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CCS Global Status Report 2018

The document discusses the status of carbon capture and storage (CCS) technology in 2018. It argues that CCS is essential to meeting climate goals under the Paris Agreement. In 2018, several governments took actions to support CCS, including establishing a CCUS Council in the UK and passing legislation to support CCS projects in the US. China also advanced many CCS facilities. However, more work is still needed as over 200,000 MW of new coal power capacity was built worldwide in 2018, increasing climate challenges. CCS remains the best technology for decarbonizing coal facilities and is key to a clean energy future and jobs.

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Liang Yann YUAN
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0% found this document useful (0 votes)
57 views84 pages

CCS Global Status Report 2018

The document discusses the status of carbon capture and storage (CCS) technology in 2018. It argues that CCS is essential to meeting climate goals under the Paris Agreement. In 2018, several governments took actions to support CCS, including establishing a CCUS Council in the UK and passing legislation to support CCS projects in the US. China also advanced many CCS facilities. However, more work is still needed as over 200,000 MW of new coal power capacity was built worldwide in 2018, increasing climate challenges. CCS remains the best technology for decarbonizing coal facilities and is key to a clean energy future and jobs.

Uploaded by

Liang Yann YUAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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The

Global Status
of CCS
2018
Currently, the world is way
off track in meeting the Paris
Agreement climate goals.
It cannot get back on track
without CCS.

TH E G LO BA L S TATU S O F CC S 2
About Us About this Report
What’s inside

The Global CCS Institute The Global Status of CCS Report


(the Institute) is the world’s leading 2018 documents the status of CCS
authority on carbon capture and around the world and significant
storage (CCS) – an international operational milestones over the
climate change organisation past 12 months. It demystifies
whose mission is to accelerate common misunderstandings
the deployment of CCS as an about the technology and identifies
imperative technology in tackling where and how it can, and must,
climate change and providing be more widely deployed. It also
energy security. tracks the worldwide progress
of CCS technologies and the key
The Institute drives this adoption by
opportunities and challenges
sharing expertise, building capacity
CCS faces.
and providing information, advice
and advocacy to ensure this clean With commentary from leaders
technology plays its rightful role in and luminaries from across the
reducing greenhouse gas emissions. climate change echelon, this report
makes an indelible case for CCS as
The Institute’s large and diverse
an indispensable climate change
international membership includes
solution. It is an invaluable resource
governments, global corporations,
for governments, policymakers,
private companies, research bodies,
scientists, academics, media
academic institutions, and non-
commentators and the millions of
government organisations,
people who care about our climate and
all of whom are committed to
want to take the heat out of our planet.
CCS as an integral part of a clean
energy future. You can download the full report
from the Institute’s website at
www.globalccsinstitute.com.

CO NTE NTS TH E G LO BA L S TATU S O F CC S 3


Brad Page
CHIEF EXECUTIVE OFFICER Global CCS Institute

I think it is likely that when we look back in a


few years, 2018 may well go down as the year
when the stars started to again align for CCS.
An After the celebration of the Paris Agreement in
2015 turned to the hard work of delivery, it has
IMPACTFUL become increasingly clear that the world will need
YEAR all the technologies, mechanisms and approaches
across all fronts
available to curb ever-increasing emissions. In
this past year, and for the first time in quite a long
time, we have seen decisive action from a number
of governments to include CCS in their armoury.

FO R E WO R D TH E G LO BA L S TATU S O F CC S 4
CCS has proven itself real,
happening and here to stay.

Significantly, the policy confidence we have In China, where no less than 30 different facilities But the big message now is that CCS is the conduit For me, one of the most piercing comments comes
sought for so long has started to materialise. advanced into various stages of development to a new energy economy. from 17-year old Australian Polar explorer, Jade
during the year, commitment to this technology Hameister, who has seen the effects of climate
In the United States a bi-partisan law – the As a seminal video released this year by the
is fast-growing as national, regional and change first hand. She says:
FUTURE Act – was enacted reinvigorating International Brotherhood of Boilermakers
municipal governments embrace CCS and
section 45Q tax credits for investment in Carbon powerfully makes the case, CCS is central to “Carbon capture and storage is one of the stand-
make it part of their long term strategic plans.
Capture Utilisation and Storage (CCUS). This was delivering well-paying jobs, reinvigorating out technologies that exists today that will form
a significant win for the stimulation of new CCUS Norway and the Netherlands, saw Governments regional communities and providing low-carbon part of the solution, and one that must pursued
projects across the United States and addressed recommit to CCS and project proponents are materials and services. Further evidence of as if our lives depend on it – because they do.”
the importance of introducing what is essentially a responding. The Norwegian government has this is in the early development by a Japanese
In the past year, countries have been incentivising
carbon value to drive investment in energy security committed to advance its large-scale full chain consortium partnering with Australian
investment, industry has accelerated deployment,
and emissions reductions. industry-based CCS development and the Port governments and industry to launch a pilot
new innovations have been unveiled, and new
of Rotterdam CCS Backbone Initiative has hydrogen supply chain project gasifying Latrobe
In the United Kingdom, Minister of State for Energy energy economies have emerged.
embarked on the large-scale decarbonisation Valley lignite. If successful, this is expected
and Clean Growth, the Rt Hon Claire Perry,
of refining, power and petrochemical clusters. to lead to a commercial plant applying CCS to CCS has proven itself as real, happening and
established a dedicated CCUS Council to examine
produce clean hydrogen. The benefits to the coal- here to stay.
ways of returning the UK to a CCS leadership As coal as a fuel source grabs headlines and
rich Latrobe Valley region are enormous in terms It has been an impactful year in every sense
position as a central plank of the Clean Growth prompts hot debate, we need to remember
of jobs, economic and technology development. of the word.
Strategy. I have the honour of sitting on the that more than 200,000 MW of new coal-fired
Council and in a short time the Council and the generation capacity is in construction around the In 2018, more and more people started to
related Cost Challenge Taskforce have clearly world, none of which will close in a short period recognise CCS for its cumulative capacity to
identified the huge clean growth opportunities and all of which will add very significantly to mitigate climate change. BRAD PAGE
available to the UK if full-scale industrial hub the climate change challenge. CCS is the only Chief Executive Officer
Our 2018 Status Report is populated with
and cluster projects, which draw on the North technology that can truly decarbonise these
supporting comments from broad constituency
Sea’s vast storage capacity, are progressed. facilities and remains a vital technology for
who understand that tackling climate change
addressing electricity sector emissions.
and meeting Paris targets can only be achieved
by embracing a complete cache of clean solutions
of which CCS must be one.

FO R E WO R D TH E G LO BA L S TATU S O F CC S 5
Polar
EXPLORER

JADE, AGED 16, PULLING HER SLED OVER SASTRUGI ON THE WAY TO THE SOUTH POLE (DECEMBER 2017). CREDIT – ERIC PHILIPS/ICETREK.COM A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 6
Jade Hameister
YOUNGEST PERSON TO SKI TO THE NORTH POLE (AGE 14)
YOUNGEST WOMAN TO COMPLETE THE 550KM TRAVERSE OF THE GREENLAND ICECAP (AGE 15)
YOUNGEST PERSON TO SKI FROM COAST OF ANTARCTICA TO SOUTH POLE (AGE 16)
ONE OF ONLY THREE WOMEN IN HISTORY TO SKI A NEW ROUTE TO SOUTH POLE
All expeditions were unsupported and unassisted.

Carbon capture and storage is one of the stand-


out technologies that exists today. It will form
part of the solution, and must be pursued as if
our lives depend on it – because they do.

A stand-out technology that must be pursued.


Having just turned 17, I am no expert on the science of global warming, but I am likely
the only person on the planet of my generation to have had the privilege of first-hand
experience in Earth’s three main polar regions – skiing to the North Pole, the South Pole
and crossing Greenland’s icecap. Journeys that saw me cover a total of around 1,300 km
JADE, AGED 14, ON THE WAY TO THE NORTH POLE (MAY 2016). CREDIT – ERIC PHILIPS/ICETREK.COM in 80 days.
I was witness to the tragic damage global warming is doing to these incredibly
beautiful and fragile environments.
I now feel a deep emotional connection with our planet Earth and a responsibility
to play my part in addressing climate change before it’s too late.

We still have a For the first time in the history of our species, we have one common threat against
which we must all act as one.

FIGHTING My generation will inherit this great threat of global warming and the political decisions of
today’s leaders. Please give us a platform from which we can still achieve a positive outcome.

CHANCE
I am confident that my generation will have the technology, the passion and the unified
movement to make a meaningful difference, but it’s up to current world leaders to make
sure we still have a fighting chance.
Urgent investment and support for the development of clean technologies is critical.

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 7
At a glance: the business case for CCS

1 Paris climate change targets cannot


be reached without CCS. 2 CCS is the only clean technology capable
of decarbonising major industry.
BECCS: Bioenergy with carbon capture and
storage offers large-scale negative emissions
(carbon removal) where CO2 emissions are
4 CCS creates jobs and
sustains communities.

Internationally recognised evidence by specialist International climate change experts such as The clean energy revolution can create new
removed from the atmosphere through the
climate change bodies concur that international the Intergovernmental Panel on Climate Change employment and economic opportunities for
application of CCS to the transformation of trees
climate change targets cannot be achieved (IPCC) and IEA confirm that CCS is the only entire communities through the provision
and crops into energy fuels. The CO2 capture at
without CCS. mitigation technology able to decarbonise large of services including project management,
Arkalon and Bonanza ethanol plants in Kansas,
industrial sectors, particularly the gigantic steel, engineering, finance, legal and environmental
International Energy Agency (IEA) findings and CO2 storage in enhanced oil recovery, as well
cement, fertiliser and petrochemical industries. roles. It will also add value through the
maintain that to reach Paris climate targets of as Illinois Industrial CCS are well-known BECCS
manufacture of CCS componentry (such as
2˚C by 2060, 14 per cent of cumulative emission operations in the US.
reductions must derive from CCS. In the
transition between the 2˚C scenario (2DS) to
3 CCS is the conduit to a new energy
economy of hydrogen production,
bioenergy with CCS (BECCS), direct air
DAC: Direct air capture, whereby CO2 is removed
directly from the atmosphere through the use
boilers and turbines), construction of new CCS
facilities, low-carbon fuel supply chain and
CO2 infrastructure development, notably CO2
the beyond 2˚C scenario (B2DS), this rises to
capture (DAC) and carbon to value (C2V), of capture technologies that bind or “stick” to pipelines and related transport facilities.
32 per cent.
representing a raft of CO 2 reuse applications. CO2, is operating successfully at Zurich-based
Early deployment of CCS, especially retrofits,
Despite this, there are not nearly enough facilities Climeworks, Canada’s Carbon Engineering (CE),
Hydrogen: Several CCS clean hydrogen avoids early retirement of productive assets,
coming onstream. To reach the Paris 2˚C target, and Global Thermostat in the US.
initiatives are at the planning and feasibility keeping people in employment.
more than 2,500 facilities need to be operating by
stages in Europe – Hydrogen 2 Magnum (H2M) C2V: CO2 is being innovatively used to
2040 (based on a facility with capture capacity of

5
in the Netherlands, H21 North of England, manufacture new C2V products, including There is abundant storage capacity to
1.5 million tonnes per annum (Mtpa) of carbon
Hynet North West, Ervia Cork CCS, HyDeploy fertiliser feedstock (SABIC in Saudi Arabia), soda support widespread CCS development.
dioxide (CO2)).
in the UK. In Australia, the Hydrogen Energy ash (Carbon Clean Solutions in India), foams used
in mattresses and upholstered furniture (Cavestro With abundant underground storage resources
Supply Chain is paving the way towards CCS
in Germany), bricks and cement (Australia’s at our disposal, storage remains a practical and
enabled hydrogen production.
Mineral Carbonation International), it is acid gas logical CO2 mitigation solution. Most of the
injection with subsequent CO2 storage. world’s key CO2 storage locations have been well
assessed, and almost every high-emitting nation
has demonstrated substantial storage potential.
Detailed surveys have been undertaken in many
countries, including the US, Canada, Australia,
Japan, China, Norway and the UK, where
potential storage sites are well defined and
well documented.

TH E B U S I N E S S CA S E FO R CC S TH E G LO BA L S TATU S O F CC S 8
6 CCS is cost effective and costs continue to
decrease as more facilities commercialise. 7 CCS has been working safely and
effectively for 45 years. There are
now 18 large-scale facilities in commercial
8 CCS is the only technology
capable of effectively
eliminating fossil fuel emissions.
10 Policy confidence is needed
to sustain investment in CCS.

CCS is often criticised as being high-cost CCS requires clear timeframes, and an
operation around the world.
compared to wind or solar because the CCS is a pragmatic technology with wide understanding of how carbon values change
comparison uses the levelised cost of electricity Monitoring undertaken since the Val Verde application enabling it to reconcile our over time. It also requires clarity regarding
(LCOE) as its measure. This is an incomplete CCS facility began operating in Texas in 1972 current fossil fuel dependence. This is the eligibility (who can access it).
and inaccurate comparison, however, because demonstrates that CO2 can be safely stored only technology able to curtail emissions
Specific policy confidence
it does not measure total cost of generation, deep below ground. Oil, gas and naturally from the more than 500 new coal plants
apparatus/mechanisms are:
which includes transmission, distribution, occurring CO2 reservoirs have proven that fluids currently being built around the world
system reliability and resilience. can be safely sealed underground for millions (and the additional 1,000 in planning). • economy-wide market reduction
of years. CCS projects target the same kinds of targets, including nationally
Another major influence of cost is the carbon- CCS’s ability to retrofit keeps jobs and
geological structures. determined contributions (NDCs)
emitting industry to which it is being applied and economies alive as the world transitions
where it is located (that is, whether it is near an The world’s 18 large-scale facilities are already to a low-carbon future. • CCS-specific legal and regulatory
underground storage site or if it is geographically capturing almost 40 Mtpa of CO2, and a total regimes that address all aspects of

9
stranded). Other CCS cost determinants are: of over 230 Mt of CO2 has been safely injected CCS complements renewables, striding the project lifecycle
underground to date. towards a wholly decarbonised future. • removal of CCS barriers such as those
• the concentration of CO2 in the gas stream
from which CO2 is being captured In China alone there are more than 20 CCS remaining in the implementation of
CCS and renewables are partner technologies
facilities at different scales in progressive amendments to the London Protocol
• the distance to and quality of the working towards the same decarbonised objective.
development and myriad others in planning. • introduction of a carbon value in countries
storage reservoir
In Saudi Arabia and the UAE, CCS’s application where none exists (for example, Norway’s
• the cost of capital and labour in the location
to industry is being embraced by a number of carbon tax, and the recently enhanced US
where the plant is being constructed.
industrial facilities, and in the Netherlands, 45Q legislation)
Importantly, CCS costs are following the simple Norway and the UK, CCS “hub and cluster” • policy predictability that ensures large
law of economics and continue to decline. developments are progressing. capital investment and long gestation/
asset life of CCS facilities are not jeopardised
by overt changes in political direction
• transparent public engagement, which
continues to build support across all
stakeholder echelons
• robust research and development support.

TH E B U S I N E S S CA S E FO R CC S TH E G LO BA L S TATU S O F CC S 9
IPCC: 1.5°C – CCS is essential

In October 2018, the Intergovernmental Panel Significantly for CCS, it made the point FIGURE 1: CCS contribution in CO 2 emission reduction in IPCC Special Report on Global Warming of 1.5°C.
on Climate Change (IPCC) released its highly that any remaining emissions would need Data analysis based on the Global CCS Institute CO2 RE database1 and IPCC Special Report on Global Warming

anticipated Special Report on Global Warming to be balanced by removing CO2 from the air. of 1.5°C2.

of 1.5 °C (SR15), reinforcing the role carbon CCS was acknowledged in three of all four
capture and storage technology must play in pathways IPCC authors used to reach 1.5°C 30,000
beating climate change. and was singled out for its ability to: “play a major

CO 2 EMISSION REDUCTION
role in decarbonising the industry sector in the 25,000
This report was a response to a request by the

PER ANNUM (MTPA)


context of 1.5°C and 2°C pathways, especially
UNFCCC at COP21 in Paris (2015) which called 20,000
in industries with higher process emissions,
for a comprehensive assessment of what was
such as cement, iron and steel industries.” 15,000
needed to reach a 1.5°C world.
Over the past year, the Institute has been
The 195 signatories to Paris agreed to keep global 10,000
vociferous in underscoring that CCS is the only
temperatures from rising “well below 2°C and to
clean technology that can decarbonise major 5,000
try and limit increases to less than 1.5°C.”
industry – sectors that cannot be turned off “at
Compiled by 91 authors and drawing on 6,000 the flick of a switch”. For some industries, like 0
research references including those of the Global cement and steel, there is simply nothing else. 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
CCS Institute, the report found that reaching
The report also identified the challenges
1.5 °C would require “rapid and far-reaching”
that CCS faces in terms of institutional and CCS IN P2 CCS IN P3 CCS IN P4
transitions in land, energy, industry, buildings,
economic constraints, particularly the reliance
transport, and cities. P2: A SUSTAINABILITY-ORIENTED SCENARIO WHERE EMISSION REDUCTIONS ARE
on investment and climate policy incentives. MAINLY ACHIEVED BY HIGH HUMAN AND LOW-CARBON TECHNOLOGY DEVELOPMENT,
As report author, Professor Jim Skea of Imperial AND LOW DEMAND IN ENERGY AND PRODUCTS
This will continue to be a major area of focus as the
College, London, noted: “Limiting warming to P3: A MIDDLE-OF-THE-ROAD SCENARIO WHERE EMISSIONS REDUCTIONS ARE MAINLY
Institute continues to raise awareness and support ACHIEVED BY CHANGING THE PRODUCTION WAY OF ENERGY AND PRODUCTS,
1.5°C is possible within the laws of chemistry
for CCS as a requisite climate change technology. AND TO A LESSER DEGREE BY DEMAND REDUCTIONS
and physics but doing so would require
P4: A RESOURCE-AND ENERGY-INTENSIVE SCENARIO WHERE EMISSIONS REDUCTIONS
unprecedented changes.” As Professor Skea has very sagely said: ARE MAINLY ACHIEVED THROUGH TECHNOLOGICAL MEANS, MAKING STRONG USE OF
CARBON DIOXIDE REMOVAL THROUGH THE DEPLOYMENT OF BIOENERGY WITH CCS
The linking word in the latest IPCC report
The report said that global net human-caused
is “and” not “or”.
emissions of carbon dioxide (CO2) would need
to fall by about 45 percent from 2010 levels by It is time to embrace every option and CCS
2030, reaching ‘net zero’ around 2050. must be one.

