Presentation from Professor Trevor Drage on behalf of the UKCCSRC at the National CCS Week conference in Sydney, Australia on 1 September 2014. http://www.nationalccsweek.com.au/

1. MAKING CCS HAPPEN: UK EXPERIENCE AND DEVELOPMENTS
Trev Drage and Jon Gibbins
Trevor.Drage@nottingham.ac.uk

2. About UKCCSRC
The UK Carbon Capture and Storage Research Centre (UKCCSRC) leads and coordinates a programme of underpinning research on all aspects of carbon capture and storage (CCS) in support of basic science and UK government efforts on energy and climate change.
The Centre brings together over 200 of the UK’s world-class CCS academics and provides a national focal point for CCS research and development.
http://www.ukccsrc.ac.uk

3. The UK Low Carbon Transition
Climate Change Act 2008: legally binding target to reduce GHG emissions by 80% below base year levels (1990) by 2050
The power sector should largely be decarbonised by 2030
20% of generating capacity to close by 2020
Maintain Affordability
Tackle Climate Change
Ensure Security of Supply
Source: Next steps on Electricity Market Reform – securing the benefits of low-carbon investment
Committee on Climate Change I May 2013 www.theccc.org.uk/wp- content/.../2013/05/1720_EMR_report_web.pdf

4. Why CCS in the UK?
10 to 20 GW installed capacity has potential to create 15 - 30,000 jobs and add £2-4bn (GVA) to economy per year by 2030 (CCSA)
Unique potential to decarbonise energy intensive industry
BioCCS potential negative emissions
Sources:
ETI-Ecofin (2012) Carbon capture and storage Mobilising priivate sector finance for CCS in the UK http://eti.co.uk/downloads/literature/Ecofin_CCS_Report.pdf
CCSA / TUC 2014 The Economic Benefits of CCS in the UK http://www.ccsassociation.org/press-centre/reports-and-publications/
£30bn – £40bn per year if CCS not included to meet UK emissions targets (ETI 2012)

5. Scale of UK CCS deployment
Climate Change Committee scenarios to 2030
Greater uncertainty in predicting when technologies becomes cost effective
Urgent need to develop and commercialise emerging technologies like CCS
Energy mix driven by Electricity Market Reform
Source: Next steps on Electricity Market Reform – securing the benefits of low- carbon investment
Committee on Climate Change I May 2013 www.theccc.org.uk/wp- content/.../2013/05/1720_EMR_report_web.pdf

6. “Commercialising CCS in a decade”
Modified from: Figure 3-1 from APGTF Technology Strategy (2014), www.apgtf-uk.com
CCS competes fairly with other low carbon techs
Phase 1
Phase 2
Phase 3
Government intervention

7. DF-1 Peterhead 2006 - 2007
FEED completed 2007 technologically possible and promising technology
Ultimately failed, timing in relation to Miller Field and first CCS competition not right
Important lessons, government, technology suppliers and operators need to work together if CCS is to be commercial
Source: Peterhead Power Station Case Study http://ieahia.org/pdfs/PeterheadCase_Study1_2.pdf

8. First Competition for UK CCS Demonstration 2007 - 2011
Full chain demonstration on commercial scale power station (>300 MW)
Post-combustion on coal
Capture + store 90% of CO2
Operational by 2014
Based on sound engineering design underpinned by a full front-end engineering design (FEED)
Contribute to longer term potential for CCS in UK (e.g. infrastructure) and international development
£1bn commitment for CCS announced
DECC Established 3 October 2008
Global financial crisis
Source: Carbon capture and storage: lessons from the competition for the first UK demonstration http://www.nao.org.uk/publications/1012/carbon_capture_and_storage.aspx

9. Kingsnorth CCS 2007 - 2010
Existing 2000 MW to close by 2013 Two new 800 MW supercritical units 300 – 400 MW post-combustion amine solvent CCS from day 1 Remaining plant ‘capture ready’ Kick start a Thames CCS Cluster
“Having postponed Kingsnorth
last year, it has become clear that the economic conditions are still not right for
us to progress the project and so, simply put, we have no power station on which to build a CCS demonstration….”
Dr Paul Golby, Chief Executive E.ON UK (20th October 2010)

10. Longannet 2007 - 2011
“despite everyone working extremely hard, we've not been able to reach a satisfactory deal for a project at Longannet at this time, so we've taken the decision to pursue alternative projects.
A billion pounds is enough to demonstrate this vital new technology in the UK, but it's got to be spent in the most effective way.”
Chris Huhne, Energy Secretary, 19th October 2011.
Retrofit to existing 600 MWe subcritical coal unit Capture 90% of CO2 from 50% of unit flue gas Required SOx and NOx abatement retrofit Utilised new and existing pipelines to transport CO2 to Goldeneye platform and reservoir (approx 350km)
Sources:
Longannet FEED http://webarchive.nationalarchives.gov.uk/20121217150422/http://decc.gov.uk/en/content/cms/emissions/ccs/ukccscomm_prog/feed/scottish_power/abstract/abstract.aspx
Carbon capture and storage: lessons from the competition for the first UK demonstration http://www.nao.org.uk/publications/1012/carbon_capture_and_storage.aspx

