來自碳捕集與封存系列網(wǎng)絡(luò)研討會的101個問題和101個回答（2021年）

JULY2021

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

MATTBRIGHT

SeniorAdvisor,Advocacy&Communications

CONTENTS

1.0THECCS101WEBINARSERIES:ANOVERVIEW3

2.0CRITERIAANDORGANIZATIONOFTHECCS101WEBINARS’101QUESTIONSANDANSWERS4

3.0101QUESTIONSANDANSWERSFROMTHECCS101WEBINARSERIES5

3.1QUESTIONSABOUTANDFORTHEGLOBALCCSINSTITUTE5

3.2CCSTECHNOLOGY6

3.3CCSECONOMICS–COSTSANDFINANCING10

3.4CCSTRANSPORT12

3.5CCSSTORAGE14

3.6CCSGEOGRAPHY18

3.7CCSPOLICY20

3.8CARBONUTILISATION24

4.0REFERENCES25

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101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

1.0THECCS101WEBINARSERIES:ANOVERVIEW

Between23Apriland21May,2021,theGlobalCCSInstitutehostedaseriesofthreewebinarseveryotherFridayfrom10-11amEasternTime,titledTheCarbonCaptureandStorage101Webinars.ThepurposewastogiveU.S.CongressionalstaffersandotherinterestedstakeholdersanintroductiontothekeyfacetsoftheglobalCCSindustry.Withonlyonehourallocatedtoeachwebinar,thethemeforeachonewaschosencarefullynotonlytoanswerasmanyquestionsaspossibleaboutthecurrentstateoftheCCSenterprisebutalsotofocusontherequisitesforacceleratingthedeploymentofmorefacilitiesacrosstheworld.Accordingly,thefirstwebinarfocusedon“IntroducingaCCSProject1,”thesecondwason“CCSInfrastructureforaNet-ZeroFuture2,”andthethirdwastitled“CCSPolicyforaNet-ZeroFuture3.”

Table1.GeneraloverviewandattendancestatisticsfromtheCCS101WebinarSeries.

STATISTICS

INTRODUCINGA

CCSPROJECT

CCSINFRASTRUCTUREFORANET-ZEROFUTURE

CCSPOLICYFORA

NET-ZEROFUTURE

Date

Speakers

SpeakerAffiliations

Attendees

QuestionsincludedinthisBrief

23April,2021

?PeterSherk

?SyrieCrouch

?RyanEdwards

?JannickeBjerkas

?WabashValleyResources

?Shell

?OxyLowCarbonVentures

?FortumOsloVarme

792

51

7May,2021

?MattVining

?SusanHovorka

?Jean-PhilippeHiegel

?IanHunter

?NavigatorEnergyServices

?UniversityofTexas,Austin

?NorthernLightsCCSProject

?NetZeroTeesside&NorthernEndurancePartnership

557

29

21May,2021

?ShuchiTalati

?LeeBeck

?JenaLococo

?ShannonHeyck-Williams

?OfficeofFossilEnergy,DOE

?CleanAirTaskForce

?ClearPath

?NationalWildlifeFederation

465

21

3

Basedonattendancestatisticsalone,theseriesdemonstratedahighlevelofinterestinCCS.Thewebinarsaveraged605attendeeswithamaximumof792andaminimumof465from55countrieson6continents.Moreimportantly,thesewebinarsgeneratedanextraordinarynumberofquestions–101intotal.Theirbreadthanddepthemphasisedthemanytechnological,financial,geographical,social,andpoliticalaspectsofCCSthatmustbemettoachievethescale-uprequiredtomanageclimatechange4.ThesequestionsalsoclearlyindicatetheneedformoreeducationalmaterialsonCCS.

