CO2 Capture and Storage
Current Status and Future Challenges
John Gale
IEA Greenhouse Gas R&D Programme
CCS Workshop 2007
15th February 2007
Kyoto, Japanwww.ieagreen.org.uk

Introduction• Review of the status of InternationalAcceptance of CCS• Current CCS project status worldwide• Move forward to wide scale implementation• Challenges we need to address• Efforts underway to address themwww.ieagreen.org.uk

International Acceptance• Considerable progress has been made:• Acceptance of CCS as a mitigation option underKyoto Protocol at COP11/MOP1• IPCC SRCCS• Acceptance of amendment to London Convention
to permit storage• Sub sea geological structures• Predominantly CO2• No progress on acceptance of CCS as a CDM
option at COP12/MOP2
www.ieagreen.org.uk

CCS Project Proliferation• Commercial activity primarily in oil and gas sector• Number of research projects injecting/capturing CO2
increasing• Expect up to 10 more in USA in coming years as part ofRegional Partnership programmes• Now seeing pre-commercial/commercial developmentsfor power sector projects• Australia, Canada, Germany, Norway, UK & USA• No direct financial incentives
www.ieagreen.org.ukCO2 Capture Facilities
SnohvitSleipner

CASTOR
Boundary Dam

Dakota Gasification Plant
Bellingham CogenWarrior Run
Shady Point

Vattenfall
Luzhou Natural Gas

Sumitomo Chemicals
Mitsubishi Plant, Nagasaki

IMC Global Inc.
In SalahKey
Gasification synfuels plant
Major Pilot Plants
CO2 Separation from Natural Gas for CCS
Food-grade CO2/carbonation of brine/Urea (Post Combustion)www.ieagreen.org.uk

Indo Gulf Fertilizer Co.

CO2 Injection and Storage Activities

50 Acid Gas
injection sites inNorth America

4 New CO2-EOR Pilots inCanada

SnohvitSleipner

Alberta ECBM
Teapot Dome
Rangely
Burlington

Penn West
Weyburn
Mountaineer

K-12B
CO2 SINK

RECOPOL
Sibilla
Qinshui BasinWest Pearl Queen
Frio

Hokkaido
Nagaoka

In Salah

70 CO2-EOR
projects in U.S.A.

KeyGorgon

Depleted Oil Field
ECBM projects

Cerro Fortunoso

Otway Basin

EOR projects
Gas production Fields
Saline aquifier

www.ieagreen.org.uk

Proposed Integrated CCS Projects
SaskPower
FutureGen

HALTEN
DF1
MongstadCentrica
E.ON
E.ON
RWE RWE
HypoGen

DF2nZEC

Key
Stanwell
LNG

CallidePre-Combustion Capture
Hazelwood
IGCC
Oxy-Fuel
Post-Combustionwww.ieagreen.org.uk

Proposed Integrated CCS ProjectsEurope
HaltenMongstad
DF1Karsto

E.ON
Centrica
Scottish & Southern Energy
Nuon
Powerfuel
RWE

RWE
Siemens

Key
Pre-Combustion
IGCC
Post-Combustionwww.ieagreen.org.uk

GE/PolishUtility

Developing Country Activities• China• EC/UK funded nZEC project• EC funded COACH project• EC funded GEOCAPACITY• India• IEA GHG/DEFRA funded source/store matching study• US DOE funded Basalt study• Indian funded CO2 capture test facility proposed• Asia Pacific Partnership• Australian Government $6m programme to support
research on CCS developments in China and India
www.ieagreen.org.uk

Moving Towards Implementation• Issues that need to be addressed• Safety/permanence• Developed regulatory system• Market for CCS• Public Awareness/Educationwww.ieagreen.org.uk

Safety/Permanence• For a CCS operation we cannot say there will be neverbe leakage• Industry statistics show there will be fugitive emissions
from pipelines and surface facilities• Low level and intermittent• Can quantify such emissions• These emissions are distinct from the storage formation• If they occur these will be very low level (seepage) andoccur over long time periods• Likely to cause local environmental impacts only
www.ieagreen.org.uk

