North Sea Basin Task Force and One North Sea initiatives - Zero

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North Sea Basin Task Force and One North Sea initiatives - Zero

North Sea Basin Task Force

and One North Sea initiatives

Ruth Herbert

Head of International Branch, Cleaner Fossil Fuels Unit

Department of Energy and Climate Change


What is the North Sea Basin

Task Force

• Founded in 2005 by UK and

Norway to explore opportunities

for cooperation on CO 2 storage

in the North Sea

• In 2008 membership expanded

to include Netherlands and

Germany


Task Force activity 2005-2007

• 2005 – ZERO

promoted

partnership between

UK and Norway

centred on Miller

and Ecofisk.

• 2007 – Report to the

North Sea Basin

Task Force

examined phasing

and clustering

benefits in scenario

modelling of CCS.


Task Force activity 2008-2009

Work focussed on 3 key topics:

•Risk assessment

•Monitoring

•Transboundary issues

Key activities:

• Inform EU Directive

guidelines

• Cooperation of National

Geological Surveys

• Project One North Sea


Issues faced by Task Force

Storage & Directive

implementation

What is the storage

capacity

Defining the

appropriate risk

management framework

for storage sites

Understanding the risks

of onshore storage in

saline aquifers

Transfer of

responsibilities for

closed sites

Pipeline transportation

Coal

Negative image of

coal

Predicted reliance on

coal in medium term

How far can we

minimize the energy

penalty of CCS

Public awareness

Huge challenges with

public acceptance for

new coal power

Reservations about

onshore CO 2

storage

(DE, NL)

Why spend public

money beyond R&D

for demo projects


ONE NORTH SEA initiative


Objectives of ONE NORTH SEA

(1)

• Establish a clear vision of the potential role of

the North Sea in the future deployment of CCS

in Europe

• What is the likely demand for North Sea CO 2

storage from the rest of Europe

• How soon will this demand appear

• Where are the likely cross-border flows and what

volumes are expected

• What kind of factors is it dependent on


Driving forces for investments in CCS in

European power sector (Econ, Pyry)

Power demand

Policy

drivers

EU 202020

Renewables

ETS regulations, including the emission cap

Support to energy conservation

Post Kyoto

Global or regional solutions

Transportation sector

Market

drivers

GDP growth

Fuel prices

Investment and decommissioning

R&D Investments

Generation mix

Carbon market

Other incentives

CCS costs

Volume and structure in

future CO2 emission

Incentives to invest

In CCS projects


Possible scenarios (Econ, Pyry)

Accelerated cost reductions

Preferred

Mandatory

Global market driven

CCS cost

climate change policy regime

Fragmented

regulated

and regional

Competitive

Fragile

Modest cost reductions


Objectives of ONE NORTH SEA

(2)

• What policies and frameworks will need to be

put in place to meet this projected demand

• How should North Sea basin countries manage the

predicted cross border CO2 flows

• What are the key principles for cooperation

• How can countries ensure they meet the

requirements of the EU Storage Directive “jointly”

• What is the next step, and how quickly must it be

taken


UK view: Benefits of Task Force

• Work closely with stakeholders to develop

methodologies to assist regulators on storage

(Joint Government-Stakeholder meeting)

• Share ideas and recent developments in an

informal setting (Government-only meeting)

• Strengthen understanding of each others’

similarities and differences as countries

• Develop stronger bilateral relations leading to other

international initiatives, e.g. UK and Norway

hosting CSLF Ministerial


Key messages from Carbon Sequestration

Leadership Forum Ministerial Meeting

20

industrial-scale demo

projects endorsed

by G8 are vital

more could be required in

developed & developing countries

by 2020

CCS as a key mitigation

technology recognised

in appropriate international

frameworks, including the United

Nations Framework Convention on

Climate Change

Developed countries

to assist developing

countries achieve the level of

CCS required.

Support for a CSLF Capacity

Building Program

USD$3m

donation so far

12


Developments in UK policy

• UK has already implemented requirements for

carbon capture readiness to apply to all new

gas, oil, biomass, waste-to-energy and coal

power station applications above 300MW.

• Government’s latest proposals are to:

• Ensure no new coal power without CCS

demonstration on a defined proportion of

capacity from day one

• Fund up to 4 large scale CCS

demonstration plants

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