special the time to act is now

CARBON CAPTURE AND STORAGE

No. 1 / Dec. ’09

New enemy: “Climate change is among the greatest threats to security and stability we face in the future”, says Rear Admiral Neil Morisetti of the British Navy.

THE TIME TO ACT IS NOW E X PLO R E T H E GLO B A L P OT E N T I A L O F C CS :8414 individual emission sources geographically mapped out and possible to filter by emission size and source type. Visit the leading resource on the technology, politics and business of CCS at www.bellona.org/ccs

New technologyThis is the world’s largest climate tool

SustainabilityHow to go green and increase your profi ts

AN ADVERTISING INSERT BY MEDIAPLANET

IN COMMAND: Rear Admiral Neil Morisetti on the flight deck of the former flagship of the Royal Navy, HMS Invincible. PHOTO: CHRIS ISON/PA/SCANPIX

COP15HOW CCS CUTS YOUR

CO2 EMISSIONS

SPECIAL ISSUE

2 · DECEMBER 2009 THIS SUPPLEMENT IS AN ADVERTISEMENT

CHALLENGES

Clean fossil energyneeds kick-starting

Both technology development and the transfer of tech-nology from the most advanced economies to less developed countries are vital to seal the deal in Copenhagen.

Carbon capture and storage is a key technology. According to a re-cent report from the Internation-al Energy Agen-

cy, primary energy demand could grow by 40 per cent between 2007 and 2030. Fossil fuels could account for more than three-quarters of this increase. In the long run, lim-iting global warming means we ei-ther have to stop using fossil fuels as a primary energy source or fi nd ways to avoid energy-related emis-sions of CO2.

Test without delayIn Europe, close to half of to-tal CO2 emissions stems from

fossil fuel power utilities and in-dustry. On a global scale, technolo-gies for carbon capture and storage could take care of one-fi fth of emis-sions in 2050. The challenge today is that the technology has not been proven. It looks promising in labo-ratories and small scale test facili-ties, but must undergo a full scale

demonstration without delay.

Promote new technologyThat is why Norway has moved ahead with building

the fi rst large scale test centre at Mongstad. This will provide com-panies and researchers with a unique opportunity to demon-strate how diff erent technologies perform, and provide some guid-ance on what solutions are the most promising. The Technology Centre Mongstad (TCM) is part of a broader eff ort by the Norwegian government. Earlier this year, we supported the establishment of two new research centres, and ef-forts to promote carbon capture internationally are also ongoing.

Polluters must payCarbon capture and storage needs to be competitive in or-

der to succeed. Ultimately it must become profi table. However, there will always be some level of addi-tional cost, thus successful imple-mentation of this technology is conditional on political determi-

nation to make polluters pay. The European emissions trading sys-tem is Europe’s main vehicle for stimulating long-term demand for clean technologies, as it eff ectively puts a price on emissions of CO2. But in this initial phase we realize that stimulating demand is not enough. Therefore European gov-ernments and industry have com-mitted to kick-starting large scale demonstration of clean energy from fossil fuels.

Define the 21st centuryDemonstrating carbon cap-ture and storage is only one

step on the road to more sustaina-ble energy markets. In 2050, it is expected that 8 out of 9 billion peo-ple will live in what are now con-sidered developing countries. Pro-viding the basics, such as housing, energy, clothes and food for all, will be another daunting task that de-fi nes the 21st century. The chal-lenges of providing clean energy and development are intertwined, and both are critical in addressing climate change.

“100 per cent car-bon-neutral power in Europe well before 2050 is actually pos-sible if governments show suffi cient fore-sight and establish a clear regulatory road-map to abolish dirty power in the near future.”

Frederic HaugeCo-founder and leader, Bellona Foundation

WE RECOMMEND

PAGE 14

CARBON CAPTURE AND STORAGE, 1ST EDITION, DECEMBER 2009

Country Manager: Thomas bergeEditorial Manager: Petter T. Stocke-NIcolaisenBusiness Developer: Henning EbbestadSub-editor: Erlend Lans Pedersen

Responsible for this issueProject Manager: Anders BorchseniusPhone: +47 22 59 30 03E-mail: [email protected]

Distributed with: Recharge, Print: Dagblad-trykk

Mediaplanet contact information: Phone: + 47 22 59 30 00Fax: + 47 22 59 30 01E-mail: [email protected]

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“Carbon cap-ture and stor-age needs to be competitive in order to suc-ceed. Ultimately it must become profi table.”

Erik SolheimMinister of the Environment and Interna-tional Development

International CCS Research Centrewww.bigccs.no [email protected]

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CO2 Capture Developing technology with a greener carbon footprint

Join us!

Gassnova’s objective is to manage governmental interests to help cope with the challenge of climate change, within the area of capture, transportation and geological storage of the greenhouse gas CO2. Gassnova has a key position in the Norwegian government’s strategies on carbon capture and storage. The main efforts are focused on:

� Support research and technology development to ensure access to energy through fossil fuel power without CO2 emissions

� Contribute to reduced costs and reduced technological an economical risk through building and operating large scale facilities for carbon capture and storage

� Stimulate international partnerships and knowledge sharing

� Act as advisor to the Ministry of Petroleum and Energy

Gassnova also represents governmental interests in the realisation of large-scale CO2 projects. Assessment or planning is currently being performed in the following projects:

� European CO2 Technology Centre Mongstad (TCM), (under construction)

� Large-scale transport and geological storage of CO2 from Kårstø and Mongstad

� Full-scale CO2-capture at Kårstø gas fi red power plant

� Full-scale CO2-capture at Mongstad combined heat and power plant

[email protected] ••• • • • ••• ••• • • • ••• [email protected] ••• • • • ••• ••• • • • ••• www.gassnova.no

GASSNOVA SF GASSNOVA SF The Norwegian state enterprise The Norwegian state enterprise for carbon capture and storagefor carbon capture and storage

4 · DECEMBER 2009 THIS SUPPLEMENT IS AN ADVERTISING

Current estimates indicate ■there is too much CO2 in the air and that this will continue to rise. New plants will be built, and tradi-tional plants which release great amounts of CO2 are still in use. It seems like it will be diffi cult to reach the reduced emission goals set by the politicians. But every-thing may not be as gloomy as it might appear at fi rst sight.

