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NORWAY – A LEADING ROLE IN CCS DEVELOPMENT

Anne M. Blaker og Staale Aakenes, Gassnova SF

LOCATION OF CCS PROJECTS IN NORWAY

Google

Existing

Projects

Snøhvit

Sleipner

Mongstad

Kårstø

Few big CO2 emission points Mainland Norway In total 34 emission points > 100,000 t/yr 3 emission points >1,0 million t/yr

10 emission points > 400,000 t/yr

• Oil and energy cluster • R&D based industrial

development • Financial resources • Making fossil fuels sustainable • A driving force vs. the climate

challenge

NORWAY PUNCHING ABOVE IT’S WEIGHT IN CCS

Photo: Scanpix

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THE NORWEGIAN CLIMATE POLICY

• A Climate accord in the Norwegian Storting (parliament) :

• Global target: limit average temperature rise to 2°C above pre-industrial level

• Strengthen Norway’s “Kyoto commitment” from 1% above 1990-level to 9% below 1990 level

• Reduce Norway’s carbon emission footprint with 40% within 2020

• Reduction of >20 MtonCO2

• Norway shall be “carbon neutral” within 2030

• Carbon emission reductions may be domestic/offshore reductions or through purchase of international emission credits

• However – the target is that 50%-65% of the reduction shall be domestically

• Prime Minister Jens Stoltenberg’s New Year Address 2007:

• “Norway will take a pioneer role for development of technologies for CO2 capture and storage within 7 years – demonstrated at the European CO2 Technology Centre Mongstad”

• “This is a large, national project and can be compared to the US Moon Landing project in the 1960’s”

2005 20XX

Technology development

State taking an active part

Commercial market, industry involvement

Regulator

CCS IN NORWAY - STATE INVOLVEMENT

CLIMIT: Research and development program – Support for technology development

Asset management

– CCS demo projects – Ensure that the State utilises the resources in the

best possible manner

Advisor to the authorities

GASSNOVA SF THE NORWEGIAN STATE ENTERPRISE FOR CARBON CAPTURE AND STORAGE

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CCS TECHNOLOGY DEVELOPMENT ACTIVITIES IN NORWAY

Research

Development

Demonstration

Pre-commercial

Commercial

- CLIMIT-programme (Technology development state aid) - Research centres (for Environmentally Friendly Energy)

• BIGCCS Centre (CCS) • SUCCESS (CO2 storage)

- ECCSEL (European CCS Laboratory infrastructure) - CO2 storage field laboratories (Svalbard and Hurum)

- CO2 Technology Centre Mongstad – TCM • In operation May 2012

- CCS from CHP at Mongstad • Under planning/Planned decision 2016 • Technology qualification programme

- Sleipner - 16 yrs of sub sea bed CO2 storage - Industry participation - to develop an ownership and operation model for CO2 transport and storage

Research

Development

Demonstration

Pre-commercial

Commercial

TECHNOLOGY DEVELOPMENT

Research Developm Demo Precom. Fullcom.

Cash Flow [M€]

0

-1

-10

-100

Research CLIMIT/NRC

Development & demo CLIMIT/Gassnova

Early mover projects Gassnova

2012: ~14 M € ~11 M€ ~41 M€

Large investments Long time horizon for commercialisation

Unclear frameworks

CCS TECHNOLOGY DEVELOPMENT: SHORT AND LONG TIME PERSPECTIVES IN THE CLIMIT PROGRAMME STRATEGY

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• Broaden the research and increase the depth to obtain basic insight in the important chemical processes

• Priority to next generation technology and more groundbreaking solutions

• Increased international project cooperation

• Across disciplines

R&D&D PRIORITY AREAS

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CO2 TECHNOLOGY CENTRE MONGSTAD AMBITIONS