TH E B U S I N E S S CA S E FO R CC S TH E G LO BA L S TATU S O F CC S 10
Lord Nicholas Stern
IG PATEL PROFESSOR OF ECONOMICS & GOVERNMENT London School of Economics. CHAIR, Grantham Research Institute

The last 12 months have been particularly refreshing in the world of CCS.
There has been a noticeable surge in inclination and activity with policy-friendly CCS
legislation introduced in the United States (45Q), China (an ETS) to new levels of political
action undertaken in the UK (the Rt Hon Claire Perry’s CCUS Cost Challenge Task Force),
Norway (ACT – Accelerating CCS Technologies), and the Netherlands (CCS Road-map).
The IPCC 1.5˚C report published in October this year was an important advance in our
understanding: it showed that the difference in damages from climate change between
1.5˚C and 2˚C was of real and worrying substance. Thus the importance of going to zero
net-emissions within four decades for the Paris target of “well-below 2oC” has been still more
strongly underscored (and earlier for 1.5oC).
More and more, people are seeing the practicality and importance in deploying the one
technology proven to decarbonise “difficult” sectors such as cement and steel and “locked-
in” fossil fuel-based infrastructure.
Another refreshing development has been the capacity for the private sector, mayors,
multinationals, even the media, to start putting their weight behind the technology.
The concept of industrial CCS hubs and clusters is taking rapid shape in North Western Europe
and this is undoubtedly due to a growing group of leaders who can see the environmental
and economic opportunity that CCS brings. Industry is closely situated, storage resources are
abundant, employment is assured, the business case is obvious.
In the 2017 Global Status of CCS Report, I said that it was time to coalesce around CCS –

A KEY YEAR
governments, policy makers, the private sector. This year, the process has begun and the
IPCC 1.5˚C report has underscored its importance.
The challenge now is to maintain the momentum, keep the funding pipeline flowing,

FOR ACTION AND demonstrate how costs can be reduced and accelerate the train that can deliver on Paris.

UNDERSTANDING
ON CCS
A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 11
Highlights Growth in
CCS policy
A growth in CCS policy confidence across multiple country jurisdictions:



the US: enactment of 45Q (tax credit) legislation
the UK: creation of the UK CCUS Council, and the CCUS Cost
Challenge Taskforce

for 2018 •


China: promotion of low-carbon technologies (especially CCUS),
grant funding on CCS research, and the indexation of CCUS in
amended Environmental Impact Guidance
Japan: a commitment to establish a hydrogen society by 2030,
and to create a Hydrogen Energy Supply Chain (HESC) in Australia.

New
initiatives 43 CCS can...
Wider
appreciation

New initiatives in CO2 recycling and major Forty three (43) large-scale facilities Confirmation that CCS can generate new A wider appreciation that there are significant
new direct air capture (DAC) projects in the – 18 in commercial operation, five under employment, new product streams opportunities to deploy CCS in decarbonising
United States, Canada and Iceland. construction and 20 in various stages (including BECCS, DAC and CO2 re-use) the industrial sector, as well as improving its
of development. and new economic revenues. productivity and competitiveness.

No
Climate Diverse CCS as a
technical
ambitions supporters “catalyst”
barriers

International recognition that we need CCS to Endorsement of CCS by a diverse chorus of new Acknowledgement of CCS as a “catalyst” Acceptance that “at least a thousand years”
meet the global climate ambitions of the Paris supporters including explorers, economists, to new energy economies – particularly of global CO2 storage resources exist with
Agreement. The Intergovernmental Panel on academics, religious leaders, unions, eNGOs, CCS with hydrogen. Further advancement no technical barriers to secure and
Climate Change (IPCC) further reinforced this fact mayors, the media, movie-makers and the of CCS/hydrogen facilities in Australia, permanent storage.
in its 2018 Special Report on Global Warming of military. One of these is 17 year-old Australian the UK, the US, Norway, the Netherlands,
1.5 °C (SR15) by highlighting that we must get to polar explorer, Jade Hameister, a first-hand Sweden, Canada and Japan.
net-zero emissions by 2050 and that it is crucial witness to the ravages of climate change.
to deploy all clean technologies including CCS to
meet this goal.

H I G H LI G HTS TH E G LO BA L S TATU S O F CC S 12
Overview The history of CCS goes back more than 45
years. Since the first large-scale CCS facility,
Val Verde CO2 -EOR, began operating in the
2018 Sharon Ridge oilfield in Texas in 1972, 98 CCS
facilities and nine test centres have started
up or begun construction (see Figure 2).

Today, according to the Global CCS


Institute CO2RE database1, there are
23 large-scale CCS facilities in operation
or under construction, capturing almost
40 Mtpa of CO2. A further 28 pilot
and demonstration-scale facilities are
in operation or under construction.
Collectively, these capture more than
3 Mtpa of CO2.

OV E RV I E W TH E G LO BA L S TATU S O F CC S 13
FIGURE 2: Current commercial large-scale CCS facilities, smaller-scale (pilot and demonstration) CCS facilities
and CCS test centres around the world. The sizes of light blue and grey circles are proportional to the CO 2 capture
capacities of the commercial large-scale facilities in operation or under construction and in completion, respectively.
Data is drawn from the Global CCS Institute CO 2 RE database as of October 2018 1.

LARGE-SCALE FACILITY IN OPERATION


OR UNDER CONSTRUCTION

LARGE-SCALE FACILITY COMPLETED

SMALLER-SCALE FACILITY IN OPERATION

SMALLER-SCALE FACILITY COMPLETED

TEST CENTRE

= 1 MTPA OF CO 2 (AREA OF CIRCLES


PROPORTIONAL TO CAPACITY)

OV E RV I E W TH E G LO BA L S TATU S O F CC S 14
In December 2017,
Petrobras reached
a milestone of
7 Mt CO2 captured
and re-injected into
the subsurface using
floating production
storage and offloading
(FPSO) units since
operation in 2013.
An annual CO2
injection of 2.5 Mtpa
was achieved in 2017.

PETROBRAS SANTOS BASIN PRE-SALT OIL FIELD CCS, ONE OF THE FPSO UNITS OFFSHORE BRAZIL. CREDIT – PETROBRAS OV E RV I E W TH E G LO BA L S TATU S O F CC S 15
Efforts and milestones in developing a portfolio of CCS facilities

1972 to 1990 production. Also in 2008, the Norwegian State


mandated CCS as a condition of the license to
Early operation of large-scale CCS facilities
operate for Snøhvit LNG production. Injection
began in the US during the 1970s and 1980s
of CO2 at the Snøhvit gas field development
(summarised in Figures 3 and 4). The driver
area started in April 2008. To date, Sleipner and
for this deployment was enhanced oil recovery
Snøhvit have cumulatively stored more than
(EOR), where CO2 was injected into oil reserves
20 Mt of CO24. Based on the US EPA calculator,
to facilitate increased oil extraction; the CO2
that’s the equivalent of taking 4,282,655 cars
ultimately being permanently stored in the pore
off the road for one year.
space that previously held the oil. Historically,
these CCS facilities used processes in which CO2 In Canada, the Weyburn and Midale Oil Units
was routinely separated in a high purity form, in Saskatchewan have been injecting CO2 for EOR
notably in natural gas processing e.g. Terrell since 2000 and 2005, respectively. Three Mtpa of
Natural Gas Processing Plant (formerly Val CO2 is captured and transported from Great Plains
Verde Natural Gas Plants) and Shute Creek Synfuels plant, the first commercial-scale coal
Gas Processing Plant and fertiliser production gasification plant (lignite as fuel) in the US.
(Enid Fertilizer).
In Algeria, corporate commitment to minimising
environmental impact, manifested itself in
1990 to 2009
measures such as non-atmospheric disposal of
From 1990, government regulations and CO2 produced in natural gas processing, fostered
incentives provided impetus for large-scale the operation of the In Salah CO2 storage facility
global CCS facilities to emerge. At the same between 2004 and 2010. During that time the
time, wider geological storage solutions facility captured and injected almost 4 Mt of
were identified. CO2 into the Krechba formation – a depleted
gas reservoir. The In Salah CO2 Assurance
In 1991, the Norwegian Government
Joint Industry Project5 was then established
implemented a CO2 tax on offshore petroleum
for a further five years to monitor the CO2
production3. This tax incentivised Statoil
storage process using a variety of geochemical,
(now Equinor) to capture and store CO2 in a
deep geological formation at the Sleipner CCS
facility, making it the world’s first commercial
geophysical and production techniques.
These techniques are among the world’s most Started in 1996, the Sleipner CO2 Storage
pioneering CO2 storage and monitoring efforts,
manifestation of CCS technology for dedicated
geological storage in a deep saline reservoir.
helping to inform modern monitoring, modelling facility was the first in the world to inject
and verification practices.
In 2005, Norway’s Greenhouse Gas Emission Trading
Act came into effect. In 2008, the country
CO2 into a dedicated geological storage setting.
joined the European Union Emissions Trading
System (ETS), which used a series of regulations
and incentives to promote sustainable energy
EQUINOR – SLEIPNER CO 2 STORAGE FIELD AERIALS, OFFSHORE NORWAY. CREDIT – ØYVIND HAGEN

OV E RV I E W TH E G LO BA L S TATU S O F CC S 16
Efforts and milestones in developing a portfolio of CCS facilities

Post-2009 comprehensive monitoring and surveillance plan,


including routine and advanced logging and use
After 2009, the expectations and ambitions of
CCS as a significant climate change mitigation
of new technologies for plume tracking and CO2
saturation modelling. This facility compresses
Petra Nova CO2 Capture Facility recorded
technology advanced significantly and more
facilities came onstream. The portfolio of CCS
facilities now includes applications in coal-fired
and dehydrates 0.8 Mtpa of CO2 produced
from a natural gas processing plant, which is a milestone of 2.0 Mt of CO2 captured
then transported for EOR to the Uthmaniyah
power, iron and steel manufacture, chemical and
hydrogen production as well as bioenergy with
production unit, part of the giant Ghawar field in September 2018.
(the largest oilfield in the world).
CCS (BECCS).
Abu Dhabi CCS is the first fully commercial large-
In 2014, Canada unveiled the first large-scale
scale CCS facility in the iron and steel industry.
CCS facility in power generation when Boundary
Commenced in November 2016, the facility
Dam Unit 3 in Saskatchewan began operations.
processes the high purity CO2 produced as a
Prompted by federal regulations on CO2 emissions
by-product of the direct reduced iron-making
from coal-fired power stations, this facility
process at a capture capacity of 0.8 Mtpa at the
exceeded 2 Mt of CO2 safely and successfully
Emirates Steel Industries factory in Mussafah,
captured in March 20186. Furthermore,
United Arab Emirates. The captured CO2 is
SaskPower, the facility operator, claimed a
transported via pipeline to Abu Dhabi National
cost reduction of 20–30 per cent for the next
Oil Company (ADNOC) oil reservoirs for EOR.
facility to be deployed.
In the US, five of the six large-scale facilities
In 2015, emission reduction incentives
commenced operations after 2009, and
and financial support from the Provincial
use EOR as their CO2 storage mechanism:
Government of Alberta and the Canadian Federal
Government allowed the Shell-owned Quest • Century Plant (8.4 Mtpa, natural
facility to begin operations. Since then, Shell has gas processing)
achieved safe and secure storage of 3 Mt of CO2,
• Air Products Steam Methane Reformer
ahead of schedule7.
(1.0 Mtpa, hydrogen production)
Since 2015, one CCS facility has been operating in
• Coffeyville Gasification Plant (1.0 Mtpa,
South America – Brazil’s Petrobras Santos Basin
fertiliser production)
CO2-EOR. In December 2017, Petrobras reached
a milestone of 7 Mt of CO2 captured and reinjected. • Lost Cabin Gas Plant (0.9 Mtpa, natural
An annual CO2 injection of 2.5 Mt was achieved by gas processing)
10 floating production storage and offloading units – • Petra Nova Carbon Capture (1.4 Mtpa,
seven at the Lula field, two at the Sapinhoa field and power generation).
one at the Lapa field.
Only Illinois Industrial CCS facility, which
In July 2015, the commercial-scale Uthmaniyah commenced in April 2017, captures and stores
CO2-EOR demonstration facility in Saudi Arabia CO2 for dedicated storage (1.0 Mtpa, BECCS). PETRA NOVA CARBON CAPTURE, TEXAS THE UNITED STATES. CREDIT – NRG ENERGY
began operating. The CO2-EOR facility has a

OV E RV I E W TH E G LO BA L S TATU S O F CC S 17
FIGURE 3: Timelines and projects milestones of commercial large-scale CCS facilities in operation

TERRELL (FORMERLY VAL VERDE)

ENID

SHUTE CREEK
UNITED STATES

CENTURY PLANT

AIR PRODUCTS SMR

LOST CABIN

COFFEYVILLE GASIFICATION

PETRA NOVA

ILLINOIS INDUSTRIAL

GREAT PLAINS SYNFUELS PLANT & WEYBURN-MIDALE


CANADA

BOUNDARY DAM

QUEST
NORWAY

SLEIPNER

SNØHVIT

IN SALAH

PETROBRAS PRE-SALT
OTHER

UTHMANIYAH

ABU DHABI CCS

CNPC JILIN

1970s 1980s 1990s 2000s 2010 2011 2012 2013 2014 2015 2016 2017 2018 1 2 3 4 5 6 7 8 9 10 20 30 40 50

YEAR CUMULATIVE INJECTION (Mt)

CUMULATIVE CO 2 INJECTION VIA EOR (GCCSI ESTIMATED VALUE)

CCS VIA EOR CUMULATIVE CO 2 INJECTION VIA EOR (PUBLIC DATA)

CCS VIA DEDICATED GEOLOGICAL STORAGE CUMULATIVE CO 2 INJECTION VIA DEDICATED GEOLOGICAL STORAGE (PUBLIC DATA)

This year, these large-scale CCS facilities publicly In 2018, China’s CNPC Jilin Oilfield CO2-EOR
facility entered Phase III, reaching an injection
The project began research and development
(Phase I) in 1990 and pilot and demonstration
announced a number of significant milestones, capacity of 0.6 Mtpa. Jilin became the first tests (Phase II) in 2008, reaching 1.12 Mt of
large-scale CCS project operating in China cumulative injection in 20171.
as seen above. and the world’s 18th large-scale global facility.

OV E RV I E W TH E G LO BA L S TATU S O F CC S 18
FIGURE 4: Power and industrial applications of commercial large-scale CCS facilities with actual and expected operation dates up to 2024

WASTE INCINERATION
NORWAY
FULL CHAIN*

CEMENT PRODUCTION
ILLINOIS
INDUSTRIAL
YANCHANG

CHEMICAL LAKE
PRODUCTION CHARLES
ABU
DHABI

IRON AND STEEL


PRODUCTION AIR
ACTL
QUEST STURGEON
PRODUCTS

HYDROGEN
PRODUCTION

SYNTHETIC GREAT
NATURAL GAS PLAINS
SINOPEC
COFFEYVILLE QILU

FERTILISER ENID FERTILIZER ACTL


PRODUCTION AGRIUM

UTHMANIYAH CNPC JILIN


TERREL (FORMALLY
NATURAL GAS VAL VERDE) LOST
SLEIPNER SNØHVIT GORGON
PROCESSING CABIN

PETRA NOVA

BOUNDARY
POWER GENERATION
DAM

SHUTE CENTURY PETROBRAS


CREEK PLANT PRE-SALT

OPERATING 2016 2017 2018 2019 2020 2021 2022 2023 2024

= 1 MTPA OF CO 2 (AREA OF CIRCLES PROPORTIONAL TO CAPACITY) EOR DEDICATED GEOLOGICAL STORAGE

CCS is already in use across a variety of power and


industrial applications, and has been for decades.

OV E RV I E W TH E G LO BA L S TATU S O F CC S 19
Smaller-scale CCS facilities Among them, Shenhua Group’s FIGURE 5: Annual CO 2 capture capacity and cumulative CO 2 injection for all full-chain CCS facilities.
(now CHN Energy) Ordos Analysis based on data from Global CCS Institute CO 2 RE database.
There have also been significant
CCS Demonstration facility
advancements in CCS deployment
has injected approximately
at key smaller-scale CCS facilities:
300,000 tonnes of CO2 in 50 250

CUMULATIVE CO 2 INJECTION (MILLION TONNES, APPROXIMATE)


• The US: The Borger (fertiliser) the period 2011–2014.
and Arkalon (ethanol) CO2 This was one of the largest

CO 2 CAPTURE CAPACITY (MTPA) – ALL FACILITIES


Compression facilities demonstration-scale CCS
(both completed), operated by 40 200
facilities in the world to have
Chaparral Energy, have supplied injected CO2 into a dedicated
more than 4 Mt of CO2 for geological storage reservoir.
EOR during their operational This facility is a pioneer in 30 150
lifetime. In Michigan, Core CO2 injection evaluation.
Energy CO2-EOR facility
(natural gas processing) has been • Japan: Since 2016, the
operational since 2003. At the Tomakomai CCS Demonstration 20 100
end of 2016, the facility had facility has injected more than
injected over 2 Mt of CO24. 200,000 tonnes of CO2 into
offshore storage sites. CO2 is
• Canada: CO2 Solution’s captured from a hydrogen 10 50
Valorisation Carbone Quebec production unit at Tomakomai’s
(VCQ) is developing and refinery in southern Hokkaido
demonstrating commercially that is demonstrating how
viable technologies to capture 0 0
a full-cycle CCS system can
and utilise CO2 in various

1970

1972

1980

1990

2000

2010

2012

2014

2016

2018
2019
operate. Japan is also testing
applications while reducing advanced capture technologies
greenhouse gas emissions. in the power sector at Toshiba’s
• Europe: A CCS test centre, Mikawa plant and at the new CO 2 CAPTURE CAPACITY FOR DEDICATED GEOLOGICAL STORAGE
LEFT AXIS
Technology Centre Mongstad Osaki CoolGen integrated CO 2 CAPTURE CAPACITY FOR EOR

(Norway), has been verifying gasification combined cycle RIGHT AXIS CUMULATIVE CO 2 INJECTION
and demonstrating CO2 (IGCC) system, both near
capture technology owned Hiroshima. Additionally,
and marketed by vendors. Toshiba has developed a state-
This aims to reduce cost, as well of-the-art CO2 capture plant
as technical, environmental at Saga City (near Fukuoka),
CO2 has been injected, mainly
and financial risks in order to where CO2 is being used to
for EOR operations (illustrated
encourage the development develop algae for the production
in Figure 6). Canada has
of a market for carbon of cosmetics.
injected over 40 Mt of CO2,
capture technology.
• Cumulative contribution to and Norway has injected
• China: Several smaller-scale climate change mitigation By over 20 Mt, exclusively for
facilities are collectively the end of 2017, more than 230 offshore-dedicated geological
capturing close to 1 Mtpa Mt of CO2 had been successfully storage. Other countries have a
of CO2, and have included captured and injected deep combined contribution of more
several path-finding facilities underground globally (see than 15 Mt of CO2 injected
in the power sector and in Figure 5). In the US alone more deep underground for EOR and
CO2 storage applications. than 150 Mt of anthropogenic dedicated geological storage.
OV E RV I E W TH E G LO BA L S TATU S O F CC S 20
Commercial CCS facilities in development
In China, a further FIGURE 6: Cumulative CO 2 injection in major countries, approximate. Others
include Algeria, Brazil, China, Saudi Arabia, UAE, Australia, Germany, France
Five commercial large-scale CCS facilities
are currently under construction, with four 20 CCS facilities at
expected to be operational in 2019 and one OVER 230 MILLION TONNES CO 2 INJECTED

in 2020: various scales are


0 20 40 60 80 100 120 140 160
• Australia: Commissioning of the Gorgon in advanced and
CCS facility is underway, with ramp up
to full operation expected in 2019. This early development UNITED
facility can inject 3.4–4 Mtpa of CO2
planning, signalling
STATES
deep in the subsurface beneath Barrow
island (offshore Western Australia).
Once operational, it will be the largest
a new wave of global CANADA

geological storage facility in the world.


