Page 5 - AsianOil Week 46
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AsianOil                                     ASIA-PACIFIC                                           AsianOil









                         CO2 mixed in the natural gas that is produced at  development agreements (JDAs) on the scheme
                         the fields, rather than for abating emissions from  in December last year.
                         general industry.                      Porthos is vying for €102mn ($118mn) in
                           However, Norwegian state oil company  financial aid from the EU’s Connecting Europe
                         Equinor wants to apply the experience it has  Facility, and the Dutch government has also
                         gained at Sleipner and Snohvit to a more ambi-  pledged to subsidise some of the cost of CCS.
                         tious project known as Northern Lights. North-  This will be vital, as Porthos estimates that stor-
                         ern Lights represents the transport and storage  age and transport costs alone will come to €30
                         part of Norway’s Longship scheme.    per tonne.
                           Longship will initially involve the capture
                         of CO2 emitted from a cement factory in Bre-  North America
                         vik and a waste incineration plant in Oslo. The  Both the US and Canada are seeing a handful of
                         waste gas will then be liquefied and transported  new CCS proposals, with more likely to come
                         via ships to a reception terminal north-west of  as decarbonisation efforts gather momentum.
                         Bergen. From there it will be pumped via pipe-  However, it will likely be some time before
                         line to an aquifer in the North Sea for permanent  any new CCS projects are developed in North
                         storage.                             America.
                           Northern Lights’ initial storage capacity will   Canada considers itself a leader in CCS
                         be 1.5mn tpy, but Equinor and its partners are  thanks to existing schemes that notably include
                         hoping to upscale the project to 5mn tpy at a later  the Quest project, which captures and sequesters
                         point. By this stage, it is expected that the scheme  CO2 from a bitumen upgrader. Another particu-
                         will not only handle CO2 from Norwegian  larly prominent project is the Alberta Carbon
                         industry but also industry elsewhere in Europe.  Trunk Line (ACTL) – the largest pipeline in the
                           Equinor’s stated ambition is to transport and  world for CO2 emitted from human activity with
                         capture CO2 at a cost of €35-50 ($42-60) per  a capacity of up to 14.6mn tpy – which became
                         tonne by 2030. This means that without other  fully operational in June. CO2 transported via
                         policies in place, carbon tax will have to rise  the pipeline is delivered to Central Alberta for
                         significantly to make Northern Lights commer-  both storage and use in enhanced oil recovery
                         cially feasible. Under the EU’s emissions trading  (EOR).
                         system, in which Norway takes part, emitters   “This critical piece of infrastructure supports
                         must pay just above €30 per tonne of CO2. And  significant future emissions solutions, new uti-
                         the costs at Northern Lights do not factor in the  lisation pathways and innovation in the carbon
                         expense of capturing the CO2.        capture space,” ACTL operator Wolf Midstream’s
                           The overall cost at Longship is projected at  president of carbon, Jeff Pearson, said in June,
                         NOK25.1bn ($2.6bn), including NOK17.1bn in  after the pipeline came fully online. “The future
                         investment and NOK8bn in operating costs over  of energy and a lower-carbon economy relies on
                         its first 10 years. In September, Norway’s govern-  key infrastructure like the ACTL.”
                         ment proposed some NOK16.8bn in state sup-  More CCS initiatives are underway in Can-
                         port for the sector, although it is yet to take the  ada, aided by recently unveiled government
                         FID needed to commit these funds.    support at both the federal and provincial lev-
                           Over in the UK, various consortia have been  els. And with Canada increasingly being touted
                         working on plans to decarbonise the Humber  as a potential leader in the development of blue
                         and Teesside industrial clusters using CCS. The  hydrogen – produced through methane steam
                         Zero Carbon Humber (ZCH) and Net Zero  reforming alongside a CCS component to mini-
                         Teesside (NZT) projects aim to capture 17mn  mise emissions – further opportunities for CCS
                         tpy and 10mn tpy of CO2 respectively. The  developments are expected to arise. However,
                         CO2 will be stored offshore under the Northern  as with all emerging technologies, developers
                         Endurance Partnership (NEP) scheme.  will need to balance costs with local and federal
                           NZT and ZCH also comprise sub-projects to  emission reduction goals.
                         produce blue hydrogen from gas arriving from   South of the border, meanwhile, CCS has
                         the North Sea. Similar developments are also  been less visible in the US. However, CCS initia-
                         underway in Merseyside in England and St Fer-  tives are underway there too – having struggled
                         gus in Scotland. There are also preliminary plans  to gain traction initially because they had been
                         to capture CO2 at the Isle of Grain terminal in  designed with EOR in mind, but came as the
                         Kent in southern England, and in south Wales.  shale revolution lowered demand for such tech-
                           Another key project is Porthos in the Nether-  niques. Now, though, the concept of capturing
                         lands, where gas grid operator Gasunie is lead-  CO2 purely for the sake of lowering emissions
                         ing a consortium that aims to store some 2.5mn  is starting to take off, bolstered by a federal tax
                         tpy of CO2 in the North Sea from industries in  credit introduced in 2018.
                         the Rotterdam area. Royal Dutch Shell, Exxon-  For example, at least two proposed LNG pro-
                         Mobil, Air Liquide and Air Products, expected  jects on the US Gulf Coast include a CCS compo-
                         to be Porthos’ first customers, signed joint  nent as they try to position themselves as being



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