NEWSLETTER AUGUST 2010 Welcome to the August edition of the Global CCS Institute monthly Newsletter, a publication intended to inform our readers about the progress being made by the Institute and developments in the CCS arena. Should you have any feedback, questions or suggested topics for future editions, please email [email protected]Contents CCS READY CHARTS A PATH TO CONVERSION 1 UK LEADING THE WAY ON CCS POLICY 3 OPEN EDITORIAL: DR VICTOR K DER, PRINCIPAL ASSISTANT SECRETARY FOR FOSSIL ENERGY, US DEPARTMENT OF ENERGY, AND CHAIR, POLICY GROUP, CARBON SEQUESTRATION LEADERSHIP FORUM 4 RISK ASSESSMENT STUDIES NEEDED TO AID CCS DECISION-MAKING 6 SCOTTISH CCS REGULATORY ‘DRY-RUN’ SIMULATION 7 UPCOMING EVENTS 8 MEMBERSHIP UPDATE 8 The development by the Global CCS Institute and research partners of definitions and protocols for ‘CCS Ready’ is a significant step that can ease the future uptake of the technology. A large number of fossil-fuel-powered generation and industrial facilities are currently being built. While CCS could in many cases reduce these emissions, there are often technical, regulatory or economic barriers to its immediate application. The concept known as CCS Ready seeks to address this issue by providing CCS Ready as a future- proofing mechanism that aims to reduce CO 2 emissions from carbon intensive plants by planning for CCS retrofit during the planning, design and construction stages. To enable authorities to make CCS Ready a condition of approval for proposed operations, a set of practical definitions was required covering all three major areas of CCS – capture, transport and storage. Failure to accommodate any one of these in the design and location of a fossil fuel plant can make future introduction of CCS difficult and expensive, or lead to assets being closed prematurely because they cannot be upgraded to conform to more stringent requirements. The definition sets out the broad principles that are required to be CCS ready and includes a list of essential requirements and information on application for further clarification. Definition of carbon capture and storage ready (CCSR) A CCSR facility is a large-scale industrial or power source of CO 2 which could and is intended to be retrofitted with CCS technology when the necessary regulatory and economic drivers are in place. The aim of building new facilities or modifying existing facilities to be CCSR is to reduce the risk of carbon emission lock-in or of being unable to fully utilise the facilities in the future without CCS Ready charts a path to conversion MAIN FEATURE
Transcript
NEWSLETTER AUGUST 2010
Welcome to the August edition of the Global CCS Institute monthly Newsletter, a publication intended to inform our readers about the progress being made by the Institute and developments in the CCS arena.
Should you have any feedback, questions or suggested topics for future editions, please email [email protected]
ContentsCCS READY CHARTS A PATH TO CONVERSION 1
UK LEADING THE WAY ON CCS POLICY 3
OPEN EDITORIAL: DR VICTOR K DER, PRINCIPAL ASSISTANT SECRETARY fOR fOSSIL ENERGY, US DEPARTMENT Of ENERGY, AND CHAIR, POLICY GROUP, CARBON SEQUESTRATION LEADERSHIP fORUM 4
RISK ASSESSMENT STUDIES NEEDED TO AID CCS DECISION-MAKING 6
SCOTTISH CCS REGULATORY ‘DRY-RUN’ SIMULATION 7
UPCOMING EVENTS 8
MEMBERSHIP UPDATE 8
The development by the Global CCS Institute and research partners of definitions and protocols for ‘CCS Ready’ is a significant step that can ease the future uptake of the technology.
A large number of fossil-fuel-powered generation and industrial facilities are currently being built. While CCS could in many cases reduce these emissions, there are often technical, regulatory or economic barriers to its immediate application. The concept known as CCS Ready seeks to address this issue by providing CCS Ready as a future-proofing mechanism that aims to reduce CO2 emissions from carbon intensive plants by planning for CCS retrofit during the planning, design and construction stages.
To enable authorities to make CCS Ready a condition of approval for proposed operations, a set of practical definitions was required covering all three major areas of CCS – capture, transport and storage. Failure to accommodate any one of these in the design and location of a fossil fuel plant can make future introduction of CCS difficult and expensive, or lead to assets being closed prematurely because they cannot be upgraded to conform to more stringent requirements.
The definition sets out the broad principles that are required to be CCS ready and includes a list of essential requirements and information on application for further clarification.
