1 Haszeldine Houston CCS UK activity 5Dec2011 public

CO2 storage assessment work in the UK, the road to business-driven CCS: 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 1 CO2 storage assessment work in the UK, the road to business-driven CCS www.geos.ed.ac.uk/sccs/ Stuart HASZELDINE University of Edinburgh UK & EU drivers Storage assessment Investment and risk UK and EU projects

UK driver: decarbonisation: 

s.haszeldine@ed.ac.uk Aberdeen Geological Society 3 Nov 2011 2 UK driver: decarbonisation 500 g CO2e /kWhr 50 g CO2e /kWhr 0 g CO2e /kWhr Thermal power sector: first target, by 2030  CCS Committee on Climate Change UK This is law - 50% emissions in 2025

Storage Assessment: 

Storage Assessment s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 3 Onshore storage blocked in Germany, Netherlands, (Italy), (Poland) …..

UK offshore storage: 3 types: 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 4 UK offshore storage: 3 types About 90% storage in aquifers 10% in oil and gas fields UK has abundant storage resource EU Directive: CO2 “ permanently ” contained

Improving storage capacity: 

s.haszeldine@ed.ac.uk NPD Storage mapping 24oct 2011 5 Improving storage capacity Storage CO2 tonnage Incorrect if more work = less storage Acquire data… Reduce uncertainty Correct implication of more work = more storage Data shortage = Risk / “ Traditional ” CCS pyramid Move Storage probable to certain

CO2 storage: 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 6 CO2 storage UK 60-70 Gt aquifer storage Oilfields 10Gt UK North Sea: 100yr CO2 Develop aquifers need : 10 yr Gasfields and EOR first Sleipner UK has 35% of EU27 storage

CO2 stored: pressure management: 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 7 CO2 stored: pressure management 1,550 Mt 350 Mt Low: 1 coal CCS 35yr High: 22 gas CCS 35 yr water production x 4 Eric Mackay 2011

Finance & Liability: 

Finance & Liability s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 8

Monitoring and leakage zones: 

Monitoring and leakage zones s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 9 EU rules: retain 100% of CO2 in perpetuity UK trend may be: reliable predictability and take liability EU-ETS limit Storage Directive limit

Aquifer storage offshore: 10 yr ahead: 

s.haszeldine@ed.ac.uk NPD Storage mapping 24oct 2011 10 Aquifer storage offshore: 10 yr ahead Storage costs comparable to powerplant - but in advance single project

Coal 400MW retrofit amines : Longannet : 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 11 Coal 400MW retrofit amines : Longannet DECC Competition : last survivor : end Oct 2011 Expensive £210/MW hr, “ pipes too long ” RISK not taken by Government X

UK project1 2011: costs: 

UK project1 2011: costs s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 12 Longannet coal retrofit 400MW, amine, offshore store • Expensive to fit an existing coal plant, not CCS ready • Potential cost over-run RISK allocated to Developers UK Limit Capture cost 60% total After £40M FEED Initial estimate

Existing and future projects: 

Existing and future projects s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 13

Solution 1: UK Electricity Market Reform: 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 14 Solution 1: UK Electricity Market Reform EMR white paper: • Carbon Price Floor straight line increase support to EU ETS £15.7/tCO 2 (2013)→ £70/tCO 2 (2030) • Feed in Tariffs with Contracts for Difference fixed long term price contract topping up/returning payment to generator with varying electricity price. Contracts tailored to different generation types. Emissions Performance Standard 450gCO 2 /kWh baseload, (gas 350, no CCS) existing intensity or capacity grandfathered, CCS demo projects exempt. Capacity mechanism Provide security of supply (to be determined) UK Committee on Climate Change: 90% cut in CO 2 intensity of power generation by 2030. 500gCO2/kWh → 50gCO2/kWh New gas plant / full CCS tax reward

Solution 2 : CO2 value, EOR: 

s.haszeldine@ed.ac.uk NPD Storage mapping 24oct 2011 15 Solution 2 : CO2 value, EOR CO2-EOR pays for pipes. €2.5 Bn from EU Increased CO2 piped to UK North Sea

Solution 2: CO2-EOR: 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 16 Solution 2: CO2-EOR Depleted gasfield Extra oil, 3 - 7 Bn bbl

EU projects : €1Bn Recovery EEPR: 

EU projects : €1Bn Recovery EEPR Design of 6 initial projects part-supported by EU 1st EU coal retrofit, £1Bn UK government FID 2011 s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 17

EU CCS projects : New Entrant Reserve: 

s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 18 EU CCS projects : New Entrant Reserve EEPR: €1 billion between 6 projects NER300: ~ €5 billion applied for – award 2012 SCCS – interactive project map 7 UK applicants UK CCS funds £1 Billion UK Govt Capture on gas plant Decisions in Q1, Q2 2012 Operating costs 200 + 100 M EU -Allowance Sale Value € 7 - 40 each ?

Coal and Gas AND EOR: 

s.haszeldine@ed.ac.uk Aberdeen Geological Society 3 Nov 2011 19 s.haszeldine@ed.ac.uk 19 Coal and Gas AND EOR Peterhead • Scottish and Southern Peterhead 300MW gas retrofit • 2COEnergy Don Valley EOR Yorks, 800MW pre-com coal • Ayrshire Power Hunterston 1600MW new coal (25% CCS) Hunterston Don Valley,

SUMMARY and Future: 

SUMMARY and Future s.haszeldine@ed.ac.uk International CCS workshop Austin, Tx 2 Dec 2011 20 www.sccs.org.uk Storage is not (yet) the expensive part – but is the biggest technical risk – more work underway Storage survey completed : GIS national maps Produced water as pressure management Upfront costs, risk, liability - Government Project one failed, 6 more in application CO2-EOR : carbon budget, well spacing & sweep