Thisbriefseekstofillthatvoidbyansweringthe101questionsfromtheCCS101webinars.Itshouldbeanespeciallyeffectiveeducationaltoolbecauseitdeals

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

withspecificthemesintheCCSuniversethatareeithermisunderstood,mischaracterized,ormissinginformationtoaverydiverseaudiencecomposedofexpertsandnon-expertsalike.Indeed,questionscamefromindustryrepresentatives,academics,CapitolHillstaffers,membersofthepress,andthegeneralpublic.Somewereextremelytechnicalandsomequitegeneral.Accordingly,somerequireddetailed,nuancedanswersandsomenomorethanafewwords.Regardless,withnearly1000peopleattendingatleastonewebinarintheCCS101Series,itislikelythatthesequestionsrepresentthequeriesofabroadswathofthepublicinterestedindevelopingorinvestinginaCCSproject.TheanswersprovidearichtableauofinsightsintothecurrentstatusandfuturepotentialofCCS.

2.0CRITERIAANDCOLLATIONOFTHECCS101WEBINARS’101QUESTIONSANDANSWERS

Selectingquestionstoincludeinthisbriefwasnotrivialundertaking.Attheendofeachwebinar,Zoom,(theInstitute’swebinarplatform)generatedaQ&AreportinMicrosoftExcel.EachrowinthereportrepresentedadiscreetquestionorcommentpostedinZoom’sQ&Afunctionduringthewebinar.Commentarywasnotincludedinthisbrief,andnotallrowsintheQ&Areportgeneratedquestionsthatwereselectedforthisbrief.Forexample,thefirstwebinar’sQ&Areporthad160rowsofquestionsorcommentstosortthroughofwhich51wereincludedinthisbrief.

Acriteriawasdevelopedtoselectsuitablequestions.First,thequestionshadtobegermanetoCCS.Second,theauthorofthisbriefhadtounderstandthequestion.Third,questionsofaspeculativenature(e.g.,“DoyouthinkacertainbilldealingwithCCSintheU.S.Congresswillpassthisyear?”)weregenerallydiscardedunlesstheitemofspeculationallowedtheauthortoexpoundonanimportantpoint.Fourth,onlyquestionswithbroadinteresttoageneralaudiencewereanswered,andthosethatfocusedonspecificprojects(e.g.,“HowistheWabashValleyResourcesprojectfinanced?”)orthosethatweredirectedatspecificpeopleweretypicallyomittedunlesstheprojectservedasamodelforthelargerindustry.

Somequestionswereaskedmultipletimesbydifferentindividuals(e.g.,aboutthesafetyandlongevityofundergroundstorage),inwhichcasethequestionwascountedonlyoncebutflaggedinparenthesestoincludethenumberoftimesitwasasked.Allquestionswerekeptanonymous.Inaddition,somewereparaphrasedforclarity,butasmuchaspossibletheauthorhastriedtomaintaintheoriginalintentandphrasingofthequestion.

Thisbriefarrangesquestionsineightcategoriesaccordingtocertainbroadthemesratherthaninchronologicalorderbywebinar.Somequestionscouldbeplacedinseveralcategoriesinwhichcasetheauthormadeajudgmentcallaboutthemostappropriatecategory.Allquestionsarenumberedtomakeiteasiertonavigatethisbrief.QuestioncategoriesandnumberscanbefoundinTable2.

Asmuchaspossible,thisbriefseekstoanswerquestionsusingGlobalCCSInstitutepublicationsanditsmultimedialibrarypresentations.Inthisway,thebriefunderscoresthewealthofInstituteeducationalmaterialsfreelyavailabletothegeneralpublic.

Table2.The8categoriesusedtogroupwebinarquestions.

