1.10 Study recommendations

Key recommendations – Projects

  • Engage with national governments to facilitate the development of national strategies to assist in reducing the emissions intensity of industry such as fossil-fuelled power generation through the application of CCS. This process could also assist in identifying potential CCS projects to include in the projects development pipeline.
  • Engage with the G20 to expand the G8 objective to become the “G20 objective”.
  • Engage with relevant government agencies and/or donor agencies to identify other commercial scale, integrated projects that may not have been captured as part of the survey. For the projects identified through this process, work with the project proponents and relevant stakeholders to identify any specific challenges and strategies for its resolution.
  • Engage with the proponents of the currently proposed 55 integrated, commercial scale projects to identify specific gaps and challenges to the development of their business case, taking into account their unique characteristics including location, capture technology type and the portfolio of storage options.
  • Engage with the proponents of the 30 “dependent” projects to identify any barriers specific to their progress as an “integrated” project and, working with other relevant stakeholders, facilitate cooperation and collaboration to develop their business case.
  • Monitor the progress of commercial scale projects that are not currently integrated to identify opportunities for integration potentially with other parties.
  • Engage with the relevant governments and project proponents to investigate and facilitate the development of transport and storage networks. An example of this would be engagement with the EU and UK to develop a network for the North Sea area given the high number of projects proposing to store CO2 in this vicinity.
  • Engage with project proponents and governments in regions that are currently underrepresented in terms of CCS projects eg India, China and South America to identify and develop a portfolio of CCS projects.
  • Engage with facility owners, industry associations, technology providers and other stakeholders in industries that are currently underrepresented in terms of CCS projects eg, cement, aluminium and iron/steel production to facilitate project development.

Key recommendations – Technology

  • Explore the potential of reducing CO2 capture costs through decreasing the CO2 capture percentage for commercial scale projects.
  • Facilitate targeted R&D efforts with the commercial scale, integrated projects identified in this study.
  • Encourage regulators to provide guidance for CO2 removal specifications to meet regional CO2 management plans.
  • Educate stakeholders on the critical dependence of all CCS projects on the storage component of the CCS chain.
  • Educate governments and funding institutions that the costs of finding and appraising a site for the safe storage of CO2 is likely to be high, and that it must be incurred up-front at the Identify and Evaluate stages.
  • Educate governments and funding institutions that CCS projects will need financial support from governments and in regards to storage, significant expenditures may be incurred, only to find that the safe storage of CO2 at the volumes required for a project is not possible.
  • Engage with OEMs developing capture, process and power plant technologies to encourage pursuit of integrated projects as opposed to capture only projects.
  • Engage with governments and other funding institutions to encourage widespread surveying aimed at identification of potential storage sites across all regions where CCS will need to be demonstrated and eventually deployed.
  • Facilitate small scale injection projects aimed at increasing knowledge of the potential for differing geological formations to provide secure trapping mechanisms for CO2.
  • Working with other key stakeholders, facilitate the installation of MMV to commercial scale EOR operations as a means to build knowledge on safely storing CO2 in geological formations.

Key recommendations – The Economics of CCS

  • Advise and promote awareness amongst funding agencies and other key stakeholders that the costs of CCS will remain high for FOAK plants and that the opportunities to reduce costs are likely to be limited in the period that CCS projects will need to be sanctioned if the G8 timelines are to be achieved.
  • Advise and educate key decision makers that the only way to reduce the cost of CCS is through gaining knowledge and learnings from installing CCS technologies to multiple integrated projects at commercial scale in the near term and with ongoing R&D support to target even more significant cost reductions from improvements to CCS technologies in the longer term.
  • Engage the proponents of the commercial scale, integrated, projects found in this study to identify potential cost saving opportunities through multi-user pipelines and common storage sites.
  • Engage with the proponents of commercial scale, integrated projects found in this study to determine what assistance can be provided to overcome likely storage hurdles.
  • Work with other key funding agencies such as industry groups, national governments and supra-national institutions such as the G20, World Bank and the Asian Development Bank to consider sources of funding to support CCS projects.
  • Communicate to governments that funding from private equity and debt markets are highly unlikely for CCS projects and that because of this, significant public expenditures are highly likely to be required.
  • Advocate for the adoption of a range of portfolio financing options such as fixed feed in tariffs, TECs, tax incentives, accelerated depreciation and production tax credits.

Key recommendations – Policies and Legislation

  • Review and if necessary, advocate amendments to, international agreements which could govern the transboundary movement of CO2, including the definitions of ”waste” under the London Protocol and ”hazardous waste” under the Basel Convention;
  • Facilitate the harmonisation of CCS enabling laws across state and national borders, particularly in the UK and Europe;
  • Advocate the inclusion of CCS as a project type capable of generating carbon credits under the Flexible Mechanisms (CDM and JI) under the Kyoto Protocol (or its most relevant post-2012 manifestation);
  • Advise governments that regulatory frameworks need to accommodate the very long time frames associated with storage to clearly allocate liability for leakage;
  • Advise governments on amendments to existing legislation applicable to the CCS project cycle where time or other circumstances do not permit the development of integrated or dedicated CCS legal schemes;
  • Review planning and environmental laws and how these could be used to compel (or at least make commercially viable) the use of CCS in new or refurbished power plants and other GHG emitting facilities and enterprises; tax or other incentives may be required to address the costs associated with such requirements;
  • Engage with Member States of the EU to assist in the implementation of the CCS Directive as soon as possible;
  • Help develop and promote CCS project-specific ’best-practice’ regulatory principles and model laws (eg, from the EU, USA, Japan and Australia) which can be used by countries wishing to facilitate, attract and promote CCS projects; and
  • Assist domestic legislators by providing examples of law reform initiatives from other jurisdictions which have already enacted CCS specific law to help promote and facilitate CCS projects particularly in developing countries.

Key recommendations – Public Acceptance

  • Develop a pursuit strategy to identify and, working with others, secure the support of critical decision-makers to the development and deployment of CCS as an emerging industry and specifically, of the projects identified in this study.
  • Inform stakeholders through regularly updating the status of CCS projects, policies and legislation, costs and R&D developments using the data and frameworks gathered through this study as a foundation.
  • Actively engage its members to build partnerships to develop and share CCS information.
  • Engage directly with governments at strategic levels to inform and advise them of CCS and its potential as one of the fundamental technological responses to mitigate the risk of climate change.
  • Actively share this and other key CCS information, either individually or in cooperation with other leading agencies such as the CSLF and IEA GHG R&D Program, through a variety of mechanisms including its website, workshops and various industry and government fora.
  • Engage with proponents of the commercial scale, integrated projects identified in this study to assess their public acceptance strategies and any assistance that could be required to minimise public opposition.