Carbon Capture and Storage – A Roadmap for Scotland
Carbon Capture and Storage – A
Roadmap for Scotland
March 2010
A joint document by the Scottish Government and
Scottish Enterprise
    
Carbon Capture and Storage – A Roadmap for Scotland
CONTENTS
Ministerial Foreword
2
Executive Summary
4
Section 1:
Introduction
9
Section 2:
Where Scotland Stands on CCS
13
Section 3:
Our Ambitions
15
Section 4:
Key Milestones
20
Funding and Demonstration
20
Transport Options
21
Regulation
24
Storage Capacity
25
Stakeholder Engagement and Public Awareness
26
Developing Economic Opportunities
27
Summary of Key Steps
28
Section 5:
Risks and Uncertainties
31
ANNEX A:
Scottish Centre for Carbon Storage: Consortium Members
34
ANNEX B:
Background to CCS
35
ANNEX C:
Opportunities for CO2 Storage around Scotland – an Integrated
Strategic Research Study
37
Further information on CCS and Energy related issues can be found at:
http://www.scotland.gov.uk/Topics/Business-Industry/Energy
http://www.scottish-enterprise.com/sector-energy.htm
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Carbon Capture and Storage – A Roadmap for Scotland
Ministerial Foreword
On 1 May last year, the Scottish Government launched the report Opportunities
for CO2 Storage around Scotland, which demonstrated the significant potential
that Scotland has for the development of Carbon Capture and Storage (CCS).
That report was produced on a partnership basis of Scottish Government,
industry, research universities and others. The breadth of those partnerships
reflects both the interest in CCS and our potential to be a leading player in its
development.
I am pleased that many of the partners involved in the original research project,
along with some new partners, have joined the Scottish Government and Scottish
Enterprise in setting up a successor project. This is assessing storage capacity
in more detail at a number of specific sites as well as considering issues around
future skills requirement as well as public engagement on CCS. I look forward to
the conclusions from this work emerging towards the end of the year.
At the launch of the report, we stated that the Scottish Government would publish
a roadmap for CCS. The report fulfils this commitment and is a signal of our
intent. It sets out a vision for CCS in Scotland and sets out the key actions and
milestones for action as well as indentifying how some of the existing challenges
and uncertainties around CCS might be dealt with.
This roadmap has been published jointly by the Scottish Government and
Scottish Enterprise, who now consider CCS to be an emerging priority for
support. This demonstrates the economic growth opportunities that CCS offers
Scotland.
This roadmap has benefitted from significant input from a range of stakeholders
including the Thermal Generation and CCS Industry Advisory Board and our
fellow partners in the CCS successor project. I thank those who have contributed
2
Carbon Capture and Storage – A Roadmap for Scotland
towards this roadmap. We will be discussing it further with the full Energy
Advisory Board and the supporting industry advisory groups and will be prepared
to adapt it to respond to developments, including at UK and EU level. By doing so
we are ensuring that CCS is being given a high priority within government. And
as this roadmap states, we will shortly be setting out how we might fund
continued activity around CCS, with a focus on research and levering EU
funding.
Scotland has several advantages for the development of CCS. We have
significant offshore capacity; we have elements of the infrastructure required for
CCS such as pipelines and we have skills in areas such as geological,
engineering and the North Sea oil and gas industry which can be developed and
utilised to help this industry grow and develop. This roadmap should be viewed
as a template for progress which builds upon these advantages.
I welcome the publication of this roadmap. It sets out our ambitions and the key
steps that need to be taken if our vision of CCS becoming both a mainstay of our
future energy supply and a vital economic sector, is to be realised. We are
committed to working with a range of partners, including industry, academia and
the UK government and EU to ensure that Scotland can deliver on the
opportunities that CCS provides.
We have already achieved a significant amount of progress in this area. But we
know that more needs to be done as we move into the demonstration phase of
activity. I am convinced that this roadmap will act as a useful guide to measure
progress.
Jim Mather MSP
Minister for Enterprise, Energy and Tourism
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Carbon Capture and Storage – A Roadmap for Scotland
Executive Summary
The Scottish Government is determined to ensure that we become Europe‟s
leader in Carbon Capture and Storage (CCS) as the First Minister stated at the
launch of the Scottish Research Report on 1 May 2009. The Scottish
Government will continue to work with the UK Government, European Union,
Scottish Environment Protection Agency, Health & Safety Executive, Scottish
Enterprise, Industry and Academics to ensure we fully capitalise on Scotland‟s
potential.
This roadmap sets out how we hope to achieve our objectives in this area and
also provides support and information that recognises Scotland as the prime
location to attract future global investment in CCS research, development and
project deployment.
The Scottish Government announced 10 Energy Pledges on February 2, 20091
as part of a Greener Deal for Scotland. The actions - ranging across key areas of
energy generation and transmission, energy efficiency and transport - are
focused on addressing both short and longer term opportunities for Scotland to
benefit from competitive advantage. They are aimed at creating new jobs,
reducing emissions and saving households and businesses money, thereby
contributing to economic recovery and growth and, importantly, to address
climate change.
The Pledges support the key themes of the Update on the Scottish Economic
Recovery Programme2, published on 15 June 2009: jobs and communities;
education and skills; and innovation and industries of the future. In May 2009, the
Scottish Government published a Key Sector Paper3 which showed that
Scotland's energy sector is making a significant contribution to economic
recovery and green jobs. In regards to Carbon Capture and Storage we have
pledged (no 5) to:
“Support development and implementation of clean fossil fuel
technologies in Scotland, through collaboration with academia,
industry and other interested parties”.
Alongside the accelerated expansion of renewables, the electricity mix must
benefit from clean fossil fuel technologies. As demonstrated by the recent study
on Carbon Capture and Storage opportunity in Scotland4, Scotland can lead the
way in Carbon Capture and Storage.
1
http://www.scotland.gov.uk/News/Releases/2009/02/02112143
http://www.scotland.gov.uk/Resource/Doc/275465/0082606.pdf
3
http://www.scotland.gov.uk/Resource/Doc/917/0081161.pdf
4
http://www.scotland.gov.uk/Publications/2009/04/28114540/0
2
4
Carbon Capture and Storage – A Roadmap for Scotland
Key Actions
5

The research project launched by the First Minister on 1 May 20095
showed the significant potential for CCS in Scotland to attract maximum
economic investment by creating development opportunities for both
global based and local businesses. The research brought together a
number of leading scientists, engineers and technologists from a range of
disciplines and organisations to address the potential for, and challenges
associated with, carbon capture and storage in Scotland. This project
underpins other ongoing work being undertaken by a wide range of
Scottish industrial sectors and academia. See Annex A for a list of project
consortium members.

A second phase, the Scottish CCTS Development Study, is currently
assessing the potential storage capacity of the North Sea for carbon in
more detail as well as progressing work on issues around skills and public
acceptance. Many of the partners involved in the initial study have
remained involved in this successor project while we have also welcomed
new partners on board.

The Scottish Government and Scottish Enterprise will continue to support
Scottish-based CCS UK demonstrator applicants through engagement
with key stakeholders including the UK Government and European
Commission

Through the Scottish European Green Energy Centre (SEGEC), we will
continue to engage with European Commission and partner countries in
supporting policy development and securing project funding for Scottish
CCS projects. SEGEC has already promoted Scotland‟s CCS expertise
through membership of the European Commission‟s Berlin Forum on
Sustainable Fossil Fuels, and has assisted a number of potential CCS
projects in Scotland. The future objective is to obtain the maximum level of
CCS activity in Scotland and ensure that Scotland is seen as an
internationally credible location for the development of CCS.