CCS facilities that
• Canada: The 240-kilometre Alberta NORWAY

Carbon Trunk Line (ACTL) is moving into will come online


construction phase, with all funding and
government approvals in place. ACTL will through the 2020s. OTHERS

become the backbone for creating a new


decarbonised industry in Alberta. The
initial capture facilities near Redwater – EOR DEDICATED STORAGE
the Sturgeon refinery and the Agrium
fertiliser plant – will together supply
around 1.5 Mtpa of CO2 for EOR operations.
• China: Sinopec Qilu Petrochemical CCS
facility started retrofitting a 0.4 Mtpa of
CO2 capture unit to the existing coal/coke
water slurry gasification unit at a fertiliser
• Asia Pacific: The Asia Pacific (APAC) region opportunity to significantly reduce the unit • In Norway, feasibility funding budgets
plant. Operational in 2019, captured CO2
has become one of the most active CCS cost of CO2 storage. This move is supported have been confirmed for the Norway Full
will be transported by pipeline to the
regions in the world, with 10 large-scale by EU after initiatives, Projects of Common Chain CCS facility, which has identified two
Shengli Oilfield for EOR. Additionally, the
facilities in development, equally split Interests being one of them. Emerging capture facilities and will entail transport
Yanchang CCS facility in Shaanxi Province
between power and industrial applications. CCS facilities include: and storage in the offshore Smeaheia area,
has advanced its development of CO2 capture
China accounts for the majority of these, - Port of Rotterdam CCUS Backbone with an expected CO2 storage capacity of
units at two coal-to-chemicals plants. The
with Japan, South Korea and Australia also Initiative (a modular CO2 transport hub) up to 100 Mt.
0.05 Mtpa unit has been in operation since
moving various CCS developments forward. - Teesside Collective
2012, while the larger 0.36 Mtpa capture • In the US, the stronghold of global CCS
(a CCS industrial hub)
unit is expected to be operational by 2020. • Europe: CCS has enjoyed a revival in Europe, deployment to date, development activities
- Caledonia Clean Energy
Captured CO2 would be used for EOR in where its prowess as an industrial mitigation have slowed, with one facility (Lake Charles)
(a pioneer for CO2 hub)
oilfields in the Ordos Basin in central China. technology has been widely recognised. in advanced development. This slowdown is
- Acorn Scalable CCS Development
In China, a further 20 CCS facilities are in Eight large-scale CCS facilities are now expected to be temporary, however, with the
- HyNet North West Project
advanced and early development planning, in development. This CCS rejuvenation is advent of 45Q legislation (details in Policy
(decarbonised hydrogen)
signalling a new wave of global CCS facilities being largely led by the UK, Norway and section of this report), which has amended
- H21 North of England Project
that will come online through the 2020s. the Netherlands, where industrial clusters the US tax code in favour of CCS investment.
(decarbonised hydrogen).
around North Sea storage options provide an

OV E RV I E W TH E G LO BA L S TATU S O F CC S 21
FIGURE 7: Pipeline of commercial large-scale CCS facilities in different countries and regions. At October 2018, there are
43 commercial large-scale global CCS facilities, 18 in operation, five in construction and 20 in various stages of development

PETROBRAS
PRE-SALT CARBONNET SOUTH
(LULA’) WEST HUB
UTHMANIYAH

REST OF KOREA KOREA


GORGON
THE WORLD MAGNUM
CCS 1 CCS 2

CALEDONIA
ABU DHABI ROTTERDAM NORWAY
SLEIPNER ERVIA
FULL CHAIN*
CORK

EUROPE H21

SNØHVIT CNPC SINOPEC ACORN TEESSIDE HYNET NW


JILIN QILU SCALABLE

EASTERN
CHINA CHINA NINGXIA
GREENGEN

BOUNDARY YANCHANG SHENGLI


DAM HAIFENG
SHANXI
GREAT ACTL
CANADA PLAINS AGRIUM

TERREL QUEST ILLINOIS ACTL


(FORMALLY INDUSTRIAL STURGEON
LOST CABIN
VAL VERDE)
UNITED LAKE
STATES COFFEYVILLE CHARLES
ENID AIR PRODUCTS
FERTILIZER PETRA
NOVA
SHUTE CENTURY
CREEK PLANT

OPERATING 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+

= 1 MTPA OF CO 2 (AREA OF CIRCLES PROPORTIONAL TO CAPACITY) OPERATING IN CONSTRUCTION ADVANCED DEVELOPMENT EARLY DEVELOPMENT

There are now 43 The next wave in operation for years, mostly in industrial
applications. They are “low hanging fruit”
There are now 43 commercial large-scale global
commercial large-scale CCS facilities, 18 in operation, 5 in construction
in terms of deployment – natural gas processing,
fertiliser, ethanol production where CO2 capture
and 20 in various stages of development.
global CCS facilities, is an inherent process of productions. There is
The current resurgence in CCS deployment will still a swathe of industrial applications crying out
18 in operation, five create a new wave of CCS facilities in the 2020s. for CCS application. There is also a wave of new
However, the current pipeline of large-scale CCS innovations such as hydrogen with CCS, direct
in construction and deployment does not come close to the CCS air capture, CCS hubs and clusters that need
component needed to meet Paris Agreement to be deployed.
20 in various stages climate goals.
DR HARRY LIU
of development. The first-of-a-kind commercial CCS facilities CCS is an effective and far-reaching
addressed in this report have already been technology that is now of critical importance. Technical Advisor, CCS Projects (Commercial)

OV E RV I E W TH E G LO BA L S TATU S O F CC S 22
Hydrogen with CCS leads the way If there is one word that has
permeated energy and climate
change conversations in the past
year, it is hydrogen. And right
alongside it – CCS.
In 2018, six new large-scale CCS
facilities have been added to the
Global CCS Institute database. All
are in Europe and related to CCS
decarbonised hydrogen production:

HYDROGEN AVIATION
The UK & Ireland
• H21 North of England
HYDROPOWER
PUMPED STORAGE
HYDROGEN TRAIN • HyNet North West
FUTURE
RENEWABLES • Ervia Cork CCS
GRID CONTROL
• Acorn Scalable
HYDROGEN CAR CCS Development
HYDROGEN FUTURE POWER
STORAGE GENERATION
The Netherlands
• Port of Rotterdam CCUS
Backbone Initiative (porthos)
• Hydrogen 2 Magnum (H2M)

For these eye-catching emerging


REFORMER CO 2 STORAGE GASIFICATION
OFFSHORE PLANT PLANT H2+CCS developments, there is
NATURAL GAS
PLATFORM no barrier for their future
deployments. Decarbonised H2
DOMESTIC & production by steam methane
COMMERCIAL
HEATING reforming (SMR)/gasification
coupling with CCS has been at scale
ONSHORE
NATURAL GAS in commercial practice for decades,
PLANT
with industrial applications in
fertiliser production, oil refineries
and iron and steel production.
Details of the above new
STEEL PLANT
CEMENT PLANT
large-scale facilities can be viewed
BIOMASS in the Country Case Study section
CO 2
FERTILISER PLANT
of this report.
HYDROGEN CHEMICAL PLANT

NATURAL GAS FUEL FEEDSTOCK

SOLID FUEL FEEDSTOCK


COAL
ELECTRICITY

H Y D RO G E N TH E G LO BA L S TATU S O F CC S 23
As of June 2018, the Quest
CCS Facility had stored
3 million tonnes of CO2.

QUEST CARBON CAPTURE AND STORAGE


FACILITY IN ALBERTA, CANADA. CREDIT – SHELL OV E RV I E W TH E G LO BA L S TATU S O F CC S 24
Fatih Birol
EXECUTIVE DIRECTOR International Energy Agency

The IEA has highlighted that as


much as 450 Mt of CO2 could
be captured, utilised and stored
globally with a commercial
incentive as low as US$40 per
tonne of CO2.
The 2017 rise in global energy-related CO2 emissions underscores the need for stronger
and more urgent action across a full range of clean energy solutions, including CCUS.
While there have been some recent positive developments, including China’s first large-
scale CCUS facility, the expanded section 45Q tax credit in the US and the progression
of Norway’s full-chain industrial project, the potential of CCUS to deliver substantial
emission reductions in power and industry remains largely untapped. The IEA has
highlighted that as much as 450 Mt of CO2 could be captured, utilised and stored globally
with a commercial incentive as low as US$40 per tonne of CO2. Harnessing these low-cost
opportunities could provide a solid foundation for scaling up CCUS deployment. The IEA

UNTAPPED will continue to enhance our efforts on this critical technology.

POTENTIAL

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 25
Storage The good news is there
are no technical barriers
to permanently storing
CO2 at the rate and scale
needed to meet ambitious
climate targets. There is
more than enough storage
resource available. There is
almost absolute confidence
among geologists, engineers
and CCS experts, based
on decades of data, in the
safety and permanence of
injected, stored CO2.

STO R AG E TH E G LO BA L S TATU S O F CC S 26
Thousands of years of storage available.
EUROPE

300
One of the earliest storage resource DK NO

assessments was published in Japan in 19958 60 70 DE


by Tanaka and others. Since then, methods
50
for storage resource calculation have continued NL

to be refined, and confidence in the estimates 400 4


is growing. The quantity and quality of
UK
supporting subsurface data is also building.
80
Today, we have active appraisal programs 8150
producing national storage site portfolios. 2400 140
Japan is still refining their storage resources
through an ambitious offshore drilling program.
100
Other countries actively maturing their storage 50

resources include Europe, Norway, the US,


the UK, Norway, China and Australia, 2000
among others.
There is a moderate to high confidence
that Europe has over 300 gigatonnes (Gt)
400
of CO2 of storage – more than double the
100 CO 2 STORAGE RESOURCE (GT) 150
amount of pore space needed to meet the
world’s 2°C scenario (2DS) between now and
2050. China’s 2016 power generation emissions
are over 4 Gt per year9. With a storage resource
of over 2,40010 Gt, the deep saline formations
and oil and gas fields below China can hold over CONFIDENCE IN RESOURCE ASSESSMENT
600 years of China’s power emissions.
NONE 75-100 56-75 25-50 0-25 We can say, with absolute
confidence, that there is
FIGURE 8: Global storage resource potential, based on the latest assessments more underground storage
resource than is needed to
meet Paris climate targets.

STO R AG E TH E G LO BA L S TATU S O F CC S 27
FIGURE 9: Schematic of CO 2 storage operations around the world. CO 2 has been injected and stored across many different environments, geology, and depths using different injection methods

SANTOS BASIN SNØHVIT K-12B SLEIPNER TOMAKOMAI GORGON QUEST ILLINOIS LACQ
PRE-SALT

1.0

2.0
DEPTH (KM)

3.0

4.0

CO 2

WATER
SANDSTONE
CARBONATE
5.0
CO 2 INJECTION WELL
PRESSURE MANAGEMENT
OIL RECOVERY

6.0

STO R AG E TH E G LO BA L S TATU S O F CC S 28
CO2 storage experts around the world have The 2 per cent of CO2 that escapes is mostly Decades of operations tell us that we have The movement of the CO2 plume in the Sleipner
concluded that CO2 can be stored permanently. attributed to poorly abandoned legacy petroleum the technology and experience to deploy. CCS facility has been visualised for more than
wells. Processes are now in place to implement 20 years. It is now being tracked using 4D seismic
CO2 has been stored for millennia. Natural CO2 Over the past four decades, the movement of
risk management programs and to establish as it meanders through the storage formation,
gas fields exist on almost every continent on CO2 in the subsurface has been predicted, then
an overarching standard in well-regulated 1,000 m below the sea floor in the North Sea
Earth. They provide strong indicators on the type monitored and measured using standard oil
CCS jurisdictions. off Norway.
of reservoir and sealing rocks needed to store CO2 industry technologies. Those same technologies
permanently. They also show that storage sites The 2018 conclusions mirror the IPCC’s are now being optimised to accurately predict Today, CO2 is being injected and stored in the
need to be carefully selected and managed. conclusions in 2006: and monitor the movement of CO2 for storage. As a semi arid climate of Shaanxi Province as part of
result, the ability to inject CO2 has been optimised the Yanchang CCS facility in China. The Santos
For over four decades, research and industrial With appropriate site selection informed by
to achieve the maximum efficiency of injection Pre-Salt CCS facility in Brazil lies in more than
operations have been storing and monitoring CO2 available subsurface information, a monitoring
needed to meet daily and yearly injection targets. 2,000 m of water and uses floating mega-vessels
at dozens of pilot, demonstration and commercial program to detect problems, a regulatory system,
Using myriad combinations – horizontal wells, that capture and re-inject CO2 into oilfields a
facilities using monitoring tools to map the and the appropriate use of remediation methods to stop
multiple vertical wells, pressure management further 3,000 m below the sea floor.
movement of the plume and rapidly detect any or control CO2 releases if they arise, the local health,
wells, or co-injection – the injection of CO2 can
abnormalities. There has been no incident of safety and environment risks of geological storage Massive sandstones, some over 400 m thick,
be engineered in most formations to meet the
significant loss of CO2 at any of these facilities. would be comparable to risks of current activities deposited hundreds of millions of years ago in
needs of the capture rate.
Moreover, the facilities have helped accumulate such as natural gas storage, EOR, and deep rivers that existed before plants began growing
experience and hard data on what happens when underground disposal of acid gas12 . For example, the Tomakomai CCS facility has on Earth, are currently storing the CO2 from,
CO2 is injected and stored. met its injection targets in relatively low flow ironically, the world’s first large-scale bioenergy
sandstones (180 millidarcy rocks). It achieves its CCS project, the Illinois CCS facility in the US.
A recently published report in Nature11 supported
targets of 100,000 tonnes per year through wells
permanence of CO2 in CCS. Using a near-future
that extend out to sea for over 3,000 m and 1,000 m
scenario of industrial-scale CCS, 98 per cent of
below the sea floor to reach an optimal storage site.
the injected CO2 remains permanently trapped
The CO2 injection occurs along a 1,000 m section of
in the subsurface.
a perforated well in the storage formation.

STO R AG E TH E G LO BA L S TATU S O F CC S 29
The geology
FIGURE 10: Comparing 2018 CCS Storage Indicator results and Inherent CCS Interest Scores

is available. 100

RUSSIA CHINA UNITED STATES

GERMANY

All we need
CANADA
INDIA INDONESIA AUSTRALIA

80
SOUTH KOREA UNITED KINGDOM
MEXICO
JAPAN

to do is use
BRAZIL
THAILAND
SOUTH AFRICA
VIETNAM
MALAYSIA

CCS INHERENT INTEREST


POLAND

60

the resource. CZECH REPUBLIC

BULGARIA
ITALY
ROMANIA
ALGERIA

SPAIN
SAUDI ARABIA

NETHERLANDS UNITED ARAB EMIRATES


NORWAY
GREECE FRANCE
EGYPT HUNGARY
BELGIUM
40 PHILIPPINES PORTUGAL

FINLAND SLOVAKIA AUSTRIA


NEW ZEALAND
DENMARK
SWITZERLAND LITHUANIA

IRELAND
SWEDEN
20
TRINIDAD & TOBAGO

0
20 40 60 80 100

CCS STORAGE INDICATOR

High-emitting nations are ready to store CO2 The Indicator evaluates a country’s geological storage The above chart shows a general correlation The geology is available.
potential, maturity of their storage assessments and between inherent interest in CCS and development All we need to do is use the resource.
It is clear that many nations, particularly those high-
progress in the deployment of CO2 injection sites. of storage resources. It demonstrates that many
emitting, fossil fuel reliant nations such as Australia,
The national resource estimates are taken directly countries with the greatest need for CCS to
Canada, China and the US, have been exploring,
from published records. The Inherent CCS Interest decarbonise their economies have completed
appraising and developing their storage resources in
indicator (CCS-CI) is a relative index based on global the most advanced storage resource assessments. DR CHRIS CONSOLI
order to be CCS-ready. Those countries score high
share of fossil fuel production and consumption. The However Russia, Indonesia and India have fallen Senior Consultant – Storage (Commercial)
in both the CCS Storage Indicator (CCS-SI) and the
Indicator provides one indication of the potential behind other nations with a high dependence
Inherent CCS Interest Indicator (CCS-CI). The CCS
interest countries may have in implementing policies on fossil fuels.
Storage Indicator (CCS-SI) records an individual
that locally contribute to CCS deployment and in
nation’s development of its storage resources.
reducing emissions from fossil fuels.

STO R AG E TH E G LO BA L S TATU S O F CC S 30
Professor Wallace Smith Broecker
FATHER OF THE PHRASE ‘GLOBAL WARMING’ Columbia University Newberry Professor,
Department of Earth and Environmental Sciences

“It’s getting warmer and warmer but it’s


still probably going to be 20 years before
global warming is the hot issue it needs to
be if people are going to get off their seats
and actually do something.
Even birds are changing their migratory
patterns. They seem to know what’s going
on, but we don’t. How come? They supposedly
have small brains. We have big brains but we
CCS: still can’t figure it out.

the The no-brainer is to funnel the CO2 to a place


where the sun doesn’t shine, deep below the
NO BRAINER ground; the simple, proven process of carbon
capture and storage. If we don’t, the ice will
melt, and we will follow.”