On the Norwegian west coast, just north of Bergen, Statoil, Gas-snova and Norske Shell, are build-ing what will be the largest of its kind in the world: a large-scale CO2 capture plant which will capture and test two carbon capture tech-nologies: carbon and amine tech-nologies.

Aker Clean Carbon will deliver the amine technology, whilst Al-stom Norway will deliver the car-bon technology solution to what has been labelled the country’s moon landing project by PM Jens Stoltenberg.

Learn from Mongstad”It is the only plant which will test

CO2 capture from two exhaust gas sources. This means the tests will be relevant to gas plants, refi n-eries and coal plants”, says Vegar Stokset Communications Manag-er at the European CO2 Technol-ogy Centre Mongstad (TCM). Ac-cording to Stokset the test centre

will be ready in the third quarter of 2011. The testing period is set to last fi ve years.

The CCS technologies applied at Mongstad can be installed in exist-ing plants and may contribute to re-ducing the world’s CO2 emissions.

“We can’t escape the fact that CCS is the only eff ective tool we have to reduce large amounts of CO2 emissions today”, says CEO Jan Roger Bjerkestrand of Aker Clean Carbon.

Develop technology“This is a fantastic opportunity to develop our technology further and a great opportunity to enhance our knowledge”, says Bjerkestrand. “We have tested the amine tech-nology for some time, and Mongs-tad allows us to test it on a larger scale. Mongstad is a step towards our aim of testing the technology in a full scale plant.”

“Mongstad is currently the larg-est advanced CO2 capture plant on the market. No one has built a full scale plant so far. The test cen-tre will be able to capture a to-

tal of 160,000 tons annually”, says Bjerkestrand.

Reduce costsThe carbon technology could po-tentially reduce energy consump-tion per captured ton CO2, but since it has not undergone full scale test-ing it represents a higher risk than the amine technology, which has been widely used in various in-dustries. But there is still potential for improvement in this technol-ogy. According to Stokset, TCM will evaluate the improvements relat-ed to the process, building method and cost-eff ectiveness.

The overall aim is to make CO2 capture more cost-eff ective and fi -nancially viable.

“It is difficult ■ to estimate the improvements we expect, but we believe the total costs, for the plant and operations, could be reduced by 10-30 per cent for a new full sca-le plant based on TCM’s experien-ce”, says Stokset.

Question: How can we reduce CO2 emissions in existing power plants?Answer: Norwegians will capture CO2

from a gas plant and refi nery at Mongstad, and test out new technology to make it more cost-eff ective.

MAKE CCS MORE COST-EFFICIENT

Vegar StoksetCommunications Manager at TCM

”The tests will be relevant to gas plants, refi neries and coal plants.”

GUNN IREN KLEPPE

[email protected]

NEWS

TESTING TECHNOLOGYThe Mongstad complex, just north of Bergen, whe-re TCM will be opened in the third quarter of 2011.PHOTO: HARALD M. VALDERHAUG/

STATOIL

CUTYOUR BUSINESS’

EMISSIONS

HOW YOU

EPC Management at Technology Centre MongstadAibel is one of the key suppliers to the new European CO2

Technology Centre under construction at Mongstad outside Bergen.

We are responsible for all engineering and procurement activities

for the utilities and infrastructure outside the two CO2 capture

technology areas, and interface management between contracts.

With our 4000 employees, we are one of the largest Norwegian

oil and gas services companies that engineers, builds, maintains

and modifies oil and gas production facilities. With our extensive

experience, skills and expertise, we enable our clients to achieve

more efficient oil and gas production.

www.aibel.com

Aibel Vestre Svanholmen 14

P .O. box 300

N-4066 Stavanger

Norway

Tel: +47 08527

Management at echnology Centre Mongstad

Aibel is one of the key suppliers to the new Europe

Technology Centre under construction at Mongs

We are responsible for all engineering and

for the utilities and infrastructure outside

technology areas, and interface man

With our 4000 employees, we ar

oil and gas services compani

and modifies oil and gas p

experience, skills and e

more efficient oil and

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Aibel Ve

DECEMBER 2009 · 5THIS SUPPLEMENT IS AN ADVERTISING

JOINING FORCESOn December 12 Steven Chu, the US Energy Secretary, visited TCM for a first-hand briefing on the company’s plans for carbon capture. He was accompanied by Terje Riis Johannesen, Norwegian Minister of Petroleum and Energy. PHOTO: DAG SUNNANÅ/STATOILHYDRO

EUROPEAN CO2 TECHNOLOGY CENTRE MONGSTAD (TCM)TCM is the first step in the implementation of CO2 capture at the Mongstadrefinery. The test facilities are planned to capture 100 000 tonnes of CO2 annually. ILLUSTRATION: STATOILHYDRO

Pay attention! If you’re interested in how a CO2 capture process facil-

ity can reduce today’s energy consumption by half, then pay attention to SOLvit.

Find better technologySOLvit is an eight year re-search programme aim-

ing to fi nd more cost-eff ective CO2 technology. This will be done by making amines, which capture CO2, cheaper and more effi cient.

Develop solutionsTwo of the companies be-hind the programme, SIN-

TEF and Aker Clean Carbon, have developed chemical solutions based on amines. They estab-lished the programme together with NTNU in August.

