Defining CCS Ready: An Approach to An International Definition

Chapter 3: Transport Ready Plant Definitionbe optioned or leased. (See Exhibit 3-2 for ranges of estimated level of work effort.) Rightsof way in the US range in costs from $30,000 to $150,000 per km for natural gas pipelines,according to filings at the US Federal Energy Regulatory Commission (FERC). Options torights of way (as opposed to the rights of way themselves) could be obtained at a fraction ofthose costs.The EU Directive 2009/31/EC requires applicants to carry out an assessment of theeconomic feasibility of both retrofitting and transport, including taking into account theanticipated costs of CO 2 allowances in the European Community. 68The specific time and level of effort required to meet Transport Ready requirements is verydependent upon the nature, length, and route of the pipeline or pipeline network;environmental, land-owner, and other community matters along the route that the pipelineis to traverse; and the potential for extended hearings in response to stakeholder concerns.The geography and geology of the right of way can also influence the time taken to secureapprovals and to construct the pipeline (although this is likely to be similar to siting ofnatural gas pipelines). Exhibit 3-2 provides an estimate of the required level of effort forTransport Ready activities.Exhibit 3-2: Estimated Level of Effort for Transport Ready ActivitiesTransport Ready ActivitiesEstimated Range of WorkYears to Complete Activity aTransport Corridor Selection 1.00 to 2.00Identifying and Resolving Conflicting Uses and Rights 0.25 to 0.75Design for Transport Facilities 0.50 to 1.00Cost Estimate for Transport Facilities 0.25 to 0.75Environmental, Safety, and Other Approvals for Transportation 0.50 to 1.00Public Awareness and Engagement Related to CO2 Transportation 0.25 to 1.00Sources for Equipment, Materials, and Services for Transport Facilities 0.08 to 0.25Ongoing Obligations (per year) 0.25 to 0.50a Work Years is the total number of individual years of work required for all staff to complete the activity. At labour costs of$130 per hour plus a $400,000 allowance for surveys and research fees, these efforts will total approximately US$ 1 millionto US$2 million in costs. Source: ICF International.In jurisdictions where there are no existing CO 2 pipelines or other transportation systems,the initial pipelines will likely be point-to-point routes. 69 These initial pipelines will likely bemore expensive than the later ones, which may connect to a more cost-effective pipelinenetwork. On the other hand, connecting to network may also add necessary contractualagreements for pipeline access and regulatory approvals that could take additional time andadd more layers of complexity.68 Paragraph 47, Pg. L140/119 of European Parliament and the Council of the European Union. (2009). Directive 2009/31/EC ofthe European Parliament and of the Council of the European Union. Official Journal of the European Union, 140.69 Paragraph 49, pg. 20 of U.K. Department of Energy and Climate Change (U.K. DECC). (2009a). Carbon capturereadiness (CCR): A guidance note for Section 36 Electricity Act 1989 consent applications (Publication no. URN 09D/810).London, UK: Author.23 February 2010 40