CCSA Weekly Newsletter Issue 242 Week 3, 16 January 2014 UK News International News Events UK News About CCSA The Carbon Capture & Storage Association (CCSA) exists to represent the interests of its members in the business of capture and geological storage of carbon dioxide (known as Carbon Capture and Storage, or CCS) as a means of abating atmospheric emissions of carbon dioxide and potentially, as a means of enhancing the production of fossil hydrocarbons. From its base in London the CCSA brings together specialist companies in manufacturing & processing, power generation, engineering & contracting, oil, gas & minerals as well as a wide range of support services to the energy sector such as law, banking, consultancy and project management. The Carbon Capture and Storage Association 6th Floor 10 Dean Farrar Street London SW1H 0DX Tel: +44 (0) 20 3031 8750 Fax: +44 (0) 20 7222 4253 East Lancs scheme to create new ‘green’ jobs David Cameron says 2020s decarbonisation target “extremely unwise” European carbon project could create 2,000 jobs Government's £1m for Teesside Loughborough University International News Researchers size up aquifer to capture carbon Record of Decision Issued for FutureGen Proposed NSPS for GHG Emissions from Power Plants Capturing CO2 In the Flue Gas from a Coal-Fired Power Generation Plant EU adopts measures to support CCS How Cleantech, Env Fared In $1 Trillion Spending Bill Carbon Reduction Technologies in Industry Norwegian leaders called to parliamentary hearing on Mongstad debacle [email protected] www.ccsassociation.org To be considered by the Board for Membership please contact: [email protected] EPA agenda suffers setback CO2 Capture Needed For EU To Meet Low-carbon Target Germany's 'impractical dream'? Decade of Carbon Storage Research through Partnership Carbon Capture and Storage Advancement Is Urgent New EPA Rules Would Effectively Kill Coal Carbon Markets Show Glimmer of Recovery in 2014 EIB sold 16.8M CO2 permits in December for Eur81.7M Events Page 1 of 7 UK News East Lancs scheme to create new ‘green’ jobs is backed by European Parliament 15 January – Mr Davies believes the United Kingdom is the best-placed country in Europe for CCS development will be cheaper subsidising offshore wind and solar power.. He said: “The world is hugely dependent on the use of fossil fuels to generate electricity and CCS provides Britain with a major business opportunity. It is one we must not miss.” To read the full story David Cameron says 2020s decarbonisation target “extremely unwise” 14 January - Prime Minister says UK must develop carbon capture technologies before committing to tough emission goals Cameron added that if the government fixed such a figure before the roll-out of carbon capture and storage technologies “that would be a huge mistake”. Critics say no large scale CCS project is currently being developed in Britain because many energy companies say costs are too high and subsidies too low. 12 CCS projects up and running by 2015, and although millions were put aside to support the scheme, so far none of the projects in the pipeline have been approved. Ms McAvan who leads for all Labour MEPs on environmental matters, said; “The Government missed the opportunity to win funding for the Don Valley CCS project last year and we cannot afford to let the same opportunity pass us by with the White Rose project at Drax power station. I am really pleased that the government has now committed to undertaking a 2 year research project at Drax in the hope of making a final investment decision at the end of the project.” To read the full story Government's £1m for Teesside is welcomed by Carbon Capture and Storage chiefs 14 January – The companies behind a sidelined scheme to bring Carbon Capture and Storage (CCS) to Teesside say the area’s recent City Deal announcement could help their cause. Teesside Low Carbon (TLC) says there’s still a “real chance” their project can happen, despite a Government pledge of £1m for separate research into an industriallybased CCS network. The consortium wants to bring a coalfired power station and connecting pipeline to transport its emissions below the North Sea, costing several billion pounds. It made a shortlist of four UK projects last year in a £1bn Government competition, but lost out to a Yorkshire scheme and was laced in reserve. Meanwhile, the Government announced plans last month for Teesside to pioneer industrially-based CCS, which will use the technology to ease pressure on heavy carbon emitters that are facing increasing pollution taxes. CCS is the only method currently available to significantly reduce carbon emissions, by piping them out to voids below the seabed. To read the full story To read the full story European carbon project could create 2,000 Yorkshire jobs 14 January - A European anti-pollution project could bring 2,000 jobs to Yorkshire. Euro MP, Linda McAvan is throwing her weight behind a report which will go before the Parliament’s