cslf policy group meeting abu dhabi, united arab emirates ......abu dhabi, united arab emirates. 4....

Summary of CCUS Workshop in Bahrain, February 2017

Deployment of Carbon Capture Use and Storage in the Arab Region

CSLF Policy Group MeetingAbu Dhabi, United Arab Emirates

4th May 2017

Ms. Radia SedaouiChief Energy Section Sustainable Development Policies Division

*: Others include large-scale biomass burning, post-burn decay, peat decay, indirect N2O emissions from non-agricultural emissions of NOx and NH3, Waste, and Solvent Use.Data Source: WRI 2015, IEA 2014,

Global energy-related CO2 emissions

source: IEA WEO2016

Reconciling the tight emissions pathway with Sustainable Development aspirations

15,000 GT CO2 that are still in the ground fromfossil fuels have to remain there.

Reserves Abundance in the Arab Region

Arab Region , 42%

Rest of the World, 58%

OIL PROVED RESERVES AT END 2015

1,697.6 Billion barrels

Arab, 29%

Rest of the World,71%

GAS PROVED RESERVES AT END 2015

187 TCM

Source: OAPEC, BP statistical Review, 2016

Countries in the Arab region exhibit different energy consumption levels,………..but they share their reliance on fossil fuels for energy sufficiency.

© Copyright 2016 ESCWA. All rights reserved. No part of this presentation in all its property may be used or reproduced in any form without a written permission

Historically low rate of energy use and carbon emissions:Arab region constitutes 5% of the world’s populationEmits just under 5% of global carbon emissions

Regional discourse has emerged to address the region’s water scarcity, rapid urbanization, environmental

degradation and the expected impact of global climate change and

sea level rise

Share of Arab countries in total Carbon emission

Copyrights: Carboun 2017


Arab region includes some of the most water scarce countries in the world

2013

© Copyright ESCWA. All rights reserved. No part of this presentation in all its property may be used or reproduced in any form without written permission

Objective:Explore the challenges and theopportunities for wide-scale deployment ofCCUS and examine the side effects of thistechnology for the Arab region in thecontext of international and regionalenvironmental law and economic context.


Participants:Inaugurated by His Excellency Sh. Mohammed binKhalifa bin Ahmed Al-Khalifa, Bahrain’s Minister ofOilOrganised by the UN-ESCWAParticipants/Experts: High level Representation fromMinistry Foreign Affairs, Government Agencies andResearch institutions.Experts from : Arab Group Climate ChangeNegotiators, Al Reyadah, GCCSI, GCF, MasdarInstitute, KAPSARC, Saudi Aramco, Gulf PetrochemicalIndustries Co. Bahrain,…..


Main topics addressed at Manama CCUS Workshop

CCUS GLOBAL Perspective and role for climate response

• Global Status of CCS Development• CCS and the Context of Paris Agreement• Green Climate Fund & Opportunities for financing CCUS Projects

Accelerating CCUS deployment- Challenges and Opportunities

• CCUS Technology Road Map• Using CO2-EOR to reduce CO2 emissions - Assessing the Opportunity • New CO2 Utilization in the Oil and Gas Sector

Obtaining Value from CO2: economic perspective and Experience from GCC Countries

• CCUS in GCC: Economic, Institutional Drivers & Potential Development Paths Post COP22• CCUS R&D Status and Potential for CCUS, Projects & future opportunities in the UAE • UAE Al Reyadah Project• Saudi Arabia’s Efforts in Carbon Management• Middle East’s First Dioxide Recovery (CDR) Plant

CCUS as Platform for Arab regional collaboration


CO2Management

Technology

Economy

Policy

Society

Elements of CO2 Management


CCS is critical in a portfolio of low-carbon technologies


1995 2005 2005 – 2011: 2014 2018Removal and storage of CO2 from fossil fuel power-stations.

Costs, environmental effects and efficacy of such options remain largely unknown.

IPCC Special Report on CCS

Eligibility for CCS projects under KP CDM

• : Ad-hoc Working Group on Durban Platform pre2020 (WS2) Technical Expert Meeting

• CCS is critical to achieve more ambitious climate targets.

• Without CCS, the cost of achieving atmospheric concentrations in the range of 430-480 ppm CO2-eq would be 138% higher.

IPCC will deliver a special report on the impacts of global warming of 1.5°C above pre-industrial levels and relatedGHG pathways.

