20110318 adb-cslf fin rountable presentation - gccsi (larry2)

8/7/2019 20110318 ADB-CSLF Fin Rountable Presentation - GCCSI (Larry2)

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GLOBAL CCS INSTITUTE

THE GLOBAL STATUS OF CCS: 2010& FINANCE WORK GOING FORWARDLarry Hegan, Senior Policy Adviser

WWW.GLOBALCCSINSTITUTE.COM


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Government FundingProject StatusCO 2 Storage

CO 2 NetworksLegal and RegulatoryDevelopmentsCCS Costs

Knowledge SharingInitiativesPublic Engagement

The Global Status of CCS: 2010 (March 2011)

All these issues have tobe addressed to reducerisks and improverisk/return ratio for

financial sector


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. in order to incent and advance projects


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. and advance CCS through the overall

technology development cycle


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H istory highlights why we need to accelerate CCS

Rubin and all (2007)


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H igh costs and low revenues = economic gap

CarbonPrice

$/t

EORRevenue

$/t

EconGap

= Need for PublicFunding


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public funding required so far as been large

Power Sector: TransAlta Project Pioneer (Canada) US$770M ROAD Project (Netherlands) US$437.6M Southern Company IGCC (U.S.) US$705M AEP Mountaineer (U.S.) US$334MIndustrial Sector: Quest CCS Project (Canada) US$861M Lake Charles Gasification (US) US$399M Gorgon (Australia) US$59M Only oneto reach

FID


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Funding does not necessarily = reducing risks to

help unlock private investment at reasonable costs Cost uncertainty (+/- 40%), cost overruns Technical risk for capture (performance, reliability,

integration) Storage risk (locating and proving viable capacity,

leakage) Sovereign risk (e.g. uncertainty over carbon price) Commercial risk (e.g. fluctuating $/kwh price for

electricity, EOR contracts)


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Collecting insights from projects, financialcommunity, technology providers, etc.

Includingfrom projectsthe GlobalCCS Instituteis supportingdirectly


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Finance knowledge sharing hub on digitalplatform


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www.globalccsinstitute.com

THANK [email protected]

20110318 adb-cslf fin rountable presentation - gccsi (larry2)

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