QUESTION

CATEGORIES

QUESTIONNUMBERS

QuestionsaboutandfortheInstitute

CCSTechnology

CCSEconomics–Costs&Financing

CCSTransport

CCSStorage

CCSGeography

CCSPolicy

1-6

7-14

15-20

21-33

34-63

64-74

75-99

CarbonUtilisation

100-101

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101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

INCONSTRUCTION

?Undertakeremianingdetaileddesign

?Buildorganisationtocomissionandoperateasset

?Undertakeconstructionactivites

?Undertakecomissioning

OPERATING

?Operatetheassetwithinregulatorycompliancerequreiments,fortheoperatinglifeoftheasset

?Preparefordecommissioning

3.0101QUESTIONSANDANSWERSFROMTHECCS101WEBINARSERIES

3.1QuestionsaboutandfortheGlobalCCSInstitute

1.HowoftendoestheGlobalCCSInstituteupdateitsCO2REprojectsdatabase?

A.TheGlobalCCSInstituteupdatesitsCO2RE(projects)database5twiceperyear.

2.HowdoestheInstitutecharacterizeitsprojectsinitsCO2REdatabaseintermsofstagesofdevelopment?Arealloftheprojects“indevelopment”stagespost-FinalInvestmentDecision(FID)?

A.TheInstitutecharacterizesitsprojectsintheCO2REdatabaseinsixdifferentways:“earlydevelopment”and“advanceddevelopment”(whicharebothpre-FinalInvestmentDecisionstages),“inconstruction”and“operating”(whicharebothpost-FinalInvestmentDecisionstages),and“suspended”or“completed”(whichmeanstheCCSfacilitydidcaptureCO2atonepointbutiscurrentlynotcapturingordidcaptureCO2andisintheprocessofdecommissioning).Thischart(below)willhelpclarifyourprojectstatuscharacterization.

EARLYDEVELOPMENT

?Examineshortlistedoptionsandsub-options

?Establishifanyfatalflaws

?Selectonebestoptionfortakingforward

?“Whatshoulditbe?”

?Feasibilitystudies

?Estimateoverallprojectcapitalcost(20-25%)andoperatingcosts(10-15%)

?Siteassessmentstudies

ADVANCEDDEVELOPMENT

?Examineselectedoptionandprovidefurtherdefinitiontoallowinvestmentdecisiontobemade

?Demonstrateatechnicaland

of

?“Whatwillitbe?”

?FEED

?Estimateoverallprojectcapitalcost(10-15%)and

operatingcosts(5%)

?Siteselectionstudies

economicviabilitytheproject

FINALINVESTMENTDECISION

COMPLETION

?Assetdecomissioning

?Post-injectionmonitoringprogrambringimplemented

DECOMMISSIONED

5

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

6

3.DidyousaythefirstCCSprojectwasstartedin1972?AreyoureferencingthefirstExxonprojectwithCO2beingusedforenhancedoilrecovery(EOR)?

A.Thatiscorrect.ThefirstCCSprojectstartedcapturingCO2in19726(thoughconstructionstartedin1971)onanaturalgasprocessingplantinTerrell,Texas.ThecapturedCO2wasthentransportedbypipelinetoanEORfield.

4.Whatwouldbetheearliestcarboncapture,useandstorage(CCUS)canbecomecommercializedtobeabletoworktowardsnet-zero?

A.CCUSisalreadycommercialized.Thetechnologyworksandtherearecurrently26commercial,operatingCCSfacilitiesaroundtheglobethatareengagedinactivecaptureandstorageofalmost

40milliontonnesperannum(Mtpa)7.Todate,300milliontonnesofCO2havealreadybeencapturedaroundtheglobeandpermanentlystored.Theseemissionsreductionsarehelpingtomitigateclimatechange.StrongpoliciesandinvestmentinCCSwillfurtherhelpcommercializethetechnologytoaccelerateitsdeploymentonthemuchlargerscaleneededtodefeatclimatechange.

5.IfyourcompanyisdevelopinganewCCUStechnologywhatareyourrecommendationsforconnectingwiththeappropriateagenciesorindividuals?

A.ReachouttotheInstitute(americasoffice@),andwewillhelpyoufacilitatethoseconnections.TheInstituteiswellconnectedtotheDepartmentofEnergy(oneofourmembers),businessesandgovernmentsandcandirectyoutotheappropriateplace.

