Singapore Meeting April 4_no Spreadsheet

8/7/2019 Singapore Meeting April 4_no Spreadsheet

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CCS FINANCING THROUGHMULTILATERAL DEVELOPMENT

BANK INSTRUMENTS

WORLD BANK CCS TRUST FUND

ACTIVITIES

Thursday 7th April

CCS financing Roundtable


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Overview of CCS Trust Fund

Country level programs

Discussion of analytical regional study

Presentation


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World Bank activities: CCS Trust Fund

Two core elements guiding its work at the international,regional and national levels:

Capacity building and knowledge sharing assistance regarding CCS,

Carbon asset creation services.

In co-operation with leading international and bilateral initiatives(Global CCS Institute, CSLF, EC programs, IEA Programs and others)

Total capitalization of the Trust Fund is $11 million:

Government of Norway $9 million,

Global CCS Institute $2 million.

The work program consists of the following two components: Country-level component focusing on nine country- or project-specific

activities ($6.9m)

Economic and sector work component: regional regulatory, economic andfinancial instruments analyses, CCS: Regional Perspective in DevelopingCountries July 2010 July 2011 ($0.5m)

CCS TF

structure and

work program

Main objectives

of the CCS TF


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Work Program - Country level activities

Projects include:

Assessments of

geological

storage

Training andworkshops

Assessments of

applicability of

capture

technologies

Country/region Amount allocated (US $m)

Botswana 1.4

Republic of South Africa 1.1

China 1.8

Kosovo 0.4

Indonesia 0.85

India 0.5

Egypt 0.3

Jordan 0.15

Maghreb 0.4

TOTAL 6.9


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Examples of country work program

Botswana

Project activities include Identification of sites suitable for CCS geological storage or enhanced

coal bed methane recovery

Formation of the Carbon Working Group

Creation of a sustainable Carbon Secretariat as part of the ministerial

structure Organization of at least 3 thematic workshops



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Jordan

Project activities include Assessment of potential for CCS activities, such as CO2 sequestration in oil

shale

Assessment of institutional capacity for CCS

Recommendations on capacity-building activities

Identification of barriers to CCS development and applications



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Kosovo

Project activities include Scoping study of geological storage potential

Pre-feasibility study for CO2 capture at the proposed KRPP

Training and thematic workshops for key CCS stakeholders



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CCS: Regional Perspective in Developing Countries

Work program element Location and

scale

1 Review of Regulatory and Institutional Frameworks on CCS in

the Southern Africa and Balkan regions

Regional, sector

scale

2 Techo-economic assessment of CCS deployment in power

systems in the Southern Africa and Balkan regions

Regional, sector

scale

3 Assessment of climate finance sources to accelerate CCS

deployment in developing countries

Global, sector

scale

4 Financing model for CCS projects Project scale

The final report on all components will be completed by June 2011


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Techo-economic assessment of CCS deployment in power


Objective: Investigate how different policies can

affect the deployment of CCS, and what the effect

this has on the local power systems using MESSAGE

Study involves research on the following:

Local potential storage sites

Power generation and electricity networks

Electricity demand projections and national policies


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Techo-economic assessment of CCS deployment in power


Scenarios

Business as usual

CO2 tax

Forced CCS targets Renewable portfolio standards

Energy efficiency targets

Under each scenario will examine

Electricity prices Electricity trading

Electricity generation portfolio, including level of CCSdeployment


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Assessment of climate finance sources to accelerate

CCS deployment in developing countries

Objective:

To assess of the role of climate finance sources, both

within and outside of the UNFCCC, in accelerating CCS

deployment in developing countries

Guidance on fungible CCS carbon asset creation


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Assessment of climate finance sources to accelerate

CCS deployment in developing countries

CLIMATE FINANCE SCENARIOS

Build climate finance scenarios 2012-2020+ based on current developments and

commitments

USING CLIMATE FINANCE FOR CCS DEMONSTRATION & DEPLOYMENT

Compare CCS deployment schedules and associated financing needs (e.g. IEA CCS

Roadmap) to the climate finance sources in each scenario

For each scenario, establish how climate finance mechanisms can be applied to CCS by

examining their potential and constraints. Mechanisms include bilateral agreements, NAMAs,

CIF, CDM, GEF, etc.

DEVELOP TOOLKIT FOR CCS CARBON ASSET CREATION

Guidance includes appropriate references to existing methodologies

Guidance gives recommendations for steps to develop new methodologies, addressing

baseline setting, boundaries, additionality, MRV procedures, technology types etc.


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Financing model for CCS power plant project

Objective: Create financing model to examine how

the World Bank could finance a CCS project

Explore what concessional financing necessary to

reduce LCOE using MDB instruments

In coordination with the World Bank Treasury


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Concessional climate finance sources will have

financing terms similar to

CTF

Green Climate Fund


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Scenarios:

For Pulverized coal, IGCC, and Oxyfuel:

Revenues from CO2 prices

Revenues from EOR or ECBM recovery

Range of high and low coal prices

The financing required is determined by reducing

LCOE to be equal to1. The LCOE from a coal plant without CCS

2. LCOE of other cheaper energy technologies


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Outputs of the model required level of concessional

financing determined for each scenario

Scenarios

Technology IGCC PC Oxyfuel

CO2 capturerate

0% 90% 25% 0% 90% 25% 0% 90% 25%

CO2 price

$/tonne

0 or 20 0 or 20 0 or 20 0 or 20 0 or 20 0 or 20 0 or 20 0 or 20 0 or 20

Enhanced

hydrocarbon

recovery

None/EOR

/ECBM

None/EOR/

ECBM

None/EOR

/ECBM

None/EOR

/ECBM

None/EOR

/ECBM

None/EOR

/ECBM

None/EOR

/ECBM

None/EOR

/ECBM

None/EOR

/ECBM

Coal price

(1,3 or 5

$/mmbtu)

High, med,

low

High, med,

low

High, med,

low

High, med,

low

High, med,

low

High, med,

low

High, med,

low

High, med,

low

High, med,

low

These scenarios are carried out both for wet and dry

cooled technologies


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Outputs of the model required level of concessional

financing determined for each scenario

Examples of financing instrument combinations to be

examined include

IBRD loan + commercial loan + concessional finance

IBRD loan + 2 commercial loans + concessional finance

IBRD loan + guarantee+ MDB loan + concessional

finance

Model assumptions and cost inputs informed byMedupi plant in South Africa and NETL

feasibility study for IGCC in India


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World Bank Outputs

Webinar to disseminate findings and generate

feedback from the Climate Finance study

Regional study report by June 2011

Results will be presented at regional workshops in

Dubrovnik (May 4th and 5th) and Johannesburg

(June 1st and 2nd)

Workshop on results of regional study and updateon CCS TF activities at World Bank headquarters in

Washington, DC in September 2011


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Thank you

Natalia [email protected]

Singapore Meeting April 4_no Spreadsheet

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