Safety/Permanence• Need to engineer for zero leakage fromthe storage formation• 5 component plan:• Detailed site characterisation• Reservoir simulation• Risk assessment• Monitoring programme• Remediation programme
www.ieagreen.org.uk

Summary of Monitoring Experience• No firm evidence from any of the large scale
projects that leakage is occurring• Weyburn (3 years), Sleipner (10 years),
Rangeley (20 years)• Only one project has any surface seepage andthere are doubts about the data
• Monitoring lifetimes are short <25 years• Cannot quantify seepage• Nor determine a generic leakage ratewww.ieagreen.org.uk

Regulatory Developments• Need for regulatory systems essential to implement
projects in near term
• Quicker to amends existing regulations than develop
new ones• Europe• Netherlands - adapted existing laws
• UK - regulatory task force established• Norway - permitting CCS under existing petroleum laws

• USA
• Adapting UIC programme legislation• Australia• State and Federal Governments involved• Gorgon review under way
www.ieagreen.org.uk

Regulatory Developments• London Convention• CO2 Working Group established in June 2006
• Produce Guidelines for CCS in sub sea geological structures• Guidelines are to be used by national bodies regulating disposalof CO2 storage offshore• Guidelines incorporate:• Best available science• IPCC SRCCS• Risk Assessment and Management Framework for CCS-SSGS• Best available knowledge from demonstration projects• Draft set of guidelines developed and out for comment• Guidelines approved in November 2007
www.ieagreen.org.uk

Regulatory Developments• Guidelines require:• Waste prevention audit/Waste management option
review• Characterisation of waste stream• Site characterisation• Impact assessment• Permit Issue• Compliance monitoring• Performance monitoring• Mitigation plan
www.ieagreen.org.uk

Regulatory Developments• European Commission• Development of guidelines for national
regulatory bodies• Based on a petroleum licence application• On and Off shore CCS• Activity through CO2REMOVE• Guidelines include:• Site characterisation/monitoring requirements etc.,• Assessment of legal requirements and future liability
www.ieagreen.org.uk

CCS Market Drivers• Currently high oil and gas prices will drive some
CO2 injection projects• Low incremental cost for storage• Sleipner, In-Salah, Snohvit• Economic incentive through increasedhydrocarbon production• Weyburn, K-12B• Norwegian situation• Tax incentives for offshore emission reduction
driving project development
www.ieagreen.org.uk

CCS Market Creation• Long term CO2 market needs to be created• Emissions Trading Scheme• European system immature• Current trades will not finance CCS projects• €3.3/t CO2 as of 27/01/07• Current volatility will not encourage long term investment• €3-24€/t CO2• Need to drive down cost of CCS• 20-40% cost reductions achievable through replication• In short term projects may need government support• Longer term; a stable trading market must establish itself• CO2 supply/storage infrastructure needs to develop
www.ieagreen.org.uk

Norwegian Initiative• New initiative in Norway to create a CO2 supplyinfrastructure• Part public sector/part private sector enterprise• Establish a CO2 supply infrastructure for
Norway to realise it CO2-EOR potential• Leave behind a supply infrastructure that canthen be used for CO2 storage• Announced in Autumn 2006
www.ieagreen.org.uk

Public Awareness• Public awareness of climate change impacts isgrowing• Focus of considerable media attention• NGO’s can influence public opinion• NGO’s in Europe and USA generally in favour ofCCS• Public awareness on CCS is currently limited• Need to build public awareness to ensure
projects do not meet public resistancewww.ieagreen.org.uk

Public Awareness•Need to urgently start a public education programme• Open and transparent• Happening at pilot project scale in some countries• Australia, Europe, Canada and USA• Need more concerted engagement programmes• CATO programme and Japan• Need more demonstration projects with public engagement• In-Salah• Need to be aware that local issues could dominate in planningreviews• Local issues have caused rejection of wind farms in many European
countries despite public acceptance of need for more renewables

www.ieagreen.org.uk

Summary• Implementation of CCS project is occurring inoil and gas sector• Power sector interest is growing• Financing CCS projects remains a major barrier• More work is needed• We need to develop public confidence in CCS
so that the public do not become a majorbarrier to future development
www.ieagreen.org.uk

THANK YOU
ANY QUESTIONS?

www.ieagreen.org.uk