This presentation was delivered at the Global CCS Institute's Global Status of CCS: 2014 event in Abu Dhabi on 6 November.

1. © OECD/IEA 2013
CCS & the global climate agenda
Juho Lipponen
Head of CCS Unit
IEA
GCCSI Annual Conference
Abu Dhabi, 6 November 2014

2. © OECD/IEA 2013
Strong policy drives investment
Clean energy investment* between
2004-2013 (USD):
Source: BNEF
CCS:
20
billion
All clean
energy:
1929
billion
2000
1900
1800
1700
1600
1500
1400
1300
1200
1100
1000
900
800
700
600
500
400
300
200
100
0
CCS All clean energy
USD
billion
20
1929
* Includes technology development, projects, M&A. Source: BNEF.

3. 3. Drivers and supportive policies are essential
© OECD/IEA 2013
Long-term vision for CCS deployment
Permitting
framework
Technology
RD&D framework
Incentive framework
Regulation
for safe,
effective
storage
Efficient
resource
management
Prices or
limits on
emissions
Targeted
deployment
incentives
Demonstration funding
UNFCCC process critical for shaping policy environment for clean energy including
CCS: Ambitious climate targets, Technology Mechanism, Green Climate Fund,
CDM, incl. modalities and procedures etc.
Research and
development
policy and
programmes
*
*
* * * *
*

4. multilateral
schemes
- Cooperation on
© OECD/IEA 2013
UNFCCC & global climate policy
“Top-down”: UNFCCC mechanisms
NAMAs
- Funds for CCS
- L&R frameworks
- Storage expl.
Technology
mechanism
- Knowledge
sharing
- Partnerships
Other
CCS
CDM
- Continue to
include CCS
Enhanced pre-
2020 action
- Knowledge
sharing
- Policy &
regulation
Green Climate
Fund
- Specific CCS
window
“Bottom-up”: Intended Nationally Determined Contributions
INCLUDE CCS WHERE
RELEVANT!

5. © OECD/IEA 2013
…As one of America’s governors has
said, “We are the first generation to
feel the impact of climate change and
the last generation that can do
something about it.”
Remarks by President Obama at UN Climate Leaders’ Summit, September
2014

6. © OECD/IEA 2013
Backup slides

7. © OECD/IEA 2013
- mechanisms under the negotiations
- agreed mechanisms under
implementation

8. “Intended Nationally Determined Contributions”
 % of CCS in relevant regional energy scenario analysis
 Mt of CO2 captured and stored
 GW of power generation capacity equipped with CCS
 policy actions and mechanisms supporting CCS
Technology mechanism
 provide unbiased up-to-date information on CCS
 support international partnerships that already exist on CCS
 include consideration of CCS in technology needs assessments
of developing countries with high reliance on fossil fuels in
their energy and industrial sectors.
© OECD/IEA 2013

9. NAMAs
 availability of funds for long-term large investments;
 include support for legal work to make CCS a legal
activity and define all necessary safety requirements;
 consider support for CO2 storage exploration
 consider policy support for
The Green Climate Fund
 actively highlight the availability of funds for CCS
projects and
 potentially include a specific earmarked funding window
for CCS.
© OECD/IEA 2013

10. Enhanced pre-2020 climate action
 government support for CCS pilots in industrial sectors
 government support for CCS large-scale projects that are
already in advanced stages of development;
 development of CCS-related regulations
 CO2 storage assessments work to identify specific CO2
storage sites
 relevant capacity building and support for pilot projects
in non-Annex I parties with high potential for CCS
deployment
 R&D work and international cooperation on CCS R&D.
© OECD/IEA 2013

11. © OECD/IEA 2013
Sleipner (Source: Statoil) Great Plains Synfuels
(Source: Dakota Gasification)
Kemper (Source: IEA) Taiwan Cement (Source: IEA)
Gorgon (Source: Chevron)
Scotford Upgrader
(Source: Shell)
Peterhead (Source: Shell)
Bio-CCS (Source: IEA)
Boundary Dam (Source: SaskPower)

12. © OECD/IEA 2013
CCS technologies exist and are in use
Capture technologies
are well understood but
remain expensive.
Transport is the
most technically
mature step in CCS.
CO2 storage has been
demonstrated but
further experience is
needed at scale.
• Technologies in use since 70s/80s
• Today: 1/2 of early energy
requirement and 3-4 * scale!
• Power: pre-, oxy and post-combustion
• Gas processing, refining, cement, etc.
• 6000km existing pipelines
• Existing technical
standards
• Transport by ship
• 12 projects, 120+ EOR
• Capacities and CO2 trapping
mechanisms better understood
• Better storage engineering,
modelling & monitoring

13. © OECD/IEA 2013
To fulfil its role, CCS needs further
improvement
 Increased cost driven by need of additional capital investment
 +80% on power investment / kW (“nth plant”; first ones even more)
 Varying degree in other industrial applications
 Increased cost also driven by energy penalty
 10-12 %-point loss in power plant efficiency…
 …leads to 25-30% increase in fuel demand per unit of output
 Penalty linked to energy requirements of capture
 Separation work 2,5 to 3,5 GJ / t CO2 today
 Compression 0,5 GJ / t CO2 today
 Hence critical to accelerate technical learning and economies of
scale to reduce energy penalty and capital costs
 Examples of improvement targets: CSLF, US DOE:
 “2020”: gradual improvements, -30% energy penalty
 “2030 and beyond”: novel technologies, -50% energy penalty