6.Doanyofthepanelistshaveanyrecommendationsforstudentsorearly-careerprofessionalswhoareveryinterestedinCCS?(X2)

A.TheInstituteisthrilledtoseesuchenthusiasmaboutCCS.Agoodplacetostartiscontinuingtoattendwebinarslikethis.Studypolicy,finance,engineering,economics,orlawandfocusyourstudiesonaspectsofCCSthatrelatetotheseknowledgefields.WorkforacompanythatemploysCCS,andinyourjobinterviewspecifythatyouwanttoworkonthetechnology.DemonstratethatyoualreadyknowasignificantamountaboutCCS.Employerswillseeyourpassion,andsomebodywillgiveyouanopportunitytoshine.

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

3.2QuestionsaboutandfortheGlobalCCSInstitute

7.Whatisthedifferencebetweenpre-combustionandpost-combustioncarboncapturetechnologies,andhowcantheybeusedmoreinthefuture?

A.(SeetheInstitute’sdiagramsandwebpageformoreinformation.)Pre-combustionandpost-combustioncarboncapturerefertothetwopredominanttypesofCO2capture8.Pre-combustiontechnologiesseparateacarbon-basedfuelintoCO2andH2beforetheH2portionofthefuelisconvertedintoenergy.TheCO2canthenbecompressedandstored.Post-combustionreferstocapturingCO2fromtheexhaustgasesthatarereleasedafteracarbon-basedfuel.Pre-combustiontechnologyiscurrentlybeingusedinindustrialprocessessuchaschemicalsproduction.Post-combustiontechnologyismorewidelyusedatpresentandisbeingemployedforpowergenerationfacilitiesaswellascapturefromethanol,etc.Thetechnologyforpost-combustiontechnologyisveryadvancedandwilllikelycontinuetobewidelyusedwhilepre-combustionwillonlybeemployedonnewpowergenerationfacilitiesnotexistingplants.

8.Aretherenewcarboncapturechemicalprocessesbeingdiscovered?

A.Newcarboncapturechemicalprocessesarebeingdevelopedallthetimebecauseinnovativeresearchanddevelopment(R&D)continuesattheU.S.DepartmentofEnergy9andmanyotherpublicandprivateresearchorganizationsandcompaniesaroundtheglobe.Readourreport,TechnologyReadinessandCostsofCCS10,togetadetailedviewofnewcarboncaptureprocesses.AndsubscribetotheGlobalCCSInstitute’sNewsletter11tostaycurrentonallofthelatestCCSnews.(Forexample,ourMay,2021NewsletterhighlightsthatNetPowerjustrecentlyannounceditsplanstobuildtheworld’sfirstzeroemissionsnaturalgaspowerplants12–anenormousleapincarboncaptureinnovation.)

9.DoesCCSdecreasetheefficiencyofpowerplants,thusincreasingtheirgenerationcosts.

A.Justlikeotheremission/pollutionremovaltechnologies,CCSrequiresenergyinputandextraequipmenttofunction,thusreducestheefficiencyofpowerplants.PleaserefertoNETL’sreport:“CostandPerformanceBaselineforFossilEnergyPlants13”:

?CCScapturing90%CO2reducesthePlantEfficiency(HHV)ofthesupercriticalcoalfiredpower(SCPC)plantfrom40.3%to31.5%,buttheCO2emissionisreducedfrom777Kg/MWhto

99Kg/MWh.