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 31
Policy Policy must not only
support the business case
for investment in CCS, it
must win the confidence
of investors, because once
policy confidence is in
place, long-term capital
investments can be made
and the virtuous cycle
of investment and cost
reduction will accelerate.

P O LI CY TH E G LO BA L S TATU S O F CC S 32
People are generally not “wired” to voluntarily make
that trade-off, which is why policies are required to
alter behaviour.

Policy enacted through legislation is critical to must be confident that they have a sufficient This is certainly the pattern that has been Stability
CCS uptake because it provides the tool by which understanding of the current and future policy observed with renewable energy technologies
Given the longevity of CCS facilities, investors
governments can achieve their various objectives. environment to effectively plan to optimise since the turn of this century, driven by very
must be confident that the policies will not
In fact, sufficient investment in CCS simply their risk profile before they can reach a positive strong and sustained policy support. These cost-
be changed in ways that materially reduce
will not happen without strong and sustained financial investment decision. reducing processes are only just beginning with
their return on investment over the life of the
government policy. respect to the global CCS industry.
investment. Political risk is a key factor in
Policy confidence is a prerequisite assessing the stability of policies. For example,
Reducing emissions against a backdrop of rising To deliver the required policy confidence, the
for investment in long-lived how might a new government change policy
global population and affluence incurs significant policy environment must achieve four things:
capital-intensive assets and what might those changes mean for the
costs today and delivers an uncertain long-
term benefit. People are generally not “wired” Policy must not only support the business case for Aligned purpose profitability of the CCS facility?
to voluntarily make that trade-off, which is investment in CCS, it must win the confidence
There must be a clear stated purpose that sets By way of example, here are some specific
why policies are required to alter behaviour. of investors. Once policy confidence is in place,
the context for the policies and is aligned with policies/activities that can contribute towards
For example, it will always be easier and less long-term capital investments can be made
the purpose of the CCS investment. Investors policy confidence for CCS investors:
costly to release CO2 into the atmosphere than and the virtuous cycle of investment and cost
must be convinced that investment in CCS is • economy-wide emission reduction targets
to capture and permanently store it. The market, reduction will accelerate.
an intended consequence of the policies, not an
too, does not currently provide sufficient reward • sector-specific emission reduction targets
Significant innovations in technology, in business accidental outcome.
for CCS to achieve the required rates of return
models and in industrial efficiency are generally • CCS deployment targets and programs
on investment. That’s why policies to support
driven by the competitive powers of the market. Clarity
a business case for investment in CCS are • capital and operational support for CCS
Providers of goods or services compete to reduce
also required. The policies must be clear and unambiguous deployment (for example, capital grants,
costs, to improve the utility of their products
so that investors understand and can quantify contracts for difference, feed in tariffs,
Even where such a business case exists, the and, hence, win market share. Innovations can
in commercial terms how such policies create CO2 storage payments – for example,
nascent state of the global CCS industry means only be protected from competitors for a finite
opportunities and risks for CCS investments. the US’s recently enhanced 45Q tax credits
the well-established and familiar business time; knowledge leakage inevitably helps spread
for stored CO2)
models, structures and practices that exist in developments throughout the entire industry. As
Predictability
mature industries have generally not yet matured a market grows, economies of scale and scope and • promulgation of CCS-specific legal and
for CCS. Higher perceived risk translates to a “learning-by-doing” also deliver cost reductions, Investors must be able to predict with relatively regulatory regimes that address all aspects
higher required rate of return making financing which in turn increase demand for the product high levels of certainty how their return on of the project lifecycle
more difficult. until market saturation occurs. The net result is investment will be impacted by policies under a
• removal of legal barriers to CCS, such as
the familiar pattern of reducing technology cost range of future scenarios. For example, investors
Furthermore, CCS requires investment in long- the failure to ratify amendments to the
over time in real terms. must be able to quantify the impact on costs and
lived capital-intensive assets. A single CCS London Protocol
revenues of unplanned changes in commercial
facility may deliver millions of tonnes of CO2 • introduction of a robust value on carbon
arrangements and operational status of the CCS
emissions abatement per year, require an initial (for example, Norway’s carbon tax)
facility as part of their risk management process.
investment of hundreds of millions (to billions)
of dollars, and operate for decades. Investors • sustained research and development support.

P O LI CY TH E G LO BA L S TATU S O F CC S 33
The current policy response to climate change FIGURE 11: Comparing 2018 CCS Policy Indicator results and the 2018 Inherent CCS Interest Scores for key countries
generally, and particularly regarding CCS,
UNITED STATES
is inadequate.
100
Currently, there is a disconnect between the climate
RUSSIA CHINA
targets agreed in Paris in 2015 and the Nationally
Determined Contributions (NDCs) to emissions THAILAND
CANADA
INDIA INDONESIA
reduction put forth by national governments. The AUSTRALIA

sum of NDCs, if implemented in full, would allow 80 GERMANY

the global climate to warm by approximately 3˚C BRAZIL


JAPAN

above the pre-industrial baseline. MALAYSIA


MEXICO SOUTH KOREA UNITED KINGDOM
IEA analysis also finds that only four of 37 clean

CCS INHERENT INTEREST


VIETNAM POLAND SOUTH AFRICA

energy technologies are on track to deliver a 60 SAUDI ARABIA


ROMANIA
pathway to the Paris Agreement goal 13 . Clearly, CZECH REPUBLIC
ITALY
ALGERIA
the policy response of governments to the threat UNITED ARAB EMIRATES NETHERLANDS
EGYPT SPAIN
of climate change is inadequate. GREECE FRANCE
NORWAY
BULGARIA
HUNGARY
Although CCS continues to advance, with 40 PHILIPPINES
BELGIUM
AUSTRIA PORTUGAL
new facilities commencing operation and others
SLOVAKIA FINLAND
entering the development pipeline, it is one NEW ZEALAND
DENMARK
of the 33 clean energy technologies that is not LITHUANIA SWITZERLAND

on track. Governments have, overall, failed to IRELAND


20 SWEDEN
implement policies that support a business case
for investment and deliver the policy confidence TRINIDAD & TOBAGO

required to mobilise private capital.


The CCS Institute’s Policy Indicator14 assesses
0
nine broad policy measures globally to derive an
10 20 30 40 50 60
assessment of each nation’s policies with respect
to the deployment of CCS. This Policy Indicator CCS POLICY INDICATOR

is plotted against the Institute’s Inherent CCS


Interest Indicator on the chart above. The Inherent
Interest Indicator uses a range of data on fossil fuel
production and demand to determine a relative
measure of a nation’s economic dependence upon
fossil fuels. Logically, economies with the largest Policy enacted through legislation
exposure to fossil fuels should be most advanced
in deploying CCS. is critical to CCS uptake because
While many governments have recognised the
utility of CCS for reducing the tension between
it provides the tool by which
economic prosperity and emissions reduction, the
Policy Indicator reveals that six – Norway, the UK,
governments can achieve their
the US, China, Canada and Japan – have established various objectives.
themselves as clear leaders through encouraging
and progressive policies over the last year.

P O LI CY TH E G LO BA L S TATU S O F CC S 34
In US, the 45Q amendments create a good business case
for investment in CCS and provide the policy confidence
that investors require.

European Commission storage below the North Sea seabed. Norway has gas – and identified the need for stable long-term • increase the current tax credit for CO2 that is
a long history of government policies designed to supportive policy. CCS lays the foundation for captured and stored in saline formations to
As part of the revision of the Emissions Trading
support CCS. In addition to the carbon tax that the UK to move to a new energy economy with US$50 per tonne in 2026
Scheme (ETS), the European Commission
has been in place since the 1990s, the Norwegian decarbonised heavy industry and hydrogen fuels
has established the Innovation Fund, which • ramp up the tax credits from the original
Government has established Gassnova, a state- that complement renewable deployment.
will set aside 450 million European Union values to the new values in 2026, after which
owned research organisation focused on CCS, and
Allowances to support renewable and CCUS they will be indexed by inflation
the Technology Centre Mongstad, a CO2 capture United States
energy demonstration projects, energy storage
technology testing facility. • remove the 75 Mt cap on the program.
and low-carbon innovation in energy-intensive Whilst the rhetoric of the current US
industry. At least 400 million allowances will administration places no priority on emission New build and retrofit CCS projects that
United Kingdom commence construction before 1 January 2024
be reserved from 2021, with a further 50 million reduction, the US has in fact established one of
unallocated allowances available from the The UK Government’s Clean Growth Strategy, the world’s most progressive values on carbon that are eligible to claim the credits for 12 years,
2013–2020 New Entrant Reserve Fund (NER300). released in October 2017, stated that the is captured and geologically stored. In February starting from the date the equipment was first
At the current EUA price of over €20, this fund government’s ambition was to have the option to 2018, the US Congress passed the Bipartisan placed into service and subject to the following
is worth over €9 billion. The details of the Fund deploy CCUS at scale during the 2030s, subject Budget Act, which extended and increased the tax annual CO2 capture thresholds:
are currently being drafted, with some of the to costs coming down sufficiently. Subsequently, credits for the geological storage of CO2 established • 500,000 tonnes for power facilities
rigidities that caused the NER300 not to drive UK Minister of State for Energy and Clean by section 45Q of the Internal Revenue Code. The
• 100,000 tonnes for industrial facilities
CCS demonstrations expected to be addressed. Growth, the Rt Hon Claire Perry, established the CCUS tax credit was originally created in 2008
CCUS Cost Challenge Taskforce, which delivered and was worth US$10 per tonne of CO2 used for • 25,000 tonnes for industrial pilot facilities.
Norway its report Delivering Clean Growth in July 2018. EOR and US$20 per tonne of CO2 stored in saline The 45Q amendments create a good business
Global CCS Institute CEO, Brad Page, was invited formations. The original program was capped at case for investment in CCS and provide the policy
In 2018, the Norwegian Government allocated
to be a member of the UK CCUS Council and 75 Mt of CO2, after which it would no longer be confidence that investors require. A value of up to
NOK280 million to advance CCS deployment,
a participant on this Taskforce. The Taskforce available. The 2018 amendments will 15 : US$50 per tonne of CO2 is likely to incentivise a
including funding to support Front End
report acknowledged that CCS/CCUS is pivotal new wave of new CCS facilities in the US over the
Engineering Design (FEED) studies for two full- • increase the current tax credit for CO2 that
to decarbonising major industry – steel, cement, next five years.
chain CCS facilities. Each of these facilities will is captured and used for EOR or natural gas
fertiliser, petrochemicals and flexible natural
capture 400,000 tonnes per annum of CO2 for recovery to US$35 per tonne in 2026

P O LI CY TH E G LO BA L S TATU S O F CC S 35
China • supporting CCUS pilots and Near Zero by 2022. A federal carbon pricing system will the Ministry of Economy, Trade and Industry,
Carbon Emissions pilots come into effect on 1 January 2019, as a backstop the Japanese Government supports a wide range
China’s support for CCS has strengthened over the
for any jurisdiction that does not put in place of studies on the investigation of potential
past year as it moves from aspiration to action. • providing grant funding for CCS research
a carbon pricing system that meets the federal CO2 storage sites, CCS feasibility studies, the
The central government has restructured and projects promoted by the Ministry of Science
standard. All direct revenue from carbon pricing assessment of legal and regulatory structures
created a new ministry: the Ministry of Ecology and Technology
will go back to the jurisdiction of origin16. necessary for the management of long-term
and Environment (MEE). The MEE has been
• amending the Environmental Impact liability for stored CO2, and the environmental,
tasked with the “construction of an ecological A few provinces have already adopted a price on
Assessment Guidelines to better address economic and social impacts of CCS. It also
civilisation”. Mitigating climate change is a carbon, however a new provincial government
CCUS projects provides funding for pilot CCS demonstration
core component of that concept. China has in Ontario cancelled its cap and trade program
• establishing a CCUS capacity building facilities, including the Hydrogen Energy
long recognised the importance of CCS and in early 2018 and Saskatchewan has challenged
project for government officials and Supply Chain, which was announced in 2018.
has recently implemented a suite of measures the federal carbon tax. Funding support for CCS
researchers directly involved in CCUS. The Japanese Government is clearly committed
designed to accelerate CCS deployment. projects is available and regulations addressing
through policy to supporting activity designed
They include: geological storage of CO2 have been promulgated
Canada to systematically identify and defeat barriers
in Alberta.
• creating a national carbon market in the to CCS deployment.
electricity sector Under Canada’s Clean Growth and Climate Action
Plan, each Canadian province and territory
• widely promoting low-carbon technologies, Japan
must provide the federal government with a
with an emphasis on CCUS Japan continues to implement a comprehensive and
description of their first annual plan to price ALEX ZAPANTIS
carbon. The price must start at CAN$10 per tonne strategic program to accelerate the deployment of
General Manager – Commercial
of CO2 (or greater) and rise to CAN$50 per tonne CCS. Led by the Ministry of the Environment and

P O LI CY TH E G LO BA L S TATU S O F CC S 36
Barney Swan
INTERNATIONAL DIRECTOR ClimateForce

We must incentivise big and small solutions that drive


autonomy to clean up our emissions. Connecting both
the corporate world and everyday people to projects
like CCS, direct air capture, biochar, reforestation, kelp/
algae farming, distributed microgrids, and waste-to-fuel
facilities will spread awareness to investors, CSR/ESG
managers and the public. Once integrated between social
class and culture, we can create a global system change
that will lead us towards a net positive future. We should
focus on the opportunities we have to create change.
Whether it be a respectful conversation about conflicting
ideas, building on a problem with a sustainable solution,
or simply picking up rubbish when no one is around, we

SOLUTIONS can all create a present that brings us closer to the reality
of a future we can be proud of.

OFF ALL SIZES ClimateForce is a seven-year CO2 reduction challenge borne out of the 2041 Foundation. Its
mission is to provide access to solutions that reduce CO2 for individuals and organisations –
are needed mobilising the reduction of 360 Mt of CO2 by 2025.
In November 2017, Barney and his father, Robert Swan (OBE, the first person to walk both Poles),
attempted to become the first people in history to walk to the South Pole powered entirely by
renewable energy. Over the course of the 60-day expedition they encountered an Antarctica that
was melting beneath their feet.

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 37
Legal
and regulatory

The results of the Institute’s 2018 Legal and Regulatory Indicator


(CCS-LRI) assessment shows that CCS-specific legal and regulatory
development remains largely unchanged since 2017, a disappointment
and a contradiction to the earlier headway made in a number
of countries. For some, the absence of further improvements or
developments to their national regimes will offer few challenges.
The state of CCS-specific models in many other jurisdictions,
however, may prove perilous for those nations with ambitions
to deploy the technology in the near term.

LE GA L A N D R E G U L ATO RY TH E G LO BA L S TATU S O F CC S 38
Widespread legal and regulatory inertia FIGURE 12: Global perspective of CCS-specific law and regulation 2018

The Institute’s CCS Legal and Regulatory


Indicator (the CCS-LRI) offers a detailed
examination and assessment of national legal
and regulatory frameworks in 55 countries
and examines a range of legal and regulatory
factors likely to be critical for the regulation
of the technology.
The resulting Indicator offers a comprehensive
model to track progress and opportunities to
develop CCS-specific legal frameworks worldwide,
as well as a perspective of the current status of
CCS law and regulation.
Five nations with highly advanced CCS-specific
regulatory regimes (Australia, the US, Canada,
the UK and Denmark), all of whom have high
scores and are identified within Band A of the
Institute’s CCS-LRI assessment, have seen no
significant change to their models in the past year,
indicating that further opportunities to improve
domestic frameworks could largely have been
overlooked and remain low-priority activities.
Critically, the sluggish pace of legal and
regulatory development continues among nations
included in Bands B and C of the CCS-LRI. For
these countries there has again been little or no
observed improvement to their regimes in the
past 12 months.
While there could be a host of reasons for this
global slow-down, in many instances the BAND A: CCS-SPECIFIC LAWS OR EXISTING LAWS THAT ARE APPLICABLE ACROSS MOST PARTS OF THE CCS PROJECT CYCLE
absence of clear government policy on CCS
BAND B: CCS-SPECIFIC LAWS OR EXISTING LAWS THAT ARE APPLICABLE ACROSS PARTS OF THE CCS PROJECT CYCLE
deployment has resulted in legislation becoming
deprioritised, abandoned or simply overlooked. BAND C: VERY FEW CCS-SPECIFIC OR EXISTING LAWS THAT ARE APPLICABLE ACROSS PARTS OF THE CCS PROJECT CYCLE

LE GA L A N D R E G U L ATO RY TH E G LO BA L S TATU S O F CC S 39
Timely development is imperative FIGURE 13: Legal and regulatory indicator results 2018
for supporting deployment
Proponents continue to highlight the need for 100
improved policy support, but greater emphasis
CHINA RUSSIA UNITED STATES
needs also to be placed on the development of
facilitative legal and regulatory frameworks.
CANADA
INDIA INDONESIA
Failure to prioritise this activity will likely result
in greater uncertainty for project proponents and 80 BRAZIL SOUTH KOREA GERMANY

regulators, and ultimately delay the deployment JAPAN AUSTRALIA


THAILAND
of projects globally. MALAYSIA
VIETNAM MEXICO
Several uncertainties surrounding the technology

CCS INHERENT INTEREST


SOUTH AFRICA POLAND UNITED KINGDOM
NETHERLANDS
remain within international agreements and will 60
ALGERIA ROMANIA
require timely resolution. In the case of the London SAUDI ARABIA SPAIN ITALY
Protocol, for example, which seeks to protect the EGYPT
CZECH REPUBLIC
NORWAY
marine environment and prevent pollution caused UNITED ARAB EMIRATES FRANCE
BULGARIA
GREECE
HUNGARY
by the dumping of waste, a protracted delay by BELGIUM
40 FINLAND SLOVAKIA
signatory parties to formally implement a 2009
PHILIPPINES PORTUGAL
amendment means that a prohibition on the AUSTRIA
DENMARK
cross-border transportation of CO2 for CCS IRELAND NEW ZEALAND LITHUANIA
SWEDEN
remains in effect.
20
The inclusion of CCS within the architecture of
TRINIDAD & TOBAGO
the international climate change agreement has
proven an important factor in ensuring national
policy support for the technology. While there
has been clear recognition within many facets 0
of the UNFCCC, greater clarity is needed around 10 20 30 40 50 60 70 80
how CCS activities are included in future funding CCS LEGAL AND REGULATORY INDICATOR
mechanisms, particularly those developed under
the Paris Agreement. Such clarifications are
critical for ensuring the technology’s deployment.

LE GA L A N D R E G U L ATO RY TH E G LO BA L S TATU S O F CC S 40
“Despite the inertia of recent years, there are signs
of renewed urgency in developing CCS legislation.”

