5.3 Demonstration projects provide drivers for CCS in developing countries

The developing countries that are most advanced along the CCS lifecycle are countries that are developing or have already implemented a CCS pilot or demonstration project. Pilot and demonstration projects are a key part of ‘learning by doing’. These projects provide a catalyst or focus for associated activities such as capacity development, enabling, and pre-investment.

Demonstration projects and their learning by doing underscore the importance, at least in the short term, of funding for enabling and pre-investment activities in developing countries. In the medium term, more significant funding is needed for the ‘extra’ CCS costs associated with construction and operation of at least 5–10 demonstration projects in these countries.

As discussed above, a key catalyst underpinning interest in CCS in a number of developing countries is the link with enhanced oil recovery and/or gas processing. Given that EOR can help make CCS projects commercially viable, developing countries with EOR potential are well placed to take further CCS steps in the future (e.g. Indonesia, Malaysia, the Middle East, and countries in North Africa).

GLOBAL CCS INSTITUTE’S APPROACH TO CAPACITY DEVELOPMENT

The Global CCS Institute defines capacity development as a country’s ability to build awareness, understanding, knowledge, and ultimately the skills required to progress CCS. It may be appropriate to build knowledge and understanding across a variety of stakeholder groups, including policy makers, regulators, industry, and not-for-profit organisations. All these groups are vital in making CCS a viable low-carbon energy solution. CCS capacity can be built around a number of different topics, for example;

  • government understanding of legal and policy issues and how this applies to legislation and regulation development and application;
  • technical knowledge and skills in engineers, geologists, and project managers;
  • understanding financial and commercial issues, risks, and incentives by policy makers, lenders, and companies; and
  • the ability of companies and governments to effectively and genuinely engage with the public and local stakeholders around a specific CCS project.

The Global CCS Institute facilitates capacity development by:

  1. helping countries develop and implement tailored capacity-development programs; and
  2. supporting important capacity development activities delivered through other key organisations.

It has identified an approach to helping countries develop and implement tailored capacity development programs, outlined in Figure 48 below. This approach is adapted and modified as needed, depending on the country’s situation.

FIGURE 48 Global CCS Institute approach to capacity development

The Global CCS Institute has also provided funding to (and works with) other key CCS capacity development organisations, such as the ADB, the Cooperative Research Centre for GHG Technologies (CO2CRC), the CSLF, the IEA, and the World Bank. Many of the capacity development activities identified in Appendix G have been supported through these organisations and the Global CCS Institute.