UKCCSC Winter School 2012,

University of Cambridge

10th January 2012

CCS status in the UK – DECC perspective

Mervyn Wright, Industry & Technical AdviserOffice of Carbon Capture and StorageDepartment of Energy & Climate Change

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• UK context for CCS

• What’s been done so far

– First Demonstration Competition

– Other enablers

• Next steps

Content

UK energy challenges

3

0

100

200

300

400

500

600

700

800

900

1,000

TW

h / y

ea

r

Scenario for electricity generation capacity to 2050 Electricity

imports / exports

Non-thermal renewable generation

Nuclear power

Combustion + CCS

Conventional thermal plant

Domestic demand

Around a quarter of our plant will

close by 2020

Electricity demand could double by 2050

Up to £110bn investment in new generation and transmission to 2020 likely to

be required – over double the investment that has come forward in the last

decade.

Need to decarbonise – 80% reduction by 2050

UK distinctive advantage

for CCS

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CCS Demonstration

Competition 1

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2007 2011

• Front End Engineering and Design is an intermediate step in defining scope

and reducing uncertainty ahead of major financial commitment

• The typical scope of an integrated chain FEED programme for CCS is

– Capture plant design; Transport (pipeline) routing/ design/ easements;

Storage development plan and Power station integration plan

– Project execution plan (including scope, programme, cost, procurement

strategy, risk management and organisation)

– Commissioning and start up plan, Operations philosophies and Design

HSE case

– Regulatory compliance and permitting plan and Consent/ permit

applications

– Knowledge Transfer plan and Stakeholder engagement plan

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What is FEED?

E.ON

Kingsnorth to Hewett project

Hewett

Dawn

Big Dotty

DierdreDeborah

Delilah

Della

Little Dotty

Pr

op

os

ed

Lo

ca

tio

n

48

/3

0-

W

3kms

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ScottishPower Consortium

Longannet to Goldeneye project

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Full chain FEEDs for

2 contrasting projects

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• CCS specific areas of technical focus beyond FEED ‘business as usual’

– CO2 safety considerations

– CO2 fluid phase behaviour

– Introduction of new regulations for CO2

– CO2 corrosion

– Reversal of normal flow

• The FEED studies generated

– Improved cost and risk understanding to inform decisions

– Insights into commercial and technical integration of complex supply chain

– Regulatory progress enabled by real projects

– Experience from engagement with local stakeholders

– Learning to improve future CCS delivery programme procurement

• CCS specific knowledge is publicly available

Benefits from FEED stage

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http://www.decc.gov.uk/en/content/cms/emissions/ccs/demo_prog/feed/feed.aspx

• 2 reports on website in October ‘11

• >2,400 visits in first week

• 6 continents (not Antarctica!)

• 30% outside UK

~60% Other Europe

~20% North America

~10% Australasia

• 2 day technical workshop in December ‘11

>200 attendees

CCS knowledge dissemination

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• Up to £1billion capital support for the future CCS programme

• Submitted NER 300 bids to European Commission

• Opened up the process for future projects to include gas

• Wider reforms introduced to underpin deployment of CCS:

– Implementation of EU CCS Directive

– Electricity Market Reform

– Energy Act 2011 CCS reforms to make re-use of existing

capital assets more straightforward

– Carbon Price Floor

– Emissions Performance Standard

Other progress in past year

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Delivering a specific outcome…

“As a result of the intervention, private sector electricity companies

can take investment decisions to build CCS equipped fossil fuel power

stations, in the early 2020s, without Government capital subsidy, at an

agreed CfD strike price that is competitive with the strike prices for

other low carbon generation technologies”

by…

• CCS Roadmap (to be published Q1 2012)

• Reducing costs:

– The CCS Delivery Programme

– £125m CCS small scale R&D Programme

– CCS Cost-reduction taskforce group

• Establishing a regulatory framework

• Sharing knowledge and working with international partners

Purpose of the Government

CCS programme

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Projects:

– Plan to support portfolio of commercial-scale projects

Scope:

– Point to point full chain demonstrators, and possibly also…

– Part chain (if prospect of full chain in future)/ Clusters/ Industrial emitters

Funding:

– £1bn to contribute to capital cost;

– Contract for difference to recoup investment and operational costs

Timing:

– Industry Day in Feb 2012

– Operational 2016-2020

Delivery Programme overview

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OCCS organisation

Adam Dawson

(Chief Executive)

Mark Pedlingham

(Strategic Delivery Director)

Jonathan Holyoak

(Head of CCS Policy)

Patrick Dixon

(Expert Chair)

• Strategy

• Outreach and Collaboration

• R&D and Innovation

• Supply chain/ skills

• Infrastructure

• Delivery programme

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