Mobilising Private Sector Capital for CCS in the UK - Dr Angela Whelan at the UKCCSRC Biannual Meeting, Cambridge April 2014


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Presentation given by Dr Angela Whelan, Chief Executive of the Ecofin Research Foundation, as part of the Plenary Session: Challenges Facing CCS at the UKCCSRC Biannual Meeting - CCS in the Bigger Picture - in Cambridge, 2-3 April 2014

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Mobilising Private Sector Capital for CCS in the UK - Dr Angela Whelan at the UKCCSRC Biannual Meeting, Cambridge April 2014

  1. 1. CCS in the bigger picture, UK CCS Research Centre Cambridge Biannual 2-3 April 2014 Dr Angela Whelan Chief Executive, Ecofin Foundation 1 Mobilising Private Sector Capital for CCS in the UK
  2. 2. Introduction The Energy Technologies Institute is a partnership between global energy and engineering companies and the UK Government, bringing together projects and partnerships to accelerate the development of affordable, clean and secure technologies to help the UK meet its legally binding 2050 climate change targets. The Ecofin Foundation is a charity founded by Ecofin Limited, a London based investment management firm. The Foundation uses its knowledge of the global utility and finance sectors and its network of contacts to find practical solutions to help the move to a low carbon economy. The ETI and Ecofin Foundation are working together to examine the conditions for mobilising private sector financing of carbon capture and storage. This brings together the ETI’s technology and energy system capabilities with Ecofin Foundation’s financial skills and contacts. 2
  3. 3. Our Focus • The UK CCS industry beyond DECC’s Commercialisation Projects • To address the barriers and provide solutions to make early follow on projects commercial • To ensure involvement of financial and insurance sectors • Ecofin Foundation and the Energy Technologies Institute are working with the Crown Estate and the CCS Association to deliver the solutions 3
  4. 4. Removing the barriers 4 UK CCS Cost Reduction Task Force UK CCS Commercial Development Group Lead: Ecofin Foundation UK CCS Transport & Storage Development Group Lead: The Crown Estate UK CCS Knowledge Transfer Group Lead: CCS Association UK CCS Development Forum Co-chaired by: Michael Fallon – Minister of State for Business and Industry Michael Gibbons – Chairman CCS Association
  5. 5. Barriers to a CCS industry Energy marketplace challenges - changes in electricity markets create additional uncertainty • Including addressing EMR issues such as the requirement for early indications of Contracts for Difference for CCS Business structures • Including finding ways of sharing risks between the different elements of the CCS value chain to reduce counterparty risk Operational and technology risks • Including addressing sharing risks between storage developers and the Government to manage storage leakage liabilities Confidence in long-term policy • Encourage support and commitment from Government and policy makers for a long- term CCS industry beyond the Competition projects. Informed by discussion with private sector capital providers, project developers and other stakeholders 5
  6. 6. Stakeholder engagement Policy Makers Project Developers Capital Providers All major stakeholders need to be fully engaged from the start 6
  7. 7. UK CCS Commercial Development Group The UK CCS Commercial Development Group has 4 main goals: Goal 1 - Ensure involvement of financial and insurance sectors Goal 2 - Ensure funding mechanisms are fit for purpose Goal 3 - Continue to develop a UK CCS policy and regulatory framework Goal 4 - Create bankable contracts for CCS 7
  8. 8. THANK YOU! George Day Dr Angela Whelan 8 Contact details