International cooperation

In 2009, Statkraft, E.ON and Scottish Power joined the

programme, which will test chemicals and processes in a mobile capture facility provided by Aker Clean Carbon.

New laboratory The programme’s fi nancial value is estimated at NOK

317 million kroner, and will re-sult in a new laboratory and a test centre with a 30 metre tall tower and processing column in Trondheim.

The financingThe project is primarily be-ing fi nanced by Aker, Gas-

snova, SINTEF and NTNU.

EFFICIENT CO2 CAPTURE

ELISABETH KOLSTAD

[email protected]

Global carbon dioxide emissionsThe diagram shows CO ■ 2 emissions from 7500 large point

sources. CO2 can only be effi ciently captured from large plants. To

really make a difference, CO2 must be captured from power plants.

Gas power generation

Fuel oil power generation

Cement production

5 % Iron and steel

6 % Oil refi neries 3 % Petrochemical industry

60%Coal powergeneration

11%

7%

7%

A CCS potential study presented by the envi-ronmental foundation Bellona contains some astonishing findings. The calculations indi-cate that wide imple-mentation of CCS can reduce CO2 emissions by 54 % in the EU and 33 % globally in 2050 (com-pared to emission levels today).

SOURCE: INTERNATIONAL ENERGY AGENCY

Promoting the business of Carbon Capture & Storage technology

a crucial solution to climate change

Seawater

Utilities

Amine technology

Carbonatetechnology

Electro building

Administrationbuilding

CHP

RCC

CO2 emissions


It’s been a while since climate change was seen as aff ecting only the fl ora and fauna. The immense eff ect on hu-man life from an average rise of 4°C is now more worrying than ever. Health and jobs are at risk, as we know, but now a new force is rising to fi ght car-bon emissions and maintain a stable climate. Why?

“In recent years we have in fact in-creasingly realised that climate change has wider implications. And included in that are those related to security. In fact, in our national security strategy in 2008 in the UK, we said that climate change is among the greatest threats to security and stability we face in the future.” The words are those of Rear Ad-miral Neil Morisetti.

Enemies without gunsHe speaks of security and stability, as any military man with his CV would. But his enemies are not carrying load-ed guns. In fact, he has no enemies. In-stead he is out to make as many friends as possible. Morisetti is the UK Minis-try of Defence’ and Foreign and Com-monwealth Offi ce’s Climate and Ener-gy Security Envoy. He is probably the only such envoy in the world: at least at the moment.

“Increasingly this is becoming a wider issue. There is work being done in America and I have spoken with col-leagues in Bangladesh about what’s go-

ing on, trying to broaden the perspec-tive”, says Rear Admiral Morisetti.

Why a military man?“Because we in the military like talk-

ing to each other, we understand each other. And the important thing, what I am trying to do, both in the Unit-ed Kingdom and overseas, is to broad-en and include the understanding of the security implications of climate change. And I am also encouraging military authorities and departments of defence to engage with their gov-ernments, the same way foreign aff airs and energy departments would do, in order for the governments to under-stand the full implications of climate change”, says Morisetti.

He claims that when looking at the so-called “four degrees scenario” mod-el, covering a possible rise of 4 °C in the average global temperature, there is a compelling case for all of us to be allies with everybody else.

“This is a global issue, and it will re-quire global activity from all nations. The extent of each nation’s contribu-tion will clearly depend on resources and capabilities, but it is very neces-sary for all nations to be engaged”, says Morisetti, adding “I am an optimist. I think it will be challenging and that there will be a cost to it. But the eff ects of not doing anything now are such that we really must act.”

Energy efficiency is securityIn the UK the armed forced have con-tributed a total of about 1 per cent of all emissions, through their buildings, land, aircrafts, vehicles and ships. The armed forces are now working on a joint project.

“We are going to have to learn how to reduce our emissions, for example by using more simulations and less live training. If we start doing that, and en-gage our colleagues overseas, we can start to build and to share our under-standing. Much can be done on a re-gional basis, be it by the European Un-ion, NATO or the Arctic Council, and then be brought together”, says Mori-setti.

The armed forces need to under-stand the climatic conditions for the mid-21st century – what implications climate change will have on the capa-bilities that are required. Many ques-tions need to be answered.

“Do we need equipment that can withstand other temperatures? And where are our soldiers going to get

their water? They are going to need more water if they are in a hot climate. A lot of our equipment today consumes vast amounts of energy. Assuming it’s available in the mid 21st century, it’s going to be considerably expensive. It also makes us vulnerable. If we can be more energy effi cient, we can reduce that vulnerability”, says Rear Admiral Morisetti.

Depending on who ■ you talk to, it is believed that the melting of the ice caps will lead to a rise of between 3.5 and 7.5 metres in sea levels.

“Even if we’re optimists I believe that 3.5 metres will have quite a bear-ing on people everywhere, Northern Europe included. It is no longer an is-sue only on the other side of the world”, says Morisetti.

If the ice caps melt, we would initial-ly see fl ooding and, also due to the rise in temperature, we would see rivers dry out and therefore crop failure lead-ing to famine. This explains why and how climate change is a matter of in-ternational security:

“If there is a failure of crops and a famine in a country, there is in-creased danger of rioting and this could destabilise a government. Peo-ple might start to migrate from coun-try to country in an unplanned fash-ion. For example, Bangladesh could lose 25 to 40 per cent of its land when sea levels rise. Where would all the people go? If the Central African belt should become uninhabitable, where could all the people go?” asks the Rear Admiral.

He thinks there will have to be a bal-ance between mitigation and adaption to the changes in climate.

“But we need to act now”.

