UK Government

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UK Government Delivering Carbon Capture
StorageLouise BarrHead, Outreach and
CollaborationOffice of CCS, Department of Energy
and Climate Change
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Why Does Carbon Capture and Storage Matter?
With Global population is set to rise from 7 to
9 billion by 2050, world energy demand is
expected to increase by 50 over the next 20
years alone Zero Emissions Platform Unless
the rise in average global temperature is kept
below 2 degrees C devastating and irreversible
climate changes will occur Today renewables
provide 13 of our energy and this could climb
to 30 by 2030. Fossil fuels will remain our
main source of energy for decades to come. CCS
is an essential part of the portfolio of
technologies needed to achieve substantial global
emissions reductions International Energy
Agency CCS will provide up to 20 of the
reductions we need to make by 2050 International
Energy Agency
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Why CCS is important
Tackling Global Climate Change
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What is Carbon Capture and Storage?

• CAPTURE
• We can capture at least 90 of the CO2 emitted
  by power plants and heavy industry
• SAFE TRANSPORT
• Liquid CO2 has been transported by pipeline for
  decades
• SAFE STORAGE
• Using natural storage mechanisms, CO2 is trapped
  between 700m and 5,000m underground

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CAPTURE Pre-combustion capture
CO2 is captured before fuel is burned
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CAPTUREOxyfuel capture
CO2 is captured during fuel combustion
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CAPTUREPost combustion capture
CO2 is captured after fuel has been burned
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TRANSPORT

• CO2 is already transported by pipeline, and also
  by ship when the distance between the CO2 source
  and storage is too far
• Widespread deployment of CCS will therefore
  require a CO2 pipeline network

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SAFELY STORING CO2
The liquid CO2 is pumped deep underground into
one of two types of CO2 storage reservoir
(porous rock)
Cap rock
700m - 3,000m
Deep saline aquifer
Cap rock
up to 5,000m
Depleted oil and gas fields
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Safety of Stored CO2 Increases Over Time

• Residual Trapping
• Some of the injected CO2 becomes trapped in the
  tiny pores of the rocks and simply cannot move,
  even under pressure
• Dissolution Trapping
• A portion of the CO2 dissolves into the
  surrounding salt water
• Mineral Trapping
• After dissolution, some of the heavy CO2-rich
  water sinks to the bottom of the reservoir, where
  over time it may react to form minerals such as
  those found in limestone.

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Why CCS is important for the UK
Ensuring domestic energy security
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Why CCS is a major opportunity for the UK oil
and gas expertise and potential storage locations

• Map showing the location of offshore
  hydrocarbon fields and the major oil and
  gas-bearing sedimentary fields
• UK is ideally placed for offshore CO2 storage
  
• The estimated CO2 storage capacity of the UK and
  its continental shelf 22 GTonnes
• Approximately 100 years of capacity at UK current
  rate of emissions.
• Source British Geological Society
• Source British Geological Survey

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The UK Governments Commitment to CCS

• No new coal fired power stations without CCS
• Two Front End Engineering (FEED) Studies,
  undertaken to inform the 1st CCS demonstrator
• Established the Office of Carbon Capture and
  Storage
• Committed up to 1billion for the first CCS
  demonstrator
• Committed to continuing public sector investment
  in three further CCS demonstration projects
• Opened up the selection process for
  demonstrations 2-4 to include gas
• Wider regulatory reforms introduced to underpin
  deployment of CCS Electricity Market Reforms,
  Carbon Price Floor, Emissions Performance
  Standard, Infrastructure Consultation

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Maintaining the focus on Delivery ..Demo 1

• FEED studies continue - expected to complete in
  spring 2011 - currently considering how best we
  disseminate this knowledge
• Outcome of the procurement of Demo 1 expected
  to be announced in second half of 2011, subject
  to agreeing terms which are acceptable to the
  Government and the bidder
• Pending successful selection, operation to start
  shortly after construction (2014-15)
• 1st demonstration is intended to bring invaluable
  technical, regulatory and commercial knowledge
  with an explicit commitment to knowledge transfer
• First stage of a process to enable wide
  deployment in 2020s
• Demos 2-4 will build on arrangements created to
  enable demo 1 to succeed

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Commercial scale demonstrationDemonstration 1

• Scottish Power are the remaining bidder in the
  first CCS demonstrator project, subject to due
  diligence and satisfactory terms
• Scottish Power Consortium seeking to take forward
  Longannet demonstration project.
• Scottish Power Consortium which also includes
  Shell (for the storage) and National Grid (for
  the transport)
• This demonstration project would be retrofitting
  around 300 MW post-combustion capture technology
  and
• Will be one of the first commercial scale coal
  fired CCS projects in the world.

