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An Analysis of the Current State of the UK CCS Policy By Karthikeyan Arunachalam MSc OGEM University of Aberdeen [email protected]

UK CCS Policy Analysis

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An  Analysis  of  the  Current  State  of  the  UK  CCS  Policy  

By  Karthikeyan  Arunachalam  

MSc  OGEM  University  of  Aberdeen  

[email protected]    

An  Analysis  of  the  Current  State  of  the  UK  CCS  Policy  

By  Karthikeyan  Arunachalam  

MSc  OGEM  University  of  Aberdeen  

[email protected]    

A  Typical  CCS  Chain  

Rough  EsHmates:  500  MW  Power  Plant  operaHng  over  40  years    

£  2.5  –  3.5  Billion  

£  300  MM  

£  300  MM  –  1  Billion  

Rough  EsHmates:  500  MW  Power  Plant  operaHng  over  40  years    

£  3  –  5  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  

2007  

Timeline  –  CCS  in  the  UK  

2012  2007  2005   2010   2010   2011   2013   2014   2015   2016-­‐20  

EvaluaHon  of  Policy  Instruments  –  Global  CCS  InsHtute  

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  

Technology  Learning  Curve  

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.  

Contact:  [email protected]    

Thank  you!  

QuesHon  Session