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GLOBAL CCS INSTITUTE
UPDATE OF GLOBAL CCS INSTITUE ACTIVITY Bob Pegler, Deputy CEOInternational Zero Emission Coal (IZEC) Symposium 200919 Nov 2009WWW.GLOBALCCSINSTITUTE.COM
GLOBAL CCS INSTITUTE
GLOBAL CCS INSTITUE BACKGROUND
Focus on helping to deliver G8’s goal of +20 large-scale CCS projects prior to 2020
Internationally launched in July 2009 at G8 summit, and invited to work with IEA to accelerate CCS deployment commercially at a magnitude to make a difference
Recent work with Major Economies Forum on Energy and Climate action plan on CCS
Focus on facilitating and accelerating large scale integrated CCS demonstration projects
Recent Members Meeting held in Paris 9-10 November
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GLOBAL CCS INSTITUTE
CCS: A ROADMAP TO 2050
0
2,000
4,000
6,000
8,000
10,000
12,000
2010 2015 2020 2025 2030 2035 2040 2045 2050
Captured
CO
2(M
tCO
2/yr)
OECD PACIFIC
USA
OTHER OECD N AM
OECD EUROPE
ODA
ME
INDIA
EEU + FSU
CSA
CHINA
AFR
2020100 projectsOECD (50%)Non‐OECD (50%)
2030850 projectsOECD (49%)Non‐OECD (51%)
20503,400 projectsOECD (35%)Non‐OECD (65%)
20402,100 projectsOECD (40%)Non‐OECD (60%)
201518 projectsOECD (72%)Non‐OECD (28%)
Source: IEA, CCS Roadmap .
Urgent need for early confidence to deploy CCS post 2020 at the
scale necessary to make a difference – key role
for large scale demonstration
A 2009 View : IEA
GLOBAL CCS INSTITUTE
CCS IS NOT JUST ABOUT ‘CLEAN COAL’– BUT COAL IS THE NUT TO CRACK
Sector contributions in 2050 (MtCO2)
Source: IEA, CCS Roadmap .
GLOBAL CCS INSTITUTE
RECENT WORK LEADING THE WAY WITH VITAL PROJECTS
The Strategic Analysis of the Global Status of CCSA comprehensive audit of the world’s current CCS projects to determine:
Project status The costs involved The impact of the global financial crisis Policy and regulatory frameworks Research and development efforts Commercial and non-commercial gaps in the global deployment of CCS.
Portfolio of CCS ProjectsA key portfolio will include a variety of CCS projects, spanning different technologies and geographic regions, to deliver a comprehensive global approach.A Rationale for Support
CCS ReadyA base line study to establish a clear definition of what it means to be ‘CCS Ready’
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GLOBAL CCS INSTITUTE
OBJECTIVES OF PARIS MEETING
To inform on outcomes of key inputs to the Strategy of the Global CCS Institute• CCS Strategic Analysis (the ‘Stocktake’ of WorleyParsons) • CCS Portfolio Study (the ‘ideal portfolio’ of L.E.K Consulting)
To inform and receive views on • Project Funding and Engagement Strategy• Knowledge Sharing Strategy
To identify areas of active participation for Members in accelerating CCS projects
To give Members the current status of the structure of the Global CCS Institute and additional enabling activities
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GLOBAL CCS INSTITUTE
CURRENT STATUS OF CCS PROJECTS
STRONG BASIS FOR FURTHER ACTION STRONG BASIS FOR FURTHER ACTION
GLOBAL CCS INSTITUTE
CCS PROJECT ASSET LIFECYCLE
Where can the Global CCS Institute make a difference?
Where can the Global CCS Institute make a difference?
GLOBAL CCS INSTITUTE
CCS 2009 ‘STOCKTAKE’ PROJECTS: POSITION BY LIFECYCLE STAGE
Prepared for the Global CCS Institute by WorleyParsonsChallenge is to get projects into implementation Challenge is to get projects into implementation
GLOBAL CCS INSTITUTE
KEY FINDINGS
Storage takes time and can be expensive• Appropriate characterisation of specific sites
Business case for CCS has still not been established• High cost of projects and limited incentives• Limited access to finance• Bridging the gap from demonstration to commercialisation
Regulatory framework uncertain• Liability of storage
Public acceptance of CCS needs to be addressed• Technology and benefits not yet understood
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GLOBAL CCS INSTITUTE
CCS ‘2009 STOCKTAKE’ PROJECTS:PROFILE
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Not all will succeed
Some will be delayed
What can be done toensure maximum success?
Not all will succeed
Some will be delayed
What can be done toensure maximum success?
GLOBAL CCS INSTITUTE
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0 1 2 3 4 5 6 7 8 9 10 11
Power Generation
Iron & Steel
Cement
Refineries
Chemical and Petrochem.
rrous metals (inc. Alum.)
