The role of gas in developing Carbon Capture and Storage (CCS)

About IOGP IOGP’s Members produce over half of the world’s oil and more than a third of its gas – safely, efficiently and reliably. Wherever you are… Wherever you go... Whatever you do… chances are you’re relying on oil and gas for heat, light, power and mobility. Carbon Capture and Storage3

Tackling climate change with CCS and natural gas IOGP recognizes the risks of climate change due to rising greenhouse gas emissions. Oil and gas will continue to provide the majority of the world’s growing need for energy for decades to come. Carbon Capture and Storage (CCS) could potentially curb GHG emissions significantly and enable energy demands to be met from the continued large-scale use of fossil fuels. Natural gas is an abundant, flexible and relatively low carbon energy source. The development of natural gas will maximize the effect of CCS via the experience of the sector and via the opportunity to increase the potential of power decarbonisation. Carbon Capture and Storage4

How CCS works 5

Natural gas is the better choice for CCS - not coal Switching to natural gas from coal for power generation would be a significant contributor to mitigating climate change. Natural gas emits half the CO 2 that coal does. When CCS is used with natural gas instead of coal: CO 2 storage requirements will be less – critical if CO 2 storage capacities are insufficient less infrastructure would be required. Carbon Capture and Storage6 Source: Electricity generation facts & figures , VGB

The oil and gas industry has the expertise to deal with CO 2 The oil and gas industry, with its scientific, technological and contractor partners, is best placed to develop CCS. It is at the forefront of development of technologies to: separate CO 2 and other gases from natural gas to reduce CO 2 concentration separate CO 2 emitted from power and heat generation safely store CO 2 in depleted reservoirs develop Enhanced Oil Recovery. Carbon Capture and Storage7

Enhanced Oil Recovery 8

The oil and gas industry has the experience IOGP Members: have the technologies and the knowledge to assess geological formations and ensure safe storage have the experience of safely transporting liquids and gases over long distances, via land and sea are engaged in developing innovative technologies in a number of projects around the world: they are helping to promote CCS in USA, Canada, Europe, Africa and Australia. Carbon Capture and Storage9

Challenges to overcome There are challenges to overcome: costs, energy penalties, storage capacities linked to emission areas, size of the investments (with huge finance needs), regulations, maturing technologies, and acceptability for the public. For CCS to contribute significantly to climate change mitigation, it has to develop massively: IEA in the ETP 2015 reckoned that 6 Gt/year CO2 will be captured and stored in 2050 – more than both the world oil production and the world gas production in 2014 (source: BP statistical review). Carbon Capture and Storage10

Three priority actions to develop the role of natural gas in CCS 1.Support R&D to enable continued technology innovation: Critical for large capture cost and energy penalty reductions Assess storage capacities at regional or country level with sound methodologies. 2.Enhance technology neutrality: Change NER300 and ensure that its successor reflects the lower carbon content of gas (and so the lower volumes of CO 2 generated). The extra cost per kWh of electricity should be the reference criterion – not the extra cost per tonne of stored CO 2 The NER400 fund should deal not only with CAPEX (capital costs), but also with operating costs (OPEX). 3.Switch from coal to natural gas: most cost-effective way to reduce GHG emissions in power generation Carbon Capture and Storage11

Strengthening public awareness with information Sharing and exchanging information on successful existing projects will strengthen public awareness and will support the role of natural gas in CCS. “The oil and gas industry has a unique understanding of what happens underground – gained from more than 100 years of exploration and production. That is why it is uniquely placed to develop such a technology” (GN Chair) European Parliament Workshop, Nov 20th 2014 Carbon Capture and Storage12

Find out more about CCS Download out Factsheet “What is CCS?” from our website. Carbon Capture and Storage13

For more information please contact: Registered Office Level Blackfriars Rd London SE1 8NL United Kingdom T +44 (0) F +44 (0) Brussels Office Bd du Souverain,165 4th Floor B-1160 Brussels Belgium T +32 (0) F +32 (0) Caterina De Matteis