Definition of carbon capture and storage ready (CCSR)A CCSR facility is a large-scale industrial or power source of CO2 which could and is intended to be retrofitted with CCS technology when the necessary regulatory and economic drivers are in place. The aim of building new facilities or modifying existing facilities to be CCSR is to reduce the risk of carbon emission lock-in or of being unable to fully utilise the facilities in the future without
CCS (stranded assets). CCSR is not a CO2 mitigation option, but a way to facilitate CO2 mitigation in the future. CCSR ceases to be applicable in jurisdictions where the necessary drivers are already in place, or once they come to be in place.
Essential requirements of a CCSR facilityThe essential requirements represent the minimum criteria that should be met before a facility can be considered CCSR. The project developer should:
• carry out a site-specific study in sufficient engineering detail to ensure the facility is technically capable of being fully retrofitted for CO2 capture, using one or more choices of technology which are proven or whose performance can be reliably estimated as being suitable;
• demonstrate that retrofitted capture equipment can be connected to the existing equipment effectively and without an excessive outage period and that there will be sufficient space available to construct and safely operate additional capture and compression facilities;
• identify realistic pipeline or other route(s) to storage of CO2;
• identify one or more potential storage areas which have been appropriately assessed and found likely to be suitable for safe geological storage of projected full lifetime volumes and rates of captured CO2;
• identify other known factors, including any additional water requirements that could prevent installation and operation of CO2 capture, transport and storage, and identify credible ways in which they could be overcome;
• estimate the likely costs of retrofitting capture, transport and storage;
• engage in appropriate public engagement and consideration of health, safety and environmental issues; and
• review CCSR status and report on it periodically.
Definition applicationThese essential requirements represent the minimum criteria that should be met before a facility can be considered CCSR. However, a degree of flexibility in the way jurisdictions apply the definition will be required to respond to region and site specific issues and to take account of the rapidly changing technology, policy and regulatory background to CCS and CCSR, both globally and locally. More specific or stringent requirements could be appropriate, for instance, in jurisdictions where the CCSR regulator is working on the assumption that CCS will need to be retrofitted to a particular facility within a defined time frame.
The Institute will discuss the CCS ready definition further in an upcoming Issues Brief to be released in the near future.
for more information on CCS Ready click here
MAIN fEATURE: CCS Ready ChaRtS a path to ConveRSion
“CCS ready is a future-proofing mechanism that aims to reduce CO2 emissions from carbon intensive plants by planning for CCS retrofit during the planning, design and construction stages”
UK leading the way on CCS policyA comment by Nick Otter, CEO.
3GLOBAL CCS INSTITUTE NEWSLETTER AUGUST 2010
Britain has become the first major industrial economy to clearly specify that any new coal fired power station must incorporate CCS.
That announcement, from Energy Minister Charles Hendry, is a ringing endorsement of CCS as the technology most capable of making coal (still the world’s most abundant, technologically proven and economically attractive source of base-load energy) viable in an emissions-restricted environment.
The announcement came with the release of the UK Government’s first annual Energy Statement, issued by the Department of Energy and Climate Change (July 2010). The Minister said that while consultations on an emissions performance standard would begin in November, it was already clear that coal fired stations without CCS technology would not be acceptable.
The UK Government has already announced back in 2007 that it would seek submissions for a suitable project to receive pioneer public funding and talks with industry have been ongoing. It had been hoped that a ‘winner’ would be announced shortly but the Minister said no date had yet been set for this.
Despite this, there was important news in that the Government intends to provide funding support for three more CCS projects and that discussions on these will be completed by November 2011. This is a major development and shows that the commitment is clearly there to take forward CCS.
fewer emissions, more electricityThe Energy Report confirmed Britain’s goal of cutting emissions by 80 per cent by 2050, but Energy Secretary Chris Huhne made clear to Parliament that such extensive emissions cuts would not lead to lower electricity use. On the contrary, he suggested, emissions reduction might be achieved by replacing other forms of energy with electric power in transport, industry and heating. More, rather than less, electricity generation capacity was needed. In that context, the government’s encouragement of CCS is eminently strategic.
Mr Huhne also suggested that CCS might be kind to consumers: at an oil price above US$100 a barrel, electricity generated by a coal-CCS combination would be competitive and “consumers would save money,” he said.
It is clear that the UK Government sees CCS as a particularly practical tool in the fight against climate change. What is needed now is a speedy decision on funding support for demonstration plants, not just in the UK but wider. There is a clear urgent need for such plants worldwide to establish the full confidence and to take the lessons learned to help set the trajectory for the scale and magnitude necessary for CCS deployment globally.
A successful demonstration will do more than just provide industry with the practical knowledge of how CCS can be implemented; it will also go a long way to assuring the public that CCS does indeed offer them a realistic path to a low-emissions environment.