We will work with the UK Government on the details of the forthcoming
levy on electricity supply to help facilitate four CCS demonstration projects
across the UK, including the ongoing UK CCS competition.

As well as focusing on larger demonstration projects, we want to help
create an environment within which activity separate but complementary to
larger demonstration projects are encouraged. These, for example, could
http://www.geos.ed.ac.uk/sccs/regional-study/CO2-JointStudy-Full.pdf
5
Carbon Capture and Storage – A Roadmap for Scotland
include innovation and R&D to support the development of skills and
capacity to support and complement these larger projects.

The Scottish Government and Scottish Enterprise will work with others,
including the Energy Advisory Board and associated sub-groups, to
develop a Strategic Alliance approach for CCS, to ensure that public
sector support for CCS is adequate to pursue opportunities.

We are already working with the Crown Estate, HSE, SEPA, Marine
Scotland and DECC to develop a regulatory and policy framework for the
development of CCS in Scotland. The framework sets out a sequential
and integrated approach for applicants to obtain the necessary consents,
permits and licences required by applicants to construct, commission,
operate and maintain thermal power stations, complete with CCS
technologies.

We have consulted on the “Guidance for Section 36 Applications for
Thermal Power Stations” which we plan to issue shortly. We have already
set out our position on CCS:



At least 300 MWe of CCS demonstration is now required on new build
coal plant or existing plant retrofitted with supercritical boilers;
The Scottish Government will adopt the same 'rolling review' process
being followed by the UK Government, which will result in a CCS
status (technical, economics, environmental and safety) report being
issued in 2018;
If all the appropriate tests are passed, then CCS would be judged
viable, leading to a requirement for all new build coal plants from 2020
to be fitted with 100% CCS from the outset, as well as retrofitting full
CCS to those coal plants built between now and 2018.
The Scottish European Green Energy Centre (SEGEC) was officially opened
on 17 August 2009 to support Scottish organisations in the green energy sector
to gain maximum benefit from engagement with Europe.
Over the next three years, SEGEC will create constructive partnerships in areas
of key European interest – marine energy, Carbon Capture and Storage, offshore
wind, energy efficiency, renewable heat and grids – to drive research, encourage
adoption, act as a centre of expertise and influence policy. SEGEC aims to act
as a catalyst for the deployment of green energy and research, encouraging and
supporting industry to put research into practise so that Scotland, and Europe,
can fully benefit from these advances. SEGEC will place Scotland at the
forefront of research, development, demonstration and deployment of low carbon
energy technologies across Europe.
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Carbon Capture and Storage – A Roadmap for Scotland
Duncan Botting is the Executive Chair of SEGEC. For further information and
contact details, please contact the Centre‟s Administrator, Gina Ford, by
telephone on 01224 489 981 or email Gina.Ford@segec.org.uk
Roadmap – its purpose
This Roadmap sets out the vision of the Scottish Government and Scottish
Enterprise for CCS for Scotland. It sets out a timeline of:





what needs to happen and by when;
who is involved;
the main drivers and milestones;
the main categories where we need to see progress on;
o funding and demonstration
o transport network planning and development
o regulation/legislation
o storage assessment
o stakeholder engagement and public acceptance
o economic opportunity and skills; and
the most significant challenges and risks and what the possible responses
to those are.
Our overall vision for CCS in Scotland is as follows:
For Scotland to become a leader in the demonstration and deployment of
CCS technology, utilising the advantages and strengths that Scotland
possess and ensuring that the experience and knowledge gained as a
result, can be shared to the benefit of Scottish-based firms, academics and
others. Specifically we want to see a number of CCS demonstration
projects being developed in Scotland alongside the development of
ancillary and support services for CCS.
The Scottish Government and Scottish Enterprise recognise that development of
this sector in Scotland will require public sector support. There are a number of
possible funding sources available from Scottish Enterprise, some of which has
already been used to support initial developments in Scotland. Such support will
continue to be available.
In addition, the Scottish Government will further assist the development of CCS
through additional funding. Details of how this money will be allocated are still to
be decided but it is likely that it will be focused upon assistance for research and
development activities. We will work with others, including the Thermal
Generation and CCS Industry Advisory Group to consider the most effective way
to allocate this funding.
7
Carbon Capture and Storage – A Roadmap for Scotland
Section 1 - Introduction
Global energy demand as a whole continues to rise despite the current economic
slowdown. The International Energy Agency (IEA) states that fossil fuels will
remain a central part of the way we consume energy. The World Energy Outlook
in 2008 estimated that 80% of global energy needs in 2030 will continue to be
met by fossil fuels. At the same time the impact of climate change is clear with
the need to take action to reduce carbon emissions. The Scottish Government is
now committed to the world-leading greenhouse gas emission reduction targets
set out in the new Climate Change (Scotland) Act 20096 which sets a statutory
target for greenhouse gas emission reduction of 80% by 2050.
The
7
accompanying Climate Change Delivery Plan sets out four transformational
outcomes that will be necessary to meet this, including decarbonisation of
electricity generation by 2030.
The question therefore arises as to how we maintain energy security and
meet future energy demand while minimising the effects of climate change.
Given that just over a third of current carbon emissions in Scotland come from
the electricity generation sector, it has a significant key role to play in the
development of technology led approaches which can reduce carbon emissions
while continuing to ensure that supplies of electricity are maintained.
Source: Key Scottish Environment Statistics 20098
6
http://www.opsi.gov.uk/legislation/scotland/acts2009/pdf/asp_20090012_en.pdf
http://www.scotland.gov.uk/Publications/2009/06/18103720/0
8
http://www.scotland.gov.uk/Resource/Doc/282666/0085518.pdf
7
8
Carbon Capture and Storage – A Roadmap for Scotland
Clean coal technologies including Carbon Capture and Storage (CCS) can
significantly reduce carbon dioxide being released into the atmosphere from the
burning of fossil fuels as well as making an important economic contribution to
Scotland‟s low carbon future. They can also allow for the continued use of natural
resources for fuel sources, thus protecting the economic values that these
sectors currently contribute towards the Scottish economy, while also contributing
towards carbon reductions.
With over 23,000 fossil fuel generating stations worldwide, this could be a
massive market opportunity for CCS deployment from which Scottish companies
could benefit. Annex B contains additional background information regarding
CCS.
The chart below shows that CCS can make a significant contribution to the scale
of carbon reduction which is generally seen as necessary to reduce the impact of
climate change (the so-called IEA blue scenario).
Contribution of various approaches to Carbon Reduction (IEA scenario work):
CCS is very much an emerging technology. The current emphasis is on
demonstrating that CCS is feasible on a large commercial scale, and
demonstration projects are key to that aim. The G8 stated that there should be 20
CCS demonstration projects globally by 2020 with 10 to 12 of these occurring in
Europe. The EU has now stated that it wishes to see 8 demonstrator plants
operational by 2015, a smaller number than was initially suggested. The IEA has
stated that 100 projects need to be in operation globally by 2020 with around 100
projects per year thereafter. To achieve this type of scale will be extremely
9
Carbon Capture and Storage – A Roadmap for Scotland
challenging and to make any progress towards it will require a significant
increase in the scale and support for projects in the early demonstration phrase.
However, some components of CCS technology are still very much in their
infancy. While there are a number of projects already happening worldwide, they
are relatively small in size and none are currently based around electricity
generation. The challenge is to create the appropriate financial, regulatory and
policy structures to enable the development of CCS projects on the scale
envisaged above.
The Scottish Government is clear in its view that we need clean thermal
generation to help play its part in security of supply, reducing emissions and to
allow use of natural resources, while continuing to expand and develop the
renewable resources that we have.
We recognise that realising our vision will require a number of challenges and
issues to be overcome, but the opportunities in this area are considerable. The
Scottish Government is determined to be at the forefront of the development of
CCS.
Although published by the Scottish Government and Scottish Enterprise, this
Roadmap has benefited from input from a number of organisations. This includes
representations from the Scottish Carbon Capture Transport and Storage
Development Study steering committee, the Thermal Generation and CCS
Industry Advisory Board as well as from the presentation made at the technical
dissemination conference for the Scottish CCS Joint Study in June 2009 which
set out The Path to a Deployable CCS Technology in Scotland9.
This Roadmap will therefore have a key role to play as a guiding framework for
the development of all aspects of CCS in Scotland, working with a range of
partners from the public sector, academia and industry to drive progress in this
sector.
This Roadmap sets out in the view of the Scottish Government and Scottish
Enterprise a timeline of:




9
what needs to happen and by when
who is involved
what are the main drivers and milestones
the main areas where we need to see progress
o funding
o demonstrations
o transport network planning and development
o regulation/legislation
http://www.geos.ed.ac.uk/sccs/regional-study/deployableCCStechnology.pdf
10
Carbon Capture and Storage – A Roadmap for Scotland

o storage assessment
o engagement and public acceptance
o economic opportunity and skills; and
what the most significant risks are and what the possible responses to
those might be
This Roadmap should be viewed as an evolving document and will be updated
on a regular basis. It will be discussed with the Energy Advisory Board and the
supporting Industry Advisory Groups, and will respond and adapt to various
developments at the Scottish, UK and EU level.
11
Carbon Capture and Storage – A Roadmap for Scotland
Section 2 – Where Scotland stands on CCS
Scotland is well placed to take a leading role in the development and
commercialisation of CCS. We have the knowledge and expertise in our
universities and industry, the infrastructure in the North Sea, and the strong
leadership in government necessary to make this happen.
The Scottish Government was the largest single contributor to the Scottish CCS
Joint Study10 which was launched by the First Minister on 1 May 2009. This
report highlighted the offshore potential of the North Sea Scottish sector to store
emissions for next 200 years (see Annex C for a summary of its findings). The
broad base of partner organisations, covering a wide range of sectors, is a sign
of the potential of Scotland in terms of CCS also that through working together,
progress can be made in this emerging but potentially hugely significant
technology.
Scotland can already demonstrate other significant progress in relation to CCS:
10

One of the Scottish Government ten Energy pledges, launched in
February 2009 is to support the development and implementation of clean
fossil technologies in Scotland, through collaboration with academia,
industry and other interested parties.

The Scottish Government is working closely with the EU and UK
government to press for Scotland to receive its fair share of funding
streams and packages that are available.

Through our recently launched Energy Advisory Boards and supporting
Industry Advisory Groups, including one on thermal generation and CCS,
it is already a key sector for discussion. These groups provide a platform
for discussion between the public sector agencies and industry to
determine priorities and assess where support needs to be targeted.

We are working with the UK government and others such as the Crown
Estate, Scottish Environment Protection Agency, Scottish Natural Heritage
and Health and Safety Executive to introduce the regulatory and policy
framework for the regulation of CCS projects, including carbon storage
offshore.

Although we remain disappointed by the decision of the UK government in
2007 not to provide the necessary support for the proposed CCS project at
http://www.geos.ed.ac.uk/sccs/regional-study/CO2-JointStudy-Full.pdf
12
Carbon Capture and Storage – A Roadmap for Scotland
Peterhead, which would have provided both Scotland and the UK with a
head start in the development of CCS demonstration projects, we are
pleased that both the UK Government and the EU are now committing to
funding a range of CCS demonstrators. The Scottish Government is
supportive of the proposed project based at Longannet for a postcombustion coal demonstration plant which is part of the shortlist for the
current UK CCS competition. In time we want to see other proposals
being developed in Scotland.

Scotland stands to benefit both from the money which will be raised from
the levy on generation to fund CCS projects and also from the EU ETS
New Entrants Reserve allocation which will begin in 2010. We are
pleased that the UK Government has recognised that some aspects of
spending from the proposed CCS levy touch on devolved matters and we
look forward to continue to working with it to ensure that Scottish based
projects can benefit.

The Scottish Centre for Carbon Capture and Storage (SCCS) is driving
forward academic research in this area. For example it recently won the
European Commission‟s tender for a study to determine the future shape
of the EU-wide CO2 transport and storage network. In addition it has
recently appointed Professor Jon Gibbons from Imperial College in
London – one of the UK‟s foremost experts in capture technology. The
Centre has also made a number of recent appointments, including a
Scottish Power supported Professorship in CCS.

Doosan Babcock is currently demonstrating its OxyCoal combustion
technology at Renfrew. The project is a collaboration between Doosan
Babcock, the UK Government, the prime sponsor Scottish and Southern
Energy, and a group of seven other sponsors (Air Products, Drax, DONG,
EDF, E.On, ScottishPower and Vattenfall), supported by UK Coal. In
addition, Scottish Power has been running its mobile test unit at
Longannet for a number of months.

The Scottish Environment Protection Agency (SEPA) is working with other
European Environment Agencies through the Environmental Protection
Agency Network11. SEPA is keen to facilitate an exchange of information
and knowledge on environmental and regulatory aspects of the merging
CCS regime.
The successor research project, to the initial Scottish study, the Scottish CCTS
Development Study, has already commenced, building on the initial report and
incorporating a number of separate work packages;
11
http://epanet.ew.eea.europa.eu/
13
Carbon Capture and Storage – A Roadmap for Scotland




Publication of this roadmap;
Detailed assessment of possible aquifer stores to refine Scotland‟s
CO2 storage assets;
Present a view of the skills and capacity building needed for CCS;
and
Stakeholder/public information and communication issues
This work involves many of the partners from the original study as well as
involving a number of new partners. The Scottish Government has again been
the largest single financial contributor to this successor project. The project is
due to be completed by the end of 2010.
In summary, we believe that Scotland has a number of advantages and existing
strengths in the CCS sector
Academic and Research
Expertise




Development of the
academic Scottish
Centre for Carbon
Storage
Consortium
approach for
Scottish CCS Joint
Study
demonstrated
potential that exists
in Scotland
Opportunities for
Scotland to
demonstrate
leadership in CCS
especially in
international
collaboration terms
Major test facilities
and collaborative
projects with
potential for more
Storage Capacity and
Opportunities





