1. THE STATUS OF CCS PROJECTS WORLDWIDE
CLARE PENROSE – GENERAL MANAGER, ASIA PACIFIC
Japan Members Meeting
Tokyo, 19 June 2014

2. The world has significant fossil fuel reserves…
Source: IEA (2013)

3. …We also need to address climate change
 ‘Business as usual’ is incompatible with climate change objectives.
 ‘Business as usual’ leads to a world of rising average global
temperature.
A 4°C world is so different from the current one that it comes with high
uncertainty and new risks that threaten our ability to anticipate and plan
for future adaptation needs.
World Bank Group President Jim Yong Kim, November 2012
 Renewable technologies are not the sole answer to mitigating the
rise in global temperature:
o decarbonising power without CCS would cost 40% more than
with CCS
o in many industrial processes, accounting for over 20% of CO2
emissions, there is no alternative to CCS.

4. The Global Status of CCS
4
The Global Status of CCS: 2013
 The Institute monitors Large Scale Integrated CCS
projects being deployed around the world as a method of
tracking progress in CCS development
 Report released annually
The Global Status of CCS: February 2014
 Provides overview of significant international CCS
project, policy and regulatory developments since
release of 2013 report

5. Large-scale CCS projects by project lifecycle and year
21 projects in operation or under construction – 50% increase since 2011

6. CO2 capture capacity by actual or expected year of
operation
CCS is a reality with 40 Mtpa of CO2 that can be captured by active
projects

7. Where large-scale CCS projects are being deployed
North America continues to dominate the projects landscape; China
increasing in importance; project progress has stalled in Europe

8. There is a shift in sectors that are deploying CCS
Air Products
Century Plant
Coffeyville
Enid Fertilizer
Great Plains
Lost Cabin
Lula
Shute Creek
Sleipner
In Salah*
Snøhvit
Val Verde
ACTL Agrium
Kemper
ACTL Sturgeon
Boundary Dam
ESI
Gorgon
Illinois Industrial
Quest
Uthmaniyah
Don ValleyHECA
Lake Charles
TCEP Medicine Bow
FutureGen 2.0
NRG
PetroChina Jilin
ROAD
Sinopec Qilu
Spectra
Yanchang
Sinopec Shengli
2015
EOR
Dedicated Geological
Pre-2014
Power generation
20172016
Hydrogen
production
Natural gas
processing
Chemical
production
Iron and steel
production
Syngas
Fertiliser
production
Oil refining
2014 2018 2019 2020
= 1Mtpa of CO2 (areas of circle are proportional to capacity)
Coal-to-liquids
White
Rose
CCS projects in the power and industrial sectors and projects utilising
dedicated geologic storage options becoming more important
* Injection suspended
Peterhead

9. Key large scale CCS projects
9
 Boundary Dam, Saskatchewan, Canada: a post-combustion
capture, integrated power station project, due to commence
operation in 2014.
 Kemper County, Mississippi, US: a pre-combustion capture,
IGCC power generation project, due to commence operation in
the second-half of 2014.
 Yanchang Integrated CCS Demonstration, China: Pre-
combustion capture from a coal-chemical plant, for use in an
enhanced oil recovery operation in Shaanxi Province.
 Emirates Steel Industry, Abu Dhabi, UAE: the world’s first iron
and steel project to apply CCS, is scheduled for full-operation by
2016.

10. Key large scale CCS projects
10
 Boundary Dam, Saskatchewan, Canada: a post-combustion
capture, integrated power station project, due to commence
operation in 2014.
 Kemper County, Mississippi, US: a pre-combustion capture,
IGCC power generation project, due to commence operation in
the second-half of 2014.
 Yanchang Integrated CCS Demonstration, China: Pre-
combustion capture from a coal-chemical plant, for use in an
enhanced oil recovery operation in Shaanxi Province.
 Emirates Steel Industry, Abu Dhabi, UAE: the world’s first iron
and steel project to apply CCS, is scheduled for full-operation by
2016.

