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An Analysis of the Current State of the UK CCS Policy
By Karthikeyan Arunachalam
MSc OGEM University of Aberdeen
An Analysis of the Current State of the UK CCS Policy
By Karthikeyan Arunachalam
MSc OGEM University of Aberdeen
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.