EU project network

Global CCS Institute Member Meeting08 May 2012

Kai Tullius, Policy OfficerDG ENERGY C1

Where do we stand on CCS?

• EU committed to up to 12 CCS demonstration projects by 2015; a necessity for commercial deployment after 2020

• 2 European funding instruments and the project network were introduced

• Projects face delays

• How to revitalise the European demonstration programme?

• Which role can the CCS project network play?

Energy Roadmap 2050 basis for developing a long-term policy framework

. EU objective for 2050 – GHG emissions down to 80-95% below 1990 levels

. Looks forward to elaboration of a low-carbon 2050 strategy – a framework for longer-term action in energy and related sectors

. Give more certainty to governments and investors

. Explore routes towards a low-carbon energy system by 2050 which improve competitiveness and security of supply

. Basis for developing the 2030 policy framework and concrete milestones with MS, EP and stakeholders

European Council Aim of the roadmap

Energy Mix, Roadmap 2030/2050

Investments in coal plants to 2050- Low Carbon Supply Technologies scenario

Investments in gas plants to 2050- Low Carbon Supply Technologies scenario

CO2 Emissions in 2008

0

50

100

150

200

250

300

350

MT/Year - Energy

MT/Year - Industry

6 Conditions for successful CCS

• 1) Legislative Framework• 2) Successful Demonstration• 3) Commercial Viability • 4) Public Acceptance• 5) Infrastructure• 6) Innovation

1) Legislative Framework

• Legislation• Storage is enabled by the CCS Directive

(2009/31/EC)

• Transposition in MS• Deadline June 2011• Most MS hosting demonstration projects

transposed by spring 2012

• Challenges• Does legislation enable CCS in MS?

2) CCS demonstration programmeEEPR Projects

Don Valley, UK

900 MW

Compostilla, ES323MW Porto Tolle, IT

250MW

Jänschwalde, DE300MW

Bełchatów, PL250MW

Rotterdam,NL250MW

3) Commercial Viability

• Investments in CCS demonstration will only take place if a business model for commercial roll out exists

• CCS can be commercially viable after 2020 at a carbon price of €40-45 per ton of CO2

• If the carbon price stays below that price additional support is needed not only for demonstration projects but also for subsequent deployment

4) Public Acceptance

• Experience from projects: regional differences and little resistance against offshore storage

• Cross border transport and offshore storage

5) CO2 Infrastructure

• Energy Infrastructure legislative proposal adopted in Oct 2011

• Support regional co-operation – regional clusters expected to kick-start the network

6) InnovationCCS European Industrial Initiative

• Strategic objective• To demonstrate the commercial viability of CCS

technologies for subsequent deployment

• Technology objectives• Prove the technical and economic feasibility of CCS

using existing technology• Develop more efficient and cost competitive CCS

technologies

• Actions• Realisation of a large scale demonstration programme• Establishment of an R&D programme on efficiency,

capture, transport, and storage• CCS project network and international knowledge

sharing

CCS Project Network / Knowledge Sharing

• What is the CCS Project Network?

• Why establish a knowledge sharing platform?

• How does the Network operate?

What is the CCS project network?

Why is knowledge sharing relevant?

How does the network operate?

Conclusions

• Fossil Fuels will remain in the Energy Mix

• CCS is needed for decarbonising the energy and other industrial sectors

• CCS is at a crossroads

• In the absence of a strong carbon price, additional support mechanisms for demonstration and deployment need to be set up

• Global Knowledge Sharing of increasing importance