Strong expectation that CCS, will be a feature of the 2018 IPCC report.

IPCC Special Report on CCS: A major milestone in CC negotiation amidst fluctuating policy support


Intended Nationally Determined Contribution (INDC)Inclusion of CCUS as mitigation measure

INDCs proposed before COP21; CCS accepted as part of future CDM during COP22.

CCS in INDCs: Bahrain, Brazil, Egypt, France, Malawi, Canada, China, Iran, Norway, Saudi Arabia, South Africa, UAE, USA.

Other countries, including China, Australia and Japan did not specifically mention CCS in their pledges, however they have demonstrated significant commitments to developing CCS.

Bahrain, Qatar, Saudi Arabia, and UAE emphasized Decision 24/CP.18 “Economic diversification with mitigation co-benefits” as central pillar of climate action and emphasized financial, technology transfer and capacity building.

Country CCS CO2-EOR

Bahrain X

Kuwait

Oman X

Qatar

Saudi Arabia X X

UAE X

Advanced EOR could potentially produce up to 375 billion barrels.

IEA estimates ranges from 50% to more than three times the amount of total CO2 storage required under the IEA 2DS scenario through 2050.

Opportunities for CO2 storage via EOR are substantial


Large-scale CCS facilities by region or country –January 2017

The availability of CCS in the future depends on investment today. An expanded project pipeline is needed to allow for more new projects to become

operational in 2020 and beyond

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Early Planning Advanced Planning Construction Operation

North America China Europe GCC Rest of the world

The CCUS technology is proven in many applications………. The portfolio of operating projects has grown and diversified


Private and public and investment in large-scale CCS projects


Arab countries are at an early stage of CCS deployment & currently driven primarily with internal rationale versus external incentives

Algeria: the world’s first project closure study opportunity for CO2 Storage and monitoring

Saudi Arabia is home to the region’s first operational large-scale CO2-EOR project

The UAE hosts the world’s first CCS project in the iron and steel sector

The focus of CCS activity in the region is two-fold:

• validate large-scale projects under local conditions• support for R&D activities

Confidence from these programs is a key driver for longer-term deployment

CCUS can be beneficiary for Arab’s economy diversification strategy if carefully structured and adequate policy is in place


Risk allocation Technology

Commercial structure

Capital structure

Most projects have been financed with a combination of grant funding, various forms of incentive payments and shareholder equity.

Industry and governments should explore novel ways of financing CCS projects


CCUS and Green Climate Fund (GCF)

Structure and policies

Resources Availability

Decision making

Can accommodate funding CCUS, if progresswas made to prove its feasibility and demystifyits potential to contribute to global efforts.

It would be a favorable investment given itsreturn on investment and private sectorpotential.

Challenging as it is based on consensus and isheavily opinionated


Charting a policy path to wide deployment of CCS in industrial applications

Strategic Actions to Advance CCS in all Sectors Including CO2 Transport and Storage.

Pilot Demonstration Deployment

2030

Early Deployment Wide Deployment

Low Cost Opportunities: Long

Term Policy

Toda

y Evolving long-term market policy

Continued delivery of next-generation technologies

Collaborative technology development

Evolving long-term market Policy

Key Deep Emission

Cuts

Maintaining and increasing CCUS competitiveness is a long‐term goal…Policy and political support over time are required


Developing clear technological roadmaps for each technology in local applications. Advancing domestic R&D capacity for local CCUS development

Targeted financial incentives for investment are indispensable. New approaches of thinking and business models are important for accelerating CCUS deployment to achieve the ambitions of the Paris Agreement

Long-term commitment and stability in policy frameworks are critical to create a sustainable market and achieve aspirations of CC mitigation

Governments should identify opportunities where policies and local and commercial interests align to encourage CCS deployment, and introduce measures targeted at creating new and strengthening existing markets for clean products with a low CO2 content

Close collaboration to be enhanced between Governments and the industry to ensure that final investment decisions are taken on as many as possible of the projects in development and moving through construction to build experience and foster growth in the industry.

Increase and expand international and regional CCUS co-operation across Research and sharing data for best practices are important for accelerating the future pace of CCUS deployment.

The challenges facing CCUS are well known and must now be addressed with a renewed sense of urgency if global climate goals are to be met

Economic and Social Commission for Western Asia

THANK YOU

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cslf policy group meeting abu dhabi, united arab emirates ......abu dhabi, united arab emirates. 4....

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