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An Analysis of the Current State of the UK CCS Policy
By Karthikeyan Arunachalam
MSc OGEM University of Aberdeen
k.arunachalam.13@aberdeen.ac.uk
An Analysis of the Current State of the UK CCS Policy
By Karthikeyan Arunachalam
MSc OGEM University of Aberdeen
k.arunachalam.13@aberdeen.ac.uk
Rough EsHmates: 500 MW Power Plant operaHng over 40 years
£ 2.5 – 3.5 Billion
£ 300 MM
£ 300 MM – 1 Billion
Project name Project lifecycle stage
Expected opera@on
date Facility details Capture type
Volume of CO2
captured (MTPA)
Transport distance to storage site
(km)
Peterhead Gas CCS Project Define 2019 385 MW
Gas Plant Post-‐
combusHon 1 100
Captain Clean Energy Project Evaluate 2021 570 MW
IGCC Pre-‐
combusHon 3.8 358
Teeside Low Carbon Evaluate 2020 Industrial
Complex Post-‐
combusHon 2-‐3 225
White Rose CCS Project Define 2020 450 MW
Coal Oxy-‐fuel 2 165
Don Valley Power Project Define 2019 900 MW
IGCC Pre-‐
combusHon 4-‐5 175
C.GEN North Killingholme Power Project
Evaluate 2019 450 MW IGCC
Pre-‐combusHon 2.5 Under
evaluaHon
CCS Projects Planned for the UK
CommercializaHon CompeHHon
R&D and InnovaHon
IntervenHon to address key barriers
Electricity Market Reform
InternaHonal CollaboraHon
The UK CCS Program
£ 1 Billion Government funding
Breakdown
Peterhead £450MM
Feed Study £100MM
White Rose £450MM
£ 125 MM Research Program
Breakdown
Fundamental Research £40MM
Componenet Research £30MM
Pilot Scale TesHng £55MM
Implement
A Regulatory Framework Develop
A Storage Strategy Address
The Skills shortage Develop
Infrastructure
USA
Norway
Canada
India
IEA
GCCS
SCCS
EPS – 450 g CO2 / kWh
Electricity Act 1989 Amendment
Contract for Difference
Capacity Market
Contract for Difference
The UK Government
Owner -‐ CfD Counterparty
CCS Operators
Shell, Capture Power, etc.
CfD Counterparty
Low Carbon Contracts
Cost sharing + Risk sharing + CfD
Cost sharing* + CfD
CfD
The Future of CCS
* The Government will evaluate the need for further policy assistance and make a decision at a later period.
• More support for Projects 3,4,5,6
• First wave of deployment: 2020
• Beger financial instruments
• Break the vicious circle
• Set EPS < 300 g / kWh
• Overt Support
• Long-‐term liability
• Public Awareness
• Hybrid Carbon Pricing
• CO2 Markets
EffecHveness
Efficiency
EvaluaHon of Policy
Instruments
Equity
RecommendaHons based on Study
References
ArHcles hgp://www.pennenergy.com/arHcles/pennenergy/2014/08/peterhead-‐opens-‐doors-‐for-‐carbon-‐capture-‐and-‐storage-‐tours.html
hgp://www.out-‐law.com/arHcles/2013/june/government-‐publishes-‐first-‐strike-‐prices-‐for-‐future-‐renewable-‐energy-‐projects/
hgp://www.hazardexonthenet.net/arHcle/79217/Drax-‐CCS-‐Project-‐secures-‐award-‐from-‐European-‐NER300-‐programme.aspx
hgp://www.bbc.co.uk/news/uk-‐scotland-‐north-‐east-‐orkney-‐shetland-‐15371258
hgp://renews.biz/71940/uk-‐seeks-‐input-‐on-‐ccs-‐roadmap/
hgp://news.bbc.co.uk/1/hi/scotland/north_east/6685345.stm
Pictures hgps://books.google.com/ngrams/graph?content=Carbon+Capture+and+Storage&year_start=1990&year_end=2008&corpus=0&smoothing=3&share=&direct_url=t1%3B%2CCarbon%20Capture%20and%20Storage%3B%2Cc0
BENNACEUR, K., 2014. Chapter 26 -‐ CO2 Capture and SequestraHon. In: T.M. LETCHER, ed, Future Energy (Second Edi1on). Boston: Elsevier, pp. 583-‐611.
hgp://cdn.globalccsinsHtute.com/sites/default/files/publicaHons/120011/ccs-‐policy-‐indicator-‐brief.pdf
hgp://forex-‐opHons-‐binaires.fr/wp-‐content/uploads/2014/07/contract-‐for-‐difference.jpg
CCS COST REDUCTION TASK FORCE, 2013. Final Report. UK: DECC.
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