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Commercial scale demonstrationDemonstration 1
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Working together and sharing knowledge is key
Knowledge Transfer

• Our aim is to provide key information to
  facilitate the development of other CCS projects
  in the UK and internationally
•  To deliver this, the Knowledge Transfer from
  projects is expected to go significantly beyond
  normal commercial practice
•  We will deliver Knowledge Transfer from the E.ON
  FEED and Scottish Power FEED
• And Knowledge Transfer will be integral to the
  first demonstrator project
• Knowledge Transfer will feed into the EU Project
  Network and the Global Carbon Capture and Storage
  Institutes (GCCSI) knowledge sharing programme.

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Maintaining the Focus on Delivery ..
Demonstrations 2 - 4

• Market sounding process signalled a good appetite
  of further demonstrators and several well
  developed proposals
• Also signalled the need to include a
  demonstration of CCS on gas
• EU launched the New Entrants Reserve funding
  (NER300 funding) launched on Tuesday 9th November
  2010. This will provide funding (some 300m EU
  ETS allowances) towards some 34 renewables
  projects and 8 CCS projects in the EU
• The call for proposals for NER300 funding was
  launched on 9th November 2010, with responses due
  by 9th February 2011
• Decisions on funding arrangements for
  demonstrations 2-4 are being considered in the
  context of the March budget

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Challenges to overcome

• Regulatory
• Regulatory environment for key elements of the
  CCS chain not yet finalised (particularly
  relating to the consent for storage facilities
  and the treatment of liabilities associated with
  the storage of carbon dioxide)
• Technical
• Challenges in, for example, scaling up of capture
  technologies, identification, characterisation
  and operation of storage, integration of the full
  chain
• Commercial
• Need to develop frameworks that successfully
  integrate all elements of the chain into a
  commercially viable entity
• Reform of the electricity market
• Emissions Performance Standard, carbon floor
  price, capacity guarantees
• Access to finance
• Current economic circumstances, uncertainty over
  the future shape of the energy markets,
  challenges and risks associated with first of a
  kind all make for a difficult environment
  within which to secure finance
• Public acceptance
• OCCS role is to address these challenges
  to make CCS a reality in the UK

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Maintaining the Focus on Delivery Developing a
Roadmap

• Scale of challenge
• Market measures required for commercial
  deployment
• Demonstration to deployment

How much CCS and by when?

• Roadmap will
• focus on actions to 2020 to enable commercial
  investment decisions in the early 2020s
• look at multiple roll-out scenarios to 2050 and
  identify longer term issues to be addressed

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Maintaining a focus on delivery What the
Roadmap needs to address
Innovation RD
Learning from Demonstration
Industrial CCS
Infrastructure
Public Engagement
Commercial Financing
Skills Supply Chain
Regulatory Framework
Scenarios Trajectories
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Other activities International

• Global
• Research and Development projects progress under
  a UK-US MoU on Energy RD working towards launch
  Phase II of the EU-China Near Zero Emissions Coal
  (NZEC) project
• Capacity building making operational the Carbon
  Sequestration Leadership Fund (CSLF) capacity
  building fund
• Global leadership joint lead with Australia on
  the Clean Energy Ministerial CCUS Action Group,
  support for CCS in Cancun (December 2010)
• Knowledge Transfer through the GCCSI

• EU
• Progressing work under the North Sea Basin
  Taskforce
• Working with European partners through the
  European Industrial Initiative
• New Entrant Reserve
• Knowledge Transfer through the EU Project Network

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The prize from CCS is potentially enormous

• CCS will provide up to 20 of the CO2 reductions
  we need to make by 2050
• Wider deployment of CCS will build on the
  Demonstration Programme. CCS will be applied to
  gas fired power plants and industrial sources
• CCS also has the potential to retain or create
  70,000 100,000 high value jobs in UK
• The CCS sector alone could be worth 1.5-3
  billion a year by 2020, rising to 3-6.5 billion a
  year by 2030

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Where Do I Find Out More About CCS?

• www.decc.gov.uk/occs
• www.zeroemissionsplatform.eu
• http//www.globalccsinstitute.com/
• http//www.iea.org/subjectqueries/cdcs.asp
• http//www.bellona.org/ccs

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Louise Barr louise.barr_at_decc.gsi.gov.uk