This sort of public assurance is much needed by governments everywhere as they grapple with the challenge of selling emissions reduction policies to an electorate nervous of the costs and consequences. The Institute is ready and willing to play its role in achieving this.
“ A successful demonstration will do more than just provide industry with the practical knowledge of how CCS can be implemented; it will also go a long way to assuring the public that CCS does indeed offer them a realistic path to a low-emissions environment.”
Nick Otter, CEO Global CCS Institute
4GLOBAL CCS INSTITUTE NEWSLETTER AUGUST 2010
OPEN EDITORIAL
Dr Victor K DerPrincipal Deputy Assistant Secretary for Fossil Energy, US Department of Energy, and Chair, Policy Group, Carbon Sequestration Leadership Forum.
Scientific evidence gathered by international researchers over the past several decades has increasingly linked excessive greenhouse gas (GHG) emissions – especially those of carbon dioxide (CO2) – with global climate change. The paradox facing the world community is the primary source of CO2 emissions, fossil fuels, also provide the vast majority of energy, especially electricity, needed to help power both developed and developing economies.
This is a scenario and energy dependence most forecasts do not expect to change appreciably over the near and intermediate term; in fact, many projections, such as those of the International Energy Agency (IEA), foresee substantial rises in both world primary energy demand and CO2 emissions by 2030, especially among developing nations. In short, significantly more energy will be needed to meet expected future demand, and while there are alternative non-fossil sources, challenging barriers to global substitution for coal exist. Meanwhile, the United Nations’ Intergovernmental Panel on Climate Change (IPCC) and other international organisations have suggested the result of continually rising GHG concentrations will be average global temperature increases with potentially catastrophic climate consequences.
The reality and complex challenge facing the world community is how best to continue to depend on plentiful and relatively affordable coal as a primary electricity source while assuring this reliance is both economically and environmentally sustainable,
especially from the perspective of preventing global climate change. Many experts believe developing and applying a ‘portfolio’, or range of options is the most suitable and potentially effective response. Energy efficiency improvements and increased use of renewable and nuclear energy are important components of this portfolio, but among the most promising potential solutions for countries dependent on large fossil energy reserves is CCS, which can reduce CO2 output from present stationary emitters and help avoid future emissions while allowing us to continue to utilise vast coal resources.
As promising as CCS seems, there are both technical and non-technical challenges that could delay or – if not resolved – prevent the rapid deployment of the technology. The key technical challenges include: addressing the cost and energy of capture; conclusively proving the permanence of CO2 storage; verifying that sufficient storage capacity exists; and developing ‘best practices’ for the lifecycle of a CCS project. Non-technical challenges primarily consist of: the global need for significant financial investments to bring numerous commercial-scale demonstration projects on-line in the near future; establishing an adequate legal and regulatory framework to support broad CCS deployment, including dealing with long-term liability; and building public understanding and acceptance in the technology.
While significant, none of these challenges is insurmountable, and there is an extensive international research, development and deployment (RD&D) effort underway by governments, industries and academia in an effort to move CCS forward. The US has been at the forefront of this effort, primarily through research conducted by the Department of Energy’s (DOE) advanced coal RD&D program. In partnership with the private sector, this initiative is directed toward developing both the core and supporting technologies through which CCS could become an effective and
OPEN EDITORIAL
economically viable path for reducing CO2 emissions. It focuses on maximising power plant efficiency and performance while minimising the costs of these new technologies; developing the knowledge base, technologies, best practices and protocols to overcome barriers to the widespread deployment of CCS; and conducting an extensive field test program through Regional Carbon Sequestration Partnerships to determine the most suitable technologies, regulations, and infrastructure needs.
Another thrust of DOE research is carbon capture use and storage (CCUS). The idea behind CCUS is that where opportunities exist, CO2 should be turned into a useful product, such as inexpensive raw material for producing chemicals, carbonates, plastics, fuels, building materials and other commodities. DOE recently selected for further research six projects that will convert CO2 emissions from industrial sources into useful products.
Additionally, the Clean Energy Ministerial (CEM) which met in Washington, DC (July 2010), established a Carbon Capture Use and Storage Action Group, led by Australia and the United Kingdom, to facilitate political and business leadership and develop a Global Strategic Implementation Plan to examine how to overcome key barriers to CCUS deployment.
Cumulatively, the goals of these RD&D efforts – and others like them around the world – are to identify and address the hurdles that need to be overcome for CCS to be successfully implemented on a large scale, and transform the technology into an effective and economically viable path for reducing CO2 emissions. The success of CCS research will ultimately be judged by the extent to which emerging technologies are deployed in international markets and the effect it has on lowering human-generated atmospheric CO2 levels.