Large scale single
point emitters
Opportunity to
develop a hub or
cluster approach
Research project
showed potential
for Central and
Northern North Sea
to store significant
amounts of carbon
dioxide from both
Scotland and
elsewhere
Offshore storage
capacity not always
available in other
areas of Europe
Investment
opportunities in
replacement
thermal generation
means that CCS
has an opportunity
to become part of
the energy mix
Engineering and
Offshore skills and
knowhow
 Significant skills
and experience in
the oil and gas
sector
 Opportunities for
diversification for
the oil and gas
sector
 Supply chain
already established
 Significant
presence of energy
related skills and
companies already
in Scotland
 Potential use of
existing
infrastructure in
some instances
14
Carbon Capture and Storage – A Roadmap for Scotland
Section 3 - Our ambitions
Our vision for CCS in Scotland is as follows:
For Scotland to become a leader in the demonstration and deployment of
CCS technology, utilising the advantages and strengths that Scotland
possesses and ensuring that the experience and knowledge gained as a
result can be shared to the benefit of Scottish-based firms, academics and
others. Specifically we want to see a number of CCS demonstration
projects being developed in Scotland alongside the development of
ancillary and support services for CCS and an appreciable share of the
global CCS business.
Underlying this ambition, we have the following key objectives:

The Scottish Government wants Scotland to be at the forefront of the
development and deployment of CCS technologies at a global level by
further developing the CCS as a sector of key economic importance,
based on the development and diversification of existing engineering and
other skills developed in sectors such as oil and gas exploration and
power generation.

Scotland seeks to gain this position through delivering successful
demonstration projects in carbon storage, and by securing funding for at
least one, and ideally two, of the 8 CCS demonstration plants sought by
the European Commission.

CCS to be available as a low carbon deployment option for electricity
generation and possibly other sectors in advance of 2020, allowing for the
decarbonisation of electricity generation by 2030, while contributing to
both security of supply and utilisation of resources.

To continue to develop the synergy and partnership approach for CCS
between government, industry, academia and others.

We want Scottish-based companies and researchers to be in a leading
position to benefit from the multi-billion pound worldwide market for CCS
deployment in power generation and industry. There are already many
examples of Scottish based organisations making significant progress in
CCS. We want to build on that.

We want the North Sea to be seen as Europe‟s principal CO2 storage hub
– working in partnership with our neighbouring European governments –
15
Carbon Capture and Storage – A Roadmap for Scotland
bringing new investment and a long term future for our offshore industries
as hydrocarbon production eventually declines.

As well as focusing on bringing the large scale demonstration projects to
Scotland, we want to ensure that the ancillary and support services
required to develop CCS are also developed in Scotland, including
activities in research and development and the development of smaller
sized CCS projects including test drilling and storage assessments. Such
developments can provide a bridge to the large demonstrations that will
also be required.
This roadmap has been written with the following assumptions

The Scottish Government is committed to achieving the climate change
targets as set out in the Climate Change (Scotland) Act.

As part of a balanced energy mix, where Scotland‟s enormous resources
in renewable energy can be realised, the Scottish Government does see a
continued role for coal-fired power generation and other thermal sources,
but only if carbon abatement approaches are adopted.

CCS is one of the low carbon emitting technologies that will be required in
order to achieve the targets that have been set. It will complement
progress on renewable energy and other emissions reduction strategies
such as energy efficiency, which are necessary to help meet the carbon
reduction challenge and in the transition to a low carbon economy.

We agree with the broad conclusions of the report from the Committee on
Climate Change12 that in order to make significant progress towards our
climate change targets then the electricity generation sector needs to be
decarbonised by 2030.

If that challenging target is to be achieved then we need to move from a
position of demonstrator projects from around 2015, to ensure that CCS is
available on a commercial scale as an option for power generation from
2020 and be widespread in the sector by 2030 – including retrofitting to
existing plant.

Assistance and public funding schemes necessary to encourage early
stage CCS projects and ancillary/support projects to help establish skills
and capacity are in place.

We assume that the greatest potential for carbon storage lies offshore, in
the North Sea, and that the most of the captured CO2 emissions will be
.
12
http://www.theccc.org.uk/pdf/TSO-ClimateChange.pdf
16
Carbon Capture and Storage – A Roadmap for Scotland
stored there, in depleted hydrocarbon reservoirs and saline aquifers13. We
also assume that suitable storage sites are identified and available.

While the focus is on power generation and coal stations initially, CCS will
need to be developed in other areas, not only in other thermal generation
types such as gas but also for other industrial processes such as the
production of cement and iron and steel. That is why a hub approach,
seeking to look at the potential of developing networks based around large
scale emitters, possibly on a wide geographical basis, will be an important
future priority. In addition there should be a focus on usage of existing
infrastructure such as pipelines if this is technically possible. This has an
implication for decommissioning activity and it will be important to consider
what options for CCS might be available before any such activity gets
underway.