Environment Committee tomorrow, hoping to unlock Carbon Capture and Storage (CCS) projects. The EU’s member states agreed in 2007 to have Page 2 of 7 Loughborough University - New Centres aim to develop enterprising researchers to tackle today's evolving issues 13 January – Loughborough University is to lead a new Centre for Doctoral Training (CDT) in Embedded Intelligence and will be a partner in a second focusing on Carbon Capture and Storage and Cleaner Fossil Energy. The Engineering and Physical Sciences Research Council (EPSRC) Centres are two of 19 announced yesterday by Universities and Science Minister David Willetts. The new CDTs are in addition to the centres unveiled by the EPSRC in November 2013. Loughborough is a partner in five of the CDTs announced last year. To read the full story International News Researchers size up aquifer to capture carbon 16 January - A Perth-based hydro-geologist has led a team of scientists modelling carbon sequestration in the Latrobe aquifer, below Bass Strait's ocean floor. CSIRO expert Karsten Michael says the Latrobe Aquifer was examined because of its proximity to coal-fired power plants. To read the full story Record of Decision Issued for the FutureGen 2.0 Project 15 January - The U.S. Department of Energy (DOE) has decided to provide financial assistance to the FutureGen Industrial Alliance (the Alliance) for the FutureGen 2.0 Project. DOE will provide approximately $1 billion of in cost-shared funding (the majority of which was appropriated under the American Recovery and Reinvestment Act) through cooperative agreements with the Alliance, as described in DOE's Record of Decision (ROD). DOE's decision is to implement the proposed action in the Final Environmental Impact Statement (EIS) for the FutureGen 2.0 Project (DOE/EIS-0460). To read the full story Page 3 of 7 Proposed NSPS for GHG Emissions from Power Plants Could Have Wide-Ranging Implications For Other Sectors 15 January - On January 8, the Environmental Protection Agency issued a revised proposed new source performance standard (NSPS) regulating carbon dioxide (CO2) emissions from new electric utility generating units. 79 Fed. Reg. 1430 (January 8, 2014). The proposal, if finalized, would mark the first NSPS for greenhouse gas (GHG) emissions established by EPA, and if it survives review on a number of fronts, could open the door for broad regulation of these emissions from a host of source categories already regulated under the NSPS provisions, including those in the petrochemical and manufacturing industries To read the full story Demonstration Test for Capturing CO2 In the Flue Gas from a Coal-Fired Power Generation Plant Completes Initial Demonstration Phase 14 January - A demonstration test for capturing and sequestering carbon dioxide (CO2) recovered from emissions from a coal-fired power generation plant, conducted jointly by Mitsubishi Heavy Industries, Ltd. (MHI) and Southern Company Services, Inc. (SCS), has completed an initial demonstration phase. This success brings into view the feasibility of a large-scale capture system for CO2 recovered from coal-fired power plants, which typically emit flue gas containing significant quantities of impurities. Based on this success, MHI will now accelerate its program seeking to achieve commercially viable technology for recovering CO2 from the flue gas of coal-fired plants. To read the full story EU adopts measures to support CCS 14 January - The EU Parliament has backed a motion by MEP Chris Davies to increase support for CCS technology. Dr. Graeme Sweeney, Chairman of the Zero Emissions Platform (ZEP), commented: “We welcome the result of today’s vote, which is a clear step in the right direction for Carbon Capture and Storage in Europe. We commend the ambitious efforts of MEP Davies and all the supportive MEPs for the success of today’s vote. MEP Davies has identified the necessary elements for creating the right environment for CCS roll-out. Calling on the European Commission to conduct an analysis on the possibility of a certificates system for long-term funding of CCS development is a welcome step towards identifying appropriate financing mechanisms. CCS certificates, if carefully designed for a defined volume, are one of the instruments to consider, certainly in the short term. To read the full story How Cleantech, Environment Fared In $1 Trillion Spending Bill 14 January - Only days before the government financing runs out, the House and Senate agreed on a $1 trillion compromise bill that appropriates funds for federal government agencies through September 30, 2014. Funding for carbon capture and storage research got a boost at $390 million. To read the full story intended to eventually become a full-scale CCS demonstration site. Since the announcement in the autumn of 2013 that these plans would be scrapped, project initiators and managers have faced fierce criticism. Although the new Norwegian government has confirmed that TC Mongstad will at least