1. WB CCS Conference - Sandton Tim I. B. Lund Royal Norwegian Embassy - Pretoria

2. Two perspectives The view from Norway The view from SACCSC

3. Norwegian CCS policy – Ambitious goals for broad deployment of CCS; – All new gas fired power plants with CCS; – Facilitates R&D on CCS, cooperates closely with industrial actors and provides public funding; – Public CCS spending 2009+2010: 800 million USD; – International CCS activities (but small compared to Renewables support)

4. Storage The Sleipner field (North Sea): 1 million tons/CO2stored annually since 1996 (due to CO2 tax); The SnøhvitField: 700.000 tons/CO2 stored annually (Barents Sea); In Salah (with Statoil).

5. Capture Technology Centre Mongstad (TCM) to develop, test and qualify CCS technologies; World’s largest demo plant of this kind; Partners so far: The Norwegian State (Gassnova), Statoil, Shell and Sasol; Two sources of flue gas and two technologies being tested: Amine and Chilled Ammonia technologies + others? Capture capacity: 100,000 tons CO2; Start-up 2011/2012; To be followed by large scale capture plant; Final decision in 2016.

6. Strong CCS cluster Oil and Gas companies; Universities; Research institutions; Consultants and third party service providers; Many learning and cooperation opportunities.

7. SACCSC Persepctive After 2,5 years: CCS firmly on the agenda in SA (DoE but also other departments); Key projects under way; Capacity building needed at all levels; Public engagement not started. Must be done early and right. But: Regional work important (ref. energy system). Key role for WB. Geology (no storage – no project); Regulatory and institutional; Cross border issues; Financing;

8. SACCSC Persepctive, Cont. SACCSC is the CCS competence Centre in SA:  Use the SACCSC network, competence and systems to support key SA priorities;  Create synergies regionally and South-South;  Avoid duplication of efforts. SACCSC seeks to leverage international financial support:  Avoid duplication of efforts;  Financing needs will increase as we move from studies to testing.

9. WB involvement in CCS in SA and the region very welcome; We look forward to the results of WB work. Thank you tim.lund@mfa.no Conclusion

10. Key messages DG Magubane: IRP confirms CCS role in SA Energy system and CC ambitions; SANEDI now listed as a new company – Key role on CCS 2011 DoE strategic plan: CCS Regulatory framework DoE-WB list of activities presently being discussed (?) 2 nd CCS Week in October 2011. CCS will figure prominently at COP17 in Durban (Energy pavillion?) WB, Ruth Kagia: Bold CC promise in Copenhagen based on LTMS; Issue is not Why but How. 15% of electricity for light; WB, Natalia K: WB Energy financing BUSD 13 last year CSP increasingly important for WB; CCS Regional study: Legal and institutional framework Techno-economic ass. Of CCS in Power system Climate finance Finance of CCS project

11. Key messages, Cont. SAPP, Musara Beta: Hydro in North; Thermal in South. Demand in South (SA). SAPP est. in 1995; SAPP: 74,3% Coal. 20,1% Hydro (SA is 82,5% of installed capacity). New Plans, 2025: 42% Coal, 32% Hydro, 22% Diesel (excl. Grand Inga). EE: 2010, 750MW (target was 1400MW); Cannot evacuate power from North to the South (bottleneck); Coal: 74%  56%; Hydro: 20%  26; Wind&Solar:0%  0,5% (needs power-pooling and interconnectors) SAPP pt focuses on RE; SA is looking at biomass for coal fired power stations. EA, Sean McCoy: CCS Technology Road Map (2009) pt not on target – non OECD countries must be involved (2020, need 50-50); CCS not just clean coal: Synfuel (Coal fired power 40%); 5 trillion USD needed 2010-2050! (125 BUSD/year). 11% of Blue map incremental investment. Sleipner, Snøhvit, In Salah, Rangely, Weyburn 50% of planned projects are EOR;

12. Key messages, Cont. GCCSI, Alice Gibson: Asset lifecycle model; Slides on status of CCS projects globally: Cost estimates are now 20-30% higher than 2-3 years ago; Public engagement is key! DECC: James Godber CEM, Abu Dhabi-April 2011  COP17; SACCSC, BB SA needs tech and fin support (COP15); “We want a complete and legally binding agreement” 2016 Test injection (10,000t) SA #13 in CO2 globally; Synfuel (SASOL / PetroSA app. 30 mt CO2/yr); Eskom, B.McColl

13. Key messages, Cont. Regional aspects key (ref. SAPP, RERA, etc.); Leverage internal (+ int. funds) for int. cooperation. Need money and decide on its use! Public engagement. Key in SA. Norway RE support 10x that of CCS (2011 1,600 MNOK?) Zuma signing: Sasol, Eskom, SANBI or DEA, SARI