This presentation was delivered by Mr Ken Sato at the 11th Study Meeting of the Global CCS Institute in Japan.

1. GLOBAL STATUS OF CCS: FEBRUARY 2014
STUDY MEETING, JAPAN REGIONAL OFFICE - APRIL 17, 2014

2. • URL
- in Japanese
http://www.globalccsinstitute.com/publicati
ons/global-status-ccs-february-2014-jp
- in English
http://www.globalccsinstitute.com/publicati
ons/global-status-ccs-february-2014
GLOBAL STATUS OF CCS: FEBRUARY 2014

3. CCS is vital
Importance of
CCS
acknowledged
CCS identified as an essential
technology in limiting temperature
increase to 2°C
International Energy Agency
Wide adoption of CCS part of the scenario that achieves
450 ppm atmospheric stabilization level for CO2
World Energy Council
Availability of CCS is critical for
producing 450 ppm
Energy Modeling Forum
27 Study
CCS is an important technology in
the long run…deployment to drive
down costs is desirable
UK Committee on Climate
Change
Commercial demonstration of CCS essential
for deployment in the 2030 timeframe
European Commission
CCS to be cost effective when
transformational technologies emerge
US Climate Action Report 2014

4. CSLF stresses importance of CCS and of collaboration
‘We…are convinced that the
research and
development, demonstration and
global deployment of {CCS} must
be accelerated… We are
committed to taking necessary
actions internationally and
collaboratively to promote the
further development and
deployment of CCS.’
‘We believe that the increasing
number of {such} collaborations
reflects the growing global
recognition of the criticality of
CCS…’
Carbon Sequestration Leadership
Forum, extract from the Communique
following the 5th Meeting of the CSLF
Ministers, November 2013
TECHNOLOGY
UNDERSTANDING
AND ACCEPTANCE
POLICY AND
MARKETS
Business case
for CCS
Collaboration and aligning three pillars of the business case for CCS

5. CSLF stresses importance of CCS and of collaboration
‘We……are convinced that the research and development
(R&D), demonstration and global deployment of Carbon
Capture and Storage (CCS) must be accelerated…. We are
committed to taking necessary actions internationally and
collaboratively to promote the further development and
deployment of CCS.’
‘We believe that the increasing number of {such}
collaborations reflects the growing global recognition of the
criticality of CCS…’
Carbon Sequestration Leadership Forum, extract from
the Communique following the 5th Meeting of the CSLF
Ministers in November 2013

6. Large-scale CCS projects by project lifecycle and year
21 projects in operation or under construction – 50% increase since 2011

7. CO2 capture capacity by actual or expected year of
operation
CCS is a reality with 40 Mtpa of CO2 that can be captured by active
projects

8. Large-scale CCS projects in key markets by project
lifecycle
North America continues to dominate the projects landscape; China
increasing in importance; project progress has stalled in Europe

9. Large-scale CCS projects proceeding to ‘Operate’
and ‘Execute’ since 2011
Majority of projects in operation, construction or close to FID use or intend
to use CO2 for EOR

10. Actual and expected operation dates for CCS
projects in ‘Operate’, ‘Execute’ and ‘Define’ stages
Air Products
Century Plant
Coffeyville
Enid Fertilizer
Great Plains
Lost Cabin
Lula
Shute Creek
Sleipner
In Salah*
Snøhvit
Val Verde
ACTL Agrium
Kemper
ACTL Sturgeon
Boundary Dam
ESI
Gorgon
Illinois Industrial
Quest
Uthmaniyah
Don ValleyHECA
Lake Charles
Low Impact Steel
TCEP Medicine Bow
FutureGen 2.0
NRG
PetroChina Jilin
ROAD
Sinopec Qilu
Spectra
Yanchang
Sinopec Shengli
2015
EOR
地層貯留
Pre-2014
Power generation
20172016
Hydrogen
production
Natural gas
processing
Chemical
production
Iron and steel
production
Syngas
Fertiliser
production
Oil refining
2014 2018 2019 2020
= 1Mtpa of CO2 (areas of circle are proportional to capacity)
Coal-to-liquids
White
Rose
CCS projects in the power and industrial sectors and projects utilising
dedicated geologic storage options becoming more important
* Injection suspended
Peterhead