continue as a high-end test centre, both old and current ministers will face questioning on January 22 and 23 during a parliamentary hearing of the control and constitutional committee. Bellona President Frederic Hauge will also be in attendance.Those responsible for the mismanagement which led to a serious reduction in ambition levels for the much needed demonstration of CCS, will now have to answer for their actions. To read the full story EPA agenda suffers setback as clean coal plant project is derailed 13 January - A project that was supposed to prove the Environmental Protection Agency’s rules for new coal plants can work has suffered a serious setback. The Texas Clean Energy Project has just lost the buyer of its electricity, a possible death blow to a project already beset by problems. Carbon Reduction Technologies in Industry 14 January - Research and Markets has announced the addition of the Moving toward Sustainability - Carbon Reduction Technologies in Industry (Technical Insights) report to their offerings. The objective of this research is to report on the market penetration of carbon reduction technologies, specifically in reducing emissions of carbon dioxide (CO2) in the manufacturing industry, and map their technological development until 2025. The research scope is focused on carbon capture and storage (CCS) technologies applied in industries that will contribute to reducing carbon emission by 2050. To read the full story Norwegian leaders called to parliamentary hearing on Mongstad debacle 14 January - The CO2 Capture and Storage (CCS) Test Centre at Mongstad in Norway (TC Mongstad) was At the end of last year, Texas utility CPS Energy pulled out of a 25-year agreement to buy power from the Texas Clean Energy Project. The project, run by Summit Power Group, is one of four coal projects in development using carbon capture and sequestration (CCS) technology that the EPA cited to justify its commercial viability. To read the full story CO2 Capture Needed For EU To Meet Lowcarbon Target, Expert Says Ahead Of Vote 13 January - If the European Union is to meet its low carbon aspirations at the least cost then Carbon Capture and Storage (CCS) has a major role to play, says Chris Davies, a British member of the European Parliament. Global temperatures could rise to dangerous levels if the world continues to burn fossil fuels at the current rate, experts warn. The risk could be reduced by capturing CO2 emissions before they enter the atmosphere and storing them underground, but progress on what is called Carbon Capture and Storage has been slow. MEPs are due to vote on Tuesday on a report by Chris Davies, who wrote on why the technology is so important. To read the full story Page 4 of 7 Germany's 'impractical dream'? New EPA Rules Would Effectively Kill Coal 11 January - Germany's Energiewende or Energy Path is leading Europe's dominant industrial power into wholly new territory. Sober bureaucrats see a 100% renewable energy economy by 2050 as technically feasible. Chris Goodall asks - have they all gone mad? 09 January - Environmental Protection Agency regulatory proposals published in the Federal Register Wednesday detail the agency’s plan to effectively ban the construction of new coal fired plants in the U.S. unless they include clean coal technology. We Brits haven't properly understood the scale of the German Energiewende, or energy transition. The new rules would require new coal plants to meet emissions standards that many people in the coal industry say are unachievable using current technology. New plants would be forced to incorporate carbon capture and storage (CCS), a costly and unproven “family of technologies and techniques that enable the capture of CO₂ from fuel combustion or industrial processes.” To read the full story Decade of Carbon Storage Research through Partnership 11 January - DOE has created a network of seven Regional Carbon Sequestration Partnerships (RCSPs) to help develop the technology, infrastructure, and regulations to implement large-scale CO2 storage (also called carbon sequestration) in different regions and geologic formations within the Nation. To read the full story Carbon Capture and Storage Advancement Is Urgent 10 January - With the release of its latest global status report in October, the Global Carbon Capture and Storage Institute (GCCSI) sees progress in CCS projects but says more work needs to be done to overcome policy barriers as well as demonstrate operational feasibility and present business cases for expanding the use of CCS. In an exclusive interview for Cornerstone, GCCSI chief Brad Page echoed key aspects of the report, “The Global Status of CCS: 2013,” and detailed how his organization balances the reality of coal’s primacy as a fuel with the desire to curtail greenhouse gas emissions enough to hold the increase in global temperature to below 2°C in the coming decades. Two coal-fired plants expected to come online in the U.S. and Canada in 2014 