The document is a presentation by Judith Shapiro from the Carbon Capture & Storage Association (CCSA) about the state of carbon capture and storage (CCS) and the CCSA's perspective. It provides an overview of the CCSA, discusses developments in 2011 and expectations for 2012, and outlines the CCSA's strategy to achieve 20-30 gigawatts of CCS by 2030 in the UK. It also covers costs of CCS, opportunities it presents, and some key issues still facing wide adoption of CCS.

1. What next for CCS –
CCSA perspective
Judith Shapiro
The Carbon Capture
& Storage Association
UKCCSC Early Career Winter
School, Cambridge
Thursday 12th January 2012

2. Agenda
• The CCSA
• 2011 – what happened
• 2012 – what to expect
• CCSA Strategy
• Opportunities
• Key issues
www.ccsassociation.org info@ccsassociation.org

3. What is the CCSA?
It is:
A Business Association formed in the UK to represent the interests
of its members in promoting the business of geo-CCS wherever
opportunities may exist, as well as assisting policy developments in
the UK, EU and internationally towards a long-term regulatory
framework for CCS, as a cost-effective means of abating CO2
emissions
It is not:
A technical forum, a professional institute or an environmental or
climate campaign group.
www.ccsassociation.org info@ccsassociation.org

4. Vertical slice of policy
influence
• UK
• Europe
• International
www.ccsassociation.org info@ccsassociation.org

5. CCSA Members (74)
2Co Energy ConocoPhillips MMI Engineering Scottish Enterprise
Air Liquide Costain N8 Scottish European
Air Products DNV Nottingham Centre for Green Energy Centre
Aker Clean Carbon Doosan Power CCS ScottishPower
Drax Power
Allen & Overy Durham University National Grid Senergy
Alstom Power EDF Energy National Physical SGS United Kingdom
AMEC EON Laboratory Shell
Anthony Veder Group ERM Norton Rose Siemens
Arup ESB Peel Energy Statoil
BG Group Fluor Perenco Tata Steel
BOC Gassnova Petrofac Tees Valley Unlimited
BP GDF Suez CO2DeepStore Total
Calix GE Energy Poyry Vattenfall
Herbert Smith
Camco International Howden Group Progressive Energy Wood Group Energy
CCS TLM Jacobs Engineering PWC Zurich
Chevron Linklaters Rhead Group
Clean Energy Group Lloyd’s Register Rio Tinto
CMS Cameron Maersk Oil & Gas RPS
McKenna Masdar Sasol
CO2 Sense (Yorkshire) Mitsubishi Heavy Schlumberger
CO2Tech Centre Industries Scottish Carbon
Mongstad Capture & Storage
www.ccsassociation.org info@ccsassociation.org

6. 2011 – what happened
A turbulent year:
 Demo 1 not proceeding
 Funding
 Delays
…But:
 Ferrybridge CC Pilot 100+
 Demo 1 Feed studies
 Electricity Market Reform
 CCS in CDM
www.ccsassociation.org info@ccsassociation.org

7. Electricity Market Reform
• Feed in Tariff Contract for Difference
 CCS on equal footing other low-carbon
technologies
 World’s first mechanism to incentivise CCS beyond
demonstrations
 Transitional arrangements
• Carbon Price Floor
 £30/tCO2 (2020)
 £70/tCO2 (2030)
• Emissions Performance Standard
 Set at 450g CO2/kWh
• Capacity payments
www.ccsassociation.org info@ccsassociation.org

8. 2012 – what to expect (1)
Launch of Demo programme
Aim: cost-competitive CCS in the 2020s
(comparable to other low carbon technologies)
 Projects operational 2016-2020
 Flexible approach
 Consideration of part-projects and cluster (+ industrial)
 Contract signature within 6-9 months
what’s still on the table?
 £1bn reallocated
 EMR (FiT CfD)
 NER300
 £125m CCS R&D Programme
www.ccsassociation.org info@ccsassociation.org

9. 2012 – what to expect (2)
CCS Roadmap – Published Q1 2012
www.ccsassociation.org info@ccsassociation.org

10. 2012 – what to expect (3)
• More clarity on EMR FiT CfD
• NER300
 Selection process to conclude 2H 2012
 12 CCS projects submitted in total (6 from UK)
Challenges (NER300)
 Taking longer to implement than expected
 Uncertainty over level of support; EUA price & MS support
 Number of early projects delayed
www.ccsassociation.org info@ccsassociation.org