The need to develop facilitative legal and The experience to date of nations with more the provision of further guidance and Challenge Taskforce17. In addition to highlighting
regulatory frameworks will also be critical advanced models of CCS-specific law and developing further legislation to address the significant opportunity for innovation
for those nations that have strong policy regulation, such as the UK, the US and Canada, the remaining impediments to deployment. in the UK’s regulatory landscape, the report
commitments to deploying the technology as a suggests the design and development of raised the potential for the UK to export this
part of their climate change mitigation targets. legislation is complex and time-consuming, Early signs of renewed impetus newly developed expertise to other countries.
It is apparent that, for some, including those and requires engagement across industry and It also recommended that the government
Despite the inertia of recent years, there are signs
nations in Band C of the Institute’s CCS-LRI, government sectors. Nations with genuine further enhance this regime by promoting
of renewed urgency in developing CCS legislation.
the limitations posed by current regulatory commitments to the technology’s deployment greater international cooperation around the
frameworks may prove acute when project will need to take immediate steps to address Buoyed by successive calls for action from project transboundary shipping of CO2, as well as
proponents seek to deploy the technology this critical aspect of their national response. proponents and the international community pushing for greater regulatory coherence
at scale and within the necessary timeframes. Activities will most likely include: assessments alike, attention has again focused on the need to and allocation of risk for CCUS projects.
of the capacity of existing national regimes to ratify the Article 6 amendment under the London
Several nations with high Inherent Interest
host CCS projects; decisions around the preferred Protocol. Several governments have also made
scores – China, for example – also have strong
approach to regulation; and the identification of minor improvements to their national regimes in IAN HAVERCROFT
policy commitments to the technology. For
key regulators and administrative elements. recent years, with others indicating their interest
some of these countries, deployment of CCS Senior Consultant, Legal & Regulatory (Commercial)
in developing more holistic regulatory models for
comprises a significant aspect of their post-Paris Among those nations with more advanced
the technology.
national climate mitigation pledges. If they are models of CCS-specific law and regulation,
to meet their ambitions for timely deployment, there are also significant opportunities to further The UK, a country with a highly developed
it is critical that all remaining barriers to the enhance domestic regimes. Regulators and and comprehensive regulatory framework,
technology are removed and supportive models policymakers in these countries will want to look emphasised the significance of legal regimes
of law and regulation are developed. to streamlining domestic regulatory processes, in their recent report from the CCUS Cost

LE GA L A N D R E G U L ATO RY TH E G LO BA L S TATU S O F CC S 41
More than 4 million tonnes of CO2 has
been stored to date since 2008 in Snøhvit
CO2 Storage facility located off shore Norway.

EQUINOR – SNØHVIT CO 2 STORAGE, HAMMERFEST LNG CREDIT – OLE JØRGEN BRATLAND TH E G LO BA L S TATU S O F CC S 42
Dr Niall Mac Dowell
IMPERIAL COLLEGE London. FLCHEME

By now, it should be well bankability and reducing the Rather than focusing
accepted that CCS is a key level of public support required exclusively on costs, we should
element of any least-cost to bring them from a pre- instead consider the value
solution to climate change commercial concept to a viable proposition of CCS. In addition
mitigation18, and that it will investment. Here, for the third to delivering least-cost power
only become more important19 time, Canada has shown great to consumers, and adding
given the role that greenhouse leadership with the development flexibility and resilience to
gas removal technologies of the Alberta Carbon Trunk energy systems, CCS has the
will play in meeting the more Line, via a combination of potential to stimulate the
ambitious Paris 1.5°C target. public and private funding22. economy. Some recent work by
Obviously, the details would Summit Power26 presents the
Yet, despite an abundance
vary between regions, but this is first quantitative social cost-
of evidence, there are only
a model that could be duplicated benefit analysis associated with
18 large-scale facilities
in other parts of the world, the deployment of CCS. This
operating around the world –
where CO2 transport and storage work indicates that developing
less than 1 per cent of what is
infrastructure does not yet exist. CCS in the UK could result
likely to be required by 2040
in as much as a 5:1 payback
if we’re to stay on track to So why should the public and
to the economy.
meet the Paris target4. private sectors take this step?
Surely it is easier for both sides That’s right. CCS doesn’t so
CCS may be a mature and
to sit on their hands, waiting much cost money as make
well-understood technology
for a breakthrough “unicorn” money! Delivering CCS at a
with a demonstrated value to
technology to be developed and scale commensurate with the
the energy system20, 21, but we
avoiding the need to take on UK Committee on Climate
are repeatedly told that it is
this risk now. Change’s projections could
“pre-commercial” and that the
create more than 200,000 jobs
“costs must come down”17. Not so. Unicorns, by definition,
across the economy25.
are rare. Waiting for one
How do we fix this impasse? to manifest is a high-risk Meeting our climate targets and
strategy23, jeopardising our realising these returns, though,
What is needed, I believe, is
ability to meet our targets24. is increasingly endangered
a better understanding of the
Importantly, given its technical by delay. By far the best way
ways in which the public and
maturity25, CCS is a powerful to reduce the cost of CCS and
private sectors can, and should,
Stop looking for answer that is far from being profit from its benefits is to
work together to deliver this
a unicorn. However, neither stop looking for unicorns and
vital technology. Astute risk

UNICORNS allocation and ownership are


key to reducing the investment
is it simply a plug-and-play
technology. It requires specific
and bespoke infrastructure to
conscientiously progress the
options we have in hand today.

risk associated with CCS


be developed for it to work.
projects, improving their

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 43
Of the 18 large-scale CCS facilities in
operation, 16 are industrial. As CCS becomes
more widely deployed, a whole new CCS
industry is being created – CCS-specific
componentry, boilers, turbines, pipelines
and other CCS specialty products.

WIDE AWAKE FILMS FOR INTERNATIONAL BROTHERHOOD OF BOILERMAKERS TH E G LO BA L S TATU S O F CC S 44


Newton B Jones
PRESIDENT International Brotherhood of Boilermakers

As a labour union that builds, scale post-combustion project plant produces zero emissions
repairs and maintains heavy to add CCS to an existing coal- using natural gas as the fuel
industrial facilities, the fired power plant. (See www. source. There is also the solvent
International Brotherhood CleanerFutureCCS.org.) and absorber approach used by US
of Boilermakers trains and utility NRG in partnership with
Each project has created well-
dispatches skilled workers across JX Nippon that captures 90 per
paying union job opportunities
North America. The type of work cent of post-combustion CO2 at
that include healthcare, pensions
we perform requires sending the coal-fired Petra Nova plant
and other benefits. Thousands
thousands of craftsmen and near Houston, Texas.
of skilled workers travelled
craftswomen – welders, riggers
to the sites and lived in local The opportunities for CO2
and mechanics – to industrial
communities, where they spent mitigation, job creation and
sites to install major systems,
wages on lodging, dining, economic growth surrounding
including emission controls and
products and services. Taxes from CCS globally are staggering.
CCS technologies. Boilermakers
these projects supported schools And while power generation
see first-hand how CCS drives job
and community services, such receives most of the attention
creation and powers economies.
as police and fire protection. for CCS, it will be necessary to
Take, for example, three Canadian Increased spending in area adapt CCS technologies to every
CCS projects in which we have communities created indirect type of heavy industry that
been involved: the Shell Quest jobs to support the population of emits large volumes of CO2: oil
Scotsford Upgrader and the workers building those facilities. refining; steel milling; cement
North West Redwater Sturgeon And now that the facilities are making; aluminium smelting;
Refinery, both in Alberta; and operational, full-time workers manufacturing and others.
SaskPower’s Boundary Dam there continue supporting local
Policies and financial support
project in Saskatchewan. Each communities through taxes and
from governments along
of these projects is unique. Shell personal spending.
with private investment to
Quest adds CCS capability to an
In North America and around commercialise CCS not only
existing upgrader that processes
the world, organisations are promote real solutions to climate
bitumen into a refinery-ready
just scratching the surface of change, they also drive job
oil. The North West Redwater
implementing CCS technologies opportunities and economic
CCS drives Sturgeon Refinery is being built
that can substantially mitigate development. Scaling up CCS to
from the ground-up to capture
CO2 emissions. Consider, for the extraordinary level necessary
CO2 produced during the refining

JOB CREATION
example, the Allam Cycle to help meet the Paris Accord
process. And SaskPower’s
technology being developed by global warming targets will
Boundary Dam is the world’s
8 Rivers portfolio company NET profoundly benefit workers
first commercial-
Power near LaPorte, Texas. The and communities alike.
AND
powers economies Established in 1880, the International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers & Helpers is a diverse
union representing workers throughout the US and Canada who are employed in: industrial construction; maintenance and repair; ship
building; manufacturing; railroads; cement; mining and related industries. More information can be found at www.boilermakers.org.

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 45
Archbishop Serafim Kykotis
EMINENCE METROPOLITAN OF THE GREEK ORTHODOX ARCHBISHOPRIC OF ZIMBABWE AND ANGOLA,
SERAFIM KYKOTIS (GREEK ORTHODOX PATRIARCHATE OF ALEXANDRIA AND ALL AFRICA).
Head of the Department of Climate Change Crisis and Sustainable Development Goals of the United Nations.
MEMBER OF THE EXECUTIVE, WORLD COUNCIL OF CHURCHES

“As a theologian who has spent his life striving to make the world a better place, I am
deeply committed to do everything I can to stop the crisis that is climate change. COP24
brings us to a crossroads in our confrontation to build a better world for our children and
future generations. As Katowice will show, we are failing in our climate change efforts.
We are on a bus without brakes, travelling towards a major destination. But we keep
arguing about how to get there.
Whilst there is almost unanimous belief that the world is warming, there are different
beliefs about how to address it. There is an ongoing presumption that one belief is better
than the other? Some of us are very familiar with this debate. The reality is, all beliefs
are legitimate.
If we have any hope of saving humankind and the planet, we need to look at every
solution. Carbon capture and storage is an obvious one. Proven by science, commercial
All beliefs are application and common sense, CCS must form a vital part in our climate change response.
Just as the UN Security Council is working with member states to ensure the survival

LEGITIMATE of humankind, we all need to work together – countries, industry, organisations and
individuals – using everything at our disposal to protect our planet.
Climate change success will only come when everyone is working together and
everything is embraced.”

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 46
Case
Studies

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 47
Case Study

CHINA
THE PATH TO
ecological excellence

A number of significant and far-reaching climate change


developments have taken place in China over the past year.
One of the most significant has been the restructuring of
government departments – namely, the restructuring of the
Ministry of Environmental Protection into a new Ministry – the
Ministry of Ecology and Environment (MEE). The Department of
Climate Change also transferred from the National Development
Reform Commission into MEE.
This re-organisation has taken climate change beyond strategy
and policymaking towards a more vigorous and high-profile
program of enforceable action. MEE is tasked with the
implementation of “ecological civilization construction”,
which provides an even broader dimension to the well-known
concept of sustainable development.
This concept is typified by the government’s goal to build a
“Beautiful China” by 2035, a nation with innovative companies,
a clean environment, an expanding middle class, adequate
public transportation and reduced disparities between urban
and rural areas.
Addressing climate change is one of the major instruments
to enhance the construction of ecological civilisation, and
CCS has been embraced as an essential technology to achieve
carbon emissions reduction targets. In fact, China has exerted
great effort in accelerating CCS deployment from the coasts
and the hinterland to the farthest corners of the country.
While other countries are trying to pick technology favourites
and debate the rights and wrongs of Paris, China’s CCS
policies and strategies have remained stoic and stable.

SINOPEC EASTERN CHINA CAOSHE OIL FIELD CO 2


EOR BEING ONE OF THE EARLIEST PIONEERS IN CHINA.
CREDIT – SINOPEC CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 48
China has exerted great effort in
accelerating CCS deployment from
the coasts and the hinterland to the
farthest corners of the country.

It is fair to say that there has been no “dithering The country is also mindful that economic, CNPC Changqing Oil Field Elsewhere, major CCS technical assistance worth
over Paris” at the Chinese end. On the contrary, environmental and social considerations need US$5.5 million was implemented through an MOU
CNPC Changqing Oilfield was the leading oil and
China has moved with speed to lay down new laws to work hand in hand. For that reason, EOR is, between the Chinese Government (represented by
gas producer in China in 2018. The oilfield is in
that will address its ecological challenges and and continues to be, a major driver of CCS National Development and Reform Commission),
Dingbian, Shaanxi Province, and is characterised
CCS/CCUS has been sitting at the centre of many progress and China can now count more than Asia Development Bank, Yanchang Petroleum
by low pressure, low permeability and low
new initiatives. These include: 20 projects at various stages of development: Group, and Northwest University to develop
abundance, which makes it ideal for EOR. It began
large-scale CCS pilots.
• a national carbon market in the electricity sector operations in 2017 and now has a capture capacity
Jilin CCS
of 50,000 tonnes per annum. Against this backdrop of “in-the-ground” activity,
• widespread promotion of low-carbon
CNPC Jilin Oil Field CO 2 EOR Demonstration the Institute has been advocating widely, working
technologies with an emphasis on CCUS, CCUS
Project, located in Jilin Province, Northeast China, CHN Energy Jinjie with government, industry, and academia to increase
pilots and Near Zero Carbon Emissions pilots
reached 1.12 Mt cumulative injection, becoming the levels of CCS awareness and share information.
CHN Energy is developing of a demonstration-scale
• grant funding on CCS research projects, first large-scale CCS project operating in China
full-chain CCS facility retrofitting to a subcritical In May 2018, the Institute hosted its first APAC CCS
included major research and development and the world’s 18th large-scale global facility.
coal-fired power plant unit in Shaanxi Province. At a Forum in Shanghai, focusing on CCS’s ability to
projects promoted by the Ministry of Science
CO2 capture capacity of 150,000 tonnes per annum, decarbonise the industrial sector. It attracted more
and Technology SINOPEC Zhongyuan Oil Field
the captured CO 2 will be injected at the existing than 150 attendees including Ministry of Ecology
• amendment of the Environmental Impact SINOPEC Zhongyuan Oilfield in Central China has CO 2 injection sites previously used by Ordos CCS and Environment, Climate Change Deputy Director
Assessment Guidance to embed relevant an injection capacity of 100,000 tonnes per annum Demonstration project. General, Sun Zheng. The Institute also co-organised
indexes on CCUS projects and a cumulative injection of 500,000 tonnes since a “CCS in steel” forum with China Baowu Steel
• the CCUS capacity-building project for it began operations in 2007. CO2 is sourced as a Haifeng Carbon Capture Test Platform Group, the world’s second largest steel producer,
government officials and researchers waste gas from a nearby chemical plant. which now operates its own CCS facility.
Haifeng Carbon Capture Test Platform is located
directly involved in CCUS. at Shanwei, Guangdong Province, where abundant CCS success in China has been driven by
Xinjiang Dunhua collaboration and commitment between large and
Despite this progress, CCS in China is still offshore storage resources are located. The
faced with challenges that are shared globally: Xinjiang Dunhua Oil Technology Co., LTD project is the first of a kind using different capture divergent stakeholder groups. This approach has
a lack of policy operability; not enough (Dunhua Oil) is the only private company in technologies for supercritical power plant units. ensured that CCS is now an engrained part of the
commercial investment; and underdeveloped China that focuses on CCS-EOR, capturing The project is in construction and will start testing rapidly emerging “Beautiful China” blueprint.
public participation. 100,000 tonnes per annum from the Dunhua in 2019. The capture capacity per day is estimated
Methanol Plant, which began operations in 2015. to reach 10–50 tonnes.

DR XIANGSHAN MA
Country Manager, China – Client Engagement

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 49
CNPC Jilin Oil Field CO2 EOR
joins the ranks as the world’s
18th large-scale CCS Facility.

CHINA JILIN OIL FIELD CO 2 EOR. CREDIT – CNPC JILIN CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 50
TIMELINE OF CCS IN CHINA

May 2011
Mar 2017
Injection started
Nov 2013
at Shenhua Group Announcement of
Apr 2003 Nov 2015
(CHN Energy) Ordos MEPC: Notice on the first commercial
Mar 2013 Jun 2016
The first CCS Demonstration: strengthening the NDRC: Launch of large-scale
Dec 2017
CO2 EOR China’s first entirely MOST: National environmental the CCS roadmap MEPC: Technical CCS facility in
demonstration coal-based full- special plan protection of assisted by guidance on Construction: NDRC: Launch of
scale project chain CCS project for CCUS CCUS pilot and the Asian environmental Yanchang China National
started at CNPC in dedicated Technology demonstration Development risk assessment Integrated CCS Emissions Trading
Jilin oil field geological storage Development project Bank of CCUS Demonstration Scheme (ETS)

Jun 2007 May 2012 Apr 2013 Aug 2014 Nov 2015 Oct 2016 Oct 2017 Early 2018

MOST: “Addressing Policies and actions NDRC: Notice on NDRC: Climate China’s “Intended State Council: NDRC: China’s CNPC Jilin Oil Field CO2
Climate Change in 12th Five-Year Plan promoting CCUS change plan and Determined 13th Five-Year Plan “Policies and Actions EOR scaled up as the first
White Paper” highlighted CCUS demonstration actions listed Contributions” on GHG emission for Addressing Climate commercial large-scale
included research, in decarbonising CCS-EOR and its recognised the control, and Change” recognised CCS facility in China
development and fossil-fuel power demonstration research and national scientific the research, pilot
demonstration of generation and projects in fossil- demonstration of and technological and demonstration
CCS technology industrial sectors fuel power plant, CCS as a key low- innovation of CCUS
chemical plants, carbon technology planning promoted
cement and the research
steel industries and deployment
of large-scale
low-cost CCUS

Abbreviations: Sources:

FACILITY MOST: Ministry of Science and Technology; People’s Republic of China Information Office of the State
NDRC: National Development and Reform Commission; Council and Chinese government publications (in Chinese),
POLICY MEPC: Ministry of Environmental Protection of China. CO 2 RE database Policies Report 1, CCS roadmap in China27,
National Centre for Climate Change Strategy and
International Cooperation28.

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 51
Case Study

UNITED STATES
WORKING AS ADVERTISED
and gathering speed

NET POWER’S 50 MWTH TRANSFORMATIONAL NATURAL GAS OXY-COMBUSTION/ALLAM CYCLE POWER


GENERATION SYSTEM, LA PORTE, TEXAS. CREDIT – NET POWER CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 52
It is fair to say that the US continues to
dominate the CCS space. And over the
past year, deployment and policy have
picked up pace.

