Lessons Learnt from ROAD


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Hans Schoenmakers, Director Stakeholder Management, ROAD

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Lessons Learnt from ROAD

  1. 1. Global CCS Institute Members’ MeetingEdinburgh, 23 May 2013Hans SchoenmakersRotterdam Opslag en Afvang DemonstratieprojectLessons Learnt from ROAD
  2. 2. Page 2Co-operating Partners ROAD• Maasvlakte CCS Project C.V. is a joint venture of:• E.ON Benelux• GDF SUEZ Energie Nederland• In co-operation with intended partners:• TAQA Energy• GDF SUEZ E&P• With financial support of:• European Commission (EU)• Government of the Netherlands• Global CCS Institute• Private partners (discussions pending)
  3. 3. Page 3Integrated CCS Chain ROAD
  4. 4. Page 4RoundtableROAD as Stepping Stone to Northwest European CO2 hub• ROAD could become stepping stone to integrated CO2 hub in port ofRotterdam and Northwest Europe• ROAD is ideal platform to develop CO2 hub aligned with strategic objectivesof port of Rotterdam and combines interest of many national andinternational stakeholders
  5. 5. Page 5• Engineering• Permits• Stakeholders• FinanceLessons Learnt ROAD • High level of integration and simultaneous development of capture plantand power plant can generate highly efficient solutions• Innovative capture selection methodology secures fast decision making,effective supplier benchmarking, competition and better design• Two-phase flow in pipeline and well during start-up leading to sluggingrequires operation and control philosophy• Complexity of CCS regulation demands open/flexible regulatory approach• Close cooperation with authorities and regulators in early stage• Developing clear project vision and managing expectations of regulators• Diverse funding stakeholders demands flexible financial organization• Low carbon price creates unfavorable conditions demonstration project• Finance schemes have been ‘too wide’ and ‘too thin’• Actively/closely involve local/national stakeholders in all project phases• Demonstrating offshore storage creates less public resistance• Emphasizing local (economic) value propositions of CCS
  6. 6. Page 6Key Lessons Learnt• Lots of ambitions (EU, NL)• Strong regional and national stakeholder support• Absence of public resistance (i.a. offshore storage)• Parent companies willing to invest in negative NPV• Most favourable project conditions• Red tape blocks political drive• Project/CCS/Climate ambitions are at stake
  7. 7. Page 7Maasvlakte CCS Project C.V.Parallelweg 13112 NA Schiedamwww.road2020.nl
  8. 8. Page 8Back Up
  9. 9. Page 9Lessons Learnt: Engineering• A high level of integration and simultaneous development of captureplant and power plant can generate highly efficient solutions• ROAD applied an innovative capture selection methodology enablingfast decision making, effectively benchmarking suppliers, ensuringcompetition and delivering better design• Independent process model validation using pilot plant perfomance datais valuable in reducing technical risks with extrapolation of pilot plantdata• Significant insight from flow assurance study was that during start-up atwo-phase flow will occur in pipeline and well potentially leading toslugging and requiring an operation and control philosphy
  10. 10. Page 10Lessons Learnt: Permitting and Regulatory• Close cooperation with authorities and regulators in an early stage ofproject is essential due to the complexity of CCS regulation. CCSlegislation is new so process needs to be developed from scratch• For a CCS project it is important that authorities and regulators areproactive and take their responsibilities regarding CO2-storage. Issuesshould be addressed in a coordinated way, in order to avoid a significantdelay of legislative and regulatory process• Without an open and flexible regulatory approach it is very unlikelythat CCS demonstration projects will be developed• Often a specific legal and regulatory framework on capture, transportand storage technologies is missing or in development: this demands pro-activity, flexibility and close interaction with regulators and authorities.Managing expectations of stakeholders and developing a clear projectvision are a prerequisite in that regard.
  11. 11. Page 11Lessons Learnt: Stakeholder Management• Importance of integration of stakeholder management function in projectorganization• Local, regional and national governments should be actively involvedthroughout all project phases• Public outreach and pro-active stakeholder management should start atvery early stage of CCS project• Demonstrating offshore storage creates less public resistance• Emphasizing local (economic) value propositions of CCS
  12. 12. Page 12Lessons Learnt: Finance• Dynamic and complex stakeholder environment demands flexiblefinancial organization• Commodity risk of low carbon price (funding risk) creates unfavorableconditions (i.a. uncertainty) for demonstration projects