could be beacons for the capture and sale of CO2 for enhanced oil and gas recovery—providing vital exam- ples of how coal with CCS can deliver low-carbon electricity and increase domestic oil production. “We know that fossil fuels will continue to be the world’s primary source of energy,” Page noted. “Therefore, more projects are needed, especially in the power sector and in energy-intensive industries, where none currently exist.” To read the full story Page 5 of 7 To read the full story Carbon Markets Show Glimmer of Recovery in 2014 09 January - A year after the launch of its cap-and-trade program, California formally linked its emissions trading scheme with Quebec’s—enabling carbon allowances and offset credits to be exchanged between participants in the two jurisdictions. The linkage, which marks the first agreement in North America that allows for the trading of greenhouse gas emissions across borders, is designed to escalate the price on the amount of carbon businesses can emit. There is a “potential for this market to serve as an example for other North American subnational jurisdictions to follow if it can prove to be successful,” said Robin Fraser, a Toronto-based analyst with the International Emissions Trading Association. To read the full story EIB sold 16.8 million CO2 permits in December for Eur81.7 million 09 January - The European Investment Bank sold 16.8 million EU Emissions Trading System carbon allowances in December for a total value of Eur81.7 million ($111 million), the bank said Thursday. The bank said it sold 16.3 million allowances in direct screen trades on exchanges and 500,000 allowances in the over-the-counter market, at an average allowance price of Eur4.86. All allowances sold in December were for December 2014 delivery. To read the full story WHY ATTEND: Receive a comprehensive overview of CCS development in Europe and internationally Evaluate the current regulatory landscape and assess the urgent need for new incentive mechanisms and structures Discover the current state of play of CCS demonstration projects in Europe Understand what’s delaying projects with dedicated sessions focused on the key deployment barriers – commercialization, public support and storage risk Hear how the rest of the world is developing with unrivalled case-studies from around the globe Learn how CCS technology is advancing Book by December 13 & Save $600! Register today and pay only $1,399! Upcoming events To register: Vist: www.platts.com/ccs Call: +44 (0)20 7176 6300 Email: [email protected] New Horizons in Gasification Conference 10-13 March 2014, Rotterdam, The Netherlands The programme for the New Horizons in Gasification conference is available for viewing and downloading. 8th Annual European Carbon Capture and Storage February 18 – 19, 2014 • Marriott Brussels, Belgium CCS today and needs for the future Platts 8th Annual European Carbon Capture and Storage conference will return early next year to Brussels. Known by the carbon capture and storage community as the preferred meeting place of leading European and international project developers, policy makers, technology providers and observers, we look forward to debating what needs to be done to galvanise action, regain confidence and get European CCS back on track in 2014. Page 6 of 7 Energy is fundamental to economic growth - economies cannot grow and populations cannot raise their standard of living without it. As we look towards finding alternative sources of energy, gasification could be the answer to keeping the world supplied with energy. The New Horizons in Gasification Conference, organised by IChemE will provide an excellent platform to discuss the benefits of gasification and its applications as an alternative source of energy. The conference will be held in the Port of Rotterdam, a major entry and exit point for European energy and there will be opportunities to attend two workshops and a site visit. Register now>> to receive early bird rates. While the Carbon Capture and Storage Association (CCSA) considers that the information and opinions given in this Newsletter is sound, all parties must rely upon their own skill and judgement when making use of it. The CCSA will not assume any liability to anyone for any loss or damage arising out of the provision of this Newsletter howsoever caused. The Newsletter makes use of information gathered from a variety of sources that have not been subject to independent verification. The CCSA gives no representation or warranty as to the accuracy or completeness of the information collected from market participants or from sources in the public domain. The CCSA makes no warranties, whether express, implied, or statutory regarding or relating to the contents of this Newsletter and specifically disclaims all implied warranties, including, but not limited to, the implied warranties of merchantable quality and fitness for a particular purpose. Page 7 of 7
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