1. GCCSi Member Meeting
May 2012
UK CCS Demonstration Competition 1
FEED Studies Knowledge Transfer and Lessons Learned
Louise Barr
Office of Carbon Capture and Storage
Department of Energy & Climate Change

3. Introduction to Demo 1 FEED
2007 2011

4. Introduction to the projects
Kingsnorth-Hewett (E.ON)
DawnDierdre
Deborah
Delilah
Big Dotty
Della
Pr
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Hewett
Little
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3kms 0-
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5. Introduction to the projects
Longannet-Goldeneye (SPC)

6. Key findings from the FEED studies
o Capture plant
o CO2 conditioning and compression
o Pipelines
o Offshore facilities and wells
o Store and complex
o External environment
o Full chain

7. Capture plant
Examples of key takeaways
• Strong end-to-end flow analysis is required of the
impact of power station and capture plant flexibility on the
CCS chain
• Integrating capture and power plant to optimise heat
efficiency introduces many complicating factors
• Retrofitting CCS to existing plant adds further
complications with or without heat integration
• Scale up projects will confirm confidence in chemistry
(e.g. amine degradation products). Levels are so low they
are very difficult to detect in small scale pilots

8. Pipelines
Examples of key takeaways
• New pipeline construction is business as usual but
is still challenging in crowded waterways
• Pipeline re-use has advantages but requires
significant analysis
• The operations aspects of managing CO2 phase
changes are complex - detailed and integrated end-
to-end system analysis is essential
• Risk of a running ductile fracture can be managed
• Gas transport usually benefits from “free” energy in
reservoirs - energy needed for CCS transport is not
free

9. Store & Complex
Examples of key takeaways
• Substantial new subsurface modelling work (in store and
complex) is required, even for mature fields
• The selection of an appropriate measurement, monitoring
and verification approach is highly situation specific
– Expect early „over-instrumentation‟, with simplification as
confidence is gained (by both developers and regulators)
• It is possible to assure existing well integrity though there
are challenges
– Confidence in integrity of inherited infrastructure is lower
than that which is self-built/ operated (for example different
assumptions regarding well cement)
– Data availability and quality on third party wells is also key
to assurance

10. External environment
Examples of key takeaways
• The FEEDs advanced CCS consenting „case studies‟ significantly and informed CCS
legislation and regulatory development
• Full CCS chain requires enormous consenting effort (though not much is CO2
specific)
• Specific consenting and regulatory responsibilities can be split along the chain with
Consortium Partners responsible for their own detailed messaging. However, Capture,
transportation and storage should always be bundled together into a full chain story
for stakeholders.
• Early engagement with local communities
• Obtaining key consents and avoiding adverse public reaction remained in top post-
FEED risks for both projects

11. Full chain
Examples of key takeaways
• FEED narrowed cost estimates significantly
Capex Cost Range
£m
2,000
1,800
1,600
1,400
1,200
1,000
800
600
Outline Solution FEED

12. Full chain
Examples of key takeaways
• FEED reduces risk significantly
Risk Score
4000
3800
3600
3400
3200
Total Risk
3000
Values
2800
2600
2400
2200
2000
May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11
(Baseline)
Month

13. Demo 1 FEEDs
Examples of key takeaways
• The two Demo 1 FEEDs show that CCS at scale is technically feasible,
although economic, regulatory & commercial challenges remain.
• FEED for a CCS chain is really 4 FEEDs (one for each component part
plus a chain integration FEED) and takes a huge amount of effort from a
wide variety of skill sets and experiences as well as Regulators
• FEED is essential to allow decision makers (Government, Developers,
Regulators) to get comfortable with the risks (cost, schedule and scope
delivery)
• The Knowledge Transfer from the FEEDs should help accelerate CCS
deployment – with the insights from the Demo 1 FEEDS, future FEEDs
should be able to focus quicker

14. Lessons Learned
Objectives & Communication
Clarity of the commercial position (risks and the financial envelope)
• Available funds and funding mechanisms
• Allows earlier identification of potential showstoppers
Risk allocation
• Risk to be placed where it can most effectively be managed
Clear and frequent communication
• DECC and industry to invest time better to understand each other's
organisations early in the procurement process and identify aspects that
may cause problems in working together
Modest investment in FEED in first demonstration project; created shared view of risk
envelope and reduced cost uncertainty.

15. Lessons Learned
Working together to a solution
Collaborative solution development
• Early market engagement to shape procurement and prepare market for proposals
stage
• It is important to maintain competitive pressure, to deliver value for the taxpayer
and electricity consumer but also allow industry a far greater role in shaping CCS
solutions
• Build both DECC / Industry / Investor confidence in Programme
Procurement Tempo
• First demonstrator project was extended / protracted.
– this increased procurement costs and vulnerability to external events
• Need to agree a realistic programme and adhere to it
Knowledge Transfer
• A key deliverable. If possible share knowledge as it is created, where
commercially sound to do so.
• Clarity in difference between Knowledge and Intellectual Property

16. GCCSi Member Meeting
May 2012
Thank you