11. Business case for CCS
TECHNOLOGY
 Confidence that the technology will work
 Operational projects in power critical to positive perception
of CCS and to gain experience.
UNDERSTANDING
AND ACCEPTANCE
 Awareness and
understanding of CCS
is low, perception of it
as ‘experimental’
 Operational projects
are key to turn this
around.
POLICY AND
MARKETS
 Importance of CCS
consistently
acknowledged in global
climate discussions, but
 CCS is not treated
equivalently to other low-
carbon technologies.
Business
case for
CCS
Collaboration and aligning three pillars of the business case for CCS

12. Technology
ASSESSMENT
 Individual components are well understood.
 Many aspects are already technically mature.
 Safe storage demonstrated by projects for over a decade.
 Pilot and larger scale test facilities are important contributors to knowledge.
 Confidence that the remaining technical challenges can be met over time.
OPPORTUNITIES
 Integrated operation at large scale in power and industrial processes is key:
o initial CCS demonstrations in power plants – starting in 2014 in Americas
o positive perception of CCS as a ‘proven’ technology, building public
confidence through large-scale projects in new applications
o learning by doing cost savings
o more early mover projects will confirm effectiveness, establish best
practices.
 R&D (collaboration) to advance technologies is a ‘game changer’.
 The ‘rocks’ are also important – identification of viable storage sites.
12

13. Policy and markets
13
ASSESSMENT
 International policy discussions consistently acknowledge importance of CCS
but…
 Industry highlights that national climate and energy policies do not provide long
term clarity to support widespread adoption of CCS projects.
 CCS is often not treated equivalently to other low carbon technologies.
 National regulations have advanced but critical uncertainties remain:
o in the US, for example, impact of recent EPA proposals
o more broadly, addressing long-term liability issues
 Existing CCS funding programs for large-scale projects mostly exhausted.
OPPORTUNITIES
 Re-invigorated policy incentives ( and regulation) to maintain momentum.
 Continued development of low-carbon future roadmaps for CCS.
 Post Kyoto 2020 agreement for decision in 2015.
 Capacity development scope is significant – all can learn from what has worked,
building capacity in developing countries is critical for longer-term deployment.

14. Significant global policy and regulatory developments
• US EPA releases proposals
dealing with power plant CO2
emissions and geologic carbon
storage
United States
• Alberta Government releases
final draft of the Regulatory
Framework Assessment report
Canada
• COP 19 held in Warsaw
• Focus on universal post-2020 climate
agreement in Paris, in 2015
Global
• UK Energy Act receives Royal
Assent and becomes law
United Kingdom
• EC proposes climate targets out to 2030
• European Parliament supports MEP
Chris Davies’ report on CCS in Europe
Continental Europe

15. Understanding and acceptance
15
ASSESSMENT
 Stakeholder relationship management accepted as critical to project delivery.
 Global awareness and understanding of CCS context is low.
 Focus of CCS communication is on risks and challenges not value and benefits.
 Perception of CCS as experimental, not cost competitive and associated with
fossil fuel instead of role in low-carbon energy.
 Building a trusting relationship with key stakeholders is critical for projects.
OPPORTUNITIES
 Successful global large-scale integrated projects is critical to establish public and
political confidence in CCS.
 CCS projects are demonstrating improved sharing and use of best practice.
 Encourage public advocacy of CCS from trusted groups – academics and NGOs.
 Improve access to education materials and experts.

16. Public engagement and understanding

17. Public engagement and understanding

18. New Institute initiatives to strengthen public
understanding
 An easy-to-access knowledge repository.
 Brings together information and publications from the Institute and organisations
active in CCS, energy and climate.
 http://decarboni.se
 Aimed at the general public, explaining CCS in a simple and engaging way.
 Addresses challenge of limiting CO2 emissions while keeping global average
temperature increase to within two degrees Celsius.
 Will house educational resources for students and educators.
 http://co2degrees.com