Pamela Tomski, Senior Advisor Policy & Regulatory – The … · 2014. 1. 11. · Pamela Tomski,...
Transcript of Pamela Tomski, Senior Advisor Policy & Regulatory – The … · 2014. 1. 11. · Pamela Tomski,...
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Pamela Tomski, Senior Advisor Policy & Regulatory – The AmericasGlobal CCS InstituteCO2 Conference Week10 December 2013, Midland, TX
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How the Institute is committed to the challenge
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CCS: A vital part of our low-carbon energy future
3CCUS / CO2 EOR is driving development
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The Global Status of CCS – Key Institute publication
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2013 edition: released October
Comprehensive coverage on the state of CCS / CCUS projects and technologies
Recommendations for moving forward based on experience
Project progress outlined since 2010
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CCS / CCUS well understood reality
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EOR continues to drive development especially in the US absent climate policy
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Important gains but project pipeline reduced
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Implement sustained policy support that includes long-term commitments to climate change mitigation and strong market– based mechanisms that ensure CCS is not disadvantaged
RECOMMENDATION 1
Need long term sustained policy support
CCS/CCUS progress is currently below the pace required to make a significant contribution to climate change mitigation
In the Institute’s project survey 70% of projects agreed policy uncertainty was major project risk
Pipeline of projects could then shrink further, placing climate change targets at risk
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Strengthen incentive mechanisms to support immediate demonstration
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Boost short-term support for the implementation of demonstration projects. This will require targeted financial support measures that enable first mover projects to progress faster through development planning into construction and provide necessary support during operations
RECOMMENDATION 2
More support needed for additional first mover projects
Need robust projects to move through the development pipeline and commence construction
The value of CCS/CCUS must be continually affirmed
CCS must not be disadvantaged in relation to other low- carbon technologies
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Projects have ceased for many reasons; almost all in power sector
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Some power generation projects are in the pipeline with only two in construction
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Goals remain challenging
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Implement measures to deal with the remaining critical regulatory uncertainties, such as long-term liabilities. This will involve learning from the efforts of jurisdictions within Australia, Canada, Europe and the US, where some significant legal and regulatory issues have been, and continue to be, resolved
RECOMMENDATION 3
Dealing with regulatory uncertainties
Some important legal and regulatory progress
Despite this several issues persist
Includes post-closure stewardship and cross-border movement of CO2
GHG accounting for CCUS / CO2-EOR storage must be clarified
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Meeting the energy needs of developing nations
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With a pressing need to build large amounts of generating capacity likely fueled by fossil resources, emissions could increase dramatically without CCS
Overall CCS and CCUS along with regulatory frameworks are at the very early stages in many developing countries
Encouragement is needed to consider CCS and CCUS where available and if so help with implementation
Significant progress is being made in some countries to advance CO2 storage programs and CCS regulation
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Growing importance of China
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Continue strong funding support for CCS research and development activities and encourage collaborative approaches to knowledge sharing across the CCS community
RECOMMENDATION 4
Support R&D and collaboration
Much can be learnt from large pilot projects, especially in industries where no large-scale projects exist
These pilot projects are crucial for reducing costs and strengthening investor and stakeholder confidence
Need to address gaps in iron and steel and cement
Globally collaborative R&D more cost effective
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Storage pilots and demonstration projects have an important role – both on- and off-shore
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Create a positive pathway for CCS demonstration by advancing plans for storage site selection
RECOMMENDATION 5
Planning for storage site selection
Storage screening is important but there is also a need to focus on maturing demonstration project storage sites
Storage site selection can take 5–10 years or more
Currently limited incentives for industry to undertake costly exploration programs
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Encourage the efficient design and development of transport infrastructure through shared hub opportunities to become ‘trunk lines’ for several carbon dioxide capture projects
RECOMMENDATION 6
Encourage shared infrastructure
Scale of infrastructure required for CCS to help meet climate change mitigation targets is great
‘Trunk lines’ that connect capture projects with storage formations could allow for:
lower entry barriers
optimal development of infrastructure
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Action needed
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Encouraging progress with 12 projects in operation
But we must deal with the decline in the project pipeline
Short term support required to help demonstration projects proceed and to build confidence
Need to ensure that CCS / CCUS can play its full part in climate change mitigation and in providing energy security
Above all action on long-term climate change mitigation commitments is key to the deployment of CCS technology
Time to act is now
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GHG accounting for CCUS / CO2-EOR storage must be clarified
Mandatory Greenhouse Gas Reporting Rule (2009) Amendments (2010) (FR V. 75 No. 230, 12/1/2010 at 75065)
• CO2 EOR offers concurrent storage yet none of the 65 projects in the Permian claim any credit
• If projects are to be accepted as permanent CO2 storage, a number of issues (technology, markets, policy / regulatory) must be clarified
• Workshop explored range of issues and offered discussion
• Need for continued dialogue
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