1. AN UPDATE ON THE GLOBAL STATUS OF CCS JESSICA MORTON – ADVISER, ASIA PACIFIC Global Overview of CCS Projects and Perspectives Brazil, 6 April 2014

2. GLOBAL CCS INSTITUTE

3. CCS is vital Importance of CCS acknowledged CCS identified as an essential technology in limiting temperature increase to 2°C International Energy Agency CCS identified as an essential technology in limiting temperature increase to 2°C International Energy Agency Wide adoption of CCS part of the scenario that achieves 450 ppm atmospheric stabilization level for CO 2 World Energy Council Wide adoption of CCS part of the scenario that achieves 450 ppm atmospheric stabilization level for CO 2 World Energy Council Availability of CCS is critical for producing 450 ppm Energy Modeling Forum 27 Study Availability of CCS is critical for producing 450 ppm Energy Modeling Forum 27 Study CCS is an important technology in the long run…deployment to drive down costs is desirable UK Committee on Climate Change CCS is an important technology in the long run…deployment to drive down costs is desirable UK Committee on Climate Change Commercial demonstration of CCS essential for deployment in the 2030 timeframe European Commission Commercial demonstration of CCS essential for deployment in the 2030 timeframe European Commission CCS to be cost effective when transformational technologies emerge US Climate Action Report 2014 CCS to be cost effective when transformational technologies emerge US Climate Action Report 2014

4. CSLF stresses importance of CCS and of collaboration ‘We…are convinced that the research and development, demonstration and global deployment of {CCS} must be accelerated… We are committed to taking necessary actions internationally and collaboratively to promote the further development and deployment of CCS.’ ‘We believe that the increasing number of {such} collaborations reflects the growing global recognition of the criticality of CCS…’ Carbon Sequestration Leadership Forum, extract from the Communique following the 5 th Meeting of the CSLF Ministers, November 2013 ‘We…are convinced that the research and development, demonstration and global deployment of {CCS} must be accelerated… We are committed to taking necessary actions internationally and collaboratively to promote the further development and deployment of CCS.’ ‘We believe that the increasing number of {such} collaborations reflects the growing global recognition of the criticality of CCS…’ Carbon Sequestration Leadership Forum, extract from the Communique following the 5 th Meeting of the CSLF Ministers, November 2013 TECHNOLOGY UNDERSTANDING AND ACCEPTANCE POLICY AND MARKETS Business case for CCS Collaboration and aligning three pillars of the business case for CCS

5. CCS IN THE CLIMATE CHANGE PORTFOLIO OF ENERGY TECHNOLOGY AND ACTIONS

6. Large-scale CCS projects by project lifecycle and year 21 projects in operation or under construction – 50% increase since 2011

7. CO 2 capture capacity by actual or expected year of operation CCS is a reality with 40 Mtpa of CO 2 that can be captured by active projects

8. Large-scale CCS projects in key markets by project lifecycle North America continues to dominate the projects landscape; China increasing in importance; project progress has stalled in Europe

9. Large-scale CCS projects proceeding to ‘Operate’ and ‘Execute’ since 2011 Majority of projects in operation, construction or close to FID use or intend to use CO 2 for EOR

10. GORGON PROJECT http://www.chevron.com/media/gorgon/Gorgon-Progress-Update-01312014.pdf

11. GORGON PROJECT

12. Actual and expected operation dates for CCS projects in ‘Operate’, ‘Execute’ and ‘Define’ stages Pre-2014 Power generation 2017 2016 Hydrogen production Natural gas processing Chemical production Iron and steel production Syngas Fertiliser production Oil refining 2014 20182019 2020 = 1Mtpa of CO 2 (areas of circle are proportional to capacity) Coal-to-liquids White Rose CCS projects in the power and industrial sectors and projects utilising dedicated geologic storage options becoming more important * Injection suspended

13. Significant global policy and regulatory developments US EPA releases proposals dealing with power plant CO 2 emissions and geologic carbon storage United States Alberta Government releases final draft of the Regulatory Framework Assessment report Canada COP 19 held in Warsaw Focus on universal post-2020 climate agreement in Paris, in 2015 COP 19 held in Warsaw Focus on universal post-2020 climate agreement in Paris, in 2015 Global UK Energy Act receives Royal Assent and becomes law United Kingdom EC proposes climate targets out to 2030 European Parliament supports MEP Chris Davies’ report on CCS in Europe EC proposes climate targets out to 2030 European Parliament supports MEP Chris Davies’ report on CCS in Europe Continental Europe

14. Policy and markets 14 ASSESSMENT  International policy discussions consistently acknowledge importance of CCS but…  Industry highlights that national climate and energy policies do not provide long term clarity to support widespread adoption of CCS projects.  CCS is often not treated equivalently to other low carbon technologies.  National regulations have advanced but critical uncertainties remain: o in the US, for example, impact of recent EPA proposals – catalyst or deterrent? o more broadly, addressing long-term liability issues – who is likely to step up?  Existing CCS funding programs for large-scale projects mostly exhausted. OPPORTUNITIES  Re-invigorated policy incentives ( and regulation) to maintain momentum.  Continued development of low-carbon future roadmaps for CCS.  Post Kyoto 2020 agreement for decision in 2015.  Capacity development scope is significant – all can learn from what has worked, building capacity in developing countries is critical for longer-term deployment.

15. Understanding and acceptance 15 ASSESSMENT  Stakeholder relationship management accepted as critical to project delivery.  Global awareness and understanding of CCS context is low.  Focus of CCS communication is on risks and challenges not value and benefits.  Perception of CCS as experimental, not cost competitive and associated with fossil fuel instead of role in low-carbon energy.  Building a trusting relationship with key stakeholders is critical for projects. OPPORTUNITIES  Successful global large-scale integrated projects is critical to establish public and political confidence in CCS.  CCS projects are demonstrating improved sharing and use of best practice.  Encourage public advocacy of CCS from trusted groups – academics and NGOs.  Improve access to education materials and experts.

16. GLOBAL CCS INSTITUTE.COM Jessica.morton@globalccsinstitute.com