Marco Mazzotti – ETH Zurich, Switzerland Professor of Process Engineering

EU approach towards demonstration and implementation of CCS Marco Mazzotti Institute of Process Engineering ETH Zurich – Zurich, Switzerland Global Task Force on CCS Inaugural meeting February 14, 2008

European Union and climate change EU committed to Kyoto agreement Emissions Trading Scheme (cap-and-trade) Phase 1: 2005-07 (covering ~50% of EU CO2 emissions) Phase 2: 2008-12 (~90% of allowances for free) Framework programs for R&D Launch in 2005 of European Technology Platform for Zero Emission Fossil Fuel Power Plants EC January 2008 energy package

Emissions trading in the EU 2005-2012

European Union FP6 6th Framework Program for R&D, 2002-06 CCS projects (~ €170m) CASTOR: post-combustion ENCAP: chem.loop+pre-com. CACHET: pre-combustion DYNAMIS: H2 prod. + CCS CO2SINK: geo-stor. Ketzin, D CO2GeoNet: geo-storage MOVECBM: ECBM (Recopol) CO2ReMoVe: geo-storage EU GeoCapacity: mapping … 10 more w/ funds < €5m

European Union FP7 7th Framework Program for R&D, 2007-13 FP7 total budget for cooperation: €32bn (+41%) Environment: €1.8bn Energy: €2.3bn H2 and fuel cells CCS for zero-emission power generation Clean coal technologies … Projects starting, e.g. DECARBit (IGCC power plant)

Commercial CCS projects (Statoil - 1996) (Statoil - 2006) (BP, Statoil, Sonatrach - 2004) (Encana - 2000)

Shell, Statoil - Draugen (Norway), EOR Recently, Shell and Statoil signed an agreement to work on a project injecting CO2 into the Draugen and Heidrun offshore oil and gas fields from a gas-fired power plant and methanol production facility at Tjeldbergodden in Mid-Norway. Power from the plant will also be provided to the offshore fields, resulting in near zero CO2 emissions from these installations.

BP: Peterhead (Scotland), EOR + H2 BP's Peterhead Hydrogen Power Project, presently at the design stage, will take natural gas from North Sea fields and convert it to hydrogen and CO2. The hydrogen will then be used as a clean fuel in Scotland's Peterhead power station, while the CO2 will be transported offshore via an existing pipeline and injected more than three kilometres under the seabed for enhanced oil recovery and long-term geological storage in the Miller Field.

Power plants with CCS: pilot, demo, commercial Schwarze Pumpe Oxy–fuel IGCC 350 MWel 2.6 tCO2/y

ETP ZEP - European Technology Platform for Zero Emission Fossil Fuel Power Plants In ETPs stakeholders define R&D priorities, time frames and action plans, on strategic issues ETP ZEP (2005) gathers energy companies, equipment suppliers, oil/gas businesses, and NGOs It aims at: „enabling zero CO2 emissions from European fossil fuel power plants by 2020“

Objective of the ZEP Flagship Program Urgently implementing 10-12 integrated, full-scale CCS demonstration projects EU- wide Developing new concepts for demo by 2010-15 and implementation beyond 2020 Kick-starting the CO2 value chain with urgent short- and long-term commercial incentives Establishing a regulatory framework for CO2 transport and geological storage Gaining public support via a comprehensive public information campaign

Timeline of the ZEP Flagship Program

Technology portfolio of Flagship Program Portfolio of 10-12 demo plants provide confidence to scale up CCS

Funding of Flagship Program

Funding of Flagship Program

Funding of Flagship Program

Funding of Flagship Program

Funding of Flagship Program Additional funding (€6-10bn for 400 MW plants) From whom? In what form? How allocated?

Challenges of Flagship Program The EU will not achieve its CO2 emission targets without CCS. CCS will not be commercially viable by 2020 without an EU Flagship Program. An EU Flagship Program will not happen without stable market-based funding mechanisms to cover the high additional capital and operational costs of the first full-scale CCS demo projects

EC January 2008 energy package - Goals To bring about a 20% cut in EU greenhouse gas emissions by 2020, and to be ready to step up to 30% with an international agreement. To reach 20% of energy use through renewables by 2020. To reach 10% of use of sustainable biofuels in transportation. Estimated cost: 0.5% of GDP by 2020.

EC Jan 2008 energy package - Implementation New Emissions Trading System for big industry emitters (from 2013, with auctioned allowances) Specific, binding national targets outside ETS (buildings, transport, agriculture, waste) Active promotion of renewables, with binding national targets, and certification for biofuels. „New rules to stimulate carbon capture and storage, tomorrow's technology to cut emissions“. New state aid rules.

EC Jan 2008 energy package – 2020 targets

EC Jan 2008 energy package - CCS Inclusion of CO2 captured and safely stored in ETS EU Industrial Initiative on CCS as a base for the coordination, transparency and visibility of demos Development of CCS infrastructure Promotion of cooperation with China, India, OECD Finances for CCS Decisive role of industry early financial commitment New legal grounds for state aid to CCS demo projects Additional sources of financing

… a happy end?! ETP ZEP

Carbon dioxide capture and storage to mitigate climate change Marco Mazzotti Institute of Process Engineering ETH Zurich – Zurich, Switzerland Global Task Force on CCS Inaugural meeting February 14, 2008

DECARBit – Enabling advanced pre-combustion capture techiques and plants

DECARBit – Enabling advanced pre-combustion capture techiques and plants Budget: 15.5 m€ (EC: 10.2 m€)

European Union 7th Framework Program for R & TD, 2007-13

Total EU GHG emissions by sector 2005

EU Emissions Trading system

Geographical distribution of CO2 emissions

Aquifers: Sleipner project (Statoil, Norway)

Aquifers: Sleipner project (Statoil) ~ 1000 m CO2 separation from gas CO2 injection into the Utsira aquifer ~ 2500 m ~ 3000 m Natural gas with ~8% CO2

In-Salah (BP, Statoil, Sonatrach-Algeria)

Vattenfall: Schwarze Pumpe (D), 30 MWth oxy-fuel power plant + CCS

Statoil: Snøhvit (Norway),