Growth means low carbon“Increasingly, commerce is recognis-ing this issue and, for example, we come across companies who are re-ducing their amount of packaging, producing less hydrocarbons. And again, as the public increasingly say ‘I am not prepared to buy things that produce a lot of hydrocarbons’, that again will encourage companies to reduce their emissions”, states Mori-setti, continuing: “We all have to look at our lifestyle, reduce our energy de-mand and at the same time look for al-ternative energy and alternative tech-nology. Leaders who want to expand their businesses must seek a lower use of energy, less emissions and a low car-bon approach. Because what we can’t have is high carbon and high growth.”

“If you want growth, you need low carbon and high growth, and that means new technology”, he says.

And what if we don’t fi nd suffi cient non-fossil energy sources and lower our emissions of carbohydrates?

!“Then we might come to see the map as depicted with an average

rise of four degrees. Which means a rise of eight degrees in London - you can im-agine what that would be like on hot days and what impact it would have on the infrastructure and transport sys-tem. From a security perspective, it’s clear that under such circumstances we would have to question whether we’d be able to deliver security”, says Morisetti, adding “We have to drive forward and look to encourage our governments to stretch targets, limit the eff ects and keep global warming to two degrees.”

It is time to act

WHERE DO THEY G0?If the ice caps melt.Bangladesh could lose 25 to 40 per cent of its land PHOTO: ISTOCK

Question: What global implications could an average temperature increase of 4°C have?Answer: A world far less secure and stable.

ANDERS ENGEN RASCH

[email protected]

LEADER TO LEADER

OSLO, NORWAY

INSPIRATION

“If you want growth, you need low car-bon and high growth, and that means new tech-nology.”Rear Admiral Neil Morisetti

RISK MAP

See pages ■8 and 9The UK Met Offi ce’s Hadley Centre has produced a map outlining some of the impacts that may occur if the global av-erage tempera-ture rises by 4 °C (7 °F) above the pre-industri-al climate aver-age.

PROFILE

Position: ■ Rear Admiral, The British Royal Navy.

Education: ■ Military training at Britannia Royal Naval College, Dart-mouth, and attendance at the Uni-versity of East Anglia.

Career: ■1986: Appointed Commanding Of-fi cer of the patrol boat HMS Cygnet in the Northern Ireland Squadron.1991: Joined the Naval Secretary’s Department as Offi cers’ Appointer. 1993-1994: Commanding Offi cer of the destroyer HMS Cardiff.2004: Took command of the aircraft

carrier HMS Invincible. 2005: Promoted to Read Admiral. 2007: Appointed Commandant of the Joint Services Command and Staff College.09.2007 – 08.2009: Commandant of the JSCSC, re-sponsible for providing post gradu-ate education to offi cers from 60 nationsSeptember 2009: Took up a new cross government post as Climate and Energy Security Envoy for the Ministry of Defence, and Foreign and Commonwealth Offi ce.

Neil Morisetti

DECEMBER 2009 · 7THIS SUPPLEMENT IS AN ADVERTISEMENT

THE GREEN ADMIRAL“A lot of our equipment today consumes vast amounts of energy. As-suming it’s available in the mid 21st century, it’s go-ing to be considerably ex-pensive. It also makes us vulnerable,” Rear Admiral Neil Morisetti. PHOTO: ANDERS ENGEN RASCH

8 · DECEMBER ’09 THIS SUPPLEMENT IS AN ADVERTISEMENT

DECEMBER ’09 · 9THIS SUPPLEMENT IS AN ADVERTISEMENT

10 · DECEMBER ’09 THIS SUPPLEMENT IS AN ADVERTISEMENT

Use CCS to createcarbon negative energy

You need around 900 3MW wind turbines to produce the energy equivalent of a large, 900MW coal power plant. Building wind tur-bines requires more steel and ce-ment than coal power plants. The production of these materials will inevitably lead to large CO2 emis-sions.

“CO2 capture and storage can be used to reduce these emis-sions. The question is, do we want to build a renewable energy so-ciety with or without CO2 emis-sions,” asks Energy Policy Advisor Bjørn Utgård of the environmen-tal NGO, Bellona. Adding CCS to the production of these materials makes reaching renewable ener-gy targets more environmentally friendly.

Combine bio with CCSLarge power plants using biomass can be fi tted with CCS, thus provid-ing a carbon negative eff ect and re-moving CO2 from the atmosphere.

“According to some researchers, the atmospheric concentration of CO2 is already too high,” says Ut-gård. “Emissions from some in-dustries, particularly farming, are hard to reduce. Greater emission reductions in the energy sector can compensate for this.”

Utgård sees great potential in combining bio-energy with CCS to create carbon negative energy.

“It’s not magic; all you need is to exchange coal for biomass and add CCS.” Utgård is adamant that CCS should not be developed at the ex-pense of developing renewable en-ergy, however: “We defi nitely need both. Thermal power plants are necessary to balance the intermit-tency of energy sources like wind and solar energy. Hence, CCS en-hances the climate benefi t of wind, solar and bio-energy.”

Clean the industryPower plants, steel and cement are responsible for Europe’s highest CO2 emissions. According to CO2

Storage Advisor Tore Andreas Torp of Statoil, these also have great po-tential with respect to emissions reductions using CCS. In the steel industry, levels of 45 per cent CO2 are possible by exchanging the air used in blast furnaces with pure oxygen. The rest of the gas consti-tutes a valuable raw material, CO gas.

Typically, the cost of capturing CO2 from power plants has ranged between EUR 60–90 plus transpor-tation and storage. By splitting the CO and CO2 from steel, costs of cap-ture, transportation and storage may come down to EUR 30 per ton.

“We have tested it twice on a large scale in Luleå. This tech-nique works,” states Torp who is Statoil’s representative in the ULCOS project (Ultra Low CO2 Steelmaking).