Great scientific and research progress is being made toward these objectives. But fulfilling the immense potential of CCS will, in the final analysis, depend to a large degree on the level of international, technical, political, and scientific cooperation. The climate change challenge is global, both in terms of sustaining economic growth and in taking effective steps to reverse the increase in CO2 and other GHGs. It is a challenge that no one nation or small group of nations, no matter how powerful, can meet alone. Because it has the most resources, the developed world must lead the CCS effort over the next crucial decade, with the goal of spreading the technology to developing economies. Groups like the Carbon Sequestration Leadership Forum (CSLF), a ministerial-level international climate change initiative, will play an important role in helping to disseminate CCS technology deployment worldwide, as will bilateral agreements and multilateral activities.
There is also much discussion about the level of project development and investment worldwide that will be required to make commercial CCS deployment a reality. When considering the consequences of not acting, however, it becomes clear that undertaking the process is essential. The IEA has suggested that without CCS, overall costs to reduce emissions to 2005 levels by 2050 will increase by 70 per cent.
The issue can be summed up in this manner: advanced CCS technologies are innovative and transformational; they are aimed at providing cost-competitive technology options for controlling CO2 emissions and enabling the continued use of fossil fuels in a carbon-constrained world. They can help provide policymakers the basis for meeting their national economic, energy, and environmental needs. They will be most effectively utilised as part of a portfolio response to CO2 emission mitigation that includes wider use of renewable and nuclear energy and increased energy efficiencies. Given current projections regarding atmospheric CO2 buildup and climatic temperature increases, the global objective should be to begin large-scale, commercial deployment within the next decade, and in the meantime focusing an unprecedented international level of cooperation and research toward this goal.
The groundwork has already been established for worldwide cooperation and collaboration; progress has been made, but there is still much to do. In the words of US President Barack Obama at the 2009 UN Climate Change Summit in New York: “We understand the gravity of the climate threat. We are determined to act. And we will meet our responsibility to future generations.”
“ The developed world must lead the CCS effort over the next crucial decade, with the goal of spreading the technology to developing economies.”
The US Government has been an early supporter of the Global CCS Institute and became a formal legal Member of the Institute in May 2010.
5GLOBAL CCS INSTITUTE NEWSLETTER AUGUST 2010
6
BodyHEADING 2
GLOBAL CCS INSTITUTE NEWSLETTER AUGUST 2010
BRIEf
Business risk is a key factor in any investment decision and CCS proponents face a number of such risks relating to climate policy uncertainty, using first-of-a-kind technologies and the current high cost of CCS relative to other non-abating technologies. However, as pointed out in the recently released report by the United States Interagency Task force on CCS, whilst there were no insurmountable technological, legal, regulatory or other barriers that prevent CCS from playing a role in reducing greenhouse gas emissions, one of the key issues to be resolved related to long term liability frameworks.
The challenge in designing a liability framework over any timeframe is to find the balance in deploying CCS in a cost-effective manner, and at the same time ensuring it is both safe and environmentally sound in order to achieve economically efficient outcomes for the community.
A key issue in such a framework involves ensuring sufficient funds are available to finance remedial action if required and to pay compensatory damages to the extent appropriate. The Global CCS Institute has agreed to provide anchor-funding support to an important public study to provide information on both the nature of the risks and the magnitude of funds that might be required.
The study will prepare case studies on a small number of sites, assessing potential risks – current and future – and seeking to monetise those risks. In doing so, it will provide a catalogue of risks that can be associated with CCS and also establish methodologies for measuring those risks and assigning monetary values to them.
A robust and peer-reviewed model will be developed that can be used to assess multiple geologic settings in different countries and regions. The project has been organised by consulting firm AJW, Inc with the primary analysis conducted by Industrial Economics Inc, a firm with deep expertise in applied economic analysis including natural resource valuation and financial risk management. The cost will be substantially met by the Institute and supported by contributions from a diverse group of organisations with background in CCS and representing energy companies, environmental groups, and government agencies. Stay tuned for additional information on this project as it progresses.
Christopher Short, Chief Economist at the Institute, says the study will look specifically at a number of CCS project sites that for a variety of reasons have not proceeded. This means the potential risks and costs identified can be widely reported and discussed without infringing on commercial confidentiality and without affecting investment decisions at the study sites.
SHORT SAID KEY BENEfITS fOR INSTITUTE MEMBERS fLOWING fROM THE STUDY INCLUDE:
• an analytic framework for monetising CCS risk that can be applied to any CCS project adjusted for fuel source, technology and geographic location;
• point and range estimates of potential liability in the plant, pipeline and storage components of each CCS site; and
• methodologies that maximise use of existing data but also have the capacity to incorporate new risk assessment material as it becomes available.
