The UK is pursuing carbon capture and storage (CCS) as a key part of its efforts to decarbonize its economy and energy sector while maintaining energy security and affordability. It has a comprehensive CCS program that includes a £1 billion capital competition to fund initial CCS projects, support for ongoing costs through contracts-for-difference, research and development funding to reduce costs, and international collaboration on knowledge sharing. The program aims to make CCS-equipped power plants cost competitive with other low-carbon technologies and establish CCS as a major part of the UK's low-carbon energy mix by 2030 and beyond.

1. UK CCS Programme
Ashley Ibbett
Chief Executive and Director
Office of Carbon Capture and Storage

2. UK Energy Challenge
Ensuring secure supplies
Tackling climate
change
Maintaining affordability

3. Starting from a challenging position
Electricity
Generated
From
2012
TWh
%
change
on a
year
earlier
Coal 142.8 +31.5
Gas 99.7 -32.1
Nuclear 70.4 +2.1
Renewables 41.1 +19.6
Total 363.2 -1.3
In 2012, coal accounted for
39.3 per cent of generation,
its highest share since 1996
0%
10%
20%
30%
40%
50%
60%
01/04/2012
01/05/2012
31/05/2012
30/06/2012
30/07/2012
29/08/2012
28/09/2012
28/10/2012
27/11/2012
27/12/2012
26/01/2013
25/02/2013
27/03/2013
PercentageofOverallGBSupplies
Percentage Coal Percentage Gas
Coal
Nuclear
Gas
Renewables
Electricity Generated 2012 (TWh)
39.3%
27.5%
19.4%
11.3%

4. Cost effective decarbonisation
1444444
“Successfully deploying carbon
capture and storage would be a
huge economic prize for the UK in
its low carbon transition, cutting the
annual cost of meeting our carbon
targets by up to 1% of GDP by
2050”
- ETI / Ecofin 2012
2030 2050
40GW
13GW
CCS
Projections

5. UK CCS Programme
CCS
Commercialisation
Programme
R&D and
Innovation
Electricity
Market Reform
Intervention to
address key
barriers
International
Collaboration

6. Asks
£1bn CCS Competition
Construction and commissioning
Summer
2013
Early
2015 c. 2018
Winter
2012
April
2012
March
2013
Desired outcome:
“as a result of the
intervention, private
sector electricity
companies can take
investment decisions
to build CCS
equipped fossil-fuel
power stations, in the
early 2020s, without
Government capital
subsidy, at an agreed
CfD strike price that is
competitive with the
strike prices for other
low carbon
generation
technologies.”
Objective and timeline

7. £1bn Competition – Preferred Bidders
Peterhead
o A 340MW Post-combustion capture
retrofitted to part of an existing Combined
Cycle Gas Turbine power station at
Peterhead, Scotland.
o Storage offshore in Goldeneye depleted
gas field.
o Led by Shell and SSE.
White Rose
o An Oxyfuel capture project at a proposed
new 304MW fully abated supercritical coal-
fired power station on the Drax site in North
Yorkshire.
o Led by Alstom and involving Drax, BOC
and National Grid Carbon.

8. £1bn Competition – Reserve Bidders
Teeside Low Carbon
o Decarbonised syngas in new 330MWe net
CCGT, coal-based.
o Located on Teesside, North East England
with storage in depleted oil fields and a
saline aquifer.
o Proposed through a consortium led by
Progressive Energy involving GDF
SUEZ, Premier Oil, and BOC.
Captain Clean Energy
o A proposal for a new 570MW, fully abated
coal IGCC (pre-combustion) project.
o Located in Grangemouth, Scotland with
storage in offshore depleted gas fields.
o Led by Summit Power, with
Petrofac, National Grid and Siemens.

9. Electricity Market Reform (EMR)
• Long-term contracts that
reflect the value of low
carbon generation
• Feed-in Tariff Contract for
Difference
• A proposed Capacity
Mechanism
• A Carbon Price Floor
• An Emissions Performance
Standard
• £7.6bn Levy Control
Framework (LCF) in 2020/21
Government
Sets overall policy direction and sets out key parameters
System operator (National Grid)
Will advise government on contract parameters and administer the
arrangements
Investment in low-carbon generation also supported by
Carbon Price Floor & Emissions Performance Standard
Contracts to develop low carbon
generation –
contracts for difference
Market wide capacity contracts:
open to all forms of capacity
Existing wholesale market (plus small scale FiTs)
UK EMR Programme includes:

10. n
Contracts for Difference (CfDs)
Providing long term price stability
• CfD provides long-term revenue stability, lowering risk to
investors and costs to consumers
• Generator sells power, but receives a „top-up‟ payment
• Top-up pays the difference between the „Strike Price‟ and
the market price:
• Generator paid when market price below strike price
• But, generator pays back when market price is high

11. Triple lock
NPS, CPF and EPS
• National Policy Statement
for Energy (NPS) - No new
coal without CCS (min
300MW)
• Carbon Price Floor (CPF)
provides a stronger
carbon price to promote
investment in low-carbon
generation
• Emissions Performance
Standard (EPS) – 450g
CO2/kWh limit on carbon
emissions
• Long-term certainty
(“grandfathering” of limit
to 2045) for consented
plant
• Reviewed in the future –
first review by end 2015
EPS
SourceHMTreasury2011
Carbon Price Floor Illustration

12. Innovation

13. Asks
Research and Development Projects – Some Examples
NASCOM - Nanoscale Gravity Sensors
for Monitoring CO2 Storage (NASCOM)
o Project aims to develop an innovative
gravity imaging sensor system capable of
making quantitative measurements of CO2
volume in storage sites and which can be
deployed down reservoir boreholes.
Project aims are to reduce the cost of
CCS through superior solvent
engineering
o Novel amine free solvents
o Results verified at small scale absorption
and distillation pre pilot scale set-up 10 kg
CO2/day
o Applications for capture of CO2 from
large-scale point sources including power
stations, steel and cement production,
and fermentation
C-Capture:
Step Change
Solvent Technology
for CCS

14. CCS Cost Reduction Task Force
• Established Cost Reduction Task
Force to advise Government and
Industry on reducing the cost of
CCS.
• Their analysis found that UK gas and
coal power stations equipped with
CCS have clear potential to be cost
competitive with other forms of low-
carbon power generation.
• Final report published May 2013
recommending actions for
Government and Industry and the
creation of new groups to drive
forward action.
CCS Cost Reduction
Task Force
https://www.gov.uk/government/policy-advisory-
groups/ccs-cost-reduction-task-force
or
http://tinyurl.com/crtf2013

15. International engagement
Key principles
• Sharing knowledge
• Learning from others
• Regional, bilateral and multilateral
engagement

16. o UK Committed to decarbonising its economy and developing
a low carbon energy mix
o CCS is one of the central pillars of our energy policy
o Flagship £1bn CCS Competition which is progressing well
o But recognise that capital funding alone isn‟t enough
o Comprehensive programme to drive forward CCS, including
support for OpEx through CfDs, R&D funding and knowledge
transfer
Conclusion