Sharing of knowledge and learning from early demonstration projects
should be encouraged wherever possible, especially when public funding
of demonstration projects is involved.
Some areas will be taken forward by government (regulatory framework and
financing of early projects for example) while others will be driven largely by the
private sector, such as development of future projects and supply chain
opportunities, with help from the public sector as appropriate.
In terms of financing, funding for demonstration projects will initially need to come
largely from public sources. In time, a business model for CCS should emerge
when the technology is deemed viable and when the costs of CCS
implementation fall, or the carbon price under the ETS rises, to the point that
investment by the private sector is forthcoming. However it is clear that the
relatively early stage of the technology, along with current uncertainties around
issues such as carbon prices and liabilities, means that public sector support will
be required to help incentivise demonstration projects.
As well as finance, the main factors that will encourage the development of CCS
include the creation of a supportive regulatory and commercial environment that
drives investment, political support and appropriate incentives along with public
acceptance of CCS as a technology. This roadmap, along with the study and
other documents makes an important contribution to providing government,
industry and others with an indication of key milestones to allow us to work
together and focus on the key steps.
In order for our ambitions to be realised then we believe that the following needs
to happen by 2020 in order to allow large scale deployment:
13
The Scottish Government do not rule out onshore storage, which is permitted by the EU
Directive, but believe there is a far greater likelihood of public support for offshore storage.
17
Carbon Capture and Storage – A Roadmap for Scotland
•
•
•
•
•
•
•
•
•
Commencement of demonstration projects, with initial public funding
Commercial scale demonstration projects operational by 2015
Associated development of appropriate transport infrastructure
Proven
large
scale
storage
capacity
by
2020,
including
methodology/guidelines for storage site assessment
Public Acceptance of CCS as a key technology
Establishment of a CCS business environment including supply chain
opportunities
Appropriate regulatory regime
Functioning carbon markets that deliver a carbon price that is an incentive
for CCS investment under the EU Emissions Trading Scheme.
As well as larger scale demonstration projects, we want to see the
development of ancillary projects and activities to help deliver innovation,
skills and capacity.
18
Carbon Capture and Storage – A Roadmap for Scotland
Section 4 – Key Milestones
The table below sets out some of the key timelines and milestones that are likely
to be required if CCS is to make a significant contribution towards the
decarbonisation of the electricity sector by 2030.
Required rate of growth of CCS
2010
Fledgling
Industry
2015-2020
 Global – 20
projects
 EU – up to 8
demo projects
 UK – up to 4
demo projects
 Scotland – 1
or more demo
project
 EU – 30
million tonnes
per year CO2
stored
2020
2020-2030
2030
 EU – 150
 CCS rollout
 Development
million
of CCS
 CCS changes
tonnes CO2
common
from demo to
cumulatively
across
deployment
stored.
electricity
phase
generation
 EU and UK –
and other
CCS
sectors
deployment
commencing
 Need large
scale proven
aquifer
storage
capacity
 Need financial
funding
method for
CCS
deployment
established
This section sets out some the key milestones across each of the main elements
of CCS which we believe need to be considered if CCS is to become a reality in
Scotland.
Funding and Demonstrations
CCS is currently a fledgling industry with only pilot plants currently in operation
across Europe. These are small in nature and demonstrate individually only one
aspect of the CCS chain. If we are to progress towards the recommendation of
the Committee of Climate Change that the electricity generation sector should be
decarbonised by 2030, then the period 2015-2020 will be the crucial
demonstration phase for CCS, with further deployment on a commercial scale
coming between 2020 and 2030.
The role of the EU ETS New Entrants Reserve and the UK CCS levy (on which
19
Carbon Capture and Storage – A Roadmap for Scotland
the Scottish Government is ensuring that Scotland will have an influence) will be
crucial in driving forward development during this demonstration phase. Scotland
is well-positioned to benefit from UK support and EU finding for these projects
thereafter.
The UK government proposals are for 4 demonstration projects. Others, such as
the UK Coal Forum and the ACCAT, have suggested that more will be required
given the need to prove technology on a large commercial scale. The European
Commission has now revised downward their initial plan of 12 - 15 projects to 8
projects in line with the projected funding available.
We want to see at least one demonstration project in Scotland in this period, and
preferably two. As stated previously we are supportive of the current proposals at
Longannet as part of the UK competition but we also want to see other
demonstration projects being developed in Scotland, and there are a number of
strong candidates for future development.
While collection of the proposed CCS Levy is a reserved matter, aspects of its
allocation touch on devolved matters and will require close working between the
UK and Scottish governments to decide the best criteria and mechanism for
allocation of the funds. We of course recognise that deployment on this scale will
require significant progress in a number of other areas, such as storage capacity
and regulation as well as finance.
While funding of the initial demonstration projects will be through the levy, there
is a role for funding opportunities from other sources including Scottish Enterprise
and Scottish Government. Scottish Enterprise has already funded some
research and development activity to assist the development of CCS. There is a
recognition that funding opportunities to assist the development of this sector will
continue to be required and Scottish Enterprise is currently considering how this
can best be delivered, as part of a new strategic alliance approach (see page
27).
In addition, the Scottish Government has announced that it is prepared to assist
the development of CCS through additional funding over the next few years.
Decisions on how and where this money will be spent will be announced over the
next few months although the focus is likely to be on assisting continued activity
in research and development and leveraging European funds.
CO2 Transport Options
There are a number of transport options in relation to carbon dioxide. Ship
transport may be appropriate for some storage areas in the relative short term if
pipelines are not available or the store capacity has not been proven. However, if
CCS is to move to a commercial scale and, in particular, if we are to develop a
hub or cluster approach then development of transport networks need to be
20
Carbon Capture and Storage – A Roadmap for Scotland
considered and assessed. The Scottish CCS Joint Study identified a number of
potential routes for transport depending on the options chosen. It is assumed that
consideration of transport options on a single emitter to a single store basis will
be less efficient and in the long term the development of a hub approach will
need to be considered.
Source: Opportunities for CO2 Storage around Scotland Report May 2009
The development of any CCS transport network in Scotland is likely to be
dependent upon a number of factors such as the location of the initial
demonstration projects and their proximity to the storage location; the regulatory
framework, and in particular issues around the classification and treatment of
carbon dioxide and the incentive to develop initial projects into a more
coordinated network approach, upon which the HSE are currently considering
progress.
The Scottish Government will continue to work with other regulatory partners
including the UK government, HSE, industry and other interested parties to
consider the development of transport networks in the longer term. Given the
scale of the financial investment that will be required, our focus will be facilitation
where necessary and ensuring that the regulatory approach is appropriate. A
collaborative approach may be required to try and plan ahead for the future
21
Carbon Capture and Storage – A Roadmap for Scotland
development of networks. In some instances it may be possible to utilise some of
the existing pipeline infrastructure built for the North Sea oil and gas industry.
We are supportive of the recent consultation by National Grid and Ofgem on the
potential re-use of such infrastructure for CO2 transportation.
In the longer term, we see the North Sea developing as the principal CO2 storage
hub for the EU, and Scottish organisations such as the Scottish Centre for
Carbon Storage and the Scottish European Green Energy Centre, are already
participating in the European Commission‟s work to identify new trans-European
CO2 transport corridors, hubs and pipelines, building on the recently released
CO2 GeoCapacities research under the EU‟s 6th Framework Programme14.
Map showing Possible European CCS Network
Source: Scottish Centre for Carbon Storage
14
http://www.geology.cz/geocapacity
22
Carbon Capture and Storage – A Roadmap for Scotland
Regulation
The Scottish Government can play a significant role in the development of
appropriate regulation along all aspects of the CCS chain.
In relation to on-site capture through the consent and guidance process we will
set the appropriate regulatory approach to the development of CCS technology at
power stations, including the issue of retro-fitting and the approach to carboncapture readiness for gas and other thermal power stations. We have already
consulted on our draft guidance and we plan to issue this shortly.
The Scottish Government will continue to work closely with SEPA to ensure that
