9.1 Challenges to Project Development

During the early stages of CCS project development, storage site characterisation is relatively intensive and typically presents a key constraint to the project. There is a risk associated with commencing the EPC phase for the Capture and Transport components prior to the validation and final investment decision (FID) of the storage site, requiring careful consideration and risk mitigation.

Any EPC contracts entered into prior to the storage being finalised need to be entered into under specific limiting conditions, in order to minimise the expenditure on the Capture and Transport. An example of such a limitation could be the commencement of procurement and construction being conditional on the certification of the storage site.

By using such measures, the expenditure will only be limited to the Detailed Engineering for Capture and Transport, without engaging in major equipment purchasing.

In the event that the Storage Appraisal extends for a longer period than initially planned, this can have a significant impact on the scheduled start-up for the entire project.

Another potential source of delay for the Getica CCS Demo Project is the availability of funding. As stated in Section 8, the strategy is to maximise funding from grants. In so doing, the project is exposed to external factors outside the project’s control. Any delays in the timing of the funding will have a negative impact on the project.