Carbon Capture and Storage

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faculty of law groningen centre of energy law

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Z Carbon Capture and Storage-

ship transport of CO2

Rieks BoekholtGroningen Centre of Energy Law

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NUMBY

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Why offshore CCS?› NUMBY = Not Under My Back Yard› LULU = Locally Unwanted Land Use› CAVE = Citizens Against Virtually Everything

Result:› In the Netherlands there is a moratorium on onshore

storage of CO2

› Some German Bundesländer excluded the option of onshore storage in their territory

Alternative option: offshore storage under the seabed

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Pipeline transport versus ship transport

› CCS Directive primarily deals with storage issues› Limited provisions on pipeline transport; none on shipping

› Ship transport has become more relevant in recent years Provides more flexibility Lower investment costs More economical for larger distances

› Ship transport of CO2 already takes place on a small scale

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Going from this size …Average volume: 1250 m3

Purpose: use in food and beverage industry

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… to this size of shipAverage volume: 15,000 m3

Purpose: transport to permanent storage site

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Law of the Sea

› United Nations Convention on Law of the Sea (UNCLOS 1982)› Objectives: establishment of a legal order for the seas and

oceans, and protection of the marine environment› Regulates which party may undertake specific activities in the

different maritime zones› Mare Liberum: Right of innocent passage and freedom of

navigation remain NB: innocent passage may not be impaired by the coastal

State merely on the basis of the cargo of the ship

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Safety issues› The International Maritime Organization (IMO) is the

primary regulatory body dealing with safety of shipping

› IMO legislation includes: International Convention for the Safety of Life at Sea

(SOLAS Convention 1974) IGC Code on Ships Carrying Liquefied Gases in Bulk

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› Use of the IGC Code is mandatory for Parties to the SOLAS Convention

› Objective: to provide an international standard for the safe carriage by sea in bulk of

liquefied gases and certain other substances (…), by prescribing the design and construction standards of ships (…) and the equipment (…) so as to minimize the risk to the ship, to its crew and to the environment, having regard to the nature of the products involved.

› Original text does not envisage CO2 transportation› 2006 Resolution of the IMO Maritime Safety Commission

adds CO2 to list of substances covered

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IGC Code

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IGC Code (cont’d)› IGC Code provides framework on safety› Differentiates between different hazard groups:

Type 1G ships Very hazardous substances, requiring maximum preventive measures- e.g. chlorine

Type 2G ships Hazardous substances, requiring significant preventive measures- e.g. methane (LNG) and butane-propane mixtures (LPG)

Type 3G ships Less hazardous substances, requiring moderate preventive measures- e.g. nitrogen and carbon dioxide

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› Tanker industry has history of “regulation by disaster”

› Shipping of oil is extensively regulated, e.g. through:- International Convention on Civil Liability for Oil Pollution Damage (1965)- International Convention on the Establishment of an International Fund for

Compensation for Oil Pollution Damage (1971)

› Same goes for shipping of nuclear material:- Convention on Third Party Liability in the Field of Nuclear Energy (Paris

Convention 1960)- Convention Relating to Civil Liability in the Field of Maritime Carriage of

Nuclear Material (Maritime Liability Convention 1975)

› How about shipping of CO2? Is extensive regulation of liability necessary or desirable?

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Liability Issues

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Pollution issues› Protocol relating to Intervention on the High Seas in Cases of

Pollution by Substances other than Oil (1973) Applies to ships carrying CO2 through the IGC Code

“Parties may take such measures on the high seas as may be necessary to prevent, mitigate or eliminate grave and imminent danger to their coastline or related interests from pollution or threat of pollution following upon a maritime casualty or acts related to such a casualty, which may reasonably be expected to result in major harmful consequences.”

› International Convention for the Prevention of Pollution From Ships (Marpol 73/78)

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Some outstanding issues› London Protocol on the Prevention of Marine Pollution by

Dumping of Wastes and Other Matter: legal barrier to transboundary transport of CO2 still remains due to

lack of ratifications of the amendment› Shipping as an activity under the Emissions Trading Scheme

Revised ETS Directive lists transport of CO2 by pipeline as an activity requiring an ETS permit, but not transport by ship

What is then the consequence of a CO2-leakage from a ship?

› Third Party Access: shipping of CO2 as an “essential facility”?

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Thank you for your attention

Documents

Carbon Capture and Storage