• Save
Capacity charging mechanism for shared CO2 transportation and storage infrastructure
Upcoming SlideShare
Loading in...5
×
 

Capacity charging mechanism for shared CO2 transportation and storage infrastructure

on

  • 387 views

While technical and legal barriers to CCS are diminishing, the difficulty in building a sound commercial case for the development and operation of CCS infrastructure remains a serious obstacle. One ...

While technical and legal barriers to CCS are diminishing, the difficulty in building a sound commercial case for the development and operation of CCS infrastructure remains a serious obstacle. One way to significantly reduce the cost of CCS is to realise economies of scale by sharing a single CO2 transportation and storage infrastructure system among several operators of CO2 capture plants.

This webinar, presented by Calum Hughes, Director - CCS at Yellow Wood Energy and Dave Bevan, Commercial Developer at National Grid Carbon (UK), will provide insight into the commercial charging mechanism developed by National Grid for a shared CCS infrastructure system. In particular, various options for allocating system development and operational costs between members of an infrastructure network will be explored.

Statistics

Views

Total Views
387
Views on SlideShare
318
Embed Views
69

Actions

Likes
0
Downloads
0
Comments
0

4 Embeds 69

http://www.globalccsinstitute.com 52
http://stage.globalccsinstitute.com 13
http://decarboni.se 2
http://archive.globalccsinstitute.com 2

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

CC Attribution License

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

Capacity charging mechanism for shared CO2 transportation and storage infrastructure Capacity charging mechanism for shared CO2 transportation and storage infrastructure Presentation Transcript

  • Capacity charging mechanism for shared CO2 transportation and storage infrastructure Webinar – 20 November 2013, 1900 AEDT
  • QUESTIONS  We will collect questions during the presentation.  Your MC will pose these questions to the presenter after the presentation.  Please submit your questions directly into the GoToWebinar control panel. The webinar will start shortly.
  • Calum Hughes The first 20 years or so of Calum’s career were spent in engineering and project management. He graduated in Mechanical Engineering before entering the upstream oil and gas industry, starting off in reservoir appraisal and moving on to the engineering and management of projects designing and building production plant and associated infrastructure, onshore and offshore, across Europe and Africa. Around 10 years ago he took a break from project work to study law and after a period in legal practice and qualification as a solicitor he returned to industry as a consultant. He has worked with National Grid’s CCS team for around 3 years.
  • Dave Bevan David has spent the majority of his career as a Crude Oil vessel charterer for numerous large oil companies. After a 12 month break to travel the world he re-focused his career in Carbon Capture commercial development. He has worked for National Grid Carbon for the past 3 years focusing on a number of projects to enable commercialisation of CCS.
  • At the centre of the industry    We join everything up Generators at one end – consumers at the other Directly or indirectly connecting to our networks
  • Don Valley & White Rose Projects The Don Valley CCS Project is co-financed by the European Union’s European Energy Programme for Recovery The sole responsibility of this publication lies with the author. The European Union is not responsible for any use that may be made of the information contained therein.
  • Disclaimer This webinar and the report upon which it is based has been prepared by National Grid Carbon Limited for the Global CCS Institute for the purposes of sharing National Grid Carbon Limited’s work in developing a conceptual model for a charging mechanism for application to shared CCS infrastructure systems. The information contained within the webinar and report is disclosed voluntarily and without charge to you to facilitate the long-term development of the CCS industry. All figures, calculations and examples contained within the webinar and report are for illustration purposes only and are not intended to represent any actual data, decision making processes or costs related to any project or proposed development. Neither National Grid Carbon Limited nor any company within the National Grid Group of companies provides any warranty as to the quality, accuracy or completeness of the information or data included in the webinar or report and that information is not intended to be relied upon by any party.
  • Capacity Charging Mechanism for Shared CO2 Transportation and Storage Infrastructure European Business Development Part 1 - Background
  • Total System Cost Part 1 – Background Total System Cost System Capacity (e.g. throughput /time, total capacity)
  • Part 1 – Background Third Party Access - EU law - Third-party access should be provided in a transparent and nondiscriminatory manner and that the objectives of fair and open access are applied. - English Law – CCS TPA Regs & Guidance – different categories of cost may be treated differently
  • Part 1 – Case Study - Hypothetical Compre s sor SU #2 SU #1 m 200m Dia. m 15 K Hub Dia. 4 00mm 2 Km SU # 3 200 K m Pump Beach Cros (Futu re ) SU #4 sing sio Exten Store e Futur SU # 100 K m 6 SU #5 n
  • Capacity Charging Mechanism for Shared CO2 Transportation and Storage Infrastructure European Business Development Part 2 – Statement of Connection Charging Methodology
  • Part 2 – Connection Charges Example charge calculation given, but generically: Annual Charge over agreed payment period = - Cap Repay. + RoR (on Capex & Ongoing Capex & Decommex) - Annual O&M CCS specific issues: - Novel nature of fiscal metering - Design specification – solids - Control & Safety system integration
  • Capacity Charging Mechanism for Shared CO2 Transportation and Storage Infrastructure European Business Development Part 3 – Statement of Shared System Charging Methodology
  • Part 3 – Shared System Charging Costs - Capex - Fixed opex - Variable opex - Financial Security - Post-closure obligations - Decommissioning
  • Part 3 – Shared System Charging Heads of Charges - EPC Charge - Capacity Rights Charge - Use of System Charge
  • Part 3 – Shared System Charging Allocation of Costs to Heads of Charges May be used to affect: - Distribution of risk between operator and user - Distribution of cost between system users - EPC cost loading on state funding - Rates of return achievable - Fairness of cost allocation in options contracts and other access agreements.
  • Part 3 – Shared System Charging Option 1 – The amount of costs allocated to the EPC Charge is maximised. There is no Capacity Rights Charge. Only variable opex directly attributable to each system user is included in that system user’s Use of System Charge Option 1 £m EPC Charge 1,657 180 Cap Rights Charge 0 0 UoS Charge 7 1 Option 2 Option 2 – This reflects the cost to charges breakdown suggested in section 5.4 of report i.e. a mid-range allocation of costs between charges £m EPC Charge 679 73 Cap Rights Charge 874 88 UoS Charge 110 20 Option 3 Option 3 – the amount of cost allocated to the EPC Charge is minimised and the Use of System Charge is also kept relatively low. This loads cost into the Capacity Rights Charge. £m EPC Charge 618 67 Cap Rights Charge 964 98 UoS Charge 82 16
  • Capacity Charging Mechanism for Shared CO2 Transportation and Storage Infrastructure European Business Development Part 4 – Associated Topics
  • Total System Cost Part 4 – Allocation to Multiple Users Capacity Dependent Cost Total System Cost Capacity Independent Cost System Capacity System Capacity (e.g. throughput /time, total capacity)
  • Part 4 – Allocation to Multiple Users
  • Part 4 – Allocation to Multiple Users
  • Summary of Key Points • Correctly sized shared infrastructure could significantly reduce the cost of CCS. • With regard to the capacity charging mechanism applied to such shared infrastructure, the way in which: o costs are allocated between different system use charges; and o costs are distributed between different system users, might be used to influence the aggregate investment in and take-up of system capacity and therefore affect the development of CCS. • Prevailing legal and regulatory framework will have a major influence on the design of capacity charging mechanisms for CCS infrastructure.
  • QUESTIONS / DISCUSSION Please submit your questions in English directly into the GoToWebinar control panel. The webinar will start shortly.
  • Please submit any feedback to: webinar@globalccsinstitute.com