Defining CCS Ready: An Approach to An International Definition

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Chapter 1: Introduction1.3 Perceptions of CCS ReadyDifferent stakeholders hold various views on CCS Ready, and these views were consideredin the formulation of the proposed CCS Ready definition below. Insight about the variousstakeholder perceptions was developed through a review of existing literature (seereferences in text box below), as well as from a series of regional CCS Ready roundtables.These roundtable discussions, held by the Global CCS Institute, were focused on solicitinginput from various stakeholders about CCS Ready concepts. 10 The key perceptions relevantfor the proposed definition of CCS Ready are summarized below in Exhibit 1-2.The perceptions of CCS Ready from government officials varied greatly, and depended inpart on jurisdictional issues such as whether there were already existing GHG policies or ifsuch polices were anticipated in the future, the sources and volumes of GHG emissions, andlocal economics of installing CCS on various plants. In general, governments are mostinterested in a stringent enough definition for CCS Ready such that plants will be able toinstall CCS in the future, as necessary.Chief among the concerns of power plant developers and owners of industrial facilities werethe potential high costs of becoming CCS Ready and of eventually capturing and storingCO 2 . More stringent requirements such as conducting a front-end engineering and designstudy (FEED) or a detailed geological characterization of a potential storage site wereconsidered to provide little to no immediate benefits to the developer. Hence, the industryis most interested in least cost options. Industry is also concerned about the highuncertainties around future capture technologies. Without knowing which capturetechnologies will be available when CCS is required, firms raised concerns over makinginvestments that may lock them into more expensive technologies, or may force them toover-design plants to accommodate a wide range of potential capture technologies.The general public opinion about CCS is not yet fully formed, given that CCS is still aReferences Used for Identifying Stakeholders’ Perceptions• Acceptance of CO2 Capture and Storage, Economics, Policy and Technology (ACCSEPT) Project. (2007). TheACCSEPT project: Summary of the main findings and key recommendations (DNV-BRINO912GSIG2007-2078).• Intergovernmental Panel on Climate Change (IPCC). (2005a). IPCC Special Report on Carbon Dioxide Capture andStorage. New York, NY: Cambridge University Press.• Shackley, S., Reiner, D., Upham, P., deConink, H., Sigurthorsson, G., & Anderson, J.. (2009). The acceptability ofCO2 capture and storage (CCS) in Europe: An assessment of the key determining factors: Part 2. The socialacceptability of CCS and the wider impacts and repercussions of its implementation. International Journal ofGreenhouse Gas Control, 3, 344-356. doi:10.1016/j.ijggc.2008.09.004.• U.S. Department of Energy, National Energy Technology Laboratory (U.S. DOE-NETL). (2009). Public outreach andeducation for carbon storage projects. (DOE/NETL-2009/1391).• U.S. Government Accountability Office (U.S. GAO). (2008). Climate change: Federal actions will greatly affect theviability of carbon capture and storage as a key mitigation option (Publication no. GAO-08-1080). Report to theChairman of the Select Committee on Energy Independence and Global Warming, House of Representatives.Washington, DC: Author.• World Resources Institute (WRI). (2009). Guidelines for community engagement regarding carbon dioxide captureand storage (CCS) projects. August 2009 draft for stakeholder review.10 Four workshops were held in: Washington DC, U.S. (19 October 2009); Amsterdam, Netherlands (22 October 2009);Beijing, China (26 October 2009); and Tokyo, Japan (20 November 2009). In attendance were representatives from industry,the environmental community, non- governmental organizations, academics, and governments.23 February 2010 12
Chapter 1: Introductionrelatively new technology. However, this situation may change quickly once CCS Ready andCCS policies are actively being considered at the national or provincial level, and once CCSrelatedprojects become more commonplace. Public perception and support for CCS Readywill also be linked to any resulting high prices on commodities, as industry may pass alongthe costs of being CCS Ready to consumers. 11The environmental community is divided in its perceptions of CCS Ready. Nongovernmentalorganizations (NGOs) that are opposed to CCS Ready often believe that CCSand continued use of coal would endanger people or natural resources and delayimplementation of energy efficiency and renewable energy. Some NGOs oppose CCS Readyas they are concerned that it may delay the adoption of CCS. CCS Ready concepts are alsoviewed as “greenwashing”, as being CCS Ready by itself does not immediately reduce GHGemissions, and there is no guarantee that a CCS Ready plant will retrofit CCS in the future.Exhibit 1-2: Summary of Interest of Various CCS Ready StakeholdersCCS Ready Stakeholder InterestsGovernments• Selecting a definition for CCS Ready plants that is stringent enough to ensure that plants will be able to install CCS when driversare in place or when made mandatory;• Preventing carbon lock-in (and rising emissions);• Defining a specific date or timeline for some or all new and significantly modified plants to be CCS Ready;• Defining provisions to address interrelated issues like long-term liability and CO2 and pore space ownership;• Ensuring that there is continued economic growth and sufficient power to meet future societal needs (avoiding regulatory lock-in);• Early demonstration of CCS Ready plants so that lessons from these plants can be incorporated into CCS Ready policy;• Ensuring that commitments to install CCS at CCS Ready plants are met in a timely manner, so that a government’s GHGreduction responsibilities can be met;• Ensuring that high upfront costs for CCS Ready can be offset by a reduction in future retrofitting or compliance costs;• Ensuring that CCS Ready facilities are developed as part of a coordinated infrastructure plan; and• Continuing to support CCS technological innovation and application.Industry• A flexible definition that recognizes the uncertainty surrounding future technologies;• Reducing uncertainty in future carbon regulations;• High cost of meeting CCS Ready requirements;• Ensuring that investments in CCS Ready minimize overall lifecycle costs;• Continued government financial support for CCS technology research and early demonstration projects;• Ensuring that capture ready investments allow for inclusion of potential advancements in technology so that CCS Ready plants donot end up being limited to using outdated technologies; and• Identifying actions that can be taken to minimize down time for conversion to capture.The Public and Local Communities• Potential benefits, such as job creation, stimulating the local economy, and decreasing local air pollution;• Keeping electricity rates at or near current levels;• Access to information about projects;• Better understanding of the risks to local communities and natural resources;• Laws and requirements in place to minimize risks; and• Early and ongoing engagement by project developers.Environmental Community• Adoption of higher levels of CCS Ready requirements;• Ensuring that CCS Ready facilities implement CCS as soon as possible;• Stringent regulatory criteria to enforce early conversion to full capture, transport, and storage; e.g., by setting a mandated date foradoption of CCS or by implementing a schedule of emissions performance standards that tighten over time; and• Ensuring that regulations for CO2 injection minimize public safety concerns.11 Alternatively a portion of the cost could be borne by the government or the power providers.23 February 2010 13
Page 1: Defining CCS Ready: AnApproach to A
Page 4 and 5: PrefacePrefaceThe Global CCS Instit
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Appendix E: ReferencesNational Coal
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Appendix E: Referencesfrom http://w
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