11. CCSA Strategy
•Launched 8th September 2011
•Sets out CCS industry view on
the ambition for CCS to reach
2030 decarbonisation of the
power sector
•How to get from Demos to
commercial roll-out of CCS in
the 2020s
•Download from CCSA website:
http://www.ccsassociation.org/
www.ccsassociation.org info@ccsassociation.org

12. CCSA Strategy - Ambition
• UK Climate Change targets:
Reduce GHG emissions by at least 34% by 2020
Reduce GHG emissions by at least 80% by 2050
• Committee on Climate Change (CCC) recommends decarbonised power
sector by 2030
• 70GW of low carbon electricity required by 2030
• EMR noted 1/3 of electricity from renewables by 2030.
Remaining 2/3 should be met by nuclear, CCS abated fossil fuels and some
unabated fossil fuels.
CCSA therefore believes 20-30 GW CCS by 2030 is an
appropriate ambition
www.ccsassociation.org info@ccsassociation.org

13. Trajectory
25
UK target
20 GW by 2030
20
CCS in operation (GW)
15
10
UK
Demos
1-4
5
1.6 GW in 7
yrs
0
2015 2020 2025 2030
www.ccsassociation.org info@ccsassociation.org

14. Trajectory – ‘Progressive Roll-Out’
UK target
20 GW by 2030
25 3GW/yr
All Regional
networks
20 initiated by
Large scale
CCS in operation (GW)
2025
Initial projects will storage in saline
enable networks formations as well
2 -4 networks as depleted gas
to de-risk and
established by fields likely to be
15 lower costs of
2020 & 2GW/yr needed by 2020
further projects
Retrofits
underway
10
Many
industrial
CCS
projects
5 1GW/yr First industrial
underway
CCS Demo
by 2025
1.6 GW in 7 yrs before 2020
0
2015 2020 2025 2030
www.ccsassociation.org info@ccsassociation.org

15. Costs of CCS – Power
• Latest levelised COE data show CCS
with gas or coal to be a competitive low
carbon electricity option
• CCS Investment costs (£1-2Bn/GW)
are lower than nuclear (£3Bn/GW) or
offshore wind (£7 Bn/GW)
•CCS is reliable and flexible, and able to
complement nuclear and renewables
•CCS causes much less of an increase
on Overall System costs (grid,
interconnectors, back-up) than
alternatives (+15% vs +40%)
•Source: Committee on Climate Change.
•CCC Calculations based on Mott MacDonald (2011)
Costs of low carbon generation technologies
www.ccsassociation.org info@ccsassociation.org

16. Costs of CCS - Industrial
• Industrial CCS costs
between 20 and 100
USD/t
•There is rarely a
renewable alternative
•Some of these costs
are less than the ETS
carbon price floor* so
CCS may be a cheaper
option than buying
certificates
•*UK Carbon Price Floor will be
£70 (113$ ) in 2030
Source: DECC Clean Coal industrial Strategy based on IEA Technology Roadmap for CCS
www.ccsassociation.org info@ccsassociation.org

17. Opportunities
Total Jobs
300,000
UK plc business could be valued at
250,000
more than £10Bn/yr by 2025
Potentially more
than 50,000 jobs
Jobs (manyears)
200,000
in UK by 2035
150,000
Potentially more
than 20,000 jobs
in UK by 2020
100,000
50,000
0
11
13
15
17
19
21
23
25
27
29
31
33
35
37
39
41
43
45
47
49
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
20
UK Possibly UK Non UK Source : IPA Scotland
www.ccsassociation.org info@ccsassociation.org

18. Key Issues
• Infrastructure
 Right-sized infrastructure (transport and storage)
 Cluster/network solutions
 Power and industrial
• Industrial
 Increasing costs of climate change policies
 Few alternative options
 Maintaining UK competitiveness
• Storage
• Regulations
 Third Party Access, Marine Planning, Petroleum to CCS licence transition,
Financial Security provisions…
www.ccsassociation.org info@ccsassociation.org

19. Contact
Judith Shapiro
Policy & Communications Manager
The Carbon Capture & Storage Association
Suites 142-152
Grosvenor Gardens House
35/37 Grosvenor Gardens
London, SW1W 0BS
United Kingdom
Tel: +44 (0) 20 7821 0528
Mob: +44 (0) 7719 763 133
Email: judith.shapiro@ccsassociation.org
Website: www.ccsassociation.org
www.ccsassociation.org info@ccsassociation.org