Plans for Widescale Deployment and Barriers to Implementation John Gale IEA Greenhouse Gas R&D Programme

Introduction Review plans in countries to deploy CCS Before we can move to wide scale implementation need to demonstrate and build confidence in the technology Plans for CCS Demonstration plants European Commission Member States USA Australia Review barriers to implementation

Proposed Integrated CCS Projects in Europe Halten Mongstad DF1 Karsto E.ON Centrica Scottish & Southern Energy Vattenfall Powerfuel Nuon GE/Polish Utility RWE RWE Port of Rotterdam Siemens Key Pre-Combustion IGCC Post-Combustion Oxy-Combustion

European Commission Plans COM(2006)843, 10.01.07, Sustainable power generation from fossil fuels: aiming for near-zero emissions from coal by 2020 Key actions included: Make demonstration of sustainable fossil fuel technologies a priority research topic for 2007-2013 Substantial increase in EC R&D funding Member states to make an equal commitment Options to support up to 12 large scale demonstrations All plants will need to be ‘capture ready’

What is ‘Capture Ready’ IEA GHG has produced a headline summary of Capture Ready considerations Carry out a study of capture retrofit options Leave space and access for capture plant Identify a reasonable route to storage of CO2 Major pre-investment is unlikely to be worthwhile unless capture is going to be retrofitted soon after plant start-up

(Site of existing power plant) CO2 Capture Ready Plant ‘Capture Ready’ area (Site of existing power plant) Proposed ‘capture ready’ power plant at Tilbury Courtesy RWE Npower

United Kingdom UK currently has proposals for 8 demonstration projects UK Government has announced plans to support one demonstration project Competition to be held in early 2007 with decision by end of 2007 Details not announced yet Guidelines Project in UK and have a comprehensive engineering design Will cover full CCS chain At least 300MWe Store at least 0.25mT/y CO2 UK Government will support capture and storage component not full plant Plant to be operational between 2011 and 2017 UK will announce regulatory framework in Late 2007 for off-shore projects

Netherlands Dutch Government expressed their intent to host at least 1 CCS demonstration project Mining Act adpated to allow for CCS Two tenders approved Storage tender €60M to develop a project to store 0.4Mt/y CO2 Capture tender (20 M€), aimed at demonstrating capture at larger scale Reviewed storage possibilities in Netherlands Offshore main opportunity in depleted oil and gas fields

Rotterdam Energy Port and CO2 Hub Port has existing and planned power generation capacity Existing oil and gas pipeline infrastructure as an energy import hub Collect CO2 from Netherlands and export through existing infrastructure to depleted gas fields 300 Mton CO2

Norway In July 2006 Statoil announces plan to build the Mongstad CHP plant Gas fired power plant providing 350 MWh heat and 280 MWe Due to be built in 2008 at a cost of $450M Norwegian Government imposed need for CCS Project pushed out to 2014 Norwegian Government will meet $594M for CCS plant It is also planned to create a European CO2 Test Centre at Mongstad funded by Norwegian Government, DONG Energy, Statoil, Hydro and Vattenfall

Halten-Tjelbergodden CCS-EOR Project

Proposed Integrated CCS Demonstration Projects HALTEN DF1 Centrica Mongstad E.ON E.ON SaskPower RWE RWE FutureGen HypoGen DF2 nZEC Key Stanwell LNG DF3 Callide Pre-Combustion Capture Hazelwood IGCC Oxy-Fuel Post-Combustion

FutureGen USDOE initiative Project budget $954M Public Private sector partnership 12 industrial partners contributing $400M, Government support from United States, China, India, South Korea, and Japan Current status 7 States bid to host FutureGen Reduced to Texas & Illinois Final decision on siting by the end of 2007 EIS completed in mid 2007

Australia Australia Government is developing a Framework to support CCS demonstrations and commercial projects Coal21/Low Emission Technology fund (A$500M) established in June 2004 Supporting pilot low emission technology projects Regulatory development Commercial projects Gorgon – ChevronTexaco Natural gas production/CCS ZeroGen – Stanwell Corporation Coal fired IGCC with power generation/CCS Monash Energy Project – AngloAmercian and Shell Synthetic Liquid Fuels from coal with CCS

Other Industrial Initiatives BP very active in developing new CCS demonstration projects Proposed Hydrogen based power plant in Scotland, UK (DF1) Proposed DF2 project at Carson City Refinery in USA In June 2007 BP and RioTinto announced a new company called Hydrogen Energy Develop new CO2 free power plants New A$2 billion (US$1.7 billion) clean coal power generation project in western Australia planned 500MWe with CCS

Barriers to Wide Scale Implementation (1) Going from tens to thousands of plant worldwide will set a number of Challenges Suitability of large geological resource Have to rely on deep saline aquifers but these are under researched Development of regulatory regimes In hand in some countries but not all For OSPAR slowest country will set the timescale Development of CO2 pipeline infrastructures Establishment/reuse of rights of way Cost - €19Bn in Europe alone Co-ordinated action to build and finance needed

Barriers to Wide Scale Implementation (1) There is a need to create a long term market for CO2 Current long terms trades on European Trading System only €12-15/t CO2 Need to reduce costs for CCS Will reduce naturally through replication but not enough to bridge financial gap at present Need to introduce technology into developing countries Current route through Clean Development Mechanism Need concerted international action to get CCS into the CDM

THANK YOU ANY QUESTIONS?