Several large-scale CCS projects are underway worldwide to demonstrate the full CCS chain. Norway is a leader in CCS due to its technical expertise and early projects like Sleipner that has stored CO2 underground for over 16 years. The Norwegian state enterprise Gassnova oversees CCS demonstration projects in Norway, including the CO2 Technology Centre Mongstad which tests carbon capture technologies. Gassnova also manages the planning for a full-scale

1. GREEN TECHNOLOGY FRONTIERS
CARBON CAPTURE AND STORAGE (CCS)
BI, JUNE 21, 2012
Anne Strømmen Lycke, Vice President, Gassnova SF 1

2. CONTENTS
• CCS for a better climate
• CCS technologies
• CCS projects world wide
• CCS in Norway
• Gassnova SF
2

3. INCREASED GLOBAL ENERGY CONSUMPTION
INCREASE IN CO2 EMISSIONS
• Third World energy consumption
will increase
• Access to energy will provide
better living conditions
• The world will be dependent on
coal, oil and gas for energy
production for decades to come
“Climate change waits for no one”
3

4. LIMITING LONG-TERM GLOBAL TEMPERATURE INCREASE
• Temperature
should not
increase by more
than two degrees
by 2050
• We must succeed
in our efforts to
capture and store
CO2 from both
industry and
energy production
Source :OECD/IEA 2011
4

5. CONSEQUENCES OF GREENHOUSE GAS EMISSIONS
• Combating climate
change will not be
cheap
• The window of
opportunity for
achieving the 20C
target is starting to
close…
Source :OECD/IEA 2011
5

6. CCS CAN BECOME A SIGNIFICANT CONTRIBUTION!
Source: IEA

7. BUT THE PRICE OF CARBON MUST INCREASE
– AND THE PRICE OF CCS MUST DECREASE
Cost/t CO2
• Govt funding When?
• Public/private
partnership
Price of carbon
Time

8. COST OF ENVIRONMENTALLY FRIENDLY POWER
Source: GCCSI

9. COMPARING INDUSTRIES IN EUROPE:
CCS COST VS TRADE EXPOSURE
9

10. EU ROADMAP 2030/2050 - ENERGY MIX
EU DECARBONISATION SCENARIOS
• 2030 and 2050 range of
fuel shares in primary
Graph 1: EU Decarbonisation scenarios - 2030 and 2050 range of fuel shares in
primary energy consumption compared with 2005 outcome (in %)
energy consumption
75% 2030 75% 2050 compared with 2005
outcome (%)
50% 50%
• Carbon Capture and
Storage will have to be
applied from around
25% 25% 2030 onwards in the
power sector in order
to reach the
decarbonisation targets
0% 0%
RES Gas Nuclear Oil Solid fuels RES Gas Nuclear Oil Solid fuels
2005
Source: EU energy roadmap 2050
Source: EU
“The future of CCS crucially depends on public acceptance and adequate carbon prices” 10

11. EU ROADMAP 2030/2050 - INVESTMENTS IN
COAL PLANTS TO 2050
LOW CARBON SUPPLY TECHNOLOGIES SCENARIO
30
25 • With the
development of CCS,
20 coal could continue to
play an important role
15
Coal w/o CCS in a sustainable and
Coal + CCS secure energy supply
10
in the future
5
0
2010 2015 2020 2025 2030 2035 2040 2045 2050
Fossil fuel-fired capacity investments in power generation (GW) Source: EU energy roadmap 2050
11

12. EU ROADMAP 2030/2050 - INVESTMENTS IN GAS
PLANTS TO 2050
LOW CARBON SUPPLY TECHNOLOGIES SCENARIO
60
• Gas will be critical for
50
the transformation of
the energy system
40
• With evolving
30
Gas w/o CCS
technologies gas might
Gas + CCS play an increasing role
20 in the future
10
0
2010 2015 2020 2025 2030 2035 2040 2045 2050
Fossil fuel-fired capacity investments in power generation (GW) 12
Source: EU energy roadmap 2050

13. CONTENTS
• CCS for a better climate
• CCS technologies
• CCS projects world wide
• CCS in Norway
• Gassnova SF
13

14. CARBON CAPTURE & STORAGE (CCS)
• CO2 Capture
• Power production, industrial sources,
gas conditioning
• Transport
• Pipeline or ship
• Geological storage
• Onshore or offshore
• Saline aquifers or
depleted oil and gas reservoirs
14