MedianLCOE(USD/MWh)

COAL

NUCLEAR

ONSHOREWIND(>=1MW)

SOLARPV(UTILITYSCALE)

COAL

GAS(CCGT)

NUCLEAR

ONSHOREWIND(>=1MW)

OFFSHOREWIND

SOLARPV(UTILITYSCALE)

COAL

GAS(CCGT)

NUCLEAR

ONSHOREWIND(>=1MW)

OFFSHOREWIND

SOLARPV(UTILITYSCALE)

GAS(CCGT)

NUCLEAR

ONSHOREWIND(>=1MW)

OFFSHOREWIND

SOLARPV(UTILITYSCALE)

COAL

GAS(CCGT)

NUCLEAR

ONSHOREWIND(>=1MW)

OFFSHOREWIND

SOLARPV(UTILITYSCALE)

?CCScapturing90%CO2reducesthePlantEfficiency(HHV)ofthenaturalgascombinedcyclepower(NGCC)plantfrom53.6%to47.7%,buttheCO2emissionisreducedfrom342Kg/MWhto38Kg/MWh.

ThereareemergingCCStechnologies,whichrequireconsiderablylowerenergyconsumption(forexample,carboncaptureregenerationdutyreducesfrom3.5GJ/tonneCO2of1stgenerationcapturetechnologyto2.4GJ/tonneCO2of2ndgenerationcapturetechnologyincoalfiredpowergeneration).Thiswillfurtherminimizetheimpactontheenergyefficiencyofpowerplants.

10.CanCCSpowergenerationprojectseconomicallycompetewiththerenewablepowergeneration?

A.Whentalkingabouttheeconomiccompetenceinelectricitygenerationtechnologies,weusedtorefertothelevelizedcostofelectricity(LCOE).See

thefollowingFigureES2,fromIEA’s“ProjectedCostsofGeneratingElectricity202014,”(Seebelow.)theeconomiccompetenceofrenewableisdependentondifferentcountries/regions.Eveninthesamecountry/region,theavailabilityofrenewablesisdiverseindifferentareas.Thusrenewablesmaybeconsideredeconomicalinoneplace,butlesssoinothers.

Plus,renewabletechnologiesarevariablepowergenerationtechnologies(meaningnotalwaysavailable),inwhichtheLCOEisincompletetoreflect,orcomparewithdispatchabletechnologies.IEAisintroducingValueAdjustedLevelisedCostofElectricity(VALCOE)andUSEIAisintroducingtheLevelisedAvoidedCostofElectricity(LACE).BothVALCOEandLACEaresimilartoconsider:

?Energyvalue

?Flexibilityvalue

?Capacityvalue

250

200

150

100

50

INDIAUNITEDSTATESCHINAEUROPEJAPAN

Note:Valuesat7%discountrate

7

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

USD/MWhUSD/MWh

COAL

GAS(CCGT)

GAS(GT)

NUCLEAR

SOLARPVWITHSTORAGE

ONSHOREWIND

OFFSHOREWIND

SOLARPV(UTILITYSCALE)

COAL

GAS(CCGT)

GAS(GT)

NUCLEAR

SOLARPVWITHSTORAGE

ONSHOREWIND

OFFSHOREWIND

SOLARPV(UTILITYSCALE)

SeeFigure4.5forthecompetitivenesscomparisonaftertheadjustment.However,IEA/EIAarestillworkingonthenewmatrixwiththeinclusionofCCS.Asmentioned,pleasereadIEA’sProjectedCostsofGeneratingElectricity2020andU.S.EIA’sLevelizedCostsofNewGenerationResourcesintheAnnualEnergy15formoreinformation.

20

0

-20

-40

-60

-80

-100

20

0

-20

-40

-60

-80

-100

ENERGYCORRECTION

CAPACITYCORRECTION

FLEXIBILITYCORRECTION

By2025,valueadjustmentsarealreadyimportantinevaluatingthecompetitivenessofsolarPVwithoutstorage,andremainimportanttopeakingplantslikeopen-cyclegasturbines.

8

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

11.Whataretheemissionscreatedtocapture(scrubtheamine)andcompresstheCO2,anddoyouthinkthattheseemissionscanbereducedoreliminatedlongterm?