appropriate environmental standards are adhered too, as well as other regulatory
bodies such as the HSE, Crown Estate and Scottish Natural Heritage who will
have responsibility for regulating a number of different aspects of the CCS chain.
We are also working with the UK Government to ensure a broad consistency of
approach to regulation across the UK, which industry had indicated is the most
appropriate approach. With the partners listed above, we are currently
developing a regulation matrix which will set out the main licences, permits and
processes that are likely to be required for the all aspects of the CCS chain.
The capture and compression of CO2 at electricity generation stations will be
regulated by SEPA under the Pollution Prevention and Control (PPC) regulatory
regime. The PPC regulations aim to prevent or minimize emissions to air, water
and soil, as well as waste, from industrial and agricultural installations with a view
to achieving a high level of environmental protection.
Certain aspects of this will be covered by Section 36 consents but other aspects
– onshore hubs/pipeline infrastructure - will require planning permission. New
non-nuclear baseload generating capacity and associated infrastructure
(including possible CCS infrastructure) is identified in the National Planning
Framework 2 as a national development. The Government is currently preparing
an NPF2 Action Programme that will include high level actions necessary to
deliver the national developments.
In terms of transport the Scottish Government may have to grant certain
consents regarding pipeline use and also in the case of ship transport ensure that
appropriate regulations are developed.
The implementation of the EU directive on CCS15 is now underway and there are
a number of issues arising from the directive which have to be transposed into
Scottish and UK regulations. In terms of storage, the Scottish Government
worked closely with the UK government in 2008 to pass the UK Energy Act
through the UK Parliament including the passing of a Legislative Consent Motion
15
Directive 2009/31/EC on the geological storage of carbon dioxide
23
Carbon Capture and Storage – A Roadmap for Scotland
in the Scottish Parliament to ensure the development of a regulatory framework
for the storage of carbon offshore. The Scottish Government continues to work
with the UK government, DECC, SEPA and others to develop a policy regulatory
framework for the development of CCS projects.
Scottish Ministers have responsibility for licensing from 0-12 nautical miles in
Scottish territorial waters (the point of injection is the important point to consider)
while UK ministers have responsibility for the area from 12-200 nautical miles.
However a memorandum of understanding between UK and Scottish Ministers is
currently being agreed so that in the latter area, Scottish Ministers will be
consulted in the process of issuing a storage licence and vice versa. The actual
licensing of CO2 for storage in the Scottish territorial sea will be undertaken by
Marine Scotland. Onshore storage is also permitted under the EU Directive, but
the Scottish Government does not foresee any such development here in the
short to medium term, where the focus will be on the offshore area.
Storage Capacity
In the short-term, depleted oil and gas fields in the North Sea are the most likely
and ready storage sites for carbon.
The level of knowledge and information about these oil and gas fields is
understandably higher than for saline aquifers. There may also be some
opportunity for the use of carbon dioxide for Enhanced Oil Recovery (EOR),
which can increase oil production levels, although, as the Scottish study stated,
there are a number of technical and cost issues which need to be considered
before EOR can be developed in the North Sea.
However the research study indicated that in the longer term, saline aquifers are
likely to provide the greatest storage potential in the North Sea. The Scottish
Government is already committed in the short term to contributing to the funding
of the successor project, the Scottish CCTS Development Study, which will focus
on commencing the more detailed assessment of selected saline aquifers in
order to refine their CO2 storage capacity and efficiency and also the safety case
and environmental assessment for the CO2 store.
Such studies are important and in the medium to long term an essential
precursor to much more detailed and expensive aquifer assessment from newly
acquired data including drilling. The costs of aquifer assessment are high and
the final sum is likely to be similar to that for appraisal of hydrocarbon fields. As
yet the prospects for further exploration, without some sort of regulation certainty
or financial incentive are somewhat uncertain. There is an intrinsic linkage
between developing projects at the capture end of the chain with the
development of proven storage capacity.
24
Carbon Capture and Storage – A Roadmap for Scotland
Stakeholder Engagement and Public Awareness
Public acceptance of CCS is likely to be an important factor in its development as
a safe and effective means of reducing CO2 emissions. A number of surveys
(Reiner et al16 and Palmgren et al17) suggest that current public perception of
CCS is uncertain and unfavourable when compared with other technologies that
could help in reducing emissions.
But given the future crucial role that CCS is likely to play, it is important to
consider how we can take steps to communicate information which will better
inform the public and other key stakeholders about CCS (building upon the wider
and connected issue of climate change) by providing unbiased factual and
concise information on the role of CCS in reducing emissions.
Governments will have a crucial role in helping to facilitate and encourage
engagement and discussion between all the various stakeholders who are likely
to be involved in the development of CCS. For example, information and
discussions can be held with local communities where projects may be
developed.
While Government can play a role, it will be necessary to build a broad coalition
comprising of government, Non-Governmental Organisations, academia and
industry. It will also be important to ensure that the information provided strikes
the necessary balance between being technically robust and ensuring that it is
communicated in an engaging and easy to understand manner to the general
public. Recent developments in Germany and elsewhere in Europe, often
relating to onshore storage, does give us some element of possible advantage in
this area, but we need to ensure that some of the key questions likely to be
raised regarding leakage and safety are tackled.
The successor project group is currently taking forward some work on
considering the issue of public engagement. Given the broad range of interests
represented in the Scottish study group, both for the original study and the follow
up work, this is an excellent forum for considering proposals in this area. This
work is due to be completed by the end of 2010.
16
Reiner*, D.M., et al., American exceptionalism? Similarities and differences in national attitudes
toward energy policy and global warming. Environmental Science & Technology, 2006. 40(7): p.
2093-2098.
17
Palmgren, C.R., et al., Initial Public Perceptions of Deep Geological and Oceanic Disposal of
Carbon Dioxide. Environmental Science & Technology, 2004. 38(24): p. 6441-6450.
25
Carbon Capture and Storage – A Roadmap for Scotland
Developing economic opportunity and skills
The economic opportunities for the development of a CCS-based industry are
considerable. There is the potential for a whole new industry to emerge in
Scotland, which could support up to an estimated 10,000 new jobs in the next
15–20 years. In the longer term, CCS is expected to develop into a multi-billion
pound market with some 23,000 thermal generation plants globally, potentially
requiring replacement or retrofit with CCS.
As stated previously, Scotland has real potential to see the development of CCS
as a key economic sector. We have many of the skills and engineering
experience gained from the oil and gas and power industries which are
transferable to this sector. Given the potential global potential for CCS
development, there is significant export potential for Scotland in areas such as
power plant construction and components, engineering consultancy services as
well as geological and academic expertise.
While we consider that Scotland has already made significant progress in a
number of aspects, the challenge will be to build upon this work as we start to
move into the demonstration phase of CCS over the next few years. In particular,
there needs to be a focus from government and other agencies in ensuring that
the economic development opportunities for CCS are exploited. Following some
initial discussions within Scottish Enterprise and Scottish Government, a CCS
Alliance for Scotland has been proposed.
This would bring together
representatives from various parts of the public sector to consider how we take
forward CCS activity and assist in the development of projects to the benefit of
Scotland, including ensuring that key messages about Scotland and what we can
offer are communicated to relevant parties including the European Union. In
effect this would be the „front door‟ of CCS in Scotland to the world.
The primary public sector responsibility for the development of CCS opportunities
will lie with economic development agencies Scottish Enterprise, Highlands and
Islands Enterprise and Scottish Development International, supported by the
Scottish European Green Energy Centre and the Energy Technology
Partnership. They have considerable experience in the provision of support
including supply chain development and investment opportunities. The Scottish
Government is keen to prioritise the development of CCS and will ensure that the
relevant agencies maximise efforts to develop opportunities.
The level of skills required in CCS will also be an issue. As part of the work