11. First CCS Competition Lessons Learnt
Key Findings:
Initially insufficient resource and experience to deliver such a project
High risk undertaking. Evolving background of economic, policy and regulatory uncertainty
Failure to engage with commercial risks
Established finance for project 3 years after launch
Narrow project specifications limited bidders and options
Positives
Valuable learning experience for future competitions, findings shared with industry
Technical development and knowledge sharing from FEED – e.g. ROAD / Maasvlakte
Source: CCS: lessons from the competition first UK demonstration http://www.nao.org.uk/publications/1012/carbon_capture_and_storage.aspx
Source: FEED documents for both Kingsnorth and Longannet avaialable at:
https://www.gov.uk/uk-carbon-capture-and-storage-government-funding-and-support
“This competition was launched in 2007 with insufficient planning and recognition of the commercial risks and cancelled four years later. With commercial scale carbon capture and storage technology still to be developed, DECC must learn from the failure of this project”

12. CCS Roadmap and £1bn Commercialisation Programme
Source: DECC CCS Roadmap. Supporting deployment of Carbon Capture and Storage in the UK, April 2012

13. Initial Bids Received
3 July 2012
Launch
BIP
Preferred Bids
FEED Signature
FID
First Operation
Construction and commissioning
2016 - 2020
4 bids shortlisted
- Captain Clean Energy
- Teeside Low carbon Project
- White Rose
- Peterhead
30 October 2012
Competition Launched 3 April 2012
Preferred bids announced
White Rose 304MW oxyfuel
Peterhead 340MW retrofit gas
20 May 2013
Commercial Negotiations
2015
2020
Revised Bids Received
14 January 2012
White Rose FEED signed
December 2013
Peterhead FEED signed
February 2014
FEED Development
White Rose awarded €300 NER300 funding
08 July 2014
CCS Commercialisation Progress on Phase 1
UK General Election
07 May 2015

14. White Rose CCS Project
Sources: www.whiteroseccs.co.uk/ http://www.ccshumber.co.uk/
426MWe oxyfuel combustion with potential to co-fire biomass
90% capture, 2MT CO2 annually
75km onshore pipeline potential to transport 10MT CO2 annually
Deep saline aquifer store in South North Sea
Approx. £2 billion investment, €300 million NER300 funding awarded

15. Peterhead CCS Project
Retrofit post combustion CCS to 340MWe combined cycle gas turbine power station 90% capture using amine solvents, 1MT CO2 annually 100km of new and existing offshore pipeline Storage in the depleted Goldeneye gas reservoir, 2.5km beneath the North Sea
Source: http://www.shell.co.uk/gbr/environment-society/environment-tpkg/peterhead-ccs-project.html

16. Government Support and Intervention Phase 1
Risk Sharing During Construction and Operation
•FOAK projects inherent degree of uncertainty
•CCS Specific risks during design, build, operation and decommissioning
•Government sharing of limited number of CCS specific risks
Contract for Difference
•Strike price defined over the lifetime of the project
•Mechanisms to support CCS developers to overcome risk and uncertainty from FEED
•Mechanism under negotiation
Front End Engineering Design Costs
•Reduce engineering risk (design, cost, performance)
•Commercial and financial risk reduction
•Greater confidence in making FID
•£100m (75% of cost)
Support for Construction Costs
•Remainder of £1bn capital funding
•Projects need to raise balance of capital investment
Regulation – Triple lock
•National Policy Statement for Energy – No new coal without CCS <300MW
•Carbon Floor Price
•Emissions Performance Standard (EPS) 450g CO2/KWh limit on carbon emissions
Source: Planning our electric future: a white paper for secure, affordable and low-carbon energy https://www.gov.uk/government/uploads/.../2176-emr-white-paper.pdf
Next Steps in CCS: Policy Scoping Document https://www.gov.uk/government/publications/ccs-policy-scoping-document
How a ‘Strike Price’ works
Illustrative Carbon Floor Price

17. Commercialising CCS Next Steps

18. Getting to Phase 3 Government Intervention
Source: Next Steps in CCS: Policy Scoping Document https://www.gov.uk/government/publications/ccs-policy-scoping-document

19. Getting to Phase 3 Cost Reduction
“UK gas and coal power stations equipped with CCS have clear potential to be cost competitive with other forms of low carbon power generation ”
https://www.gov.uk/government/policy-advisory-groups/ccs-cost-reduction-task-force

20. £125 million CCS Research
4-year (2011-2015) CCS research, development and innovation programme. £62million to support fundamental research and understanding
•
£13 million UK CCS Research Centre
•
UK Storage Atlas covering nearly 600 offshore £28million to support the development and demonstration of CCS components and next generation technologies
•
world class UK CCS Research Centre’s “PACT” facilities
•
new CO2 metering and monitoring technology £35million for pilot scale projects to bridge the gap between research and commercial scale deployment
•
Ferrybridge Carbon Capture pilot project, a 100 tonnes CO2 a day, amine post-combustion
•
saline aquifer characterisation, in Southern North Sea
•
testing innovative MMV technology.
Sources: Rapid https://ukccsrc.ac.uk/research/research-and-pathways-impact-delivery-rapid APGTF http://www.apgtf- ukcom/files/documents/APGT%20StrategyReport2013webpdf

21. https://www.gov.uk/government/publications/cross-government-carbon-capture-and-storage-r-d-programme-2011-2015-list-of-projects
https://ukccsrc.ac.uk/resources/ccs-projects-directory

22. Last but not least….. Knowledge Transfer
Key philosophy underpinning the CCS commercialisation programme – to share information to de-risk CCS
•
Programme and risk management
•
Commerce and finance
•
Technical design and integration
•
Operation and maintenance philosophy
•
Supply Chain
•
Compliance with regulation
Full Chain CCS creates a complex technical, financial, policy and regulation challenge

23. THANK YOU
@UKCCSRC
UKCCSRC group
UKCCSRC
www.ukccsrc.ac.uk