Paper, Pulp & Printing
Food & Tobacco
Bt / y
14.5
3.7
2.6
1.3
1.3
0.4
0.2
0.2
Estimatedemissionsin 2020 (Bt / y)
Largest meeting sectorisa
Net largest sources(smaller, more fragmented)
WORLD CO2 EMISSIONS BY INDUSTRY (2006)
Source: L.E.K. Analysis
GLOBAL CCS INSTITUTE
IDEAL PORTFOLIO OF CCS PROJECTS
Source: L.E.K. Analysis
26 projects overall
Industry and Capture
Power GenerationPre-combustion 4Oxy-combustion 6Post-combustion 7
Iron & Steel 3
Cement 3
Other Industries 3
Minimum of 26 projects
Transport
Point to point pipeline onshore 1
Point to point pipeline offshore 1
Backbone pipeline – cluster 1
Long distance ship – port-to-offshore site or port-to-port 1
Cross-border pipeline 1
Including 5 solutions
Storage
Structured deep saline aquifers 1
Unstructured deep saline aquifers 1
Depleted oil field 1
Depleted gas field 1
Oil field for EOR 1
Gas field for EGR 1
Including 6 configurations
+ Diversification principles to populate projects beyond this number
Different combinations needed to provide confidence
Different combinations needed to provide confidence
GLOBAL CCS INSTITUTE
GCI1¥PRESENTATIONS¥FINAL PRES¥FP_FIGURES FOR FINAL
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Europe JapanPercent
OtherIndiaRussia
+ CISUS + CanadaChina
Note: *Industries selected as priority; **Including other industries, unallocated auto-producer, other energy and fugitive emissions; ***Exc. Polygen;Source: CO2 Emissions from Fuel Combustion IEA© OECD/IEA [2008], IEA Greenhouse Gas R&D Programme, CDIAC, EC-JRC/PBL. EDGAR version 4.0. http://edgar.jrc.ec.europa.eu/ [2009], Worldsteel, L.E.K. Research, Interviews and Analysis
17%29% 14% 10% 5% 5% 20%
0 10020 40 60 800
100
20
40
60
80
Percent
4% 21%7%8%10%13%37%
Estimated share of emissions in 2020
Share of emissions
Power Generation
Other
WORLD CO2 EMISSIONS BY REGION: CCS PROJECT DIVERSITY IS KEY
Iron & SteelCement
GLOBAL CCS INSTITUTE
AIM: GLOBAL CCS PROJECT PORTFOLIO
Gas Processing to Remove Reservoir CO2Minimal capture cost and possible EOR revenueAccess to petroleum storage data and tenure
Coal Gasification for Chemicals or Liquids Minimal capture cost - higher capital cost than gas processingLarge existing CO2 sources in China and South Africa
Coal and Gas Power Projects High capture cost and capital cost Lead time for new storage tenements and exploration
Steel and Cement PlantsHigh capture cost and capital cost Lead time for new storage tenements and exploration
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GLOBAL CCS INSTITUTE
FOCUS OF GLOBAL CCS INSTITUTE ACTIVITY
‘Advanced projects’• Assisting with removal of barriers/blockages
1. Work on specific barriers for individual projects 2. Work to breakthrough common barriers to several
particular projects
Early stage and gap/new projects • Kick start • Generate more
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGYIssues/ Key BarriersProjects
1 2 3 4 ...123....nProject
Resource
JIP Action
External Expertis
eIdentification of Remedy Actions
Specific Project
Application
Global CCS Institute Knowledge Exchange
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGY:
Direct approach • Reactive: response to members/consortia• Proactive: country/region action
In conjunction with Strategic Partnerships• Clinton Climate Initiative • The Climate Group • Asian Development Bank • World Bank
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GLOBAL CCS INSTITUTE
CCS PROJECT FOCUS: APPROACH AND ENGAGEMENT
Global CCS Institute approach: • Open for business • Seeking direct engagement with all CCS commercial sized
projects• Flexible approach reflecting project needs
Global CCS Institute different roles: • Tracker/monitor of the Global Portfolio • Projects enabler/supporter • New project initiator
Assisting CCS projects Breaking through CCS barriers Assisting CCS projects Breaking through CCS barriers
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGY: KNOWLEDGE LINK
Learning by doing critical, in all aspects of a project
IP / knowledge / experience
Global CCS
Institute
Advanced Projects
Early Stage Projects & GapsBest
practiceBest practice
Knowledge Exchange roles
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GLOBAL CCS INSTITUTE
PROJECTS AND KNOWLEDGE SHARING
Project Funding & Engagement Strategy
Project Funding & Engagement Strategy
Knowledge SharingStrategy
Knowledge SharingStrategy
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GLOBAL CCS INSTITUTE
CCS PROJECT APPROACH
Also shaped around the Global CCS Institute budget and organisational structure:
• AUD$30m in direct CCS project support • AUD$30m for indirect CCS project support• Head office in Australia but direct CCS project assistance the focus of
international hubs in Europe, North America and Asia
These factors have shaped focus on target countries and industries for CCS demonstration and deployment
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGY: APPROACH AND ENGAGEMENT
Project Identification
Project Implementation
Project Knowledge
Members
Strategic Partnerships
Regional Offices
Members
Strategic Partnerships
Regional Offices
Individual Projects
Joint Implementation
Partnerships
Project Portfolio Management
Individual Projects
Joint Implementation
Partnerships
Project Portfolio Management
Content
Process
Management
Dissemination
Content
Process
Management
Dissemination
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GLOBAL CCS INSTITUTE
STRATEGY: ORGANISATIONAL IMPACT Matrix Approach
Management of the ‘Portfolio’Management of the ‘Portfolio’
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Financial Commercial Technical Legal and Regulatory
Public Acceptance
Project 1
Project 2
.........
