions in Germany up to 2050 Embracing the consequences of the German government’s Energy Concept

3. Study shows: CCS must remove 60 million tonnes of CO 2 Rome, December 2014Slide 3 CCS technology can be deployed to close the gap between targeted and actual CO 2 emissions (60 Mt per year by 2050). Starting point of the analysis: German government’s 2010 Energy Concept CO 2 emission trends up to 2050, taking into consideration the reduction targets Examination of major emission sources in power generation and in industry (> 0.5 Mt/a CO 2 ) CO 2 volumes to be captured and transported Year CO 2 volumes (Mt/a)

4. Cluster analysis as a tool for sizing Rome, December 2014Slide 4 CO 2 output profiles of clusters with data for the necessary CO 2 flow rates: Cluster I: high concentration of sources in industrial and power sources Cluster II: centralised power generation only Cluster III:scattered industrial and power sources Cluster with different CO 2 sources guarantees higher utilisation of the infrastructure Utilisation rate of cluster: 60 – 80 % Mass flow (kg/s) Time - one week (day number, hour)

5. Transport options for CO 2 storage on this scale Rome, December 2014Slide 5 Source Onshore pipeline Offshore pipeline Storage site Collection network Source Barges Tankers Storage site Collection network Pipeline network Pipeline network, on- and offshore (50 km of collecting pipelines) Barge/Tanker transport Barges for inland waterways, tankers for offshore transport Pipeline transport: 60 Mt/a corresponds to four 24'' to 32" pipes 350 km onshore and 100 km offshore Transport by ship: 110 barges (8,000 t) for 350 km 16 tankers (30,000 t) for offshore Challenge: composition of the captured CO 2 (secondary constituents) Shipping demands intermediate storage, but offers more flexibility than pipeline transport

6. Economic viability and implementation – capital expenditure Rome, December 2014Slide 6 Investment in CO 2 infrastructure for both transport options is roughly equal. Additional investment will be needed in capture plants and storage sites. Investment in pipeline networkInvestment in barge and tanker network Capital expenditure in €m Today - 2030 Investment in million €

7. Timeframe demands that policymakers set the CCS agenda now Rome, December 2014Slide 7 2015 20202025 2030 Wide-scale commercial use First demonstration plants CO 2 feed-in of first commercial plants Re-launch the CCS debate Early and continuous public participation / licensing management Create regulatory requirements Licensing procedures Construction phase Communication support through the construction phase and project Early and continuous public participation to create understanding and an enabling environment for the necessary infrastructure

8. Conclusions / Outlook and need for action Rome, December 2014Slide 8 The new study shows: Additional measures to reduce emissions are strongly needed if we are to achieve our climate targets: By 2050 the gap will grow to 60 million t of CO 2 per year. Storage capacities under the German North Sea offer alternative to onshore storage. The technical feasibility of CO 2 transportation to the storage sites under the German North Sea is not a limiting factor. Action must be taken now to create the necessary infrastructure for a wide-scale introduction of commercial plants by 2030. The reduction targets cannot be reached only by improving efficiency and expanding renewable sources. CCS technology presents an opportunity to avoid the emissions from power generation and industrial processes in line with the climate commitments. If CCS is to be deployed as part of an effective climate change strategy, policymakers must take action now. The most urgent step is to set out the right framework in which the necessary transport infrastructure can be provided. There must be constructive dialogue with the public and policymakers to explain in an objective way the challenges and opportunities presented by CCS and to provide answers to whatever questions people have. The full study is available as a download from the IZ Klima website (www.iz-klima.de).