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UK CCS Programme

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Dr. Ashley Ibbett, Chief Executive, Office of Carbon Capture and Storage, Department of Energy and Climate Change, UK

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UK CCS Programme

  1. 1. UK CCS ProgrammeAshley IbbettChief Executive and DirectorOffice of Carbon Capture and Storage
  2. 2. UK Energy ChallengeEnsuring secure suppliesTackling climatechangeMaintaining affordability
  3. 3. Starting from a challenging positionElectricityGeneratedFrom2012TWh%changeon ayearearlierCoal 142.8 +31.5Gas 99.7 -32.1Nuclear 70.4 +2.1Renewables 41.1 +19.6Total 363.2 -1.3In 2012, coal accounted for39.3 per cent of generation,its highest share since 19960%10%20%30%40%50%60%01/04/201201/05/201231/05/201230/06/201230/07/201229/08/201228/09/201228/10/201227/11/201227/12/201226/01/201325/02/201327/03/2013PercentageofOverallGBSuppliesPercentage Coal Percentage GasCoalNuclearGasRenewablesElectricity Generated 2012 (TWh)39.3%27.5%19.4%11.3%
  4. 4. Cost effective decarbonisation1444444“Successfully deploying carboncapture and storage would be ahuge economic prize for the UK inits low carbon transition, cutting theannual cost of meeting our carbontargets by up to 1% of GDP by2050”- ETI / Ecofin 20122030 205040GW13GWCCSProjections
  5. 5. UK CCS ProgrammeCCSCommercialisationProgrammeR&D andInnovationElectricityMarket ReformIntervention toaddress keybarriersInternationalCollaboration
  6. 6. Asks£1bn CCS CompetitionConstruction and commissioningSummer2013Early2015 c. 2018Winter2012April2012March2013Desired outcome:“as a result of theintervention, privatesector electricitycompanies can takeinvestment decisionsto build CCSequipped fossil-fuelpower stations, in theearly 2020s, withoutGovernment capitalsubsidy, at an agreedCfD strike price that iscompetitive with thestrike prices for otherlow carbongenerationtechnologies.”Objective and timeline
  7. 7. £1bn Competition – Preferred BiddersPeterheado A 340MW Post-combustion captureretrofitted to part of an existing CombinedCycle Gas Turbine power station atPeterhead, Scotland.o Storage offshore in Goldeneye depletedgas field.o Led by Shell and SSE.White Roseo An Oxyfuel capture project at a proposednew 304MW fully abated supercritical coal-fired power station on the Drax site in NorthYorkshire.o Led by Alstom and involving Drax, BOCand National Grid Carbon.
  8. 8. £1bn Competition – Reserve BiddersTeeside Low Carbono Decarbonised syngas in new 330MWe netCCGT, coal-based.o Located on Teesside, North East Englandwith storage in depleted oil fields and asaline aquifer.o Proposed through a consortium led byProgressive Energy involving GDFSUEZ, Premier Oil, and BOC.Captain Clean Energyo A proposal for a new 570MW, fully abatedcoal IGCC (pre-combustion) project.o Located in Grangemouth, Scotland withstorage in offshore depleted gas fields.o Led by Summit Power, withPetrofac, National Grid and Siemens.
  9. 9. Electricity Market Reform (EMR)• Long-term contracts thatreflect the value of lowcarbon generation• Feed-in Tariff Contract forDifference• A proposed CapacityMechanism• A Carbon Price Floor• An Emissions PerformanceStandard• £7.6bn Levy ControlFramework (LCF) in 2020/21GovernmentSets overall policy direction and sets out key parametersSystem operator (National Grid)Will advise government on contract parameters and administer thearrangementsInvestment in low-carbon generation also supported byCarbon Price Floor & Emissions Performance StandardContracts to develop low carbongeneration –contracts for differenceMarket wide capacity contracts:open to all forms of capacityExisting wholesale market (plus small scale FiTs)UK EMR Programme includes:
  10. 10. nContracts for Difference (CfDs)Providing long term price stability• CfD provides long-term revenue stability, lowering risk toinvestors and costs to consumers• Generator sells power, but receives a „top-up‟ payment• Top-up pays the difference between the „Strike Price‟ andthe market price:• Generator paid when market price below strike price• But, generator pays back when market price is high
  11. 11. Triple lockNPS, CPF and EPS• National Policy Statementfor Energy (NPS) - No newcoal without CCS (min300MW)• Carbon Price Floor (CPF)provides a strongercarbon price to promoteinvestment in low-carbongeneration• Emissions PerformanceStandard (EPS) – 450gCO2/kWh limit on carbonemissions• Long-term certainty(“grandfathering” of limitto 2045) for consentedplant• Reviewed in the future –first review by end 2015EPSSourceHMTreasury2011Carbon Price Floor Illustration
  12. 12. Innovation
  13. 13. AsksResearch and Development Projects – Some ExamplesNASCOM - Nanoscale Gravity Sensorsfor Monitoring CO2 Storage (NASCOM)o Project aims to develop an innovativegravity imaging sensor system capable ofmaking quantitative measurements of CO2volume in storage sites and which can bedeployed down reservoir boreholes.Project aims are to reduce the cost ofCCS through superior solventengineeringo Novel amine free solventso Results verified at small scale absorptionand distillation pre pilot scale set-up 10 kgCO2/dayo Applications for capture of CO2 fromlarge-scale point sources including powerstations, steel and cement production,and fermentationC-Capture:Step ChangeSolvent Technologyfor CCS
  14. 14. CCS Cost Reduction Task Force• Established Cost Reduction TaskForce to advise Government andIndustry on reducing the cost ofCCS.• Their analysis found that UK gas andcoal power stations equipped withCCS have clear potential to be costcompetitive with other forms of low-carbon power generation.• Final report published May 2013recommending actions forGovernment and Industry and thecreation of new groups to driveforward action.CCS Cost ReductionTask Forcehttps://www.gov.uk/government/policy-advisory-groups/ccs-cost-reduction-task-forceorhttp://tinyurl.com/crtf2013
  15. 15. International engagementKey principles• Sharing knowledge• Learning from others• Regional, bilateral and multilateralengagement
  16. 16. o UK Committed to decarbonising its economy and developinga low carbon energy mixo CCS is one of the central pillars of our energy policyo Flagship £1bn CCS Competition which is progressing wello But recognise that capital funding alone isn‟t enougho Comprehensive programme to drive forward CCS, includingsupport for OpEx through CfDs, R&D funding and knowledgetransferConclusion

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