Cut with charcoalResearch done by the Norwegian ferroalloy industry using charcoal, has resulted in slightly higher effi -ciency and cleaner products.

“There is no need to build any-

thing. You can change over to char-coal at a couple of weeks’ notice,” Torp explains. However, charcoal from biomass is more expensive than fossil coal. Fossil CO2 emis-sions can be reduced by 90 per cent. The only thing remaining is the electrodes. There is no need for CCS as the CO2 is plant based.

The aluminium ■ industry is

also showing promise. “By using closed furnaces producing pure CO2, capture is no longer neces-sary.” Torp explains that pure CO2 is easy to compress and transport. No new technology is needed, but, again, the cost will be higher.

NEWS

GUNN IREN KLEPPE

[email protected]

Question: ■ What can we do to reduce CO

2 emissions until

we have the technology to re-place fossil fuels with renewa-ble energy?

Answer: ■ Until then, emis-sions from traditional power plants can be reduced consid-erably using carbon capture and storage (CCS).

TRENDS

SEMENT

GREENENERGY

EVEN GREENER

HOW YOU MAKE

WINDS OF CHANGEBuilding wind turbines, like these in Smøla wind farm, leads to large CO2 emissions. CO2 capture and storage can be used to reduce them.PHOTO: STATKRAFT

Bjørn Utgård Policy Advisor, Bellona

“CCS should be part of a CO2 mitigation portfolio of technol-ogy and measures to mitigate anthropogenic CO2 emissions. This also holds for biomass in CCS plants, assuming that cli-mate neutral certifi ed biomass is used.”

Where can biomass in CCS plants be implemented?

“First, co-firing biomass in large coal-fired power plants with CCS, where high steam da-ta makes the biomass conver-sion effi cient. Second, applied to the pulp and paper industry, where the fuel itself is biomass. Third, applied to natural gas fi red power plants. This through partly substituting natural gas with biomass derived synthetic gas or combusting solid biomass in some new type of gas tur-bine combustor. Fourth, applied to ethanol production from fer-mentation. Fifth, applied to fu-ture polygeneration plants, producing electricity, heat and transport fuel with the process, fuelled by a mixture of coal and biomass.”

Will it be cost effi cient?“The scale is important. CCS is

cost effi cient for large, central-ised plants with an integrated infrastructure for the transport and storage of CO2. Thus, co-fi r-ing biomass with coal will most likely be the fi rst to be cost effi -cient.”

Johnsson thinks CCS with fer-mentation may suff er from high infrastructure costs, since such systems are likely to be relative-ly small scale.

What about the future?“Bio-CCS may very well play a

signifi cant role in the future en-ergy system, but there are many options for using biomass and it is not obvious which ones will be most favourable. Most impor-tantly the cost of emitting CO2 needs to be high enough. Then, I am sure we will see a number of innovative technologies, includ-ing those involving CCS from bi-omass. Climate change is not only a threat, it will also stim-ulate the ‘climate’ for new in-novations.”

BIOMASS

New climate for innovative solutionsSince biomass is a re-newable fuel and thereby considered CO2 neutral, negative CO2 emissions can be achieved when CO2 capture and storage (CCS) is combined.

GUNN IREN KLEPPE

[email protected]

Filip JohnssonProfessor of Sustainable Energy Systems, Chalmers University of Technology

FACTS

The potential ■ for accumulat-ed CO

2 capture by 2050 is 236

billion ton CO2 globally.

Wide implementation ■ of CCS has the potential of reduc-ing the CO

2 emissions by 33 per

cent globally and 54 per cent in the EU by 2050 compared to to-day’s emissions.

■ According to Bellona, the strategy to achieve the neces-sary reductions in CO

2 emis-

sions is a combination of 1. increasing energy effi ciency; 2. switching from fossil fuel to renewable energy sources;

3. wide implementation of CCS.The Intergovernmental ■

Panel on Climate Change ar-gues that dramatic climate ef-fects will occur if the global av-erage temperature increases by more than 2 oC,

The consequences will ■ be melting polar ice caps, a sea level rise of up to one meter by 2100, an increased frequency of extreme climate events, perma-nent fl ooding of coastal cities, disruption of ecosystems, and extinction of species. SOURCE: BELLONA/ THE CCS POTENTIAL REPORT

Potential of carbon capture and storage (CCS)

In 2008 Ross Off shore was awarded the contract by Gassnova SF to fi nd safe storage areas in the Norwegian Conti-nental Shelf to store CO2 from the Kårstø and Mongstad power plants. The con-tract includes the delivery of the subsea system and well design to achievement investment decision for safe storage, said Jørgen Jørgensen, Manager of Field Development.

To achieve this, a highly experienced project team

of geophysicists, geologists, reservoir engineers, pro-

duction technologist, drilling & completion engineer

and subsea engineer have been assembled. The task

of the team is to deliver the whole development value

chain from seismic interpretation, geo-modeling,

reservoir simulation, well planning and subsea sche-

mes. Having subsurface specialists working as an

integral part of a project team is unique in itself and

the benefi t is in arriving at solutions quickly.

Ross Offshore has built up a unique knowledge

base and experience in CO2 handling and storage.

Carbon capture and storage (CCS) is an increas-

ing environmental interest in the industrial world.

Ross Offshore is uniquely placed to assist clients

with industrial plants in achieving their environ-

mental obligations. To this end Ross Offshore has

opened an offi ce in Copenhagen on its fi rst move

toward servicing the international market.

Ross Offshore’s personnel have strong experience

from other fi eld development projects in such a

way that this project has become a good bench-

mark project for us. Ross Offshore has licenses for

simulation tools for geo modeling, reservoir simu-

lation and fl ow assurance. We can, at short notice,

establish a team for the oil and gas industry also to

address fi eld development in the early phase and for

fi elds in operation, emphasizes Jørgen Jørgensen.

