The document discusses lessons learned from the Rotterdam Opslag en Afvang Demonstratieproject (ROAD) carbon capture and storage project. Some key lessons include: 1) Developing a project with a high level of integration between the capture plant and power plant can lead to efficient solutions; 2) Close cooperation with regulators from an early stage is essential given the complexity of CCS regulation; and 3) Managing stakeholder expectations and developing a clear vision are important given the lack of established regulatory frameworks for CCS technologies.

1. Global CCS Institute Members’ Meeting
Edinburgh, 23 May 2013
Hans Schoenmakers
Rotterdam Opslag en Afvang Demonstratieproject
Lessons Learnt from ROAD

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Co-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)

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Integrated CCS Chain ROAD

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Roundtable
ROAD as Stepping Stone to Northwest European CO2 hub
• ROAD could become stepping stone to integrated CO2 hub in port of
Rotterdam and Northwest Europe
• ROAD is ideal platform to develop CO2 hub aligned with strategic objectives
of port of Rotterdam and combines interest of many national and
international stakeholders

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• Engineering
• Permits
• Stakeholders
• Finance
Lessons Learnt ROAD • High level of integration and simultaneous development of capture plant
and 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 slugging
requires 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

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Key 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

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Maasvlakte CCS Project C.V.
Parallelweg 1
3112 NA Schiedam
www.road2020.nl

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Back Up

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Lessons Learnt: Engineering
• A high level of integration and simultaneous development of capture
plant and power plant can generate highly efficient solutions
• ROAD applied an innovative capture selection methodology enabling
fast decision making, effectively benchmarking suppliers, ensuring
competition and delivering better design
• Independent process model validation using pilot plant perfomance data
is valuable in reducing technical risks with extrapolation of pilot plant
data
• Significant insight from flow assurance study was that during start-up a
two-phase flow will occur in pipeline and well potentially leading to
slugging and requiring an operation and control philosphy

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Lessons Learnt: Permitting and Regulatory
• Close cooperation with authorities and regulators in an early stage of
project is essential due to the complexity of CCS regulation. CCS
legislation is new so process needs to be developed from scratch
• For a CCS project it is important that authorities and regulators are
proactive and take their responsibilities regarding CO2-storage. Issues
should be addressed in a coordinated way, in order to avoid a significant
delay of legislative and regulatory process
• Without an open and flexible regulatory approach it is very unlikely
that CCS demonstration projects will be developed
• Often a specific legal and regulatory framework on capture, transport
and 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 project
vision are a prerequisite in that regard.

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Lessons Learnt: Stakeholder Management
• Importance of integration of stakeholder management function in project
organization
• Local, regional and national governments should be actively involved
throughout all project phases
• Public outreach and pro-active stakeholder management should start at
very early stage of CCS project
• Demonstrating offshore storage creates less public resistance
• Emphasizing local (economic) value propositions of CCS

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Lessons Learnt: Finance
• Dynamic and complex stakeholder environment demands flexible
financial organization
• Commodity risk of low carbon price (funding risk) creates unfavorable
conditions (i.a. uncertainty) for demonstration projects