A.Thisdependsonthecaptureprocessused.Adsorption-basedcaptureprocessestendtorelyonthecompressionenergyusedtodrivetheseparation–inthiscase,theemissionsarethoseassociatedwiththeelectricitysupplytothegascompressororvacuumpump.Solvent-basedcapturerequiresthesolventtoberegeneratedwithheat.Iftheheatisavailablefromthehostplant(e.g.ifit’sacombinedheatandpowerunit)thennoadditionalemissionswouldbeproduced.Iftheheatsource(usuallysteam)isrequiredtobegeneratedseparately,thentherewouldbecombustionemissionsfromthesteamgenerationplant.CO2compressionistypicallydonewithelectricallydrivencompressors.Hencetheemissionsarethoseassociatedwiththeelectricitysourceused(scope2emissions).

12.AreanychemicalsconsumedorwastedintheCO2captureprocessandthusmustbereplaced?

A.Aminebasedcaptureplantsusuallyexperiencesolventdegradationovertime.Eventuallythesolventneedstobereplaced.Thisisanongoingareaofresearchtounderstandandminimisedegradation.Non-amineprocesses(e.g.thoseusingpotassiumcarbonatesolvents,ormembrane-basedcaptureplants)donothavesignificantchemicalconsumptionorwasteproduction.

13.Whataretheadditionalcostsofliquefyingwithregardtocompression?

A.Thecostsofbothliquefactionandcompressionareverydependentonthescaleofoperation,andsoneedtobeassessedonacase-by-casebasis.However,generallyliquefactionismoreexpensivethangascompression,butistypicallydonewhenshipsarerequiredforCO2transport.

9

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

300

250

200

150

14.HowcanyouproducenetnegativefuelsusingCCS?

A.CCScanbeusedtoproducenetnegativefuelsthroughaprocessknownasbioenergywithcarboncaptureandstorage(BECCS).WhenplantsorotherphotosyntheticorganismscaptureCO2andconvertitintosugars

usingphotosynthesis,thatreactionrepresentsanetnegativecaptureprocessbecausephotosynthesisremovesCO2fromtheatmosphereandconvertsitintoasolid.IftheenergyinthesugarsoftheplantsisthenconvertedintoafuelatabioenergyrefineryandalloftheCO2iscapturedintheprocessoffuelconversion,theresultingfuelwillbeanetnegativefuelbecausemoreCO2iscapturedintheprocessofphotosynthesisthanisomittedinburningthefuel.WatchavideorecapofanInstitutewebinarwhereweexplaintheprocess16.

3.3CCSEconomics–CostsandFinancing

15.WhatarethepertonnecapturecostsofCCSondifferentapplications(e.g.,ethanol)includingdirectaircapture(DAC)?(X3)

A.TakealookatFigure12fromourreport,TechnologyReadinessandCostsofCCS17,postedbelow.Thecapturecostsforethanolarebelow$20(USD)/tonne.ForDAC,itisfarmoredifficulttodeterminethecostbecausecurrentlytherearenofacilitiesoperatingonalargescale.Thecapturecostestimatesrangefrom$200-$600/tonne.

Figure12-Costofcarboncaptureinvarioustypesofpowerandindustrialprocesses,excludingdownstreamCO2compression.

100

50

0

REFINERY

CEMENT

IRON&STEEL

POWERGENERATION

INDUSTRYSECTORS

10

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

CostofCarbonCapture(USD2020pertonneCO2

16.WhatrateofcostreductionisexpectedforCCSgiventhattheengineeringismodularforotherenergyindustriessuchaswindturbinesandsolarpanels?

A.ReadSection9ofourreport,TechnologyReadinessandCostsofCCS18,wheretheInstitutediscusses“CostReductionOpportunitiesinCarbonCapture.”Insummary,therearesignificantopportunitiesforcostreductionthrougheconomiesofscaleandmodularisationofCCS.Figure13fromSection9ofourreportispostedbelow,anditshowsthecostreductionsinpowergenerationforNaturalgascombinedcycle(NGCC)andSupercriticalPulverisedCoal(SCPC).

