The status of Carbon Capture and

Storage within the UK

Energy Institute

13th October

Hazel ClynePale Blue Dot Energy

hazel.clyne@pale-blu.com

@hazel.clyne

Management Consultants for the Energy Transition

Pale Blue Dot Energy

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Contents

CCS: what, how and why?

A brief history: UK project activity to date

DECC CCS Commercialisation Programme

Other project highlights

Summary

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CCS in Summary

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Capture Transport Storage

Carbon Budget

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886 GtCO2 from 2000

321GtCO2 from 2000 to 2010

565 GtCO2 left from 2011

2795 GtCO2The total proven fossil fuel reserves would release

65% coal

22% oil

13% gas

2 Deg Celsius Limit

~38 GtCO2 per year

4 Deg

6 Deg

8 Deg Without Carbon Capture and Storage 80% of these proven reserves must stay in the ground

“Unburnable Carbon – Are the world’s financial markets carrying a carbon bubble?” - Carbon Tracker

Why CCS?

- Without it, 80% of proven reserves must stay in the ground

- The only technology that can fully address decarbonisation of large scale industrial emissions

- Supports cost effective way of enabling low carbon energy products such as H2

- If combined with biomass firing for power generation, this has the potential to result in negative emissions

And why CCS in the UK?

- Without CCS, costs of meeting the UK’s 2050 emissions targets* could double from 1% to 2% of GDP** by 2050

* 80% CO2 reduction vs 1990 baseline

** based on modelling from the Energy Technologies Institute (ETI)

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Project concept development activity to date

UK CCS Timeline 2007 to Present

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CCS status: pre-commercial due to slow policy evolution on carbon pricing

You are here

Project concept development activity to date

BP – DF1 CCS Project - 2006-2007 – Pre Demo1

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FEED Study #1

March 2006 - BP DF1 Announced May 2007 - BP Abandons DF1

Project concept development activity to date

Hatfield/ Don Valley CCS Project - 2007-now – Pre

Demo1+

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FEED Study #2

October 2009 – Hatfield wins EU funding October 2012 - Hatfield project halted

Storage map

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Kingsnorth to Hewett(Platform)

Longannet to Goldeneye(Platform)[pre-2009: to Brae]

Demo 1 Offshore FEEDs

Project concept development activity to date

Kingsnorth CCS Project - 2008-2010 – Demo1

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FEED Study #3

March 2010 - Kingsnorth awarded FEED funding

October 2010 – Kingsnorthcancelled

Project concept development activity to date

Longannet CCS Project - 2008-2011 – Demo1

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FEED Study #4

March 2010 – Longannet awarded FEED funding

October 2011 – Longannet Cancelled

Project concept development activity to date

Demo 2 Preferred Bidders Announced – Mar 2013 –Demo 2

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FEED Study #6

Feb 2014 – Peterhead awarded FEED funding

FEED Study #5

Nov 2013 – White Rose awarded FEED funding

Note: £238m from NER300 EU funding

Storage map

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White Rose:Drax to 42/25(NGC Platform)

Peterhead CCS:Peterhead to Goldeneye(Shell Platform)

Demo 2 Offshore FEEDs

DECC CCS Commercialisation Competition

Peterhead Carbon Capture Project

Project overview

Existing Peterhead gas power station – post combustion capture on 330MW

Up to 10Mt CO2 captured over 10-15 years

Transportation via existing Goldeneye pipeline offshore

Storage in Goldeneye depleted gas condensate field

Existing offshore infrastructure

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Capture, Integration CO2 Conditioning

Onshore Transportation and

compression

Power generation Offshore CO2 Transportation, Injection & Storage

Existing offshore pipeline

Existing offshore facility & wells

Storage Reservoir –

Goldeneye depleted gas field

Process & capture plants

DECC CCS Commercialisation Competition

White Rose

Project overview

New build coal power station w/potential to co-fire biomass – oxyfuel capture on 448MW

2Mt CO2 captured per year

Transportation via new pipeline to southern north sea

Storage in saline aquifer formation

New build offshore infrastructure

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Onshore Transportation and PumpingCapture, Integration CO2

Conditioning

Offshore CO2 Transportation, Injection & Storage

New build offshore pipeline

New offshore facility & wells

Storage Reservoir –

saline aquifer

Process & capture plants

DECC CCS Commercialisation Competition

White Rose

25th September 2015 –Drax pulls out of White Rose Project

Drax have withdrawn citing reasons regarding uncertainty over government policy on low carbon power

Drax site and power plant infrastructure still available for White Rose Project

Capture Power Ltd still committed to delivering the project

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DECC CCS Commercialisation Programme

Notional Phase 1 Project Schedule

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Procurement for Phase 1 projects will be used to shape policy encourage Phase 2 projects

ETI scenarios

CCS key role in UK decarbonisation 10GW CCS capacity by 2030

ETI modelled 3 scenarios to achieve this ambition

Priority areas to address: storage appraisal; early investment for Phase 2 projects

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“Carbon capture and storage Building the UK carbon capture and storage sector by 2030 – Scenarios and actions” - ETI

Strategic UK CCS Storage Appraisal Project

Project overview

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Progress UK CO2 storage

Provide confidence

to CCS developers

Create tangible storage

options for Phase 2 projects

Show that developable

storage capacity exists

Progress the appraisal

process and schedule

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Project aim:

Provide 5 high quality storage sites with storage development plans, ready to undertake a FEED study

Delivered by:

Strategic UK CCS Storage Appraisal Project

Selected Portfolio of 5 sites

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Selected portfolio

• Regionally distributed

• Significant capacity (1606 Mt)

• Diverse types

• Strong build out from Phase 1

projects

• Good fit with ETI Scenarios

• Enables further build out

There are many other candidate

storage sites around the UK with

significant storage potential

“The UK has lots of storage”

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Other project highlights

Caledonia Clean Energy Project

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St Fergus CO2 Hub

CaledoniaIGCC

UKcoal

Atlantic pipeline

• 570MW pre-combustion capture on new build coal power

station

• Up to 4Mt/yr CO2 captured

• Re-use of existing pipeline systems

78km offshore

Northern UK Emissions

Cluster

Future CO2 Import to Peterhead Harbour

Aspen Storage Hub

Injection into proven saline

formation under a depleted gas

field

o On the power side: Scottish and UK governments committed £4.2m of funding for research to progress Caledonia Clean Energy Project

Other project highlights

Teesside Collective

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CCS can be applied to industrial processes as well as power stations, for example:

• Steel Works• Cement Works• Hydrogen

manufacturer• Ammonia• Plastics

CCS vs Oil and Gas

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Similarities

Subsurface technology

Gas transportation

Energy

Differences

Purpose to reduce emissions

Waste disposal projects

Different risk/ reward pattern

Different kinds of investors

Oil companies so far have not been interested

Opportunities

Re-use pipelines?

Re-use platforms?

Re-use data?

Enhanced Oil Recovery?

For oil & gas companies to use CCS to fully monetise their reserves and avoid stranded asset risk

Summary - UK CCS Landscape – 2015

Positives

The UK has already completed four CCS FEED programmes, (but has not reached Investment Decision on any of them.)

Two further FEED programmesare now underway making a total of six.

UK has a capable commercial mechanism for driving CCS for power generation through the EMR.

UK has a well funded excellent CCS R&D programme.

Deltas

Government procurement process has resulted in major attrition of investor interest in UK CCS.

Oil companies (with exception of Shell) have not stepped up to play in CCS.

All major power utilities have stepped back from CCS.

More industrial players required.

More projects in the funnel required to deliver 10GW by 2030.

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