15. TECHNOLOGIES FOR CCS ARE AVAILABLE BUT NEED
TESTING AT A LARGE AND INTEGRATED SCALE
Stage of development
Commercial refinements
Concept Lab testing Demonstration needed Commercial
Several projects are Capture
Potential future
breakthrough First projects are operational (e.g.,
Transport
technologies coming online Weyburn (Canada)). EU
now has limited EOR Storage
potential
Post-
combustion
Membranes Oxy-fuel Pre-combustion CO2-EOR
Chemical Depleted oil
R&D looping CO2- Transport Transport
and gas fields
EGR Saline off- On-
aquifers shore shore
US has existing CO2
Sleipner (Norway) pipeline network of
field has been more than 5000
operational for kilometers
around 10 years
15
Source: McKinsey report “CCS – Assessing the economics”; team analysis – adapeted by Gassnova SF

16. MAIN PROCESSES FOR CO2 CAPTURE
Rest air and
Post Combustion rest CO2
Fuel
Power CO2
Air station Capture CO2
Steam and
Pre Combustion rest air
Air
H2 Power
station
Natural gas Natural gas CO2
reforming Capture
Water
CO2
Oxy-fuel N2 CO2
Air O2 Power Conden-
Air
separation station sation
CO2
Natural gas
Water

17. POST-COMBUSTION
AMINE PROCESS • Most mature technologies
– Amines
• Aker Clean Carbon, Fluor,
Mitsubishi , Alstom, Cansolv
(Shell), Toshiba, Powerspan and
others
– Chilled ammonia
• Alstom
– Amino Acids
• Siemens
• Membranes, Chemical
looping
17

18. CONTENTS
• CCS for a better climate
• CCS technologies
• CCS projects world wide
• CCS in Norway
• Gassnova SF
18

19. LARGE-SCALE INTEGRATED PROJECTS
OVERWIEV FROM GLOBAL CCS INSTITUTE
Nov, 2011
19

20. PLANNED CCS PROJECTS EUROPE
OVERVIEW • NER300
– New Entry Resources
– 300 million EU emission
unit allowances (EUAs)
– Recommendation from
EIB to EC Feb 2012
– Decision expected Oct
2012
• European Energy Programme
for Recovery (EEPR)
• Joint industry collaborations
• UK competition
Source: GCCSI, 2012 • EEA/Norway grants (EØS-
midler)
20

21. ACTIVE CCS PROJECTS WITH CO2 STORAGE
• Storage in an
aquifer
– Snøhvit, Norway
– Sleipner, Norway
– In Salah, Algeria
• EOR
– Widespread in
Kilde: GCCSI, nov 2011
the US
18.06.2012 21

22. MEASURED PROGRESS OF LARGE-SCALE INTEGRATED
PROJECTS SINCE 2009
Source: GCCS!, May 2012 22

23. Boundary Dam, Canada
• Company/Alliance:
– SaskPower (facility owner),
Government of Canada,
Government of Saskatchewan
and private industry
• Size: 110 MW
• Capture Technology:
– Post-combustion (amine)
• Coal-fired power plant
• Enhanced Oil Recovery (EOR)
• In operation: 2014 (planned)
23

24. KEMPER, MISSISSIPPI, USA
• Company/Alliance:
– Southern Company
• Size: 582 MW
• Capture technology:
– Pre-combustion
• Coal-fired power plant
• Enhanced Oil Recovery (EOR)
• In operation: 2014 (planned)
24

25. PLANT BARRY, ALABAMA, USA
• Company/Alliance:
– Southern Company
• Size: 25 MW (150 kt CO2/y)
• Capture technology:
– Post-combustion (amine)
• Coal-fired power plant
• CO2 stored in geological
Soure: Southern Company
formation
• In operation: Since June 2011
25

26. CONTENTS
• CCS for a better climate
• CCS technologies
• CCS projects world wide
• CCS in Norway
• Gassnova SF
26

27. NORWAY PUNCHING ABOVE ITS WEIGHT IN CCS
• Financial resources
• Technical competence and
resources
• Fossil fuels and Norwegian gas
export sustainable in the long
term

28. SLEIPNER: 16 YRS OF SUB SEA BED CO2 STORAGE
Photo: StatoilHydro

29. CCS FOR A BETTER CLIMATE
Functioning
market
International deployment
Reduced cost and risk
Framework conditions
Acceptance in society
Early CCS Demo
R&D and tech. verification

30. CONTENTS
• CCS for a better climate
• CCS technologies
• CCS projects world wide
• CCS in Norway
• Gassnova SF
30

31. GASSNOVA SF
THE NORWEGIAN STATE ENTERPRISE FOR CARBON CAPTURE AND STORAGE
CLIMIT: Research and development program
– Support for technology development
Asset management
– CCS demo projects
– Ensure that the State utilises the resources in the
best possible manner
Advisor to the authorities

