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3CHAPTER“Through thelooking-glass”The entrepreneur (cont.)interaction with the newspapers and TV do not help the case.Financial Impact … the Rotterdam pipeline business case hasconfirmed the cost data for the common carrier pipeline that wealready used for our project evaluation; it is also very similar to thecosts in the other location XY; Rotterdam is however more advancedin its development and we are convinced that they can deliver whatthey promise; we do not have that some confidence yet with XY …so the case for Rotterdam in a technical and economical sense hasbecome very clear … the RCNP is a complex project with highinvestments, but at this stage the business case looks promising.Overall Company judgment …I think we can now really finalise thesubmission of the Rotterdam case to the Board … the XY case needssome further development, especially from the side of the authoritiesin that region … both proposals will be very similar with respectto technical and financial results … the differences are in contextand uncertainties … Rotterdam offers more certainty but has for usa less favourable context … XY has more uncertainties but lessproblems in the context … as soon as our evaluation of the XY hasadvanced to our minimum demands for Board decisions, I willsketch the balance and offer my personal considerations to choose… in any case this 3rd Rotterdam report is an excellent piece of workthat makes CCS in Rotterdam even more credible and feasible.The CEO has a short discussion with the project manager on the assessmentof the Rotterdam location in the memo. They decide to go ahead withthe preparation for both regions.Network organiserCCSWeb started early in 2009. The manager is now on the brink of completingthe organisational arrangements and the working plan for the next threeyears. He writes this memo to his Board a day after the presentation of thereport where he was present.The network organiserIntroduction … early this year we started CCSWeb … Rotterdam isfar ahead of us … their 3rd annual report is very helpful to defineour own approach … I have enclosed hardcopies of the ExecutiveSummary for each of you (they were available at the meeting) and afile of the total report.Assessment … the Executive Summary gives an overview of whatthe report contains but the best parts of the total report are theannexes … the report starts with a reiteration on theRotterdam CCS Roadmap; this Roadmap already datesfrom 2007 and in its overall approach it is still valid;such a Roadmap approach will be used in the plans forCCSWeb that I am finalising right now … also thecooperation with the industry (who are called the“emitters”) is exemplary: it is hard to get industryone step further than a general promise to capture CO 2when economically feasible and Rotterdam achieved todefine such a step; they created the instrument of anLetter of Cooperation with promises on both sides; the38
3CHAPTER“Through thelooking-glass”The network organiser (cont.)industry promised to do a pre-feasibility study of their plans andRotterdam promised to contract a third party evaluator (ForsterWheeler) … this LoC approach had three obvious results: (1) thesigning of the LoC with the high level officials was a showcase forpublicity and outreach; (2) Rotterdam got validated data on thecosts of capture and (3) industry got a third party check on theirassumptions and could afterwards compare the results between thedifferent industrial parties (because they all used the same methodfor calculating the costs) … it is too early for a final decision but Iwill try to duplicate the LoC approach in the CCSWeb work plan aswell; I am however not very sure whether there is enough willingnessin our region to participate in such an approach … the thirdpiece of work was the business case for infrastructure and storage… the Rotterdam case is similar to ours in the sense that they alsohave a lot of large CO 2point sources in a confined area, but thedifference is that we have older and more point sources with threetimes the emission as in Rotterdam and the distance between theemitters and the distance of the region to the nearest storagelocation is also more than three times the size that Rotterdam uses… the practical approach of the business case can be used in ourproject as well; I have already had a good conversation with one ofthe founding fathers of the business case and I think we can cometo some degree of cooperation with respect to our business case forthe infrastructure … during the presentation there were somequestions on the cost figures; a couple of persons present did notbelieve that the costs would be that high; the representative of thebusiness case team could convince the audience that the assessmentthey made was a valid and credible one … the last pieces ofwork in the 3rd report is the exploration of the regulatory environmentand the need for stronger government intervention for thelong term … very valuable thoughts but our partners are not readyfor that discussion yet, as is our national government.Regional opportunities and threats … at this moment in time Ionly see opportunities … Rotterdam has proven that a CCS clusterproject can be defined in a credible and feasible way; that helpsother Hub projects like CCSWeb to defend their case … I have seengood opportunities to work together with Rotterdam to improve ourapproach and work plan … I have already made some exploratoryconversations which have led to an appointment with the RCImanager to elaborate on the cooperation.Organisational impact (manpower; time; finance) … my bestguess for this moment is that cooperation with Rotterdam couldimprove the quality of our project and at the same time save money(less manpower needed and less contracts for expensive consultantor engineering firms).Impact on Network profile (communication) … close cooperationwith Rotterdam could help both Rotterdam and CCSWeb help todefend their case; the least we can do is point at each other and say,“We are not alone and unrealistic” … it also useful to share lessonslearned in communication with Rotterdam (they have some experiencein public opposition in their neighbourhood in Barendrecht).Overall Network judgment … the 3rd report confirms the excellent39
Page 2: ContentsExecutive Summary . . . . .
Page 5 and 6: 1CHAPTERIntroduction1. Introduction
Page 7 and 8: 1CHAPTERIntroduction• They will e
Page 9 and 10: 1CHAPTERIntroductionRegions play a
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Page 82 and 83: 5CHAPTERDiscussionframework. That l
Page 84 and 85: 5CHAPTERDiscussionenough to be able
Page 86 and 87: 5CHAPTERDiscussionDoes this mean th
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5CHAPTERDiscussionproject in that r
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5CHAPTERDiscussion5. It helps to ob
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5CHAPTERDiscussionall the persons c
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AbbreviationsCINTRA CO 2In Transpor
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