Well Planning and Drilling Management

Ross Offshore has also a large pool with valuable

expertise within planning of wells and managing

of drill operations on mobile rigs. Together with our

fi eld development group we utilize combinations of

top competence and overall understanding of how

to solve increasingly complicated tasks, says Tom-

Arbøll, Manager of Drilling and Well Management.

Attractive Employer

Professional challenges are in line for our em-

ployees these days, says Cecilie Sælen, Manager

of Consultancy. We have focus on being a good

joint venture partner for our customers, and have

noticed that we become a more attractive employer

when we offer a wider range of services to the mar-

ket. As you know, specialists attract specialists, she

says with a smile.

Tailor-made team from Ross Off shore AS

FACTS ON: ROSS OFFSHOREEstablished: 1997 in Sandefjord, Norway

Offi ces in: Sandefjord and Bergen

Subsidiary company: Ross Engineering AS in Copenhagen

Employees: 120 employees and consultants

Elected as: “Gaselle-company” the last 7 years

Turnover 2009: 260 mill.NOK

A company in the STG-group; www.stg-subsea.no

Field Development and CO2 Storage

Part of STG

International CCS Research Centre The BIGCCS Centre will enable sustainable power generation from fossil fuels based on cost-effective CO2 capture, and safe transport and underground storage of CO2.

This will be achieved by building expertise and closing critical knowledge gaps of the CO2 chain, and developing novel technologies in an extensive collaborative research effort.

21 partners 8 years € 48 million

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www.bigccs.no [email protected]

Join us in developing greener carbon footprints!


NEWS

As a result of climate change, busi-nesses worldwide are starting to see the extent of climate regula-tions to come. Businesses already reducing emissions and increas-ing their energy efficiency are ahead of future regulations.

“I have seen ■ examples that this represents a real competitive advantage,” says Pål Brun, head of sustainability services at Pricewa-terhouseCoopers in Norway.

Brun believes the UN Climate Change Conference in Copenha-gen will be an important mile-stone. Even if there are no binding agreements, stricter regulations are expected around the world.

“We can see what is coming, and forward-looking companies will choose to prepare.”

The US auto industry represents an example of how failure to adapt may put companies at risk. Back in 2002, the state of California sug-gested stricter standards for auto emissions. These standards will now take eff ect across the United States.

“Had US car manufacturers di-rected their eff orts toward produc-

ing more energy effi cient cars back then, their situation might have looked diff erent today.”

Investors concernedInvestors are also increasingly con-cerned with environmental issues, and companies that act proactive-ly may become more attractive to investors. Investing in companies that aren’t environmentally re-sponsible may prove risky. Inves-tors are therefore starting to de-mand disclosure on climate risk exposure and strategy.

The Carbon Disclosure Project represents investors managing enormous amounts of capital. They send out annual requests to large companies worldwide, in-quiring about emissions, environ-mental strategies, and prepared-ness for future regulations.

According to Brun, many inves-tors fi nd that climate change risks, such as a the future fi nancial cost of carbon emissions, are not ac-counted for in the valuation of the company.

“When so many large inves-tors become concerned about this, it starts aff ecting your com-pany’s access to capital. The ac-cess of capital then becomes a good incentive for having an en-vironmental strategy.”

Increasing expectationsOther stakeholders are raising

their expectations. Many large, global corporations are demand-ing that their suppliers be envi-ronmentally responsible.

Wal-Mart is one of many cor-porations who set environmental guidelines and request environ-mental responsibility from their suppliers. This has become a prior-ity for many. Suppliers to the pub-lic sector are also encountering in-creasing demands.

“It becomes an incentive to meet the demands from those who purchase your goods or services.”

Brun also sees that recruiting can benefi t from having an envi-ronmental strategy as part of your business’ core strategy.

“The generation now entering the job market is increasingly con-cerned that their employers are environmentally responsible.”

Similarly, energy effi cient build-ings are also benefi cial and may help attract tenants. Many compa-nies are concerned with energy ef-fi ciency when renting offi ces and other buildings. For one thing, it helps show stakeholders that you have reduced your climate impact.

“In addition, ■ it is cost effi cient. If you rent a building that is energy effi cient, it provides direct savings opportunities.”

GO GREEN – GET ACCESS TO CAPITAL

Question: ■ How can your business meet the new climate demands and remain competitive?

Answer: ■ Be proactive and include environmental issues in your core business strategy.

GUNN IREN KLEPPE

[email protected]


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CO2 Transport Developing technology with a greener carbon footprint

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Energy effi ciency potential in industry

CO2 emissions reductions are par-ticularly crucial in the fi ve most en-ergy-intensive sectors of industry: iron and steel, cement, chemicals and petrochemicals, pulp and pa-per, and aluminium. These sectors currently account for 75per cent of CO2 emissions by industry.

Iron and steelCurrent technology can only re-duce today’s energy use in iron and steel by 20per cent. Given the limited effi ciency potential, new technologies such as smelt reduc-tion and fuel switching will be needed. CCS is an important op-tion and large-scale CO2 capture pi-lot projects at iron and steel plants must be developed urgently to un-derstand the cost and performance of diff erent CO2 capture methods.

CementReducing CO2 emissions in the ce-ment sector is very challenging ow-ing to high production emissions. New technologies should be devel-oped and implemented, particular-ly in the application of CCS. Urgent action is needed to support the de-velopment and demonstration of CCS for cement production. In the long-term, new CO2 free processes will need to be developed.

