Panel 6. Equal treatment of CCS with other technology options - Jeff Chapman, CCSA
The Carbon Capture
& Storage Association
Equal treatment of CCS
Observations on UK industry experience
Global Status of CCS 2013 Seoul
What is equal treatment - power?
• Same payment per MWh?
• Enhanced payment for flexibility?
• Availability payment?
• Availability of budget (LCF in UK)?
• Contribution to infrastructure?
• Do we mean equality of terms or equality of opportunity?
Electricity Market Reform
• CfD FiT central to incentive for low carbon generation
• Should CfD be same for all technologies
• RE and nuclear not fuel cost dependent
• Capacity mechanism could reflect flexibility of CCS
• In EU renewable targets
• In UK nuclear sites selected for development
• No clear indication of market potential for CCS
• Third Party Access
• Long term liabilities
• Wide range of scenario planning for CCS
• Lack of vision on geographical location of capture
• Indeed consenting CCGTs in locations to preclude
• Lack of CCS infrastructure plans
The perils of competitions
• Definition of technology
• Selection criteria
• High levels of risk
• Higher cost to consumer
• Wasting developer input leading to lost confidence
Quotes on CCS at LibDem Conference
• “and this would be particularly the case if CCS was found
not to have worked.” – Ed Davey
• “. A mixed, diverse strategy was needed in case CCS or
certain renewable technologies failed.” – Ed Davey
• “Noting that Carbon Capture and Storage (CCS) would not
be viable before 2030” – Rebecca Taylor MEP LibDem
What is equal treatment – industrial CCS
• Does not compete with other technologies
• Emissions trading aims to levelise incentive
• But international competition inhibits investment
• Needs equality of treatment across international
The Carbon Capture & Storage Association
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