London, 7-11-2011 Ludwig Krämer Kramer.ludwig@skynet.be CCS in Spain London, 7-11-2011 Ludwig Krämer Kramer.ludwig@skynet.be

Timetable July 2009 Government Bill to transpose Directive 2009/31; public consultation 24 comments, mainly from interested groups; no comments from Regions; December 2009 Revised Government Bill March 2010 Consejo de Estado gives green light to the Bill December 2010 Ley 40/2010 adopted, with a great majority of all parties; only seven votes from a left-wing party against March 2011 Regional government of Aragón applies to the Constitutional Court, arguing that the Regions‘ competencies were not respected

Geological storage capacity Until now, apparently only onshore formations were examined. Storage potential pricnipally in deep saline aquifers Spanish Geological Institute IGME: - 2006/2007: estimation 45 to 50 billion metric tons - 2009 : estimation 13,4 billion metric tons The final study on appropriate storage sites has not yet been published. such a study is not binding; Central Government has last word.

Government and CCS CCS strongly supported by the Spanish Government 2006 Establishment of CIUDEN, a Foundation to promote clean coal technology its President is the Minister for Industrial Affairs Also tries to influence public opinion 2007 Establishment of PTECO², a public-rivate partnership, with universities; its task is to promote CCS 2007 „CCS is a valid option for mitigation of climate change“ (Spanish Government)

CCS pilot activities Compostilla Pilot plant of 30 MW; CIUDEN and Endesa, a private energy company. To be built in 2011-2012. the captured CO² would be transported, via pipeline, over 3 km to a saline aquifer at Hontomín; Endesa was to build a 300 MW coal power plant at Compostilla, and store the captured CO² (oxy-combustion) at Hontomín. However, in 2011, Endesa suspended work till end 2012 („insecurity of energy situation“). Puertollano 14 MW plant constructed in 2009 by Elcogas (pre-combustion technology). In 2011, it functioned continuously over 100 hours. No storage is foreseen until now. Little information on 2011 functioning

Exploration and storage permits Exploration permits are granted by the regional government, unless the exploration extends over more that one region; in this case: Central Government. Applications published in the Official Journal. Only applicant, competitors and third parties who claim their rights are affected, may present comments. Permits granted for 4 years (may be prolonged twice by 2 years). Storage permits are granted by Central Government in all cases Regional governments only approve monitoring plan and provisional post-closure plan which are part of the storage permit. Permits granted for 30 years max. (may be prolonged twice by 10 years). Details of procedure to be regulated by Regulation. May regional governments prohibit storage on their ground altogether? Constitutional Court will decide; Own opinion: if permit an environmental matter: yes; if it is a business matter: no

Liability and financial security Ley 40/2010 takes over the provisions of Directive 2009/31: there is strict liability for the restauration of the environment, where the EU Liability directive 2004/35 or its Spanish transposition Law 26/2007 apply. Where bodily injury or damage to property is caused, the Spanish Civil Code applies, which provides for fault liability. A financial security is required, the details of which are to be fixed by Regulation. This security is additional to that of the liability security which is 20 millions €

Conflicting uses Exploration permit: Holder has exclusive right to explore. No conflicting exploration permit may be granted; however, mining or hydrocarbon permits may be granted, provided they are compatible. Storage permit: may also be granted, where mining or hydrocarbon permits had already been granted. Central Government to avoid conflicting use. Where such conflicting use occurs, the major interest shall prevail; otherwise, the first application prevails. Where existing rights have to cede, compensation is foreseen.

Transfer of responsibilities As a rule, after 20 years. No explanation given for this period (normal peremption delay in Spain: 15 years). Decision is to be taken by Central Government. Transfer of responsibilities to Central Government. Operation of the storage site before transfer shall contribute to the monitoring costs for at least 30 years after closure. Details of post-closure phase to be fixed by Regulation.

Concluding remarks CCS meets little attention in Spain. Politically, positions very largely in favour (Political parties, scientists, media), supported by Central Government. CCS is seen as allowing use of (Spanish) coal as energy source. Regional governments might have reservations as regards competencies, but not objections in substance. Directive 2009/31 largely taken over word by word; numerous details to be elaborated by future regulations. Activities so far concentrated on onshore possibilities.