Defining CCS Ready: An Approach to An International Definition

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Executive SummaryExhibit ES-3: Illustration of Graduated Levels of Requirements Common to aCO 2 Capture Ready Plant, a Transport Ready Plant, and a Storage Ready PlantComponent CCS Ready Level 1 CCS Ready Level 2 CCS Ready Level 3Conflicting Usesand RightsCost Estimate forCCS FacilitiesEnvironmental,Safety, and OtherApprovalsPublic Awarenessand EngagementSources forEquipment,Materials, andServicesOngoingObligationsTransport: Identify any conflicting land use activity, as well as feasibility of land/portaccess.Storage: Identify any conflicting surface and subsurface uses, as well as feasibility ofaccess to site(s).Capture: Prepare preliminary economicanalysis of capture facilities.Transport: Prepare preliminary economicanalysis for transport facilities, andestimate the cost of transportation for thecapture plant.Storage: Prepare preliminary economicanalysis for storage facility includingcapital and operation and maintenancecosts, and estimate the cost of storagefor the capture plantCapture: Identify all approvals that willneed to be obtained for retrofitting capturefacilities.Transport: Identify all approvals that willneed to be obtained for transporting CO2.Storage: Identify all approvals that willneed to be obtained for storage site.Capture: Notify public of eventual capturefacilities retrofit via web site and otheractions.Transport: Notify public of chosentransport method(s) and corridor(s) viaweb site and other actions.Storage: Notify public of eventual storagesite via web site and other actionsNoneCapture: Prepare preliminary economicfeasibility study based on technicalfeasibility study.Transport: Conduct preliminary economicfeasibility study, based on technicalfeasibility study, including cost oftransportation for the capture plant.Storage: Conduct preliminary economicfeasibility study based on technicalfeasibility study, including the cost ofstorage for the capture plantCapture: Conduct feasibility studies forobtaining all approvals for retrofitting.Transport: Conduct feasibility studies forobtaining all approvals for transportationfacilities.Storage: Conduct feasibility studies forobtaining all approvals for storage site.Capture: Seek public engagement inplanning of capture facilitiesTransport: Seek public engagement intransportation planning.Storage: Seek public engagement instorage site planning.Capture: Compile list of companies whocan supply construction and operationservices to capture facilities.Transport: Compile list of companies whocan supply equipment, materials andservices needed for construction andoperation of CO2 transportation.Storage: Compile list of companies whocan supply equipment, materials andservices needed for construction andoperation of storage siteCapture: File periodic reports with regulators on status of Capture Ready.Transport: File periodic reports with regulators on status of Transport Ready.Storage: File periodic reports with regulators on status of Storage Ready.Transport: Resolve any issueswith conflicting surface and subsurfaceuses, and land/port access.Storage: Resolve any issues withconflicting surface and sub-surfaceuses, and site access.In addition to Level 2 requirement,prepare follow-on economicfeasibility study based on technicalinformation provided in DBM.Capture: Prepare key documentsfor obtaining all approvals.Transport: Prepare keydocuments for obtaining allapprovals for transportationfacilities.Storage: Prepare key documentsfor obtaining all approvals forstorage site.Capture: In addition to Level 2requirement, encourage publicengagement in approval process.Transport: In addition to Level 2requirement, encourage publicengagement in transportationapproval process.Storage: In addition to Level 2requirement, encourage publicengagement in storage siteapproval process.Contact companies and negotiatenonbinding letters of intent to bidon project.Capture: In addition to Level 2requirement, respond to mandatorytrigger mechanism to retrofitcapture facilities.Transport: In addition to Level 2requirement, respond to mandatorytrigger mechanism to developtransport facilities.Storage: In addition to Level 2requirement, respond to mandatorytrigger mechanism to developstorage site for injection.23 February 2010 6
Chapter 1: Introduction1. IntroductionThe International Energy Agency (IEA) projects that the world’s primary energyconsumption will increase by 40% above 2007 levels by the year 2030, driven primarily byincreased demand for electricity. 1 Globally, coal fuels the generation of 42% of electricitytoday, and is expected to remain a significant source for power generation in the future. 1Other fossil fuels, such as oil and natural gas, are also widely used in the power andindustrial sectors and their demand is expected to rise as well in the future. 1Counterbalanced against this rising demand for fossil fuel energy is a growing internationalrecognition of climate change and an increasing aspiration to control greenhouse gas (GHG)emissions. The burning of fossil fuels accounts for nearly 57% of global greenhouse gasemissions. 2 Governments may impose GHG emissions limits on power plants and otherlarge emitters to control emissions.While improvements in energy efficiency and greater use of renewable energy will help toreduce the carbon intensity of energy consumption, the IEA projects a high demand for thetechnology to geologically store carbon dioxide (CO 2 ) emissions that may be captured fromfossil-fuel based plants. CO 2 capture, transport, and storage (CCS) technology allows forglobal CO 2 emissions to be reduced even as consumption of fossil fuels increases.IEA’s Energy Technology Perspectives 2008 states that the application of CCS in powergeneration and industry is “the most important single new technology for CO 2 savings.” TheIEA defines CCS as a process whereby CO 2 is captured from gases produced by fossil fuelcombustion, compressed, transported and injected into deep geologic formations for permanentstorage. 3 The IEA estimates that CCS used in the power and industrial sectors will accountfor 19% of total CO 2 savings needed to achieve a 50% reduction in emissions by 2050. 4Need for CCS Ready PlantsAlthough CCS will likely be a key component of a future portfolio of technologies in majorenergy-consuming nations, CCS has not yet been widely deployed on a commercial scale.The technology is currently not fully mature, as there are still technical, economic,regulatory, and policy barriers to its deployment. Governments and industry have beenworking together and have invested heavily to resolve these barriers.While these barriers are gradually being reduced, new fossil-fuel based power plants andother industrial facilities continue to be designed and built worldwide. In a carbonconstrainedfuture, unless these new plants are designed with eventual CCS in mind, theymay incur a high cost of retrofitting to CCS or may have to shut down before their usefuleconomic life. The absence of CCS Ready plants could result in a carbon “lock-in,” asituation in which plants continue to emit large amounts of carbon dioxide (CO 2 ) ifmitigation through CCS is technically and economically infeasible due to equipment and site1 International Energy Agency (IEA). (2009b). World Energy Outlook 2009.2 Intergovernmental Panel on Climate Change (IPCC). (2007). Climate change 2007: Synthesis report. Contribution ofWorking Groups I, 11, and III to the Fourth Assessment Report of the IPCC. Geneva, Switzerland: Author.3 International Energy Agency (IEA). (2010). Carbon dioxide (CO2) capture and storage (CCS).4 Based on the BLUE Map scenario presented in International Energy Agency (IEA). (2008). Energy technology perspectives2008: Scenarios and strategies to 2050. Paris, France: Author.23 February 2010 7
Page 1: Defining CCS Ready: AnApproach to A
Page 4 and 5: PrefacePrefaceThe Global CCS Instit
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Page 8: Executive SummaryThe components spe
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Appendix E: ReferencesInternational
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Appendix E: ReferencesNational Coal
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Appendix E: Referencesfrom http://w
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Defining CCS Ready: An Approach to An International Definition

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