Chemicals/petrochemicalsA range of new technologies must be developed to achieve CO2 reduc-tions. These include novel olefi n

production processes such as the wider use of catalysts, membranes and other new separation proc-esses, production intensifi cation, and the development of bio-based chemicals and plastics. In addition, CCS for ammonia, ethylene and large-scale CHP applications has to be developed.

Pulp and paperMany countries have great poten-tial when it comes to increasing energy effi ciency in pulp and pa-per sector. Promising new technol-ogies such as black liquor gasifi ca-tion, lignin removal, biomass gasi-fi cation and CCS will also be needed to achieve emissions reductions.

AluminiumMost of the energy consumed in the aluminium industry is in the form of electricity used for smelt-ing. Important options include re-ducing heat loss and improving production controls in refi neries, and reducing heat loss and electric-ity used in smelters. In the longer-term, moving towards the use of zero-carbon electricity in smelters represents the single largest oppor-tunity for long-term CO2 emissions reductions. New technologies such as wetted cathodes and inert an-odes or carbothermic reduction may off er reduction opportunities.

Cross-cutting optionsThere are important cross-cutting technologies and options for re-ducing CO2 emissions from a range of sectors, of which switching fu-el to biomass and CCS are the two most signifi cant and thus deserve particular attention vis-à-vis tech-nology development. Other options include effi cient motor and steam systems, CHP, and the increased use of recycled materials. SOURCE: WWW.IEA.ORG

Around one-third of global energy is used by industry, and although energy effi-ciency has improved over the last decades, growing industrial production world-wide has increased industri-al energy consumption.

BACKGROUND

GREEN FUTURE“We can see what is coming, and forward-looking compa-nies will choose to prepare,” says Pål Brun at Pricewater-houseCoopers in Norway. PHOTO: PETTER T. STOCKE-NICOLAISEN

The generation now entering the job market is increasingly concerned that their employers are environmentally responsible.


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CO2 Storage Developing technology with a greener carbon footprint

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S SUPPLEMENT IS AN A

MONEYMAKE GREENSTRATEGIES

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PROFESSIONAL INSIGHT

No future for dirty power

We need to cut global greenhouse gas emissions by about 85 per cent by 2050 if we are to have a reasonable chance of avoiding the most dangerous tipping points of climate change. Bellona believes that in order for this to happen CCS must be-come mandatory for coal and gas-fi red power plants in developed countries.

The key to decarbon-ising our economy is the power sector. It emits 30 per cent of all greenhouse gases in the EU. Fortunately, emis-

sion reductions from the power sector are among the cheapest op-tions available in developed coun-tries, and in March 2009 the CEOs of all the main European electric-ity producers signed a declaration committing to zero carbon power supply by 2050. 100 per cent car-bon-neutral power in Europe well before 2050 is actually possible if governments show suffi cient fore-sight and establish a clear regula-tory roadmap to abolish dirty pow-er in the near future.

However, 70-80 coal-fi red power plants without CCS are in the plan-ning stage in the EU. Such plants have an average lifespan of about 50 years. In other words, without an early deadline for the capture and storage of these plants’ CO2 emissions, we will not manage to decarbonise power in the EU quickly enough.

Build 100 CCS plantsThe cost of emissions is not a suffi -cient incentive to install CCS today, which is why Bellona lobbied suc-cessfully for an EU funding mech-anism for the fi rst full-scale CCS demonstration projects. Approxi-mately 100 plants have to be built in Europe alone in order to drive

down costs and make CCS com-mercially viable. How do we get from 10–12 demonstration plants to 100 plants? Given the large sums required, subsidies would neither be possible nor appropriate for utilities that have had incredible windfall profi ts in recent years.

Measure CO2 performanceInstead, we should complement emission-trading schemes with CO2 emission performance stand-ards (EPS) – setting a limit on the amount of CO2 emitted per kilo-watt-hour – so that the most emis-sion-intensive options are simply banned. The states of California and Washington have already in-troduced such limits, which in ef-fect prohibit new coal-fi red pow-er plants without CO2 capture and storage (CCS), and the US climate and energy bill, in both the House of Representatives and Senate ver-sions, include the same regulato-ry tool. While introducing this for new plants is a useful fi rst step, it is also necessary to set a future date by when existing plants must comply with the limit as well.

Follow the SO2 exampleSimilar mandatory emission ceil-ings for SO2 from power plants in both the EU and the US have successfully reduced acid rain. Emission ceilings or perform-ance standards provide much needed predictability for inves-tors. The fi nancial turmoil has de-

stroyed lending for capital-inten-sive projects. In addition, the price of emission allowances – the only long-term incentive in the EU for CCS – has collapsed since summer 2008 from EUR 30 to about EUR 15 per metric ton of CO2.

Delays make it tougherAn EPS is also relevant to the glo-bal climate negotiations through the possible setting of benchmark emission levels for certain sectors in non-Annex I countries such as China. These benchmarks would be measured in terms of emissions per output and be set at the ‘no-re-gret’ level (e.g. effi ciency levels of plants that are economically opti-mal from a lifetime perspective). Future CDM projects could then be eligible only to the extent that they reduce emissions below these benchmarks. Steel and cement have often been mentioned, but a CO2 EPS in the power sector could equally be included.

If we had unlimited time to com-bat climate change, we could fi ne-tune emission trading schemes to bridge textbook economics with real world experience. But we need action now. There is no future for unabated coal if we want to stop global warming. The job will just get tougher if we delay action and lock in new coal-fi red power plants without CCS.

So, what is ■ holding govern-ments back from making it crystal clear through law?

BEST is a partnership with leading European energy and technology compa-nies designed to acceler-ate the deployment of en-vironmentally sound CCS.

BEST is composed of three main areas:

1It will establish specific roadmaps for EU member

states. The roadmaps will repre-sent CCS value chains and in-clude ‘sources and sinks’ for CO2, the necessary economic and fi -nancial incentives, as well as recommended regulations and the policy actions required for their deployment.