11. Significant global policy and regulatory developments
• US EPA releases proposals
dealing with power plant CO2
emissions and geologic carbon
storage
United States
• Alberta Government releases
final draft of the Regulatory
Framework Assessment report
Canada
• COP 19 held in Warsaw
• Focus on universal post-2020 climate
agreement in Paris, in 2015
Global
• UK Energy Act receives Royal
Assent and becomes law
United Kingdom
• EC proposes climate targets out to 2030
• European Parliament supports MEP
Chris Davies’ report on CCS in Europe
Continental Europe

12. ‘Three pillars’ of the business case for CCS -reprise
Technology
Understanding and
acceptance
Policy and markets
Business case for CCS

13. Technology
ASSESSMENT
 Individual components are well understood.
 Many aspects are already technically mature.
 Safe storage demonstrated by projects for over a decade.
 Pilot and larger scale test facilities are important contributors to knowledge.
 Confidence that the remaining technical challenges can be met over time.
OPPORTUNITIES
 Integrated operation at large scale in power and industrial processes is key:
o initial CCS demonstrations in power plants – starting in 2014 in Americas
o positive perception of CCS as a ‘proven’ technology, building public
confidence through large-scale projects in new applications
o learning by doing cost savings
o more early mover projects will confirm effectiveness, establish best
practices.
 R&D (collaboration) to advance technologies is a ‘game changer’.
 The ‘rocks’ are also important – identification of viable storage sites.
13

14. Policy and markets
14
ASSESSMENT
 International policy discussions consistently acknowledge importance of CCS
but…
 Industry highlights that national climate and energy policies do not provide long
term clarity to support widespread adoption of CCS projects.
 CCS is often not treated equivalently to other low carbon technologies.
 National regulations have advanced but critical uncertainties remain:
o in the US, for example, impact of recent EPA proposals
o more broadly, addressing long-term liability issues
 Existing CCS funding programs for large-scale projects mostly exhausted.
OPPORTUNITIES
 Re-invigorated policy incentives ( and regulation) to maintain momentum.
 Continued development of low-carbon future roadmaps for CCS.
 Post Kyoto 2020 agreement for decision in 2015.
 Capacity development scope is significant – all can learn from what has
worked, building capacity in developing countries is critical for longer-term
deployment.

15. Understanding and acceptance
15
ASSESSMENT
 Stakeholder relationship management accepted as critical to project delivery.
 Global awareness and understanding of CCS context is low.
 Focus of CCS communication is on risks and challenges not value and benefits.
 Perception of CCS as experimental, not cost competitive and associated with
fossil fuel instead of role in low-carbon energy.
 Building a trusting relationship with key stakeholders is critical for projects.
OPPORTUNITIES
 Successful global large-scale integrated projects is critical to establish public and
political confidence in CCS.
 CCS projects are demonstrating improved sharing and use of best practice.
 Encourage public advocacy of CCS from trusted groups – academics and NGOs.
 Improve access to education materials and experts.

16. Conclusions (from Executive Summary)
Notwithstanding the significant progress in CCS development in recent
years, the momentum for further development and widespread deployment
must be increased. CCS has a vital role to play in a portfolio of low-carbon
technologies to tackle climate change at least cost to the world economy.
Key Action that would act as a stimulus to momentum include：
• boosting short-term support for the implementation of demonstration
projects globally, especially in continental Europe where project
development has stalled
• introducing long-term commitments to climate change mitigation and
strong policy action and market-based mechanisms that ensure CCS is
not disadvantaged compared to other low-carbon technologies
• implementing measures to deal with the remaining critical regulatory
uncertainties, such as long-term liabilities, and
• Continuing funding support for CCS research and development activities
along with fostering collaborative approaches to knowledge

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