EU project networkGlobal CCS Institute Member Meeting08 May 2012Kai Tullius, Policy OfficerDG ENERGY C1
Where do we stand on CCS? • EU committed to up to 12 CCS demonstration projects by 2015; a necessity for commercial deployment after 2020 • 2 European funding instruments and the project network were introduced • Projects face delays • How to revitalise the European demonstration programme? • Which role can the CCS project network play?
Energy Roadmap 2050basis for developing a long-term policy framework European Council Aim of the roadmap. EU objective for 2050 – GHG emissions down to . Give more certainty to governments and investors. 80-95% below 1990 levels Looks forward to elaboration of a low-carbon 2050 . Explore routes towards a low- carbon energy system by 2050 which improve competitiveness strategy – a framework for and security of supply longer-term action in energy and related sectors . Basis for developing the 2030 policy framework and concrete milestones with MS, EP and stakeholders
Investments in coal plants to 2050 - Low Carbon Supply Technologies scenario
Investments in gas plants to 2050 - Low Carbon Supply Technologies scenario
Po 200 250 300 350 0 50 100 150 Cz land ec * hR De ep nm a Gr r k Ge eece rm an B u y* lg Ro aria ma ni a UK *Ne Irel the and rla nd Sp s* ain * Ita ly Fr * an CO2 Emissions in 2008 ce MT/Year - Energy MT/Year - Industry
1) Legislative Framework • Legislation • Storage is enabled by the CCS Directive (2009/31/EC) • Transposition in MS • Deadline June 2011 • Most MS hosting demonstration projects transposed by spring 2012 • Challenges • Does legislation enable CCS in MS?
2) CCS demonstration programme EEPR Projects Bełchatów, PLDon Valley, 250MW UK 900 MW Rotterdam,NL Jänschwalde, DE 250MW 300MW Compostilla, ES 323MW Porto Tolle, IT 250MW
3) Commercial Viability• Investments in CCS demonstration will only take place if a business model for commercial roll out exists• CCS can be commercially viable after 2020 at a carbon price of €40-45 per ton of CO2• If the carbon price stays below that price additional support is needed not only for demonstration projects but also for subsequent deployment
4) Public Acceptance• Experience from projects: regional differences and little resistance against offshore storage• Cross border transport and offshore storage
5) CO2 Infrastructure• Energy Infrastructure legislative proposal adopted in Oct 2011• Support regional co-operation – regional clusters expected to kick- start the network
6) Innovation CCS European Industrial Initiative • Strategic objective • To demonstrate the commercial viability of CCS technologies for subsequent deployment • Technology objectives • Prove the technical and economic feasibility of CCS using existing technology • Develop more efficient and cost competitive CCS technologies • Actions • Realisation of a large scale demonstration programme • Establishment of an R&D programme on efficiency, capture, transport, and storage • CCS project network and international knowledge sharing
CCS Project Network / Knowledge Sharing• What is the CCS Project Network?• Why establish a knowledge sharing platform?• How does the Network operate?
Conclusions• Fossil Fuels will remain in the Energy Mix• CCS is needed for decarbonising the energy and other industrial sectors• CCS is at a crossroads• In the absence of a strong carbon price, additional support mechanisms for demonstration and deployment need to be set up• Global Knowledge Sharing of increasing importance