1. 7th International Scientific Conference on Energy and Climate Change
The European CCS Demonstration Project Network – Real life experiences towards a low carbon world
7th International Scientific Conference on Energy and Climate Change
KEPA, Athens, 14 October, 2018

2. Outline EU CCS Project Network Overview The Network
CO2 capture, transport and storage in the Network
CCS effect in the projects
Potential impact of the Network
Our challenges
Tackling the challenges
CCS the way forward

3. EU CCS Project Network Overview
The European Commission established the Network in 2009
Why: Accelerate the deployment of safe, large-scale and commercially viable CCS projects
How: Share technical and project management information via facilitated workshops & members-only platform
Who: Current members are four of the most advanced large scale demonstration projects in Europe
Goal: Create global CCS project-based information-sharing community

4. The Network 2.1 Mtpa CO2 1.3 Mtpa CO2 Projects in light blue cancelled
Ciuden of Compostilla stays in “collaborative” status
1.3 Mtpa CO2

5. CO2 Capture in the Network
Projects originally composing the Network

6. CO2 Transport and Storage in the Network

7. CCS effect in the Network projects’ performance

8. The Network in context
…the Network projects could permanently store nearly 9 million tonnes of CO2 per year, which is the equivalent to…
1,894,737 Vehicles off the road
5,000,000
Homes electricity supply
2,477 Wind turbines installed
230,769,231 Tree seedlings growing for 10 years
Sleipner Project captures and stores around 1 million tonnes of CO2 per annum from its light oil and gas field
If all of the other member projects were developed, the Network would have an installed clean electricity generating capacity of 1,450 Mwe (estimations include Compostilla, Porto Tolle, Road, Don Valley and Sleipner Projects, as per 2013 Network Status)
Based on typical consumption estimations:

9. The challenges Policy uncertainty
2) Legal / regulatory frameworks burdens
For example, within the CCS Directive:
Transfer of responsibility
Liability and financial security requirements
Third party access requirement issues
3) Lack of appropriate investment and deployment mechanisms
Strong incentives and backing need to be urgently introduced to enable the operation of first-mover CCS projects
The real challenge is in the operational deployment of the projects
1) Regional and national climate and energy policies must provide long-term clarity on the way forward. Incentive mechanisms should be consistent with this pathway.
2) Ensuring that projects are not unduly burdened with unquantifiable risks and liabilities would greatly aid deployment.
3) Much more needs to be done. These must take into account the risk and large upfront costs experienced by project developers. If CCS is going to be developed quickly and at scale, suitably sized infrastructure for future clusters needs to be put in place.

10. CCS projects ($ billion) Clean energy ($ billion)
Global investments
Year
CCS projects ($ billion)
Clean energy ($ billion)
CCS share (%)
2010
2.7
N/A
2011
3.0
317.9
0.94
2012
2.8
286.2
0.98
2013
N/A 
254.0
IEA also reports CCS investments were USD20 billion from
Bloomberg New Energy Finance data, 2013
2013/14 EU CCS Demonstration Project Network Situation Report

11. CCS cost in context
Annual Energy Outlook 2014
DOE/NETL-2007/1291

12. Value for money?
Network projects could have an installed capacity of 1,450 MWe, i.e. approximately 10 million MWh/y
Assumptions Network Wind (South Europe) Wind (North Europe) Solar
Average capacity factor
1450 MWe translates to 9.53million MWh/y for Network
In turn, wind turbines would produce 3.3 million MWh/y (3 times less) and solar 2.4 million MWh/y (4 times less)
5,443,714 solar panels to produce 9.53million MWh/y

13. CCS challenges in Europe
CCS Directive
Permitting issues
Business models
Themes that have been already discussed in Ponferrada
Network expansion
Technical studies and analyses

14. CCS Directive review
The legal EU framework for the safe geological storage of carbon dioxide but…
… generates overly heavy liabilities and risks for the operators of early projects
… the costs of financial contribution related to the Financial Mechanism are difficult, if not impossible, to estimate
… the experience shows that national steps are required to limit unreasonable burdens for projects
Liabilities within the CCS directive: Storage, Transport, Capture (civil, environmental, climate)
Financial mechanism: Member States must ensure that the operator makes a financial contribution available to the
competent authority before the transfer of responsibilities to the competent authority takes
place.
Higher risk for early projects

15. CCS - the way forward Short term… Long term…
Policy measures that give investors’ confidence in revenue over the life of a CCS project e.g. Contract for Difference mechanism adopted in the UK
Long term…
ETS structural reform
as the long term driver for investment
Extended NER300 or Innovation Fund
but more tailored to the industry’s and Member States’ requirements
CCS standards
based on actual projects experience
Emission performance standards (EPS)
will incentivise CCS in Europe?
CfDs: although long term contracts are a reality
However these structural measures are scheduled to be implemented only as of 2021 and any impact on ETS price will take even longer. Therefore, complementary financial measures to bridge the gap between 2014 and 2021 will be necessary
National level support should to a large extent be tailored to the specific energy and climate policies – this could be done through national decarbonisation pathways outlined by the Commission in the 2030 framework communication
Premature standardisation could limit flexibility in the development phase of a technology. Due to limited experience in commercial scale CCS in Europe it is too early to assess the required scope of standards.

16. Find out more and keep up to date
twitter.com/ccsnetworkeu

17. Thank you! zoe.kapetaki@globalccsinstitute.com
Acknowledgements to EC for grant and partners of Secretariat
ENER/FP7EN/296013/CCS-PNS