GLOBAL CCS INSTITUTE

THE STATUS OF CCSBarry Jones, General Manager – Policy and Membership

Melbourne Members’ Meeting, 4 October, 2011

WWW.GLOBALCCSINSTITUTE.COM

GLOBAL CCS INSTITUTE

RELEASED TODAY

The Global Status of

CCS: 2011 report.

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MEASURED PROGRESS OF LARGE-SCALE

INTEGRATED PROJECTS SINCE 2009

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GLOBAL SPREAD OF PROJECTS

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PROJECT NUMBERS CONCENTRATED IN THE

UNITED STATES AND EUROPE

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CONCENTRATION ON POWER GENERATION

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PROJECTS ARE SPREAD ACROSS

TECHNOLOGIES

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POWER PROJECTS UNDER CONSTRUCTION

Kemper County

• IGCC with capture (pre-combustion)

• EOR

Boundary Dam

• Retrofit post-combustion capture

• EOR

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ALLOCATED GOVERNMENT FUNDING IS

MOSTLY TO POWER

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THERE IS FUNDING THAT IS STILL TO BE

ALLOCATED

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CO2 IS BEING CAPTURED AND STORED

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REGIONAL BIAS TOWARDS STORAGE

SELECTION

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THE ISSUE OF LONG TERM LIABILITY

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DOES THE POLICY ENVIRONMENT GIVE ADEQUATE SUPPORT – PROJECT RESPONSE

UNFCCC Groups Yes (%) No (%) No comment (%)

Asian States 0-25 0-25 50-75

Eastern Europe 50 -75 50-75 0

Western Europe 25-50 25-50 0-25

Other States 25-50 25-50 0-25Other States 25-50 25-50 0-25

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Issues raised

• Uncertain policy environment or implementation

• Uncertainty legislation/ regulations

• Uncertain or lack of carbon value

• Insufficient government support

• High cost project economics

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REGULATORY QUESTION RESPONSES

� Question: Do the current regulatory requirements

facilitate an investment decision within your

organisation?

– While many projects across regions responded that

their project was authorised under project-specific or their project was authorised under project-specific or

pre-existing legislation, others raised some issues.

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Issues raised by more than one region

• Incomplete in nature or delay to regulation

• Uncertainty surrounding long-term liability

• Uncertainty surrounding the regulation of CO2

• General site-specific regulatory issues

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PUBLIC ENGAGEMENT STRATEGIES ARE IN PLACE

� 75% of projects either have a public engagement

strategy in place or under development.

� There has been an increase in the sophistication and

quality of tools and resources to assist CCS

stakeholders. For example the:stakeholders. For example the:

– Public Engagement Self Assessment Tool; and

– Social Site Characterisation Report.

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MAKING THE BUSINESS CASE FOR CCS

Clear business

case

Clear business

case due to climate

policies

Business cases that

requires government support and other revenue

CCS

related project features

•Industrial

separation

already takes

place

•Industrial

separation already

takes place

•Some previous

•CO2 separation at

relatively high cost

(power) and storage site

known–oil field

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features place

•Storage site

known–oil field

•Some previous

knowledge of

storage site

known–oil field

or•Development of a

greenfield storage site

with industrial

separation

Business

case drivers

•EOR revenues •Reduction in

future/current

carbon cost

liabilities

•Potential carbon

credit markets

•Government funding

•Reduction in

future/current carbon

cost liabilities

•EOR revenues

•Risk sharing

GLOBAL CCS INSTITUTE

KEY MESSAGES

� Early mover projects are found in industrial applications

and with EOR for storage.

� Two power projects are now under construction with aid

of government funding and EOR revenue.

� A number of power projects are on the verge of FID but � A number of power projects are on the verge of FID but

making the business case is proving difficult and time

consuming.

� Greater collaboration and transparency between

government and industry is needed.

� Storage assessments in deep saline formations can

have long lead times – need to start now.

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