The United States hosts the largest number of The Shute Creek CCS facility has a further Assurance Enterprise initiative (CarbonSAFE). reason: it seeks to prove that emissions-free
large-scale CCS facilities in the world, which 7.0 million tonnes per annum capture capacity Six projects are in feasibility study, advancing electricity from natural gas can be produced at
have cumulatively captured and injected more to prevent CO2 from entering the atmosphere. towards the large-scale deployment by 2025: the same price as electricity from a conventional
than 150 million tonnes. In the policy domain, Petra Nova is the only large-scale CCS power power plant.
• CarbonSAFE Illinois Christian County
the environment continues to improve, paving facility in the US, and one of only two globally.
CCS advocates, electric utility executives and
the way for a further boost in new facilities. Capable of removing 90 per cent of carbon from • Carbon Dioxide Storage (ECO2S) Complex
environmentalists alike have celebrated the
the generating unit’s flue gas through post- in Kemper County, Mississippi
Committed to technology leadership, the US facility, which began operations in the first half of
combustion capture, Petra Nova captures up to • North Dakota Integrated Carbon
boasts the largest number of large-scale facilities 2018. It intends to demonstrate the viability of the
1.4 million tonnes per annum. The plant also quietly Storage Complex
globally. Of the global 18 operating facilities, Allam Cycle, which includes complete CO2 capture
celebrated storage of two million tonnes milestone,
10 (including one capture facility with CO2 injection • Integrated Midcontinent Stacked Storage Hub as inherent in the electricity generation process.
further proof that CCS is firing across all cylinders.
in Canada) are located in the US. It is proof that, Requiring no separate CCS unit and eliminating
The project is a landmark in the CCS landscape, • Wabash CarbonSAFE
in the US, CCS is “working as advertised”. the energy penalty, the project is a stellar step
enabling learning and improvement, and paving • Commercial-Scale Carbon Storage Complex towards a zero-emission future. It is innovation in
Together, US facilities can capture about 25 million the way for a more successful future for CCS. at Dry Fork Station, Wyoming. the best sense of the word.
tonnes per annum – the equivalent of taking
The Illinois Industrial CCS facility – capturing CO2
almost 5.4 million cars off the road for one year. In early 2018, the US Department of Energy
from an ethanol plant owned by Archer Daniels Ones to watch
announced that Regional Carbon Sequestration
Midland and storing it deep in the subsurface But these are only the large-scale plants. Several
A raft of major facilities Partnerships have together injected more than
adjacent to the plant – also passed its million other facilities are capturing and storing CO2 at a seven million tonnes of anthropogenic CO2 in
The largest of these, the Century Natural Gas Plant tonnes milestone. smaller-scale throughout the country, and many different regions and geological formations.
and CCS facility in Texas, alone has a capture
As these achievements have occurred, the pilot projects are under way. A number of these partnerships are studying
capacity of 8.4 million tonnes per annum.
US Department of Energy (DoE) is facilitating NET Power’s 50 Megawatts Thermal (MWth) the possible regulatory and infrastructure
further CCS rollout by developing the next set demonstration power plant located near Houston, requirements that would be needed for commercial
of geological storage complexes (over 50 million Texas, has garnered great attention and for good deployment of CCS.
tonnes of CO2) under the Carbon Storage

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 53
Committed to technology leadership, the US
boasts the largest number of large-scale facilities
globally. Of the global 18 operating facilities, 10
(including one capture facility with CO2 injection
in Canada) are located in the US. It is proof that,
in the US, CCS is “working as advertised”.

The coup of 45Q The caveat that eligible plants have to begin In California, CCS has gained momentum. to predict how the new policy and regulatory
construction soon – by 2024 – has not tempered The state’s legislature passed a historic climate framework might impact deployment, commitment
The biggest coup, of course, was the bi-partisan
industry enthusiasm. Two projects have already law called SB100, requiring the state to move from the US’s most environmentally friendly
approval of the FUTURE Act in February 2018.
been announced, with more expected to follow. to 100 per cent low-carbon electricity by 2045. state signals a collective understanding that
More colloquially known as enhanced 45Q (in
Occidental Petroleum and White Energy signalled Doubling down, Governor Jerry Brown also CCS is indeed a vital technology to tackle climate
reference to the relevant section of US tax code),
their intention to work together to capture CO2 issued an executive order to achieve total carbon change and is essential for California to meet its
this sparked great enthusiasm among the CCS and
from two White Energy ethanol plants. Separately, neutrality by 2045. And CCS has to be part of the climate goals.
wider climate change community, as arguably the
developers of the Lake Charles Methanol plant solution if both of these goals are to be achieved.
most significant CCS-related policy development The US remains a formative presence in CCS
presented their plan to invest in a gasification Furthermore, in an effort to reduce the carbon
ever enacted. and, despite challenges, it is marrying policy
facility expected to capture and store more than intensity of fuel sold in California by 20 per cent
with economically viable projects to keep moving
The legislation provides a tax credit of US$50/ four million tonnes per annum of CO2 . by 2030, California’s Air Resources Board also
the technology forward. We should continue to
tonne for geological storage of CO2 and US$35/ amended its Low Carbon Fuels Standard (LCFS)
expect a further flotilla of facilities to deploy in
tonne for permanently stored CO2 used in EOR. Supportive state-wide environments in September. The big change: carbon reductions
the coming years.
For the first time, the tax credits are also available from carbon capture technologies are now allowed
At the state level, lawmakers and regulators are
for non-EOR utilisation projects and direct air to participate in its low-carbon fuels market.
creating more CCS-supportive environments.
capture, incentivising early-stage investment. At the same time the state also put in place a
Further CCS-relevant federal legislation is
Texas, North Dakota and Montana are taking JEFF ERIKSON
protocol on CCS, outlining stringent regulation and
significant steps to drive CCS investment via General Manager – Client Engagement
pending, signalling strong commitment from paving the way for CCS to participate in its cap-
policy initiatives.
lawmakers and the energy policy community to and-trade market. While it is yet too early
creating the stable policy environment necessary
for bolstering CCS deployment.

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 54
Senator Heidi Heitkamp
UNITED STATES SENATOR for North Dakota

When I arrived in the US Senate in 2013 coal-fired power was


in a death spiral and Carbon Capture and Sequestration (CCS)
projects around the country were struggling. Lignite coal provides
thousands of jobs in North Dakota – and at the time near 80 per
cent of our energy. This fact had to be balanced though with my
belief in climate change and role that people have played in these
changes – and therefore a need to greatly reduce emissions from
coal and natural-gas energy generating units. The problem in
Washington was that both sides of the aisle – and their respective
allies – had dug in for years on these issues and very few people
saw that there was a path forward where both sides could claim
a “win” and would have the added impact of potentially making
the US the leader in research, development, and export of these
technologies. So I got to work right away and began talking to
colleagues on both sides of the aisle, coal companies, utilities,
rural electric co-ops, and environmental groups about the
possibility of advancing and supporting CCS as key component
of our national energy and environmental policies. I told the coal
folks that they had to come to grips that they would be operating
in carbon constrained world – and I told the environmental
community that every major study showed that CCS was going
to be necessary to meet any kind of global climate and emissions
reduction goals.
The year of

ACTION ON CCUS

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 55
Along the way I’ve introduced several bills; toured going to continue using coal for electric generation investor list that includes the likes of Bill Gates and increased interest and investment from federal,
facilities in the US, Canada, and Norway; spoken for decades to come. The time to act had arrived. other Silicon Valley leaders. It truly has been an state, and private sources.
to numerous and varied audiences at conferences; incredible year for the advancement of CCUS – not
2018 has become the year of actions on CCUS – it In these partisan times, the FUTURE Act was
taken hundreds of meetings; and picked up three only in this country, but globally.
has been a big year for the advancement of CCUS a rare policy win that required a broad coalition
crucial allies in the Senate – Sens. Sheldon
policies and technology. With the FUTURE Act – In North Dakota, this is great news for coal, which of environmentalists, electric utilities,
Whitehouse, John Barrasso, and Shelley Moore
which I helped write and introduce – now signed is in abundant supply and still meets the majority coal companies, industrial manufacturers and
Capito. During this time the focus also shifted
into law, the 45Q tax credit has been modernized of our energy generation needs. But it’s not just many more. We’ve taken that momentum and
and we began discussing the need for these
to give long-term certainty and adequate support coal that stands to benefit – an ethanol plant have introduced and advanced the Utilizing
technologies in reducing emissions in the industrial
to those interested in investing in technology that in Richardton, North Dakota was one of the first Significant Emissions with Innovative Technologies
and manufacturing sectors, incorporating Direct Air
will be essential in a carbon-constrained world. companies to express interest in utilizing the (USE IT) Act – a bill that would further engage the
Capture (DAC) into our discussions and legislation;
With cost a prohibitive factor in developing any expanded 45Q tax credit. By sequestering carbon US Environmental Protection Agency on CCUS
and making utilization as major piece of the
major industry-changing technology, the 45Q tax produced in ethanol production, they’ll be able to and DAC to ensure a true cross-agency federal
discussion and re-branding all of our legislation
credit is poised to jump-start the innovations that sell their product in markets that require biofuels to commitment to advancing these technologies
and discussions around Carbon Capture Utilization
will be necessary to ensure existing sources of have a lower carbon footprint. North Dakota is also and the necessary policies. We’re looking further
and Sequestration (CCUS).
energy can reliably and cleanly continue to power a major producer of natural gas and has built out into the future of these exciting technologies –
I’ve seen the momentum shift towards CCUS being communities across America. We have also seen new natural gas generation to handle the recent and it will require continued cooperation and
a viable bi-partisan solution in that time – even successful projects like NET Power’s project in population boom and load increase in the state compromise to continue to build on our progress.
more so after the Paris Agreement in 2015 when it Texas and Sask Power’s Boundary Dam. We have – CCUS could help increase the market for our The changes and advancement that I have seen
became even more clear that in order to meet the seen major institutions and think tanks make CCUS natural gas and make our current generation even in six short years make me confident that I made
stated climate goals – the global community had a key component of their programs – at Columbia cleaner. The Energy and Environmental Research the right decision to make this a priority as a
to invest in CCUS and DAC technologies. While University, the University of Michigan, and Energy Centre at the University of North Dakota continues US Senator – and I am excited to see what the
the US and other mature economies have reduced Futures Initiative (led by former US Secretary to be a leader in CCUS research – especially as future holds.
their use of coal-fired power – China, India, many of Energy Ernest Moniz). We have seen private it relates to enhanced oil recovery in the Bakken
African nations, and other developing countries are sector investment in CCUS and DAC – with an shale play – and will benefit greatly from the

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 56
Since 2000, Great Plains
Synfuel Plant has captured
and transported nearly
35 million tonnes of CO2
for enhanced oil recovery.

GREAT PLAINS SYNFUELS PLANT, NORTH DAKOTA. CREDIT – DAKOTA GASIFICATION COMPANY CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 57
Senator John William Warner
FORMER SENATOR OF VIRGINIA AND SECRETARY OF THE US NAVY FROM 1969-1974

“Climate change is one of the most dangerous


security threats of our time and it is important
to also view it through the military lense. More
frequent events of extreme weather – hurricanes,
droughts, floods among others – have shown
to lead to political instability, conflict and war.
With a changing climate and the US bearing a
global responsibility, climate change might lead
to increased deployment of our armed troops for
humanitarian causes. It is therefore essential to
recognize that all available decarbonisation options
have to be deployed with urgency and in harmony.
Fighting one of the most dangerous Carbon Capture and Storage, as one vital option,
certainly plays an important role in delivering
SECURITY THREATS deep emissions cuts to prevent global warming”.

Senator John William Warner, former Senator of Virginia and Secretary of the US Navy from 1969
to 1974. John Warner was first elected to the US Senate in 1978 and served five consecutive terms.
In 20 07, he was the lead sponsor of the Lieberman-Warner climate bill, which would have
established a cap-and-trade system to deliver sharp reductions in GHG emissions.

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 58
TIMELINE OF CCS IN THE UNITED STATES

Mar 2011
2007 Feb 2018
Blueprint for a Secure
Power Systems Energy Future supported FUTURE Act
2009
Development an unprecedented the Carbon
Facility, later Regional investment in the Capture Act –
Oct 2000
renamed Greenhouse Gas development of CCS, Carbon Capture
1986
Great Plains National Carbon Initiative is the first and proposed ways Incentives
1972 Jan 2017
Shute Synfuels Plant Capture Center, mandatory market- to overcome barriers in Reducing
Mar 2013 Jun 2014
Val Verde Creek Gas with CO2-EOR begins testing based program to to widespread, cost- Petra Nova Carbon Dioxide
Late 2010
Natural Processing in Weyburn- CO2 capture reduce greenhouse effective deployment of Lost Cabin EPA Clean Carbon Emissions
Gas Plants Plant Midale, Canada technologies gas emissions Century Plant CCS within 10 years Gas Plant Power Plan Capture

1982 2000 2002 2008 2009 Dec 2010 Jan 2012 Jun 2013 Aug 2015 Apr 2017

Enid Renewable and Clean Coal Power Original 45Q American DOE/NETL Air Products Coffeyville US EPA: Illinois
Fertilizer Alternate Energy Initiative (CCPI) – tax credit for Recovery and Carbon Dioxide Steam Gasification Carbon Industrial
Portfolio Standards addressed the CO2 storage Reinvestment Act Capture and Methane Plant Pollution Carbon
required the state demonstration of allocates funding Storage RD&D Reformer Standards Capture
to meet 5 per cent advanced, clean, for, among other Roadmap for New, and Storage
of its electric load efficient coal-based things, CCS Modified and
with alternative power systems facilities. Petra Reconstructed
energy by 2020 integrated with CCS Nova and Illinois Power Plants
including CCS Industrial both
received significant
funding resulting
from this Act

FACILITY
POLICY

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 59
The way to Hon Amarjeet Sohi
MINISTER Canadian Natural Resources

CLEAN AIR

“As the world makes the transition to a lower-


carbon future, CCUS will play a critical role,
and the Government of Canada is supporting its
development. For example, Canada is working
on next-generation carbon capture technologies
and has invested in testing new approaches to
convert CO2 captured from various industrial
sectors into value-added products. We will
also continue to learn from the large CCUS
demonstration projects built in Canada. CCUS is
one of the technologies that can ultimately give
Canadians cleaner air by reducing air pollution
and support industries’ transition to a low-
carbon economy.”

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 60
Case Study

JAPAN
HONING CAPABILITY
and breaking new ground

TOMAKOMAI CCS DEMONSTRATION PROJECT LOCATED AT TOMAKOMAI CITY, HOKKAIDO. CREDIT – JCCS CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 61
Five major milestones in Japan
roads, CCS has created another hydrogen
highway with the announcement in April 2018
that the Japanese and Australian governments
were partnering with industry in both countries 1. Commencement of CO 2 injection at the Tomakomai CCS facility by Japan CCS
to create a Hydrogen Energy Supply Chain in with the Ministry of Economy, Trade and Industry’s full support – Asia’s first full-cycle
the Australian State of Victoria. CCS hydrogen plant, which will capture more than 300,000 tonnes of CO 2 by 2020.
This AU$500 million project, which involves 2. Retrofit of Toshiba Corporation 49MW Mikawa power plant in Omuta (Fukuoka
our member companies Kawasaki Heavy Prefecture) to accept biomass (in addition to coal) with a carbon capture facility.
Industries (KHI) and J-Power among its big
3. Start-up of JPOWER and Chugoku Electric Power Company’s Osaki CoolGen facility,
benefactors, will construct a hydrogen production
a 166 MW oxygen-blown IGCC (integrated gasification combined cycle) plant in
facility that will use well-tested Japanese
Over the past year, Japan has continued to Osakikamijima (Hiroshima Prefecture), which will separate and capture CO 2 .
technologies to transform Victoria’s abundant
hone its CCS capabilities with the country’s brown coal reserves into clean hydrogen. This will 4. Completed construction of Toshiba’s carbon capture and utilisation (CCU) system
first CCS hydrogen plant, Tomakomai, pushing be shipped to Japan in a tailor-made KHI hydrogen at the Saga City Waste Incineration Plant (on Japan’s Kyushu Island), using captured
past 200,000 tonnes of CO2 safely captured carrier for use in power, heating, transportation CO 2 for algae culture.
and stored, ensuring that the technology and industrial applications.
5. Announcement by Kawasaki Heavy Industries of a Japanese Hydrogen Energy
continues to garner attention and send
Pivotal to the project is a CCS plant that will Supply Chain that plans to gasify Australian brown coal in Victoria’s Latrobe Valley
signals to others of its wider application.
prove that clean coal is only possible through and transport it by ship for the future decarbonised hydrogen developments.
As Tomakomai continues to demonstrate the the deployment of CCS.
dexterity of CCS, three other key projects made
This kind of unprecedented development would
steady progress – two near Fukuoka on Japan’s
not be possible without a truly collaborative
southernmost Kyushu Island (Saga City Waste
approach between governments, their departments
Incineration and Toshiba’s Mikawa Biomass Power
– particularly Japan’s Ministry of Economy, Trade
Plant) and another in Hiroshima (Osaki CoolGen).
and Industry and the Ministry of the Environment –
Like Tomakomai, these facilities are making industry, academia and CCS advocates.
the case for CCS against a backdrop of extreme
In Japan, where industry is the cornerstone of
weather events and a multifaceted energy
economic success, it is widely acknowledged
program that the government has introduced
that CCS is one of the last remaining options to
to keep all energy options in motion.
keep the population safe, secure and in work,
This includes commitments that, by 2030, at the same time as keeping climate change,
26 per cent of all electricity will be coal-generated, and its now very visible dangers, at bay.
22–24 per cent of all energy will be renewable,
and a hydrogen society will be fully established
(following a hydrogen-fuelled Tokyo Olympics
In the birthplace of the Kyoto Protocol, where
the Paris 2˚C foundations were laid in 1997, Japan Japan is continuing to chisel out an
is continuing to chisel out an energy future that is
in 2020).
That last commitment to hydrogen has been
pragmatic, socially conscious, and far-sighted – energy future that is pragmatic, socially
and where CCS is literally breaking new ground.
crucial to CCS success.
As stationary hydrogen fuel cells are being
conscious, and far-sighted – and where
HIROSHI NAMBO
CCS is literally breaking new ground.
installed in households and more than 2,000
hydrogen fuel cell vehicles are put on Japanese Branch Representative, Japan – Client Engagement

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 62
Hirofumi Iwakura
MAYOR Tomakomai. CHAIRMAN Tomakomai CCS Promotion Council

Tomakomai City, Hokkaido, is a large Tomakomai CCS Promotion Council made


industrial city with a population of 172,000 up of local organisations and corporations to
and a port that is a hub of world trade. The ensure that the facility would enjoy smooth
ongoing CCS demonstration project in our progress. To this day, the city continues
city, Tomakomai CCS, is the first of its kind in to facilitate wide cooperation to ensure
Japan and a project that has been recognised Tomakomai’s success.
as essential to the development of Japanese
Additionally, Tomakomai’s CCS Demonstration
CCS technologies for 2020 and beyond.
Centre has attracted thousands of visitors
Through Tomakomai CCS, more than from Japan and around the world, building on
200,000 tonnes of CO2 has been injected the variety of attractions around Tomakomai,
offshore since 2017. Such a smooth and including Lake Utonai, designated as wetlands
faultless operation would not have been under the Ramsar Convention, and the area’s
possible without extensive cooperation and abundant seafood stocks, including Hokkigai
continuous efforts between stakeholders, (Surf Clam), which has the highest catch
such as the Ministry of Economy, Trade quantities in Japan.
and Industry, New Energy and Industrial
We hope you will come to Tomakomai,
Technology Development Organization,
A ticket to not only as an industrial tourist to the
Japan CCS Co. Ltd and many local industries.
CCS facility, but also as a guest of
As Mayor of Tomakomai, I sincerely respect
Hokkaido and its many great attractions.

