GLOBAL CCS INSTITUTE

THE GLOBAL STATUS OF CCS: 2010

& FINANCE WORK GOING FORWARD
Larry Hegan, Senior Policy Adviser

WWW.GLOBALCCSINSTITUTE.COM
GLOBAL CCS INSTITUTE

The Global CCS Institute

The Institute works collaboratively to build and share the
expertise necessary to ensure that carbon capture and storage
(CCS) can make a significant impact on reducing the world’s
greenhouse gas emissions.
FACT-BASED ADVOCACY:
 using facts to inform and influence domestic and international low carbon policies;
 supporting the commercialisation of CCS by advancing the understanding of
appropriate funding and financing solutions and risk regimes; and
 increasing the awareness of the benefits of CCS and the role it plays within a
portfolio of low carbon technologies.

ASSISTING PROJECTS:
 bridging knowledge gaps between demonstration efforts; and
 developing project specific solutions particularly amongst early movers.

SHARING KNOWLEDGE:
 collecting information to create a central repository for CCS knowledge; and
 analysing and disseminating information to fill knowledge gaps and build capacity.
GLOBAL CCS INSTITUTE

The Global Status of CCS: 2010 (March 2011)

 Government Funding
 Project Status
 CO2 Storage
 CO2 Networks
 Legal and Regulatory
Developments
 CCS Costs
 Knowledge Sharing
Initiatives
 Public Engagement

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GLOBAL CCS INSTITUTE

Governments are acting to advance CCS,

including US$25B in financial support …

Government CCS funding initiatives from 2005 to 2010

GLOBAL CCS INSTITUTE

Governments are acting to advance CCS,

including US$25B in financial support …

Government CCS funding initiatives from 2005 to 2010

• 80% to large-scale
demonstration projects
• Over 50% in the form of
direct grants
GLOBAL CCS INSTITUTE

… majority in 9 ‘countries’; only 50%

allocated, mostly to 29 large-scale projects

Public funding support commitments to CCS by country

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Public financing is essential to accelerate

pre-commercial demonstration phase …

Public funding support commitments to CCS by country

… though currently focused in

Europe and North America
• Similarly for other policy
‘incentives’ (incl. carbon price)
• CDM still pending final approval
• EOR opportunities being
explored in Asia and Middle East
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Status of projects according to Asset

Lifecycle Model …
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… with significant hurdles for a Final

Investment Decision

• Proven storage • Challenging

• Financing (public and private) for any
• Legal certainty project in any
• country
Regulatory permits
• Exacerbated
• Government taking long-term
in some
liability
countries
GLOBAL CCS INSTITUTE

77 large-scale integrated projects

(LSIPs), an increase of 13 since 2009

LSIPs by asset lifecycle in 2009 and 2010

GLOBAL CCS INSTITUTE

77 large-scale integrated projects

(LSIPs), an increase of 13 since 2009

LSIPs by asset lifecycle in 2009 and 2010

2/3 coal
fired
power

All in oil and gas and

industrial sector; 8 out
12 EOR
GLOBAL CCS INSTITUTE

Concentration of projects in certain

regions, with almost half in power sector …

LSIPs by industry sector, storage type and location

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… but with still relatively few in Asia

LSIPs by industry sector, storage type and location

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Costly with rising estimates; CCS

increasing power plant costs by 40-75% …

Installed capital costs for 550MW net generation

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… which combined with risks are difficult

to overcome

Challenges in developing Role for:

countries:
• MDAs
• Political risks
• Int’l funding
• Institutional constraints mechanisms (e.g.
• Lack of government UNFCCC)
resources – e.g. for • Capacity
proving storage Development Prog’s
• Less developed
financial markets??
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Finance issues addressed across the work plans
of the Institute
Financial and Commercial (F&C) Team:
1. Financial Model – with Japan Bank for
International Cooperation
2. Evaluating Financial Support Structures –
with Clinton Climate Initiative
• Market sounding on impacts of risk on
financing
• Structures to facilitate private sector
financing
• Developed vs Developing Countries
3. Identifying funding mechanisms for CCS
projects in developing countries
4. F&C ‘Centre-of-Excellence’/Knowledge
Sharing Network
5. Cost benchmarking survey
• Comparing between CCS projects
6. F&C Steering Group
Policy, Legal, Regulatory Team:
• Inform inclusion of CCS in UNFCCC – incl.
CDM, GreenFund, Tech Centres
• Issues paper on CCS networks
• Quarterly issues papers on nature and
sufficiency of CCS incentives policy
Chief Economist:
• Cost Analysis
• Comparison across technologies
• Cost reduction opportunities
• Commercial pathways for CCS
• Financial liability for stored CO22
• Funding database
Capacity Development Team:
• Countries of Focus / Engagement
Strategies: China, India, Indonesia,
Malaysia, Mexico, South Africa
• Partnerships with ADB, World Bank, UNIDO
 GLOBAL CCS INSTITUTE

Collecting insights from projects, financial

community, technology providers, etc.

Including
from projects
the Global
CCS Institute
is supporting
directly …

17
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Finance knowledge sharing ‘hub’ on digital

platform
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THANK YOU
larry.hegan@globalccsinstitute.com

www.globalccsinstitute.com