2BEST will actively engage in CCS advocacy. By start-

ing a dialogue with other select-ed environmental NGOs in the EU and internationally, Bellona seeks to build broader public co-alitions and promote the under-standing of CCS.

3The successful deployment of CCS will require a trans-

parent, comprehensive assess-ment of the key environmental issues associated with its de-ployment. This includes lifecy-cle analysis of all parts of the CCS value chain.

!BEST will also fo-cus on the devel-

opment of carbon nega-tive solutions, which combine the com-bustion of biomass with CCS. Sustainable biomass production from algae will be as-sessed. Similarly, it will also look at which existing power plants it would be most appropriate to co-fi re with bio-mass and rec-o m m e n d a -tions regard-ing regulatory frameworks.

“If we had unlimited time to combat climate change, we could fi ne-tune emis-sion trading schemes to bridge textbook economics with real world ex-perience.”

EPS

Frederic HaugeCo-founder and leader, Bellona Foundation

CCS PARTNERSHIP

BELLONA ENVIRONMENTAL CCS TEAM:

Bellona’s programme will establish spe-cifi c roadmaps for EU member states.

CAPTURE THE FUTUREThe states of California and Washing-ton have already introduced such lim-its, which in effect prohibit new coal-fired power plants without CO2 cap-ture and storage (CCS).PHOTO: ISTOCK

BEST will assess sustainable biomass production from algae.


GO IN-DEPTH“Scenario studies by the IPCC indicate that by 2050 some 20-40 per cent reduction in global CO2 emissions may be achieved using CCS tech-nology”, says Arvid Nøt-tvedt, President and CEO of Christian Michelsen Research. PHOTO: ALLIGATOR/BUG/STATOIL

What is the greatest risk ■with storing CO2?”There are few risks connected to CO2 storage, it is not a poisonous gas in low concentrations. It exists naturally in the air. However, the public probably consider leakage as the greatest risk. The un-stored CO2, goes straight into the air. In

the case of a leakage, more CO2 has been captured and taken away from the air, compared to the non-storage option”.

What does it cost to store ■CO2?

”It is expensive to store CO ■ 2. The most realistic option, stor-ing it below the surface, requires an operation which is the oppo-site of pumping oil from the reser-voirs. The same costly equipment is needed. When it comes to stor-ing CO2 on the Norwegian shelf, the costs will override what may be gained selling quotas. The solu-tion is to increase the price of quo-

tas, or setting up a cost-reducing system which receives CO2 from several locations. Either way, ac-tion from the authorities is need-ed. It is diffi cult to make it profi ta-ble, but the question is: can we af-ford not to?”

What is the greatest chal- ■lenge with transporting CO2?”Creating an effi cient system for col-lecting CO2 from a number of point sources onshore and transporting it to common storage sites, partic-ularly off shore, will be a challenge. In case of CO2 transport through populated areas, risk analysis and leak detection are important issues.

Secondly, eff ective systems for CO2 transport and storage require in-ternational, public acceptance and cross-border consent”.

What is the potential CO ■ 2 emission reduction with this technology?”Scenario studies by the IPCC in-dicate that by 2050 some 20-40 per cent reduction in global CO2 emis-sions may be achieved using CCS technology. Subsurface storage of CO2 has an estimated technical po-tential of some 2000 Gt CO2.”

Dive into a greener future

NEWS

QUESTIONS & ANSWERS

C02-STORAGE

How safe is it actually? When it comes to re-ducing CO2-emissions to reach environmen-tal goals, CO2-storage is an inevitable factor that can’t be overlooked. But many worry whether it is safe to store CO2 in geo-logical formations below the surface.

“In large concentrations, CO2 can cause suff ocation, but it is not a toxic gas”, says geologist Svei-nung Hagen in Statoil. “In com-parison, water drowns in large concentrations. “We need both”, he adds. “CO2-storage is secure provided we chose the right CO2-storage sites”, he says.

It is Hagen’s job to fi nd suit-able storage sites for Statoil, an ongoing process that has lasted a year so far, and which will con-tinue for some time. The geolo-gist is looking for suitable sites in both the empty reservoirs and for new formations. The site has to be 800 metres below the sur-face to ensure it has the right characteristics for the CO2 to be injected as liquid rather than gas. “More CO2 can be stored in liquid form than as a gas”, he adds.

No guarantee“It is impossible to predict ex-actly how safe each aquifer is for CO2 storage”, says Chief Scien-tist Erik Lindeberg from SINTEF Petroleum Research. He adds, “what we can do, is monitoring the injection to see how the CO2 behaves below the surface. If the CO2’s movements indicate a risk for future leakage, then we can perform some remediation to prevent this”, he says.

So far, Statoil’s ■ experience with CO2-storage at the Sleip-ner fi eld, where the company has stored around 12 million CO2 since 1996, and Snøhvit and fi elds in Algerie provide evidence that CO2 can be stored safely. “Empty oil and gas reservoirs have dem-onstrated their abilities to store CO2 long term, and therefore is one of the safest ways to store CO2, says Lindeberg”. “If surveys indicate that most of the CO2 can stay in a location for more than 5,000 years, then it is suitable”.

“The likelihood of a leakages is minor provided the storage sites are selected on basis of suffi cient geological data and that safe procedures are used to se-cure the s t o r a g e sites and the in-j e c t i o n”, Lindeberg says.

ELISABETH KOLSTAD

[email protected]

Arvid NøttvedtPresident and CEO, Christian Michel-sen Research

Sveinung Hagen,Geologist in Statoil

ERTISEMENT

SAFELYMEET NEW CLIMATE

DEMANDS

STORE CO2

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