updates from europe – dr graeme sweeney - global ccs institute members' meeting –...
Post on 28-Oct-2014
9 Views
Preview:
DESCRIPTION
TRANSCRIPT
Copyright of Royal Dutch Shell Plc 1
EUROPEAN CCS UPDATE
GCCSI, Rotterdam
9th May 2011
Dr. Graeme Sweeney
Executive Vice President, CO2, Shell
Chairman, EU Zero Emissions Platform
Copyright of Royal Dutch Shell Plc 2
DISCLAIMER STATEMENT
The companies in which Royal Dutch Shell plc directly or indirectly owns investments are separate entities. In this presentation the expressions “Shell”, “Group” and “Shell Group” are sometimes used for convenience where references are made to Group companies in general. Likewise the words “we”, “us” and “our” are also used to refer to Group companies in general or those who work for them. The expressions are also used where there is no purpose in identifying specific companies.
The information contained in this presentation contains forward-looking statements, that are subject to risk factors which may affect the outcome of the matters covered. None of Shell International B.V., any other Shell company and their respective officers, employees and agents represents the accuracy or completeness of the information set forth in this presentation and none of the foregoing shall be liable for any loss, cost, expense or damage (whether arising from negligence or otherwise) relating to the use of such information.
All copyright and other (intellectual property) rights in all text, images and other information contained in this presentation are the property of Shell International B.V. or other Shell companies. Permission should be sought from Shell International B.V. before any part of this presentation is reproduced, stored or transmitted by any means.
Copyright of Royal Dutch Shell Plc 7 April 2023 3
EUROPEAN LEADERSHIP IN CCS
EU policy process has been swift 2010 CCS European Industrial Initiative + CCS Roadmap
2009 EU passes legislation on CO2 geological storage
EU NER 300 funding provides a realistic and essential investment
Technology platforms such as the EU Zero Emissions Platform are delivering
ZEP Meeting CO2 Technology Centre Mongstad
Copyright of Royal Dutch Shell Plc 7 April 2023 4
COLLABORATION DRIVES PROGRESS – THE ROLE OF ZEP2007
4
EU calls for CCS demo programme by 2015
2009EU CCS directive
and funding in place
2007 ZEP Vision for EU CCS demonstration programme
2008 ZEP proposal for CCS demo programme
2009 ZEP recommendations on NER funding
2009 ZEP CCS knowledge sharing proposal
CCS Project Network launch
2008 EU agrees to co-fund programme
2009 EU passes legislation on CO2 geological storage
2010 ZEP Long-Term R&D report
2010 CCS European Industrial Initiative + CCS Roadmap (within SET plan)
Copyright of Royal Dutch Shell Plc 7 April 2023 5
CCS CONTEXT: EU POLICY
2010 CCS European Industrial Initiative + CCS Roadmap (within Strategic Energy Technology Plan)
2009 EU passes legislation on CO2 geological storageETS Directive - 300m ETS allowances for CCS and innovative renewablesCCS Directive - A framework for permanent geological containment of CO2
European Energy Programme for Recovery (EEPR) - €1bn for CCS demonstration projects
2008 CCS Communication 2: Supporting Early Demonstration of Sustainable Power Generation from Fossil Fuels - Project Network - Supporting structure for CCS demo projects
2007 CCS Communication 1: Sustainable power generation from fossil fuels - Commercial viability by 2020Spring European Council - Financing of up to 12 demos by 2015Strategic Energy Technology Plan (SET-Plan) – CCS one of the six strategic energy technologies for 2050
Copyright of Royal Dutch Shell Plc 7 April 2023 6
BEŁCHATÓW, PL
PORTO TOLLE, IT
COMPOSTILLA, ES
HATFIELD, UK
6
JÄNSCHWALDE, DE
EEPR selected projectsAdditional candidates Indicative - Non-exhaustive
ROTTERDAM, NL
NER300 Timetable:
Feb. 9: Proposals to Member States (MS)
May 9: MS applications to European Investment Bank (EIB)
By Feb. 9 2012: EIB evaluation & ranking
2H 2012: funds awarded 6
LARGE SCALE PROJECTS UNDER DEVELOPMENT
Copyright of Royal Dutch Shell Plc 7 April 2023 7
FUNDING - NER 300
New Entrant Reserve 300 under the EU's Emissions Trading
Scheme
Set up in 2008 to finance commercial-scale CCS and
innovative renewable energy demonstration projects
Provides 300 million allowances (depending on carbon price,
worth
some €4-5 billion) distributed through two rounds
Geographically balanced locations: 1 to 3 projects per Member
State
50% of relevant costs will be funded, per project max
NER 300 not part of EU budget – can be combined with other
instruments, including EEPR and Structural and Cohesion Funds
Implementation at EU level (COM), but with strong role for
Member States and with support from the European Investment
Bank (EIB)
Copyright of Royal Dutch Shell Plc8
EUROPEAN INDUSTRIAL INITIATIVE ON CCS
2010 CCS European Industrial Initiative + within Strategy Energy Technology Plans
Collaboration between industry, Member States, the European Commission, research organisations and NGOs
Objective of the EII CCS is:
1. to enable the cost competitive deployment of CCS after 2020
2. to accelerate the required changes in policy, technology and financing
3. to identify priority actions and to manage synergies between ongoing activities
Copyright of Royal Dutch Shell Plc
TIMELINE FOR DELIVERING CCS IN EUROPE
9
Demo projects
CCS KPIse.g. CO2 stored
R&D
Post 2015 plan
Public comm.& Education
Regs & Policy
2010 2012 2015 2020 2030
EIICurrent
EII ImplementationPlan I
EII ImplementationPlan II
Projects call Project selection Implementation
Technology today
Cumulative stored CO2
Lighthouse projects
2nd generationtechnology 3rd generation technology
Develop post 2015 plan including infrastructure
Education & AwarenessLocal public buy-in & permittingEducation & Awareness
