1.9 So, where do we stand?

There is potential that the ambitious G8 objective can be achieved. There are 62 fully integrated, commercial scale CCS projects identified in this study. Of these, seven are already operating and 55 are at various stages of progress.

A vast majority of the advanced projects are a result of efforts within the power sector, particularly by the USA, European, Canadian and Australian industry participants. Projects in large emitting regions, India and China and within the steel, cement and fertiliser sectors have yet to reach a critical mass that would indicate long-term investment.

However, nations such as China and some countries in the Middle East can accelerate rapid development of industrial scale projects if provided the correct incentives. This study found that the cost of CCS for power generation in China, for example, could be 30 percent less than other regions of the world.

However, given the failure rates associated with new technology dependent markets that apply to CCS there is a significant need to rapidly advance more integrated, commercial scale CCS projects or risk achieving the G8 objective.

Many of the technological options of the CCS process are, by and large, commercially available today. Costs of CCS will only decrease by further optimising designs based on real world information sourced from operating CCS facilities.

The technologies are available, industry is ready, and with strong government leadership the ambitious G8 objective can be achieved

All phases of CCS R&D require further funding by government and industry. While R&D is not on the critical path to meet the first part of the G8 objective, funding of R&D is needed to move technologies beyond the bench testing phase through to pilot and commercial phases.

Given storage underpins all integrated CCS projects, funding activities associated with the identification and verification of storage sites is alarmingly low given its key role in the solution. To avoid CCS becoming a theoretical solution it is essential funding is increased to targeted storage programs. This could be achieved in partnership with the 55 project proponents identified in the study.

The policies and legislation to overcome CCS are well known by many governments. Fundamental to this is the assignment of a value to carbon, resolving long-term storage liabilities and underwriting critical infrastructure. As the EU ETS experience has shown however, the assignment of a CO2 value in itself is insufficient to catalyse the development of CCS projects.

Governments must show leadership by directly funding early mover projects. Of the existing programs in place, it appears that the funding available will be insufficient to invest in the number of CCS projects required to meet the G8 objective.