Project n
ProjectLeaders
JIP actions
JIP actions
Teams with appropriate skills established to work with/embed in specific project action
Teams with appropriate skills established to work with/embed in specific project action
GLOBAL CCS INSTITUTE
CAPACITY BUILDING AND OTHER ENABLER ACTIVITIES – KEY PARTNERS
Carbon Sequestration Leadership Forum
World Bank
Asian Development Bank
International Energy Agency
International Energy Forum
Asia Pacific Economic Cooperation
South African National Energy Research Institute
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GLOBAL CCS INSTITUTE
FUTURE ACTIVIES –TWO STREAM STRATERGY
STREAM 1
TAILORED PROJECT SPECIFIC CAPACITY BUILDING PROGRAM
STREAM 2
BROAD CAPACITY BUILDING PROGRAM
Step 1 Identify which projects, in which countries,
the Global CCS Institute wants to focus on Identify countries where the Global CCS Institute wants to focus development
Step 2 Analyse the capacity and capacity gaps of these projects, and the countries they are located in
Analyse the capacity and capacity gaps within these countries/regions
Step 3 Tailor capacity building programs around capacity gaps
Develop a capacity building program for country and/or region
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GLOBAL CCS INSTITUTE
WORK PROGRAM ACTIVIESENABLING ACTIONS ACTIVITY
Activities elevating CCS as a global issue include:
community engagement and public awareness;characterisation of geological storage sites;supporting a global dialogue on ‘CCS Ready’;facilitation of CCS advocacy including development of country specific CCS roadmaps; andstrategic relationships to take forward CCS in the international scene.
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGY: APPROACH AND ENGAGEMENT
Global CCS Institute approach: • ‘Open for business’• Seeking direct engagement with all CCS commercial sized
projects• Flexible approach reflecting project needs
Global CCS Institute different roles: • Tracker/monitor of the Global Portfolio • Projects enabler/supporter • New project initiator
Regular ‘stock take’ updates to monitor progress
Regular ‘stock take’ updates to monitor progress
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GLOBAL CCS INSTITUTE
OVERALL STRATEGY
Enablers
Knowledge
Projects
‘Stocktake’‘Stocktake’ ‘Ideal Portfolio’
‘Ideal Portfolio’
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GLOBAL CCS INSTITUTE
ENDORSEMENT OF PROJECT ENGAGEMENT AND FUNDING STRATEGY SUPPORT
0 10 20 30 40 50
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
Based on returned questionnaires29
GLOBAL CCS INSTITUTE
OVERALL MEETING OBJECTIVES –ACHIEVED
Given a greater insight into the position of CCS projects worldwide and the targets we need to aspire to
Provided greater understanding and support for the Global CCS Institute’s Project Funding and Engagement Strategy and Knowledge Sharing Strategy
Indication of a greater membership participation, engagement andinteraction and where this can be done ....... a good basis on which to build
• Provided understanding of the status of the Global CCS Instituteincluding its other activities and governance structure
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GLOBAL CCS INSTITUTE
CCS FORWARD HORIZONS
CCS ACTION
20252010 2015 2020
I -FOUNDATION
I -FOUNDATION
II - LARGE SCALE DEMONSTRATION II - LARGE SCALE DEMONSTRATION
III – COMMERCIAL DEPLOYMENT
III – COMMERCIAL DEPLOYMENT
Key initial focus for the Global CCS Institute
Key initial focus for the Global CCS Institute
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGY:FUNDING SUPPORT
Principles that will inform the application process:
Knowledge Sharing – mandatory
Overcoming Barriers – all have challenges
Diversification – limited duplication desirable
Timeliness – speed
Project ‘Pipeline’ – encourage and develop
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGY: APPLICATION PROCESS
Project Submissions
Member Consortia Outside Consortia
Global CCS Institute
Assessment
TAC Review
Board Approval
Rolling Process
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GLOBAL CCS INSTITUTE
CCS PROJECT STRATEGY: APPLICATION PROCESS
Funding application process which will be available at www.globalccsinstitute.com
Main mechanism is this application process – open, rolling and ongoing
First cohort of funding will be from applications received by 31 December 2009 and will be committed in the first half of 2010
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GLOBAL CCS INSTITUTE
2010 MEETINGS
10-11 May 2010, Australia • Members Meeting
11-12 October 2010 • North America – most likely New York • Annual General Meeting
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GLOBAL CCS INSTITUTE
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www.globalccsinstitute.com