programme of the Energy Advisory Boards and the supporting themes groups, a
paper on future skills requirements for the sector is being developed. This will
allow both industry and the public sector agencies, including Skills Development
Scotland, to consider what future actions might need to be taken.
In addition, as part of the Scottish CCTS Development Study, the issue of skills is
26
Carbon Capture and Storage – A Roadmap for Scotland
being reviewed, with input from Skills Development Scotland as well as project
partners to assess the potential level of demand for the range of skills that will be
required for the development and deployment of CCS projects.
CCS Roadmap - Summary of Key Steps
The table below summarises some of the key milestones and progress points
which we consider necessary for CCS to become a reality, as well as the Scottish
Government vision set out earlier in this roadmap.
2009 -10
2010-2015
2015-2029
2030
Main role for
Scottish
Government
and public
sector more
widely
Fledging
Development
Funding and Roll out of
Contribution to
Overall
of
business
CCS
research and
development industry
demonstration models
demonstration
Seek to secure projects
emerge for
Aiming for a
funding from
projects
number of
various
demonstration
sources for
plants
demonstration
occurring in
projects
Scotland.
(ongoing)
Vision
achieved
Consultation by Consideration Further
CCS
Appropriate
Transport
Ofgem/National of transport
development network
consenting
Grid on re-use options
of transport
developed in and regulatory
of existing gas Demonstration options –
Scotland
framework in
pipelines
projects in
clustering
place
associated with Scotland
approach
Ensure that
Longannet
supported by
being
views of
project
appropriate
developed
government
transport
and industry
infrastructure
on transport
issues are
communicated
appropriately
Development
OSPAR and
Money from Clear
Appropriate
Regulation
of offshore
London
levy has
approach on consenting
carbon
convention
been
regulation
and regulatory
licensing
ratified to
deployed for with reward
framework in
27
Carbon Capture and Storage – A Roadmap for Scotland
regime
Working with
UK govt on
funding
mechanisms
for generation
Storage
Capacity
Research
funding
Stakeholder
Engagement
Development
of
communication
approach
Economic
Opportunity
Funding for
R&D and
feasibility
studies.
Identify skills
and training
needs that
match industry
demand.
Energy
Advisory board
working with
allow cross
border
Details on levy
mechanism
Amendment to
regulations to
allow CCS as
an activity to
gain PPC
Further
research into
capacity and
safety issues
demo
projects
Continued
refinement
of regulatory
approach
especially in
relation to
storage
Proven large
scale
capacity.
Funding
model clear
Demonstration and
of offshore
established.
test aquifer
Drilling of
injection
potential
sites
Continuing to
Ensuring
ensure that
that public
public
understand
concerns are
key role of
answered
CCS in
climate
Possible
change
workshops
Ensuring that
skill demand
and supply
are broadly
matched.
Development
for Strategic
Alliance for
CCS
to all
aspects of
the CCS
chain
place
Issues
around
storage
capacity well
understood
Helping to
facilitate and
secure
funding for
activity and
ensuring
regulation
CCS fully
accepted as
part of
climate
change
solution
Working with
industry,
NGOs and
others to
ensure
messages are
communicated
and concerns
answered
Making view
of SG on CCS
clear
Continued
Significant
Ensuring that
development supply chain funding
of supply
opportunities opportunities
chain and
and key
from the EU
emergence
economic
and
of new
sector in
elsewhere are
companies
Scotland
maximised –
and
provide help
business
and support to
models
developing
firms –
ensuring
maximum
Scottish input
into projects.
28
Carbon Capture and Storage – A Roadmap for Scotland
SG and others
to develop
priorities for
CCS
Driving
forward
development
of Strategic
Alliance for
CCS
Maximising EU
funding support
Development
of Strategic
Alliance for
Scotland
29
Carbon Capture and Storage – A Roadmap for Scotland
Section 5 - Risks and Uncertainties
CCS is of course a new and emerging industry where there remains a great deal
of uncertainty about many factors. This roadmap has already highlighted some
of those. And while uncertainties about emerging technologies are not confined
to CCS, it is important to understand and assess each of these major risks so
that strategies to address them can be delivered.
The table below highlights some of these key uncertainties and some of the key
points that need to be considered to mitigate these risks.
Uncertainty
Costs
Details
Fear of scale of investment may
deter positive investment decisions
– also a fear of impact upon
consumer bills.
Lack of clear
business model in the short-term.
Carbon Price
In the long term a rising carbon
price is required to prompt
investment in CCS and other low
carbon activity. Current level of
carbon price low
Business
Model
The current business model for the
full chain of CCS development is
still uncertain - will different
industries
with
different
approaches (e.g. utilities and oil
Suggested response
The Scottish CCTS Joint Study has
shown that the financial costs for a
CCS project are considerable.
However, carbon dioxide abatement
costs for electricity generation using
CCS are comparable to that for wind
and less than for wave power
generation. In a similar way to the
renewable energy industry financial
support into the future is also crucial
for CCS to commence in Scotland.
Cost reduction for CCS should
occur over time given refinements to
process; learning and economies of
CCS should therefore become
clearer over time.
In the short to medium term some
sort of price support will be needed
– this is the rationale behind the
current proposals for a generator
levy. Future support models may
need to be refined over time. EU
ETS should lead to a rise in carbon
price
thus
increasing
future
investment.
Incentives
will
be
developed
including carbon price to develop
business models – the Scottish CCS
Joint Study report highlighted some
potential
business
models
–
30
Carbon Capture and Storage – A Roadmap for Scotland
and
gas)
come
together?
Questions over liability. Need to
ensure that technology makes the
leap
from
demonstration
to
deployment
Storage
No
full
CCS
projects
yet
implemented in UK offshore
waters. Uncertainty about storage
capacity
Regulation
Regulation of projects not yet
completed. Planning risks to part of
CCS chain.
Regulators restrict
CCS operations
Public
Acceptance
As in other parts of Europe, there
may be some resistance to CCS
projects
Economic
Opportunity
Scotland fails to benefit fully from
development of CCS. Supply chain
fails to ensure delivery
experiences form other sectors e.g.
growth of the oil and gas sector
might be useful. Issue of liability is
currently being considered as part of
offshore licensing development and
EU directive. However it has to be
recognised that issues around
liability risks are likely to be a
significant risk factor at the current
time.
Offshore storage regime currently
being
developed.
Storage
development will run alongside
demonstration projects.
Scottish
CCTS Development Study is
currently assessing storage capacity
in North Sea saline aquifers in more
detail. Drilling of aquifers is likely to
be necessary at some stage
Regulation needs to be in step or
ahead of proposed demonstration
projects – UK and Scottish
Governments are working together
to develop appropriate regulatory
approach along with partners and
other statuary agencies. Progress
being made in this area to ensure
regulation ties in with projects.
Guidance being developed on
Section 36 and positive engagement
with all relevant regulators to ensure
that planning is not a significant
barrier to CCS development
Scottish Government and others are
working with NGOs and others in
Scotland to ensure that concerns
are addressed and that there is a
broad public acceptance of CCS.
The CCS successor project is also
taking forward work on this
Strategic Alliance approach being
developed in Scotland to focus on
economic opportunities. Focus of
Scottish Enterprise on CCS as a
priority sector. Thermal Guidance
and CCS Industry Advisory Group to
31
Carbon Capture and Storage – A Roadmap for Scotland
inform Scottish Enterprise on
economic priorities. SEGEC also
seeking to obtain access to EU
funding. Ensure that supply chain
benefits from opportunities
32
Carbon Capture and Storage – A Roadmap for Scotland
Annex A
Scottish Carbon Capture & Storage Joint Study - Opportunities
for CO2 Storage around Scotland
The study was funded and guided by:
Accenture;
BG Group plc;
CO2 DeepStore Ltd;
ConocoPhillips (U.K.) Limited;
Doosan Babcock Energy Limited;
Hydrogen Energy;
INEOS Manufacturing Scotland Ltd;
Marathon Oil Corporation;
National Grid;
Nexen Petroleum U.K. Limited;
RWE npower;
Scottish and Southern Energy;
Scottish Government;
ScottishPower;
Wood Mackenzie;
In addition, contributors to the study were:
AMEC plc;
British Geological Survey;
Element Energy Ltd;
Heriot-Watt University;
James Fisher Marine Services Limited;
Pöyry Energy Consulting;
Senergy Alternative Energy;
University of Aberdeen;
University of Edinburgh;
University of Strathclyde.
33
Carbon Capture and Storage – A Roadmap for Scotland
Annex B
Background to CCS
Schematic diagram showing Elements of CCS infrastructure and relationship with geological
structure:
Source: British Geological Survey
What is CCS?
CCS is a 3 step process which involves capturing the CO2 from power plants
and other industrial and energy-related sources, transporting it to storage points
then storing it safely in offshore depleted oil and gas fields, deep saline aquifers
as well as possible sites onshore.
1. Capture
CO2 capture is the process of removing CO2 (carbon dioxide) produced by
hydrocarbon combustion (coal, oil and gas) before it enters the atmosphere. The
process will be most cost effective when it is used on large point sources of CO2
such as power stations and industrial plants. These currently make up more than
half of all man-made CO2 emissions.
There are currently three main methods of capturing CO2:

Post-combustion capture - removing the dilute CO2 from flue gases after
hydrocarbon combustion

Pre-combustion capture - removal of CO2, prior to combustion, to
produce hydrogen
34
Carbon Capture and Storage – A Roadmap for Scotland

Oxy-fuel combustion capture - burning fossil fuels in pure oxygen as
opposed to air resulting in an exhaust gas of mainly CO2 and water
vapour
2. Transport
CO2 capture is likely to be most economic at large point sources of CO2 such as
power stations and large industrial plants. In most cases these will not be close to
a suitable underground geological store and therefore the CO2 will have to be
transported.
Transport is currently the least complicated element in the CO2 capture and
storage chain as the technology is already in existence and costs can be
realistically estimated.
The main complication with CO2 transport is that CO2 behaves differently under
varying pressures and temperatures and therefore transport of CO2 must be
carefully controlled to prevent solidification and blockages occurring.
There are currently two methods used to transport large volumes of CO2 by
industry:

Pipeline Transport

Ship Transport
3. Storage
CO2 storage is the process of taking captured CO2 and then placing in a store
where it will not be in contact with the atmosphere for thousands of years.
Storage of the CO2 underground in deeply buried porous rocks beneath a layer of
impermeable rock (cap rock), which acts as a seal to prevent the CO2 from
leaking out, is the most obvious option at present.
There are three main types of proposed underground storage sites:

Depleted Oil and Gas Reservoirs

Deep Saline Aquifers

Deep Unminable Coal Seams
You can read more about CCS at The Scottish Centre for Carbon Storage
http://www.geos.ed.ac.uk/sccs
35
Carbon Capture and Storage – A Roadmap for Scotland
Annex C
Opportunities for CO2 Storage around Scotland - an integrated strategic
research study
Summary
The Carbon Capture and Storage (CCS) study was published on 1 May 2009.
The study presents the first high-level screening of CO2 storage sites available to
Scotland; evaluates the means by which CO2 can be transported from power
plants and other industrial activities to storage sites, and investigates the costs
and business constraints.
Main Findings
 Without CCS, Scotland is likely to produce between 300 and 700 million
tonnes of CO2 from 2010 to 2050 - that is, on average, between 8 and 18
million tonnes per year. In 2006, CO2 output from major industrial sources in
NE England amounted to over 50 million tonnes/year.
 Geological reservoirs suitable for storage of CO2 are classified according to
whether they contain (or have contained) oil, gas, or saline water. From a
resource of more than 80 saline aquifers studied, ten have been identified
with a total potential CO 2 capacity in the range 4,600 to 46,000 million tonnes
- a capability to store more than 200 years of Scotland's CO2 output from its
major fixed industrial sources.
 Initial costs of assessing potential saline aquifer stores likely to be
considerably higher than for stores in existing oil and gas fields. Thus, pilot
CO2 capture projects will be essential element of developing any new storage
site.
 From a resource of more than 200 hydrocarbon fields, 29 have been identified
as clearly having potential for CO2 storage. Four gas condensate fields and
one gas field offer significant potential for CO2 storage. However, most of the
oil fields can only be used as CO2 stores in conjunction with CO2 - EOR
technology.
 CO2 - EOR may act as a stimulus for CCS especially if developers come to
expect that the price of oil will remain over $100 per barrel for the period of
their investment. Development of a CCS infrastructure in Scotland could lead
to application of CO2 - EOR in certain fields.
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Carbon Capture and Storage – A Roadmap for Scotland
 Storage hubs are proposed to give multiple storage options within a
geographical area to reduce costs and risks to CCS infrastructure. A pipeline
network would be used to transport 20 million tonnes/year of CO2 from
sources to distribution hubs offshore. Capital costs are £0.7 to £1.67 billion,
depending on hub location. The preferred route is through an onshore pipeline
from the Firth of Forth to St Fergus, then onwards to an offshore storage hub,
while an offshore pipeline route from the Firth of Forth should also be
considered.
 A phased approach is appropriate to support the development of CCS
technology. Direct Government funding will be required in the short term for
R&D and pilot projects. In the medium term, CCS demonstration projects
required under the UK Government and EU programmes, will need income
support. In the long term, low-carbon generation projects are capable of being
supported by the price of carbon alone. However, the volatility of the carbon
market will place an additional financial risk on such projects.
 The long term carbon abatement cost of CCS coal and CCS gas appear
comparable with other available low-carbon power generation technologies
and CCS has the potential to materially contribute to carbon abatement in
Scotland.
Background to CCS
The EU plans to have 12 CCS plants operating by 2015. In February 2009, the
UK Secretary of State for Energy and Climate Change stated an aspiration for
the UK to have more than one demonstration project in operation enabled by
government funding.
Scotland has an extremely large CO2 storage resource. This is overwhelmingly in
offshore saline aquifers (deeply buried porous sandstones filled with salt water)
together with a few specific depleted hydrocarbon fields. The resource can easily
accommodate the industrial CO2 emissions from Scotland for the next 200 years.
There is likely to be sufficient storage to allow import of CO2 from NE England,
this equating to over 25% of future UK large industry and power CO2 output.
Preliminary indications are that Scotland's offshore CO2 storage capacity is very
important on a European scale, comparable with that of offshore Norway, and
greater than Netherlands, Denmark and Germany combined.
CO2 storage in oil fields may be feasible in conjunction with CO2-Enhanced Oil
Recovery (CO2 - EOR). If offshore pipelines reliably delivering CO2 could be
developed through demonstration projects, then an increased number of oilfields
could become economic for EOR providing other critical factors such as oil price,
additional oil recovery and infrastructure suitability are also favourable. Additional
benefits include delayed decommissioning costs and extended benefit to the
economy through development of technology and expertise in offshore CO2EOR. However, contrary to many expectations, the study has shown that most
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Carbon Capture and Storage – A Roadmap for Scotland
oilfields in the northern North Sea cannot easily be used solely for CO2 storage
because sea water injection commonly used to maintain field pressure during oil
production, significantly reduces the amount of storage capacity for CO2.
Pipelines are the best option for the secure and continuous transport of millions
of tonnes of CO2 from different CO2 sources to collection hubs onshore and then
to offshore storage hubs for local distribution to diverse storage sites. Several
routing options exist and, importantly, can include the connection of pipelines
carrying CO2 originating from England or continental Europe. Capital and
operational costs for CCS projects are similar to those of the hydrocarbon
industry.
Electricity generated in Scotland from power plant fitted with CCS is shown by
this study to be comparable in price to that generated from other low-carbon
technologies. The cost of abatement per tonne of CO2 is cheaper on coal plants
than on gas, because coal produces larger amounts of CO2 per unit of electricity.
However, the cost per unit of low-carbon electricity from coal and gas CCS is
approximately the same.
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ISBN 978 0 7559 9265 2 (web only publication)