Short said the study would cover liabilities arising from unintended future CO
2 releases and the possible impact on surrounding populations, sensitive habitats, groundwater and other natural resources.
RISK ASSESSMENT STUDIES NEEDED TO AID CCS DECISION-MAKING
7
BodyHEADING 2
GLOBAL CCS INSTITUTE NEWSLETTER AUGUST 2010
BRIEf
The Global CCS Institute participated in a two day ‘dry-run’ simulation of the consenting and regulatory frameworks for a hypothetical large-scale CCS demonstration project in Scotland. The simulation was hosted by the Scottish Government in Glasgow (Aug 11-12, 2010), as part of its efforts to assess the current regulatory frameworks in advance of an actual project proceeding. It successfully brought together three different levels of government, including at least seven different regulating bodies, industry proponents, environmental groups, planners, academics, consultants and other technical advisors. These parties considered the implications of 29 key ‘blocks’ of consents and licenses required for large-scale CO2 capture at a coal-fired power plant and transportation via pipeline to off-shore geological storage. The Institute was very pleased to be invited to help facilitate and act as an observer for the event.
To the Institute’s knowledge, this Scottish Government-led initiative is an innovative, ‘first-of-a-kind’ project. Their advance work in outlining a comprehensive mock application and regulatory matrix enabled a constructive dialogue, with all participants coming away with a better appreciation of the overall process, roles and linkages between regulating bodies, and further work for bringing clarity and greater efficiency to the processes. Overall, it was agreed that bringing all stakeholders together to review and ‘test’ the system was a valuable exercise and many best practice lessons can be considered and developed from the findings of the workshop. All of the regulators in Scotland have now agreed to work together in a ‘parallel project management’ approach that will see all consents considered as much as possible in parallel, ensuring full communication and collaboration between regulators to meet demanding deadlines, and providing a single interface for developers and the public.
If you would like further information on the workshop event, please contact Howard Steele at the Scottish Government Energy Directorate at [email protected]
Membership updateSince 26 July 2010, we would like to welcome the Government of the Peoples Republic of China and The Government of Scotland as Legal Members of the Global CCS Institute.
INTERNATIONAL CONfERENCE ON GREENHOUSE GAS TECHNOLOGY 2010 (GHGT-10)The Global CCS Institute is a major sponsor of the International Conference on Greenhouse Gas Technology 2010 (GHGT-10), to be held in Amsterdam, 19–23 September 2010.
The conference will provide a platform for fruitful discussions on the ways to overcome the barriers to – and find opportunities for – implementing greenhouse gas mitigation technologies, especially CCS.
The Institute will host a side event in Amsterdam to explore CCS knowledge sharing from projects.
Click here to visit the GHGT-10 website.
This will be held in the afternoon of Sunday 19 September 2010 drawing together interested Members to explore the establishment of themed networks that address key issues arising in large-scale, integrated projects. The aim for this meeting is to identify best approaches for engagement and topics to be addressed; the focus of the discussion will be on CO2 hubs. The Institute will use knowledge gained in Amsterdam to shape resource content and future meetings. To register your interest, please contact [email protected]
GLOBAL CCS INSTITUTE MEMBERS’ MEETING AND AGMThe Members’ Meeting and AGM will be held in Kyoto, 11–12 October 2010 with a focus on Projects and Knowledge Sharing. Registration information and a meeting agenda will be circulated in the first week of September.
CARBON CAPTURE AND STORAGE SYMPOSIUM 2010To be held in Brisbane, 19- 20 October 2010 this event will bring together senior level policy makers from State and Federal Government with senior executives from generators, oil and gas companies, investors and technology consultations and solutions providers to discuss key challenges and formulate solutions to transition Australia into a low carbon economy. The Institute’s Chief Economist Christopher Short will make a keynote address. Click here for more information.
NATIONAL CCS WEEK CONfERENCEAustralia’s CCS leaders invite you to the inaugural National CCS Conference to be held 28–30 November 2010. The conference presents a major opportunity to be informed, to debate and to connect with others involved in the multi-faceted field of CCS.Visit the National CCS Week website here.
![Promising Path to Success [PPS] - New Jersey...2019/11/18 · control charts, that display changes in a project’s processes and outcomes over time. For an introduction to run charts,](https://static.documents.pub/doc/80x56/5f08bcc87e708231d4237a36/promising-path-to-success-pps-new-jersey-20191118-control-charts-that.jpg)