• Verify CO2 capture technology owned by vendors

• Reduce cost and risk • Development of market • International deployment

Photo 20 April 2012 75.12% 20% 2.44% 2.44%

CO2 Technology Centre Mongstad • Two technologies

- Aker Clean Carbon - Alstom

• Two flue gas sources • 100 000 tonnes CO2/y

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• 1,2 Mt/y CO2 at full capacity CH • The CCM facility: an open process,

capturing CO2 from exhaust gas • An open process: Need to manage

the additional health and environmental challenges

• A technology qualification programme is on-going

FULL-SCALE CO2 CAPTURE MONGSTAD (CCM) COOPERATION BETWEEN THE NORWEGIAN GOVERNMENT AND STATOIL

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• Amine technologies: – Aker Clean Carbon – Mitsubishi – Powerspan/

Huaneng Clean Research Institute

• Chilled ammonia technology: – Alstom

• Amino acid salt technology: – Siemens

FULL-SCALE CO2 CAPTURE MONGSTAD (CCM) FIVE TECHNOLOGY SUPPLIERS HAVE BEEN SELECTED TO PARTICIPATE IN THE

TECHNOLOGY QUALIFICATION PROGRAMME

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FULL-SCALE CO2 CAPTURE MONGSTAD (CCM)

• Financed by the Norwegian State • Project execution by Statoil • Planning phase:

– Technology qualification programme Mongstad • Post combustion capture technology • TQP amine programme (HSE effects of amine, closing knowledge gap) • Basis for concept selection 2014

• New competition – Open for all qualified technology suppliers – Pre engineering (FEED) 2014 – 2016 – Basis for investment decision 2016 – Planned start up 2020

Photo: StatoilHydro

SLEIPNER: 16 YRS OF SUB SEA BED CO2 STORAGE

CO2 TRANSPORT & STORAGE NORWAY

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• Transport: Pipeline • Geological storage: Offshore – saline aquifers • Process for establishing CO2 Transport & storage:

− Potential storage locations nominated − Announcement of areas − Establish industrial partnerships

(similar to the petroleum industry)

CCS FOR A BETTER CLIMATE

R&D and tech. verification

Acceptance in society

Early CCS Demo

Framework conditions

Reduced cost and risk

International deployment

Functioning market

Source: GlobalCCSInstitute.com

COST FOR ENVIRONMENT FRIENDLY POWER

CLIMATE CURE: TOTAL ABATEMENT COSTS EMISSION REDUCTIONS WITHIN 2020

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CLIMATE CURE: ABATEMENT WITHIN PETROLEUM INDUSTRY

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COSTS FOR CCS – NORWEGIAN SOURCES PETROLEUM RELATED ACTIVITIES, ONSHORE

• Existing, but not a specific source - extensive cost for tie-ins & utilities • Several site specific requirements included • FOAK: Signficant planning costs • Gas power, 1 Mt p.a. • Offshore storage, 100 km pipelline

Lavt Høyt Lavt HøytInvesteringskostnaderPre DG3 1 600 4 600 Fangstanlegget 4 000 7 000 Hjelpesystemer, tie-ins, an 1 500 4 000 Lager 1 400 1 600 Rørledning 1 800 2 100 Total investering 10 300 19 300 700 1 200 Driftskostnader 400 700 Totale kostnader 1 100 1 900 Per tonn unngått 1 300 2 300

Totalt (MNOK) Per år (kNOK)

Gassnova mai/2011

CA$ 230 - 400

CCS COST EFFECT: IMPACT ON COMPETITION

Source: Copenhagen Economics based on IEA (2005), Smale et al. (2006). McKinsey and Ecofys (2006), and Climate Strategies (2007).

0 Time

€/to

n

THE COST CHALLENGE

EU ETS

US, EOR

NO, offshore tax

Innovate Build

capacities Demonstrate!

Share it!

Reinforce commitment

Long term policies

Funding

Robust CO2 price

Build acceptance

INTERNATIONAL COOPERATION

• International deployment of technology: – R&D&D projects potential funding by CLIMIT – Participation in international demo (TCM) and full scale

projects (CCM) – Vendors and technology users – A world market for technology

• A functioning market: – Harmonized framework conditions and regulation – Carbon price

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Welcome to Mongstad!