Figure12-Costofcarboncaptureinvarioustypesofpowerandindustrialprocesses,excludingdownstreamCO2compression.

140

120

100

80

60

40

20

NGCC

SCPC

1.21.5

CO2CaptureCapacity(Mtpa)

17.GiventherelativelylowconcentrationofCO2intheaircomparedtointhefluegassesofpowerplantshowcanDirectAirCapturebemadeeconomic?Whatcarbonpriceisneeded?

A.ItismuchmorecostlytocaptureCO2fromtheatmosphere(concentrationof0.04%)thanitisinthefluegassesofapowerplant.However,withfurtherinnovation,investmentintransportandstorageinfrastructureandstrongpolicies(includingplacingamuchhighervalueonCO2reductionsandclarifyingkeyregulatoryissues)DirectAirCapturecouldexperienceamuchmorewidescaledeployment.

18.Canthepanelcommentontheavailabilityoffundingforthesefirst-of-a-kindordemonstrationprojects.Whereisthecapitalcomingfrom?

A.Todate,theU.S.DepartmentofEnergyhasfundedninelarge-scalefirst-of-a-kindCCSprojectsinthelastdecade,andsomearestilloperating19.Inaddition,theEnergyActof2020passedattheendof2020authorized$2.6billion(USD)for6newdemonstrationprojects.TheU.S.Congress,however,mustappropriatethismoneybeforeitcanbespentonfirst-of-a-kinddemonstrations.InEurope,theEUETSInnovationFundisexpectedtobecomeoneofthemaindriversforfinancingfirst-of-a-kindCCUSprojects.Withthecurrent

11

101QUESTIONSAND101ANSWERSFROMTHECCS101WEBINARSERIES

EUETScarbonpricefluctuatingaround50EUR,thesizeofthefundwouldbe22.5billionEURfortheten-yearperiodof2021-2030.Thefirstlarge-scalecallsawover60CCUSprojectapplications.TheInnovationfundisexpectedtobeamajorsourceoffundingforboththeplanning,andtheconstructionandoperationofCCSacrosstheEU,andthisexpectationisfurtherstrengthenedbytherecentEuropeanCommissionproposaltodoublethesizeoftheInnovationFundduringthenextEUETSreview.

19.Onthetopicofcosts,areanyofyoualsocalculating(orthinkingabout)thecostofCO2avoided(mostrelevanttoclimatechange)asopposedtothelowercostofcapture?

A.Yes.Thisiswhyitisimportanttoconsidertheemissionsassociatedwiththeenergysupplyinanycaptureprocess.ExternalemissionswouldreduceCO2avoided.Butiftheenergysourcecomesfromthehostplant(e.g.aCHPunit)thentheemissionsarealreadybeingcapturedandaccountedfor.

20.HowmuchcanweexpectenergycoststorisetofundCCS?Arethereanyreliableprojections?

A.WhileoperatingaCCSfacilitydoesrequireenergy,thereisnoreasontobelievethatacompany’svoluntarydecisiontofundaCCSprojectwillresultinhighenergycoststothecompany’sclientbase.Taxcreditslike45QandtheabilitytosellCO2foruseinEOR,thefoodandbeverageindustry,etc.typicallyprovideadirectfinancialincentivetoacompanythatinstallsCCSequipmentintheU.S.Ingeneral,however,therearetoomanyunknownsintheworldofenergysupplyanddemandtoforecastenergycostsinthefuture(andespeciallyonaglobalscale).

3.4CCSTransport

21.Won’ttheenergyconsumedinoffshoretransportofCO2begreaterthantheclimatevalueofstoringtheCO2?

A.No,theCO2emissionsincurredforoffshorestoragewillbeatinyfractionoftheemissionsreducedthroughthetransportandstorageofCO2offshore.

22.WhatarethelimitationstotransportingtheCO2andH2gaswithcurre