Coms Educate & Awareness - Demo programme and Lighthouse / R&D programme
8 projects - 12 projects
Implement post 2015 plan Commercialdeployment of CCS
Develop + set enduringtransition policy
M.S. Regs & Policy
NER 300
Phase to Carbon price
Develop Lighthouse programme
Projects callDevelop KPIs Monitor & report KPIs
Copyright of Royal Dutch Shell Plc
CCS DEMONSTRATION PROJECTS
Final investment decisions for up to 12 CCS demonstration projects
KPI: minimum 6 projects by 2012 and minimum 10 projects by 2016
EU CCS Project Network to ensure knowledge sharing
10
Demo projects
2010 2012 2015 2020 2030
Projects call Project selection Implementation 8 projects - 12 projects
Copyright of Royal Dutch Shell Plc
CCS R&D
Second generation CCS post-2020 & 3rd generation post-2030
R&D actions that lead to commercial results by 2020-2025
Spanning the entire CCS chain: capture, transport, storage
Basis for programming R&D actions: long term R&D plan developed by industry, research
organisations & NGOs (ZEP) & EERA’s R&D agenda for public research organisations Need for CCS Lighthouse projects
Public / Private priority actions for creating momentum
11
R&D
2010 2012 2015 2020 2030
Technology today
Lighthouse projects
2nd generationtechnology 3rd generation technology
Develop Lighthouse programme
Copyright of Royal Dutch Shell Plc
FORWARD VISION, POLICY AND PUBLIC COMMS
Develop forward view: vision on required actions beyond 2012 and 2015
Support transposition of CCS directive
Exchange information on public awareness and support
Initiate international cooperation
Need to ensure sufficient funding for demos and timely delivery
12
Post 2015 plan
Public comm.& Education
Regs & Policy
2010 2012 2015 2020 2030
Develop post 2015 plan including infrastructure
Education & AwarenessLocal public buy-in & permittingEducation & Awareness
Coms Educate & Awareness - Demo programme and Lighthouse / R&D programme
Implement post 2015 plan Commercialdeployment of CCS
Develop + set enduringtransition policyM.S. Regs & Policy
NER 300Phase to Carbon price
Copyright of Royal Dutch Shell Plc
KEY ISSUES
1.Long term planning of infrastructure needs
2.CCS regulatory framework needs to progress to implementation
3.Monitoring, reporting and verification of storage operations
04/07/2023 13
Copyright of Royal Dutch Shell Plc
LONG TERM PLANNING OF INFRASTRUCTURE
Recommendation Member states should develop
National CCS Master Plans and align with ongoing EU-initiatives, such as Europipe
First CO2 infrastructures projects,
starting around 2015, need to be future-proof to guarantee economy of scale when new CCS projects will come on stream
This will require a coordinated planning approach but also the design of a funding mechanism - national, European or both - to support up-scaling of CO2 pipelines
04/07/2023 14
Issue: risk that early demonstration projects will be isolated, point-to-point solutions without scope to grow
Original North Sea Infrastructure Project (CENS)
Copyright of Royal Dutch Shell Plc
CCS REGULATORY FRAMEWORK
Recommendation The National Master Plans should
address preferred regulatory regimes, business model and specific issues such as rights of access to 3rd parties (all likely to be very different for CO2
transport and CO2 storage)
Open liability issues need to be addressed urgently in a manner both practical and equitable
The London Protocol has recently been amended to permit the cross-border transfer of CO2 but is yet to be ratified 04/07/2023 15
Issue: uncertainty in most Member States on future regulatory regimes and business models for CO2 transport and storage including the roles for (semi) state companies, has led to companies taking a wait-and-see approach, hampering the deployment of CCS.
Copyright of Royal Dutch Shell Plc
MONITORING, REPORTING & VERIFICATION
Recommendation
Process to improve MRV and the safeguarding of CO2 storage
agreed by the EU and Member States. Solutions could range from:
a central EU CCS MRV Bureau agency the creation of dedicated (national) public entities to take on
liabilities and monitoring activities after industry handover the establishment of a knowledge sharing network for Member
State agencies involved in CO2 storage
04/07/2023 16
Issue: Expertise to do MRV of CO2 storage operations is just emerging and varies by Member State. Also public safety concerns focus on how the storage of CO2 can be safeguarded in the long term.
Copyright of Royal Dutch Shell Plc 7 April 2023 17
ACCELERATING CCS
Timelines must be improved In the EU, the role of the Zero Emissions Platform needs to be
strengthened Government, industry and academia must work together. There is
a need to establish ZEP type technology platforms in other regions Continue reduction of CCS costs (Capture, Transport, Storage) Agree fit-for-purpose CCS standards, for example on MMV More funding for CCS demos Need to ratify the OPSAR amendment Enable deployment of CCS in emerging economies
Build on proven CO2-EOR industry where possible
CO2 infrastructure development
Transposition of CCS into national legislation
Copyright of Royal Dutch Shell Plc 7 April 2023 18
Copyright of Royal Dutch Shell Plc
Public perception of CCS is a potential barrier to the implementation as a CC mitigation technology.
Active public engagement is key to building public understanding
• Public awareness is generally low, the role of CCS is not understood.
• Concerns amongst local communities about project safety
• Environmental and health concerns• Rationale for CCS versus other options, e.g.
Renewables
Demonstration projects have a key role to show safe & responsible operations
ADDRESS PUBLIC WARENESS AND SUPPORT FOR CCSBRINGING THE PUBLIC WITH US
Copyright of Royal Dutch Shell Plc
top related