GREATER and admire the persistence and hard work


that has made Tomakomai a shining example
of industrial, environmental and climate
May I extend my best wishes to the
Global CCS Institute and all stakeholders

ENVIRONMENTAL change excellence.


When we were first invited to establish
involved in CCS as a ticket to our greater
environmental prosperity.

PROSPERITY a demonstration test site, the City of


Tomakomai established a dedicated

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 63
Saga City – The world’s best kept secret (for now)

At Saga City, a city of 240,000 people just 38 a very high purity. They were looking for a biomass
kilometres from Japan’s ancient city of Fukuoka, solution for their city, so officials asked Toshiba if
on the picturesque southern island of Kyushu, a the Mikawi model could be replicated at the Saga
CCU city of the future is emerging. site. The answer was yes.
Saga is host to a waste incineration plant, which is Says Mr Suzuki: “The biggest challenge became
using captured CO2 to cultivate crops, create algae the small strip of land that I was allotted to build
cultures and even make the medals for the 2020 the plant on. It was very thin. But with knowledge
Tokyo Olympics from reconstituted metal. gained at Mikawa, we have managed to build a
state-of-the-art CO2 capture plant, which we
Built by Toshiba and commissioned in 2016, the
believe is the shape of things to come.”
CCU facility captures up to 10 tonnes of CO2 per day
from the plant’s live flue gas, which is then piped The Plant is a shining example (literally) of a
to a glass-covered algae farm only a few hundred fully integrated CO2 capture project where trash
metres away. From there, proprietary technology becomes treasure at the same time as helping
enables the CO2 to be used to produce exotic, high- meet international climate change targets.
end body lotions and anti-aging creams, which are
The innovation is also a perfect example of what
exported to retailers around the world.
happens when policy confidence and unswerving
It is a world-first application of waste treatment, passion is applied to CCUS; in this case, when a
which has until now been one of the world’s best mayor, Toshiyuki Hideshima, commits his city to
kept secrets. become a “living laboratory” to sustainability and
climate change mitigation.
Commercial success has burgeoned and now a
new wave of agricultural entrepreneurs is acquiring As Saga employees will quietly tell you as you tour
land in the plant’s vicinity to capitalise on the the plant alongside dozens of local schoolchildren:
CO 2 CAPTURE FACILITY IN SAGA CITY MUNICIPAL WASTE INCINERATION PLANT
CREDIT – SAGA CITY diversity that the CCU/waste incineration “double- “This Mayor cares so much he actually goes door-
act” is delivering. knocking to talk to city residents about the need to
recycle everything and mitigate global warming.
Multinational Toshiba, a major energy systems
He truly cares.”
and services corporation, has established itself
The Plant is a shining example (literally) as a world leader in developing carbon capture But he is not alone. The national government has
technologies, particularly the separation of CO2 designated the Saga municipality as a Special
of a fully integrated CCU project where emitted from thermal power plants. Economic Zone to encourage low-carbon starts-ups
and create jobs.
Work undertaken by Toshiba’s CCU expert
trash becomes treasure at the same time and senior manager, Kensuke Suzuki, at the Global CCS CEO Brad Page says the Saga

as helping meet international climate nearby Mikawa Thermal Power Plant, inspired
the development of a CCU unit at Saga City.
City Incineration Plant is one of the best global
environmental stories that hasn’t been told. “If
change targets. Representatives from Saga City had been quietly the rest of the world followed this model, climate
watching the CO2 capture technology at the Mikawa change would quickly become a thing of the past.
CCU Plant, which uses chemical absorption in a As such, the Saga City CCU story is unlikely to
post-combustion capture process to extract CO2 at remain a secret for much longer.”

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 64
Noriaka Ozawa
DIRECTOR GENERAL FOR ENERGY AND ENVIRONMENTAL POLICY Ministry of Economy, Trade and Industry

Following deliberation started in August both domestic and international situations


2017 by the Japanese Government at the and learning from various efforts around
Strategic Policy Committee of the Advisory the world. During the discussion, CCS was
Committee for Natural Resources and considered as one of the main technology
Energy, the Fifth Basic Energy Plan was options, and together with resource-rich
approved by the Cabinet in July 2018. This countries and emerging countries, Japan
Plan includes basic principles and policies decided to work towards reviving fossil
towards 2030 and states the willingness of fuels by using CCS. Commercialisation of
the government to realise energy transition CCS is not without its challenges of course,
and decarbonisation towards 2050. including high costs. Providing solutions to
such challenges is crucial.
Thermal power will still account for more
than 50 per cent of the energy mix in 2030. As for the domestic CCS-related technology
To reduce greenhouse gas emissions, it developments, Japan is implementing a
is vital to promote the development of large-scale CCS demonstration pilot project
high-efficiency technologies to mitigate in Tomakomai, Hokkaido. The injection of
the effects of thermal power generation CO 2 started in 2017 and a total of about
itself. Both the government and industry 200,000 tonnes has been injected so far.
in Japan have high expectations for the Also, the Integrated Coal Gasification Fuel
commercialisation of CCS. Cell Combined Cycle (IGFC) at the Osaki
CoolGen project is being implemented in
The realisation of a hydrogen economy
Osakikamijima, Hiroshima. The construction
is also important. Because hydrogen
of the CO 2 separation and capture
is an energy source that enables total
facility started in 2018, and the full-scale
decarbonisation when CCS technology is
demonstration project will commence
applied at its production process, much is
in 2019. Through such projects, Japan is
expected from the wider use of hydrogen in
looking to establish CCS technologies
the future.
and reduce their costs so that the country
Also in August 2017, the Round-Table for can work steadily towards making CCS

VITAL FOR JAPAN Studying Energy Situations, hosted by the


Japanese Minister of Economy, Trade and
commercially viable.
In addressing the global warming issue
Industry, commenced discussion on the
towards 2050, the practical application and
AND THE whole world long-term energy policy goals for 2050,
commercialisation of CCS – the technology
and in April 2018 developed Initiatives for
that enables significant reduction of CO 2
Energy Transitions.
emissions – is vital, not only for Japan,
They discussed the actions that would but for the whole world. We would like
be needed for energy transition and to express our respect to the Global
decarbonisation specific to the realities in CCS Institute for promoting the global
Japan, while objectively understanding deployment of CCS.

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 65
Case Study

UK & EUROPE
AMBITIOUS POLICIES
and realisable goals

TEESSIDE COLLECTIVE CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 66


Ben Houchen
MAYOR Tees Valley

The need to reduce our carbon footprint hydrogen technologies that won’t just be
while growing a free and increasingly of benefit to the UK but will have a positive
innovative global economy is one of the global impact.
most important challenges of our age.
We expect low-carbon growth to drive
Technological developments mean that GVA (gross value added) benefits of nearly
we can look forward to a future where £40 billion between now and 2050, with
we do not have to choose between emissions savings of 80 megatonnes of CO2
economic development and environmental compared to doing nothing to mitigate
protection – but only if we choose to industrial impact.
act now. It is vital that we not only
In real terms, this means a much larger
decarbonise and offset the environmental
economy than today, including advanced
impact of traditional industries in the
industries, with only marginally more CO2
developed world but provide both the
produced and a CO2 reduction per dollar
method and the motivation for cleaner
made and per head of population.
growth in emerging economies.
As the UK moves away from being subject
The successful deployment of CCUS
to European Union rules, including on
doesn’t just mean we can clean up
environmental issues and industrial
existing industries and make them more
emissions, it has an opportunity to lead
competitive, it also creates opportunities
the world in carbon reduction, rather
with emerging technologies. Foremost
than to fall behind as some commentators
among these is the production and use of
have suggested.
hydrogen, which can be carbon neutral at
the point of creation and when used. While As a nation, we not only have a
renewable energy can be used to create responsibility to do this, but also to
zero-carbon hydrogen though electrolysis, prove that CCS and hydrogen mean
CCS can decarbonise more traditional and that environmental protection is not
less clean methods of production. antithetical to serious economic growth.

This means that on top of reducing carbon Decarbonisation and the possibilities
at the point of energy generation, the of clean growth are an opportunity for
leaders in regional government throughout

FACILITATING
delivery of CCS can facilitate a revolution
in clean transport and in the way many the world to place their industrial bases
people heat their homes without at the heart of a growing industry. This
significant changes to existing road, will deliver the dual benefits of prosperity
A rail and gas infrastructure. and cutting global carbon emissions. The
economic and environmental justifications
I am passionate about placing the Tees
exist for this. Now the political will
Revolution Valley at the centre of the UK’s new clean
must follow.
growth economy, by developing CCS and

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 67
Reignition and redefinement in the United Kingdom

At the end of 2017, the UK Government launched To realise this goal, Minister Perry established the The report also echoed the proposed actions put Hydrogen is also an important part of the
its Clean Growth Strategy as part of its commitment UK CCUS Council in January 2018, a Ministerially forward by the UK Committee on Climate Change ongoing discussion in building a cost-effective
to reduce emissions and build a low-carbon future. led working group of industry representatives and in its 2018 Progress Report to Parliament to have pathway to decarbonisation of energy and gas.
At the heart of this strategy, was the need to deliver academia, which includes the Global CCS Institute’s at least two CCUS clusters operational from the Promising developments include HyNet North
clean economic growth and maximise economic CEO, Brad Page. The Council works to advise mid-2020s29. Following input from Taskforce’s West led by Cadent, the UK’s largest gas
and social opportunities for the UK. on CCUS policy and funding priorities as part of recommendations, the government will publish its distribution network, and H21 North of England
progressing the government’s approach to CCUS. deployment pathway for CCUS by the end of 2018. led by Northern Gas Networks. Both will deploy
In its ambitious industrial policy, the UK
CCS to create low-carbon hydrogen production
Government recognised CCUS as an important A CCUS Cost Challenge Taskforce was On 28–29 November, the UK Government hosted
and distribution networks30, 31.
technology in its transition to a low-carbon also established by the Minister to deliver an International CCUS Conference in Edinburgh,
economy. It reaffirmed its commitment to deploy recommendations on how to significantly reduce in partnership with the Global CCS Institute, In 2018, Drax Group announced it would pilot
CCUS at scale, subject to costs coming down, and CCUS costs in the UK. The Taskforce gathered the IEA and other leading organisations. a biomass power generation project with the
revealed an added “U” in CCS, demonstrating together 40 prominent and reputable industry and potential to develop BECCS in the UK. The project
increasing interest in CO 2 utilisation. academic experts to release its report, Delivering CCUS potential in the UK aims to capture and store CO 2 from Drax’s power
Clean Growth, in July 2018. The report generated station in North Yorkshire.
As part of the Clean Growth Strategy, the The existing industry clusters in the UK will form
conclusions, messages and recommendations for
government also pledged to invest £100 million a key asset for the deployment of CCS. Several
the UK Government to achieve the ambitions laid
for innovation in CCUS to help lower costs, and industrial initiatives have already built a strong
out by the Clean Growth Strategy. Central to JOHN SCOWCROFT
reiterated the importance of exploring international business case for the development of industrial
these were the creation of: Executive Adviser, Europe
collaborative opportunities with countries like CCS. The Teesside Collective and Caledonia Clean
Norway and Canada. • a clear cost reduction pathway Energy facilities are two ambitious commercial-
where government and industry work scale CCS projects that could potentially kick-start
The current Minister of State for Energy and Clean
collaboratively to identify and unlock the deployment of CCUS in the UK.
Growth, the Rt Hon Claire Perry, demonstrated
early investment opportunities
strong support for the technology and expressed The Teesside Collective has made a strong case for
her determination to make the UK an international • a new business model for CO 2 transport the deployment of CCS. Hosting 60 per cent of the
leader in CCUS, while emphasising the potential and storage (which separates transport UK’s energy-intensive industry, the project would
for the UK to maximise the economic value and storage from CO 2 capture projects) create and maintain almost 6,000 jobs in the region
associated with the technology. and help decarbonise a unique mix of industries.
• CCUS “clusters”, where industrial facilities
can share infrastructure and knowledge.

In its ambitious industrial policy, the UK Government


recognised CCUS as an important technology in its
transition to a low-carbon economy.
CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 68
New CCS facilities in development – United Kingdom & Ireland

HyNet North West


• Facility lead: Cadent
• Location: Liverpool, Manchester
and parts of Cheshire
• CO 2 capture capacity: Around 1.5 Mtpa
• Anticipated operation date: 2020s
• Storage type: Dedicated geological
storage in the decommissioning Hamilton
and Lennox gas fields in Liverpool Bay
The HyNet North West is a CCUS-equipped
hydrogen production and distribution network
developed by the UK gas distribution company
Cadent together with Progressive Energy and ENI.
The facility will produce hydrogen from natural
gas that will then be supplied to industrial sites, to
households for heat supply and serve as transport
fuel. The project has the potential to serve more
than 2 million homes and businesses.
A hydrogen production and carbon capture plant
will most likely be located in Cheshire. The facility
will convert natural gas into hydrogen gas via
auto-thermal reforming to supply a core set of
major industrial gas users and industrial sites.
With this facility, Cadent is developing CCUS
infrastructure that could easily be replicable
elsewhere or expanded geographically to include
other power generation or industrial sites.
OVERVIEW OF THE HYNET NORTH WEST. CREDIT – CADENT

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 69
H21 North of England decarbonised hydrogen, converting 3.7 million-meter Ervia Cork CCS Acorn Scalable CCS Development
points across Leeds, Bradford, Manchester, Liverpool,
• Facility lead: Northern Gas Networks • Facility lead: Ervia • Facility lead: Pale Blue Dot Energy
Hull, York, Teesside and Newcastle.
• Location: north of England • Location: Cork, Ireland • Location: Aberdeenshire, Scotland
The clean hydrogen will be produced from large-
• CO 2 capture capacity: scaling up to scale production plants with 12.15 GW capacity, • CO 2 capture capacity: Around 2.5 Mtpa • CO 2 capture capacity: 3.0 – 4.0 Mtpa,
20 Mtpa between 2026-2028 and 2034 with integrated CO 2 capture processes to capture a scale up from an initial pilot
• Anticipated operation date: 2028
up to 20 Mtpa CO 2 by 2035 in several phases. development of around 0.2 Mtpa
• Anticipated operation date: 2026-2028
• Storage type: Dedicated geological storage in
CO 2 storage is planned to be in saline aquifers • Anticipated operation date: 2020s
• Storage Type: Dedicated geological storage offshore low-pressure Kinsale Gas Field
and depleted gas fields in the Southern North Sea,
in saline aquifers and potentially depleted • Storage type: Injection from a new subsea
which can potentially facilitate the advantages of The Ervia Cork CCS Facility would involve
gas fields in the Southern North Sea well into Captain Sandstone Formation in the
the UK’s growing CCS capacity and a CCS trade capturing CO 2 from a number of emission-
vicinity of a depleted gas field, at the depth
The H21 North of England aims to decarbonise power, with Europe. The facility will also include 8 terawatt intensive companies located in Cork, with initial
approximately 1,900m below sea level
heat and transport across the North of England. It hours (TWh) inter-seasonal hydrogen storage of that consideration being given to the two modern gas-
will convert the UK gas grid from natural gas to CCS enables flexible supply of clean energy. fired, combined-cycle gas turbine (CCGT) power The Phase II, Acorn Scalable CCS Development,
stations Whitegate and Aghada and Ireland’s only is a full-chain CCS facility that would use the
oil refining business: Irving Oil Refinery (75,000 existing CO 2 capture and pipeline infrastructure.
barrels per day). Acorn Scalable is a scale up of the pilot project
Acorn (Minimum Viable CCS Development), which
The captured CO 2 is planned to be transported
is in development to operate CCS infrastructure
via an existing pipe network, which includes 54
at minimum capital cost for capture, transport and
kilometres offshore pipeline, to the potential CO 2
storage of CO 2 .
storage sites in the Kinsale Gas Field.
The primary objective of the Acorn facilities is to
The Irish Government’s National Mitigation Plan,
initiate a low cost full chain CCS project in the
published in 2017, recognised that CCS at gas-fired
North East of Scotland. This would act as a seed
power stations “could facilitate decarbonisation of
[Acorn] from which to grow a network of capture,
our electricity sector”32.
transport and storage infrastructure33.
By 2050, the Ervia CCS Cork facility is expected to
The facility secured funding from the Advancing
have cumulatively captured and stored 146 Mt of
CCS Technologies (ACT) initiative, part of the
CO 2 . Over this time, it is hoped that a CCS industry
European Research Area Networks (ERA-NETs)
cluster can be formed around this infrastructure, to
program. The infrastructure project, CO2 SAPLING, is
allow more industrial emission sources in Cork to
qualified as a European Project of Common Interest,
make use of the storage facility.
making its infrastructure elements eligible for
funding under the Connecting Europe Fund (CEF).

