WB CCS Conference - Sandton

Tim I. B. LundRoyal Norwegian Embassy - Pretoria

Two perspectives

• The view from Norway

• The view from SACCSC

Norwegian CCS policy

– Ambitious goals for broad deployment of CCS;– All new gas fired power plants with CCS;– Facilitates R&D on CCS, cooperates closely with

industrial actors and provides public funding;– Public CCS spending 2009+2010: 800 million USD;– International CCS activities

(but small compared to Renewables support)

Storage

• The Sleipner field (North Sea): 1 million tons/CO2stored annually since 1996 (due to CO2 tax);

• The SnøhvitField: 700.000 tons/CO2 stored annually (Barents Sea);

• In Salah (with Statoil).

Capture• Technology Centre Mongstad (TCM) to develop, test and

qualify CCS technologies;• World’s largest demo plant of this kind;• Partners so far: The Norwegian State (Gassnova), Statoil,

Shell and Sasol;• Two sources of flue gas and two technologies being tested:

Amine and Chilled Ammonia technologies + others?• Capture capacity: 100,000 tons CO2;• Start-up 2011/2012;

• To be followed by large scale capture plant; • Final decision in 2016.

Strong CCS cluster

• Oil and Gas companies;• Universities;• Research institutions;• Consultants and third party service providers;

Many learning and cooperation opportunities.

SACCSC PersepctiveAfter 2,5 years:• CCS firmly on the agenda in SA (DoE but also other departments);

• Key projects under way;

• Capacity building needed at all levels;

• Public engagement not started. Must be done early and right.

But:• Regional work important (ref. energy system). Key role for WB.

• Geology (no storage – no project);• Regulatory and institutional;• Cross border issues;• Financing;

SACCSC Persepctive, Cont.• SACCSC is the CCS competence Centre in SA: Use the SACCSC network, competence and systems to support key SA

priorities; Create synergies regionally and South-South; Avoid duplication of efforts.

• SACCSC seeks to leverage international financial support: Avoid duplication of efforts; Financing needs will increase as we move from studies to testing.

• WB involvement in CCS in SA and the region very welcome;

• We look forward to the results of WB work.

Thank youtim.lund@mfa.no

Conclusion

Key messagesDG Magubane:• IRP confirms CCS role in SA Energy system and CC ambitions;• SANEDI now listed as a new company – Key role on CCS• 2011 DoE strategic plan: CCS Regulatory framework• DoE-WB list of activities presently being discussed (?)• 2nd CCS Week in October 2011. CCS will figure prominently at COP17 in Durban (Energy pavillion?)

WB, Ruth Kagia:• Bold CC promise in Copenhagen based on LTMS;• Issue is not Why but How.• 15% of electricity for light;

• WB, Natalia K:• WB Energy financing BUSD 13 last year• CSP increasingly important for WB;• CCS Regional study:

• Legal and institutional framework• Techno-economic ass. Of CCS in Power system• Climate finance• Finance of CCS project

Key messages, Cont.SAPP, Musara Beta:• Hydro in North; Thermal in South. Demand in South (SA). SAPP est. in 1995;• SAPP: 74,3% Coal. 20,1% Hydro (SA is 82,5% of installed capacity).• New Plans, 2025: 42% Coal, 32% Hydro, 22% Diesel (excl. Grand Inga).• EE: 2010, 750MW (target was 1400MW);• Cannot evacuate power from North to the South (bottleneck);• Coal: 74%56%; Hydro: 20%26; Wind&Solar:0%0,5% (needs power-pooling and interconnectors)• SAPP pt focuses on RE; SA is looking at biomass for coal fired power stations.

EA, Sean McCoy: CCS Technology Road Map (2009)• pt not on target – non OECD countries must be involved (2020, need 50-50);• CCS not just clean coal: Synfuel (Coal fired power 40%);• 5 trillion USD needed 2010-2050! (125 BUSD/year). 11% of Blue map incremental investment.• Sleipner, Snøhvit, In Salah, Rangely, Weyburn • 50% of planned projects are EOR;

Key messages, Cont.GCCSI, Alice Gibson:• Asset lifecycle model;• Slides on status of CCS projects globally:• Cost estimates are now 20-30% higher than 2-3 years ago;• Public engagement is key!

DECC: James Godber• CEM, Abu Dhabi-April 2011 COP17;

SACCSC, BB• SA needs tech and fin support (COP15);• “We want a complete and legally binding agreement”• 2016 Test injection (10,000t)• SA #13 in CO2 globally; Synfuel (SASOL / PetroSA app. 30 mt CO2/yr);

Eskom, B.McColl

Key messages, Cont.

• Regional aspects key (ref. SAPP, RERA, etc.);• Leverage internal (+ int. funds) for int. cooperation. Need money and decide on its use!• Public engagement. Key in SA.

• Norway RE support 10x that of CCS (2011 1,600 MNOK?)

• Zuma signing: Sasol, Eskom, SANBI or DEA, SARI