32. ASSET MANAGEMENT
• CO2 Technology Centre Mongstad (TCM)
– A world class industrial scale centre for testing of
carbon capture technology
• Full-scale CCS at Mongstad
– Realisation of a complete value chain for CO2
capture, transport and storage
• Norwegian CCS Study
– Assessment of potential full scale CCS-projects in
Norway beyond Mongstad

33. Mongstad

34. CO2 TECHNOLOGY CENTRE MONGSTAD
AMBITIONS
• Verify CO2 capture technology
owned by vendors
• Reduce cost and risk
• Development of market
• International deployment
Photo 20 April 2012

35. • Two technologies
- Aker Clean Carbon
- Alstom
• Two flue gas sources
• 100 000 tonnes CO2/y

36. CO2 TECHNOLOGY CENTRE MONGSTAD (TCM)
75.12% 20% 2.44% 2.44%

37. TCM opening 7th May 2012

38. 38

39. FULL-SCALE CCS AT MONGSTAD
• 2006: Agreement between Norwegian state and Statoil
• Full-scale CO2 capture from a combined heat and power (CHP) plant
• Storting Report No. 9 (2010-2011)“Fullskala CO2-håndtering”
• Phase 1: Technology qualification programme
– A thorough review of various technologies with regards to HSE, energy
efficiency, scale-up etc
– Close cooperation with the technology suppliers
– There must be no new environmental problems as a result of CO2
technologies that are developed
– Basis for concept selection 2014
• Phase 2: Pre engineering
– New competition open for all qualified technology suppliers
– Basis for investment decision 2016
39

40. FULL-SCALE CCS AT MONGSTAD
POST-COMBUSTION TECHNOLOGY
• Five technology suppliers have
been selected to participate in
the technology qualification
programme
– Amine technologies:
• Aker Clean Carbon, Mitsubishi,
Powerspan /Huaneng Clean
Research Institute
– Chilled ammonia technology:
• Alstom
– Amino acid salt technology:
• Siemens
40

41. TRANSPORT AND STORAGE
CO2 FROM MONGSTAD
• Solution for
transportation and
storage of CO2 should
be ready in time for
start-up of the planned
full-scale facility
• At the Norwegian
continental shelf
• CO2 transported by
pipeline
• CO2 stored in saline
aquifer
41

42. PROCESS FOR ESTABLISHING
CO2 TRANSPORT AND STORAGE
Announcement of areas Establish partnership
Nomination of potential storage
locations OED is considering Organize the partnership
announcing areas for for engineering,
Five locations nominated within execution and operation
exploration of subsea
the deadline similar to the petroleum
reservoirs for storage of CO2
4. October 2011 industry
- based on the nomination
and NPD’s «storage atlas»
42

43. CCS TECHNOLOGY DEVELOPMENT
- CLIMIT-programme (Gassnova and NFR)
Research
• From 2005
• Government funding
• Whole chain – Capture-Transport-Storage
Development • Fossil fuel, industrial use
• € 22 mill per year  € 40 mill activity
- CO2 Technology Centre Mongstad – TCM
Demonstration
• In operation May / 2012
• Appr. 6 MNOK
Pre-
commercial - CCS from CHP at Mongstad
Commercial -Nomination of areas for storage of CO2

44. CLIMIT - TECHNOLOGY CHALLENGES
Area Capture Transport Storage
Main challenge Cost Assurance
Post-combustion Pipeline Injection
Pre combustion Ship Simulation
Focus areas
Oxyfuel CO2 impurities Monitoring
Disruptive technology Procedures Procedures

45. EXAMPLE
CLIMIT PROJECT: CO2 FIELD LABORATORY
Objective: Controlled surface migration experiments:
• Determine the sensitivity of monitoring systems
• Test & calibrate migration models
• Asses monitoring systems
• Inform public about injection of CO2

46. ADVISE AND INFORMATION
• Expertise in CSS
• Adviser to the Ministry
– We always provide
independent and
professional advice,
based on our
overall expertise
• Knowledge sharing
46

47. IN CONCLUSION
• CCS is required to combat climate change
• CCS can be competitive with technology developments and reduction in
costs
• Regulatory framework and economic incentives are required
47

48. Thank you for your attention
www.gassnova.no

49. Copyright of all published material including photographs, drawings and
images in this document remains vested in Gassnova SF. Accordingly,
neither the whole nor any part of this document shall be reproduced in any
form nor used in any manner without express prior permission and
applicable acknowledgements. No trademark, copyright or other notice
shall be altered or removed from any reproduction.
49