OVERVIEW OF THE H21 NORTH OF ENGLAND. CREDIT – NORTHERN GAS NETWORKS


CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 70
Netherlands – Pushing the boat out

With its large, natural industrial port clusters,


especially in Rotterdam, it is no surprise that the
The Hydrogen 2 Magnum (H2M) will include a
natural gas to hydrogen production plant with With its large, natural industrial
Dutch have seen a very natural opportunity to CO 2 capture and export facilities. The hydrogen
“push the CCS boat out”. Government commitment
and confidence have also sparked renewed
will fuel the Magnum gas power plant, which will
be converted into a hydrogen-fueled power plant
port clusters, especially in Rotterdam,
interest in what CCS can do.
CCS was one of the proposed carbon reduction
designed to lower the plant’s carbon emissions
at a large-scale. In July 2018, Equinor Energy it is no surprise that the Dutch have
contracted Jocob Engineering Group Inc. to
measures introduced to successfully achieve these
climate targets. In its coalition agreement, the
undertake the feasibility study of a hydrogen
production plant with a suitable CO 2 capture
seen a very natural opportunity to
government outlined that CCS would help deliver
20 Mt reduction of CO 2 by 2030, which included
18 Mt captured from the industrial sector and 2 Mt
technology at Vattenfall.
Natural gas power plants play an important role
“push the CCS boat out”.
reduction from waste incineration. Negotiations are in the Dutch energy power supply due to their
currently underway to agree on the key points of the reliability and flexibility. The Hydrogen 2 Magnum
Dutch Climate Agreement. A fact-finding mission (H2M) will help maintain energy security, while
and a consultation process were set-up to determine significantly reducing CO 2 emissions for climate
the contribution of CCS to the country’s emission change mitigation. Port of Rotterdam CCUS Hydrogen 2 Magnum (H2M)
reductions targets (it is likely to be less than the Backbone Initiative (Porthos)
Last year, the European Commission adopted four - Facility proponents: Equinor, Vattenfall
original proposed figure of 20Mt). A final agreement
Projects of Common Interest in cross-border CO 2 - Facility proponents: Port of Rotterdam and Gasunie
is expected in late 2018.
transport, and Dutch stakeholders are involved in Authority, Nederlandse Gasunie (Gasunie)
During the year, the Port of Rotterdam Authority all four projects. - Location: Eemshaven, outside of Gronningen
and Energie Beheer Nederland (EBN)
continued to pave the way for the development of - CO 2 capture capacity: 2 Mtpa
There are also several existing industrial facilities - Location: Port of Rotterdam area with
CCUS infrastructure that could potentially establish
in the Netherlands that capture CO2 as part of their potential connections to other European - Anticipated operation date: 2024 (first unit)
an industrial CCUS hub in the Netherlands. The
production process. This year, the Dutch waste-to- industrial areas (North West Rhine-
project aims to develop basic infrastructure to - Storage type: Dedicated geological storage
energy and recycling company AVR announced it Westphalia and Antwerp)
capture CO2 in the port area from various industrial in an offshore reservoir in Norway.
would be the first company in the country to begin
facilities and store the CO2 in depleted gas fields - CO 2 capture capacity: Initial phase of up
the construction of a CO2 capture plant to capture
in the North Sea. to 2 Mtpa from 2021 onwards, with
60,000 tonnes of CO2 annually. The captured CO2
In April 2018, a feasibility study on the large-scale will be transported by the company Air Liquide and a longer-term target to increase to 5 Mtpa
deployment of CCS in the Port of Rotterdam found used in greenhouses. AVR’s other ambition is to find by 2030
that CO 2 capture, transport and storage under other applications for the captured CO2 , particularly - Anticipated operation date: 2021
the North Sea is technically feasible and a cost- in concrete and biofuels. AVR hopes to capture
- Storage type: Dedicated geological storage
effective measure to reduce carbon emissions 800,000 tonnes of CO2 annually in future35.
– offshore deep saline formations at the
and tackle climate change34. In the next months,
North Sea (disused gas reservoirs).
the three project leads will be consolidating the
business case for the project, furthering research
on its technical and financial elements. An
investment decision is expected in 2019.

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 71
“Port of Rotterdam is
paving the way for the
development of CCUS
infrastructure that could
potentially establish an
industrial CCUS hub in
the Netherlands.”

PORT OF ROTTERDAM AT A GLANCE. CREDIT – ERIC BAKKER TH E G LO BA L S TATU S O F CC S 72


Norway – Forging new pathways

In May 2018, the Norwegian Government presented good implementation capacity. The facility will
its revised national budget to Parliament and capture CO 2 from the flue gas of the cement plant, PIPELINE TO CO 2 STORAGE
SITE IN SMEASHEIA AREA
published its long-awaited assessment of the full- estimated at 400,000 tonnes of CO 2 per year.
scale Norwegian CCS facility. In total, the Norwegian PIPELINE
The Fortum Oslo Varme facility was later confirmed FORTNUM WASTE
Government pledged to allocate NOK280 million in TO ENERGY PLANT
to continue FEED studies for CO2 capture at its BERGEN
2018 to the advancement and deployment of CCS
waste-to-energy plant in Klemetsrud, following the NORWAY
in the country. This funding includes an additional
findings of the concept study and external quality
NOK80 million as well as the unspent funds OSLO
assurance. The facility will capture an estimated
transferred from the previous year. The allocated DRAMMEN
400,000 tonnes of CO2 per year. Gassnova deemed
budget will fund FEED studies for the capture,
the learning potential from the world’s first large-
transport and storage of CO2 , and up to two new CCS
scale CCS facility in the waste-to-energy industry
facilities. The funding will also support Gassnova’s
will be significant. TONSBERG
budget of NOK100 million. The state enterprise will SKIEN
continue to deliver the CLIMIT research program The aim of the Norwegian CCS full-scale facility
NORCEM CEMENT PLANT
(NOK180 million) and the implementation of is to capture CO 2 from different capture facilities
and store them in a geological formation below STAVANGER
concept and pre-design studies for the full-scale
CCS project 36. The Technology Centre Mongstad the seabed in the North Sea. The FEED studies SWEDEN
are expected to be completed by 2019. A final ARENDAL
will also receive NOK195 million to continue to test
CO2 capture technologies to help reduce costs and investment decision regarding any CCS facility
potential risks associated with CCS projects. is expected to be taken in 2020-21. If this goes KRISTIANSAND
ahead, it will take no more than four years to
With their revised national budget, the Norwegian
build the CCS infrastructure. It is estimated that
Government provided further clarity on the status
the Norwegian full-chain CCS facility could be CO 2 TRANSPORT BY SHIP
of the Norwegian full-scale CCS facility. Following
in operation at the earliest in 2023-241.
a review of concept studies and assessments
completed in the fall of 2017, the government Like any CCS facility, success will be dependent on NORTH SEA DENMARK
announced the next steps for each of the three international collaboration and policy confidence
industrial sites involved. – in this case, from the European Union. In fact, the
Norway full-chain facility will be an important step FIGURE 14: CO 2 capture, transport and storage scheme for Norway Full-Chain CCS Facility.
The Norcem facility was selected to receive state Image information supplied by Gassnova
forward in consolidating CCS infrastructure that
funding to proceed with further study of CO 2
will benefit both Norway and the rest of Europe.
capture at its cement plant in Brevik. This will be
west coast and stored under the North Sea. permits for the injection and storage of CO2 in the
the last advanced planning study phase before The Norwegian facility can easily collect emissions
The regional dimension of the Norwegian CCS Norway’s subsea reservoirs, near the Troll field.
a final investment decision. The government from other point sources across Europe. According
facilities is also becoming apparent. The Swedish The exploitation licenses will be allocated during
has been clear that the Norcem facility has the to Gassnova, the facility can secure storage for 4
refinery Preem AB is currently studying how to fall this year.
most favourable conditions for a successful Mtpa of CO2 , the equivalent of 10 times the amount
collaborate with Norway for CO 2 storage.
implementation. This follows the advice from of CO2 captured from one of the Norwegian capture It is evidence that Norway continues to not
external quality assurers36. The facility has plants36. The CO2 can then be easily transported by In July 2018, the Norwegian Ministry of Petroleum only pave the way, but forge new pathways,
demonstrated the lowest cost of CO2 capture and ship to a temporary storage site on the Norwegian and Energy invited companies to bid for exploitation for CCS success.

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 73
The facility is part of the Norway
Full-Chain CCS, an important
step forward in consolidating
CCS infrastructure that will
benefit both Norway and the
rest of Europe.

WASTE TO ENERGY PLANT OUTER FORTUM OSLO VARME’S ENERGY RECOVERY PLANT
CREDIT – FORTUM OSLO VARME KLEMETSRUD PHOTO BY MORTEN BRAKESTAD TH E G LO BA L S TATU S O F CC S 74
TIMELINE OF CCS IN NORWAY

2018:
2016
2007 The release acreage for permits for exploitation
2014 Norwegian Minister of of a subsea reservoir for injection and storage of
CO2 capture Petroleum and Energy, Tord CO2 in offshore Norway
2005 in Technology Norway’s implementation Lien, announces industrial CO2
Centre Mongstad of the CCS directive capture, transport and storage A budget decision is being made, granting funds
The Norwegian
announced becomes effective initiative for at least one full- to conduct FEED studies for two capture facilities
implementation of the
1990 scale CCS project as well as transport and storage offshore
EU Emissions Trading CCS as part of gas A new strategy for CCS
Introduction of Scheme for CO2 production at the announced in September 20 years of CO2 injections at The Norwegian Government has said it aims to
offshore CO2 emissions becomes Snøhvit field, storing (Prop. 1 S (2014–2015) Sleipner have at least one full-chain project fully prepared
taxes in Norway effective 0.7 Mtpa of CO2 for a final investment decision by 2020-21

1996 2006 2012: 2015 2017

CCS in Sleipner Emission permit Technology Centre The Ministry of Petroleum Milestone of
field storing 0.85 requirements to Mongstad CO2 and Energy commences a capturing and
Mtpa of CO2 include CO2 capture test centre pre-feasibility study for a full- storing 20 Mt of
capture and storage begins operation scale CCS, involving industrial CO2 at Sleipner
stakeholders and project and Snøhvit
Norwegian Government
management by Gassnova
implements agreement
on CCS

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 75
Phil MacDonald
HEAD OF COMMUNICATIONS, Sandbag

“Emissions reductions in the


power sector are accelerating,
Realising
but industrial emissions are staying
stubbornly high. We see CCS as
COST-EFFECTIVE essential for building low-carbon
CCS SOLUTIONS
manufacturing and industry.”
Sandbag is a climate change think tank based in Brussels and London.

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 76
GORGON CARBON DIOXIDE INJECTION.
CREDIT – CHEVRON AUSTRALIA

Case Study

AUSTRALIA
TOWARDS THE
hydrogen highway

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 77
CO 2 EQUIVALENT EMISSION ABATEMENT FROM CCS AT GORGON
The birth of “Blue Hydrogen” FIGURE 15: CO 2 equivalent emission abatement from CCS at Gorgon LNG project

In early 2018, the governments of Australia, Japan


10.0
and the State of Victoria, along with Institute

CO 2 EMISSIONS (MILLION TONNES)


members, Kawasaki Heavy Industries, J-Power and
other industry partners, announced the launch of 8.0
CCS AT GORGON IS EQUIVALENT TO REMOVING
a Hydrogen Energy Supply Chain (HESC) in the 728,000-856,000 CARS FROM THE ROAD EVERY YEAR
Latrobe Valley, west of Melbourne. 6.0

This AU$500 million initiative is the first step for


the future CCS enabled low-emission hydrogen 4.0
– or Blue Hydrogen – from the Latrobe Valley’s
abundant brown coal reserves. This hydrogen
Over the past year, Australia became an 2.0
will be exported to Japan for use in heating
epicentre for vigorous energy discussion, with
and transportation.
often furious political debate raging across a
0
swathe of issues including electricity reliability, Success of the pilot phase will culminate in a 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
power pricing, renewables energy targets, coal- commercial-sized plant, which will include a CCS
fired power and climate change commitments. facility that will store CO 2 at multiple storage EMISSIONS FROM GAS TURBINE – LNG PROCESSING CCS
options in the well-characterised Gippsland Basin.
Such was the intensity, an outsider looking EMISSIONS FROM GAS TURBINE – POWER GENERATION TOTAL EMISSIONS WITH CCS

in could be forgiven for thinking that little or The HESC project heralds the birth of a hydrogen OTHER LNG PLANT EMISSIONS* TOTAL EMISSIONS WITHOUT CCS
nothing was happening in the CCS space. industry in Australia that will ultimately put CCS at VENTED CO 2 AFTER ACID GAS REMOVAL
the centre of a new energy economy – securing jobs,
The reality, however, couldn’t be further from *SOURCES OF OTHER LNG PLANT EMISSIONS INCLUDE DATA ANALYSED FROM GORGON GAS DEVELOPMENT
sustaining communities, and paving the way for a global
the truth. Australia continued to advance the FIRED HEATERS, FLARE, FUGITIVE EMISSIONS AND REVISED AND EXPANDED PROPOSAL 37.
hydrogen economy that combats climate change. DIESEL ENGINES.
CCS cause through policy refinement and a major
decision to build an international hydrogen hub. CCS enables hydrogen to be produced from coal or
gas with near-zero emissions and at low commercial
Levelling the playing field cost. Multiple studies have found that converting
coal and gas to hydrogen and using CCS is the properties of porous rock below the seabed where Gorgon
In May 2018, the Australian Federal Parliament
cheapest way to produce low-emission hydrogen. CO 2 will be injected and permanently stored,
introduced a key piece of legislation that stimulated Gorgon, which will be the world’s largest CCS
discussion about CCS receiving investment and investigate the potential for establishing
facility in dedicated geological storage, continues
CarbonNet a commercial-scale CCS network.
funding through the Clean Energy Finance to move towards start-up, scheduled for early
Corporation (CEFC), the government agency As the hydrogen development moves forward, the The network would bring together captured CO 2 2019. Once in operation, this facility is anticipated
responsible for administering AU$10 billion in CarbonNet CCS facility continues to undertake all at multiple CO2 emission point sources in Victoria’s to capture and inject between 3.4–4 Mtpa of CO2 ,
clean energy projects aimed at lowering necessary due diligence to ensure that the CCS Latrobe Valley, transporting CO 2 via a shared slashing greenhouse gas emissions from Gorgon by
Australia’s carbon emissions. network is successful. pipeline and injecting it into deep offshore storage about 40 per cent. Emissions will be injected into a
The Clean Energy Finance Corporation Currently, the facility is in the development and sites in Bass Strait. storage resource more than 2 kilometres underneath
Amendment (Carbon Capture and Storage) commercial establishment phase. Over the past Barrow Island, which lies 100 kilometres off the
CarbonNet is managed by the Victorian
Bill 2017, could remove the prohibition on year, this has focused on seismic studies and the Australian west coast.
Department of Economic Development, Jobs,
the CEFC investing in CCS technologies drilling of an appraisal well at the Pelican site Transport and Resources, with funding from
and allow it to enjoy the same investment (see diagram) in the Bass Strait. This will verify the the Australian and Victorian governments.
opportunities as renewable energy and other ANTONIOS PAPASPIROPOULOS
low-emission technologies. Global Lead – Advocacy and Communications

CA S E STU D I E S TH E G LO BA L S TATU S O F CC S 78
Akshat Rathi
REPORTER AT QUARTZ, a global business publication

“After a year of reporting, visits


to large and small carbon capture
plants around the world and
conversations with more than 100
academics, entrepreneurs, policy
experts, and government officials,
I’ve come to the conclusion that
carbon capture and storage is
both vital and viable. Its mass
VITAL deployment remains a challenge,
and but not for the reasons many
environmentalists commonly cite.”
VIABLE

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 79
Paul Atkins
DIRECTOR, The Carbon Paradox (in development)
BAFTA AWARD WINNER, The Trials of Life (1990)
EMMY AWARD WINNER, The Great White Shark (1995)
SECOND UNIT DIRECTOR OF PHOTOGRAPHY, Master and Commander (2003)
SECOND UNIT DIRECTOR OF PHOTOGRAPHY, The Tree of Life (2011)

“Carbon can be re-imagined as


resource, mined from the sky or
industrial sources and sequestered
or turned into carbon products.
Carbon is not our enemy. Without it as a greenhouse gas, the Earth would be a freezing
wasteland. But too much of it in the atmosphere, and the planet becomes intolerably hot.
Global warming is really a carbon balance problem.
Most scientists believe carbon capture and sequestration will be essential to avoid the
worst impacts of rising global temperatures. Carbon can be re-imagined as resource,
mined from the sky or industrial sources and sequestered or turned into carbon products.
This is not only a transformative and profitable idea but a necessary one.
And yet, the world seems unaware that the technology to do this even exists. That needs
to change, and I support the Global CCS Institute’s goal of promoting awareness and
helping move us toward a clean and prosperous future.”

RE-IMAGINING
Carbon

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 80
Dr Julio Friedmann
CEO, Carbon Wrangler. DISTINGUISHED ASSOCIATE, Energy Future Initiative.
SENIOR RESEARCH SCHOLAR, Centre for Global Energy Policy, Columbia University .

“The future might


A sneak peak into the carry some big
FUTURE surprises in carbon
BETTER LIVING THROUGH

carbon management management.”


A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 81
The stars have begun to align for carbon Thankfully, dramatic progress in technology, Perhaps the largest shift is around CO 2 removal.
management, including CCS, carbon-to-value policy, investment and business around carbon Front and centre are the direct air capture (DAC)
(CO2 recycling) and carbon removal. The management balances the scales and drives companies (Climeworks, Carbon Engineering and
uncomfortable recognition that most major current interest and progress on many fronts: Global Thermostat), all of which have had major
economies won’t achieve their climate targets project announcements, contracts for delivery
• Increased membership, ambition, and
for Paris, the unsettling facts in the IPCC’s and record fundraising. Perhaps the reports from
investment commitments in the Oil and
recent 1.5°C report, and the spate of climate- the Royal Society, the National Academies, World
Gas Climate Initiative culminated in the
related disaster (fires, floods, storms and Resource Institute and the Japanese Government
announcement that CCS will be the focus of
drought) reveal man-made climate change played a role. They all highlighted the important
13 major oil and gas companies in 2019. The
as a chronic condition. role for BECCS and underscored the need for
FUTURE Act in the US has led to multiple
conventional CCS to succeed and thrive. At the
announcements of new projects. California
same time, stunning speed in innovations around
has augmented its low-carbon fuel standard
blockchain, AI, autonomy, material discovery and
to include CCS as a compliance mechanism.
additive manufacturing suggest improvements in
And Net Power, Inventys, FuelCell Energy and
cost and performance are just around the corner.
other capture companies have announced
major milestones and fundraising rounds.
• In carbon-to-value, the Carbon XPRIZE
announced its finalists and the birth of two
functioning testbeds. Universities around
the world announced new programs and
commitments to CO2 recycling, including the
University of Michigan, Columbia University
and Imperial College. Solidia (cement and
concrete), Econic (plastics) and Newlight
(plastics) all announced production, new
investment and contracts.

A M BA S SA D O R A RTI C LE TH E G LO BA L S TATU S O F CC S 82
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REFERENC-FO R E WO R D ES TH E G LO BA L S TATU S O F CC S 83
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