CCS legal and regulatory activity in South Africa - South African ...

CCS legal and
regulatory activity in
South Africa
Mr. Landi Themba
Director: Coal and Gas Policy
Tel : 012 444 4047
E-mail: Landi.Themba@energy.gov.za

Presentation outline
•Introduction
•SA CCS Plans
•CCS legal and regulatory activity in South
Africa/World bank CCS Trust Fund
•Other CCS activities to support the
development of legal and regulatory
frameworks in South Africa
•Conclusion

BACKGROUND 1
• South Africa has a coal based economy
Coal resources estimate – 140 Gt ; Coal reserves – 33 Gt
Fossil fuel contributes 89.2 % as a primary energy resource
As profile of energy mix, Coal represents 65.5% of primary
energy source, followed by Oil (25.3 %), Gas (2.8%) and the
balance sourced from nuclear and renewable Energy
Coal is a primary feedstock for almost 90 % of total electricity
generation , and contributes approximately 30% in total liquid
fuels through Coal To Liquid Technology
• According to the United Nation Framework Convention on
Climate Change UNFCCC, South Africa emits almost 400 Mt CO 2
annually, and is mainly from electricity and Syn-fuel industry.

BACKGROUND 2
• South Africa is committed to management of efficient use of its coal
through employment of Clean Coal Technology like carbon capture
and storage for stabilisation of CO 2
• This is demonstrated by the country’s Integrated Resources Plan
(IRP) 2010 which recognises the importance of continued use of coal
in a responsible manner through employing CCT, while phasing in
renewable energy
• During Conference of Parties (COP 15) in Copenhagen, president
Zuma announced target on CO2 emission reduction by 34% in 2020
and 42% in 2025, subjected to technical, financial and capacity
support from developing countries.
•South Africa is investigating Carbon Capture and Storage as one of the
potential tools to limit greenhouse gas emissions.

Introduction
South Africa is investigating Carbon Capture and Storage as one
of the potential tools to limit greenhouse gas emissions.
The South African Centre for Carbon Capture and Storage
(SACCCS) has developed a roadmap for carbon dioxide capture and
storage to ensure successful implementation of CCS activities in
South Africa but the implementation of CCS requires a sound
legislative framework as a base.
South Africa does not have a CCS-specific regulations
There are pieces of legislations that can be amended to support
CCS as CCS-specific regulations still need to be developed
This phenomenon is not unique to South Africa, since CCS
technology is novel most countries that are leading in CCS began
with employing existing legislation with amendments to meet CCS
requirements viz. Norway, Britain, US, Australia and others.

Regulations and Mineral resources
Historically countries have been developing, reviewing and
amending the legislative and regulatory frameworks that addresses
mineral resources, with requirement or criterion to qualify for mining
rights, permits and licenses. This is regarded as exploitation and
extraction of minerals
The concept of carbon capture and storage is a reserve
mechanism of conventional mining processes, introducing materials
or substances in the ground instead of removing them and hence
demands adjustment of current regulatory framework.
According to Minerals and Petroleum Resources and
Development Act, all minerals belong to the state, when we
introduce CO 2 to the ground, possibly forming calcite minerals on
contact with metal oxides, does that signify transformation of
responsibility to the state ?

Regulations and Carbon dioxide
Mining as well as CCS has a probability of negative impact to the
environment that should be managed, which constitute a liability to those
responsible eg. Acid mine drainage. Some mines were abandoned,
ownerless and derelict and liquidated hence constitute permanent liability to
the state. What about CCS liabilities now and in future?
Since CO2 sources in South Africa are faraway from injection points or
sinks, that will involve transportations of CO2 through pipelines, tankers
either gas or liquefied carbon dioxides, transportation costs including tariffs,
etc demand regulatory framework.
Carbon dioxide need to be defined as a waste for disposal or a
commodity for down stream mineral beneficiation for commercial or profit
generating projects, the latter talks to CCUS that is aggressively driven by
China.

CCS Interdepartmental Task Team
South Africa is in the process of establishing a CCS
Interdepartmental Task Team, which will be inaugurated shortly.
There are six relevant departments involved which include
Energy, Mineral Resources and Environmental Affairs.
The points of discussion and challenges on CCS regulatory
framework in the previous slides, shows that CCS is a cross
cutting issue and will need synergy, cooperation, coordination
and participation of relevant departments to work collectively
on CCS matters.

CCS Roadmap in South Africa
•South Africa plans to have the CO2 Test Injection in 2016
•CCS Demonstration plant in 2020
•CCS Commercial operation in 2025
•Preparatory work is required to enable successful
implementation of the test injection and other future CCS
operations
•The country is currently taking steps to facilitate the
implementation of CCS

CCS Legal and Regulatory
activities underway in South Africa
The World Bank has approved a funding of $1.2 million dollars
towards CCS activities in South Africa over a period of two years.
The fund will be directed in the following CCS activities:
Development of CCS Regulatory Framework.
identify of storage sites and smaller-scale projects that would
ascertain technological reliability and cost efficiency of CCS,
building on work already being undertaken in South Africa;
Risk assessment of long-term leakage of CO2, including
assessment of possible collateral damage that could result from
such leakage; and
Assessing global knowledge Base of CCS technology;

CCS Legal and Regulatory activities
underway in South Africa cont.
The DoE/World Bank/SACCCS/South Africa working in collaboration to
review the current legislative system in order to assess the framework
for CCS regulation, taking into consideration other studies that have
already been carried out.
Deliverables: One of the deliverables is a CCS conceptual policy
framework, making specific allowance for CCS under the current
legislative regime that would enable successful implementation of the
Test Injection and further development of CCS operations in South
Africa.

Other CCS activities to support the development
of legal and regulatory frameworks in South Africa
The IEA/ DoE/SACCCS hosted a CCS legal and regulatory
workshop in Johannesburg on 7 April 2011. The am of the workshop
was to provide an update on the current status of CCS legal and
regulatory developments in South Africa and globally, and to identify
next steps for South Africa.
Workshop recommendations :
The DoE establish an Inter-departmental Task Team to advance
CCS legal and regulatory framework development in South Africa, to
be supported by an Advisory Committee made up of key South
African CCS stakeholders and international experts.

Other CCS activities to support the development of
legal and regulatory frameworks in South Africa
cont.
The DoE produce a discussion paper, for
consideration by the Inter-departmental Task Team
and Advisory Committee, setting out proposed
milestones for CCS framework development in
South Africa.
The Inter-departmental Task Team to engage with
The Inter-departmental Task Team to engage with
the IEA, particularly around the principles presented
in IEA Carbon Capture and Storage Model
Regulatory Framework, to inform CCS framework
development in South Africa.

Other CCS activities to support the development of
legal and regulatory frameworks in South Africa
cont.
The World Bank CCS held a Workshop on 31
May 2011 – 01 June 2011 on the Perspective for
the Southern African Region.
The main purpose of the workshop was to
support capacity building in the Southern Africa
region developing countries.

Conclusion
It is the responsibility of government to develop legislative
framework on CCS, to ensure a safe and secure operation
and implementation of CCS.
CCS is a crosscutting issue on the South African
government departments. The established government
interdepartmental task team is important for integrated
development of CCS and the creation of a common
understanding and shared government policy position.
CCS regulatory uncertainty has the potential to stifle
development and deployment CCS, particularly in projects
that have no oil or gas enhancement processes for
profitability.

Thank You