Page 6 - MEOG Week 46

MEOG COMMENTARY MEOG

CCS technology gains momentum

Carbon, capture and storage technology is finally gaining momentum, in
large part thanks to countries committing to tougher emissions targets.

CCUS CARBON, capture and storage (CCS) has been There are currently only two CCS projects
touted as the best means of decarbonising large in operation in Europe at Norway’s offshore
swathes of heavy industry that cannot easily be Sleipner and Snohvit fields, with a combined
WHAT: made clean using renewable energy. The technol- storage capacity of 1.5mn tonnes per year (tpy).
CCS appears to finally ogy’s potential has been discussed for years but But here the technology is used only to capture
taking flight, with the IEA now appears to be finally gaining momentum, CO2 mixed in the natural gas that is produced at
estimating that project in large part thanks to countries committing to the fields, rather than for abating emissions from
worth $27bn worldwide tougher targets for reducing their greenhouse general industry.
are close to reaching a gas (GHG) emissions. The International Energy However, Norwegian state oil company
final investment decision. Agency (IEA) estimated in September that CCS Equinor wants to apply the experience it has
projects worth $27bn are close to reaching a final gained at Sleipner and Snohvit for a more ambi-
WHY: investment decision (FID). tious project known as Northern Lights. North-
The technology can help The IEA concludes that it will be “virtually ern Lights represents the transport and storage
decarbonise industries impossible” for the world to meet targets for part of Norway’s Longship scheme.
that cannot easily be reducing GHG emissions without deploying Longship will initially involve the capture
made clean otherwise, CCS on a significant scale. Certain industries, of CO2 emitted from a cement factory in Bre-
and is used to produce such as steel makers and cement factories, have vik and a waste incineration plant in Oslo. The
low-carbon blue few other feasible options for decarbonising waste gas will then be liquefied and transported
hydrogen. their operations, the Paris-based agency argues. via ships to a reception terminal north-west of
But CCS still has a long way to go before it can Bergen. From there it will be pumped via pipe-
WHAT NEXT: make a meaningful dent in emissions. The IEA line to an aquifer in the North Sea for permanent
Projects currently secure estimates for the world to reach net zero by 2070, storage.
government financing on then the volume of CO2 captured would have to Northern Lights’ initial storage capacity will
a case-by-case basis, grow twentyfold in just a decade. be 1.5mn tpy, but Equinor and its partners are
but broader incentives, The technology is also of growing interest to hoping to upscale the project to 5mn tpy at a later
including a high enough oil and gas companies, eager to decarbonise as point. By this stage, it is expected that the scheme
tax on CO2, will be much of their activities as they can to demon- will not only handle CO2 from Norwegian
needed for the sector to strate their commitment to the energy transi- industry but also industry elsewhere in Europe.
realise its potential. tion. CCS also serves a vital role in capturing the Equinor’s stated ambition is to transport and
CO2 that is produced when natural gas is con- capture CO2 at a cost of €35-50 ($42-60) per
verted into hydrogen via methane reforming. tonne by 2030. This means that without other
This low-carbon, so-called blue hydrogen can policies in place, carbon tax will have to rise
also play a part in decarbonising certain sectors, significantly to make Northern Lights commer-
such as energy-intensive industries and mari- cially feasible. Under the EU’s emissions trading
time and other areas of transport. system, in which Norway takes part, emitters
The consensus among scientists and investors must pay just above €30 per tonne of CO2. And
is that large-scale deployment of CCS is possible, the costs at Northern Lights do not factor in the
but will require significant state support. Gov- expense of capturing the CO2.
ernments are currently looking to finance the The overall cost at Longship is projected at
technology on a project-by-project basis, but NOK25.1bn ($2.6bn), including NOK17.1bn in
broader incentives, including a high enough tax investment and NOK8bn in operating costs over
on CO2, will be needed for the sector to live up its first 10 years. In September, Norway’s govern-
to its potential. In this special feature, we take a ment proposed some NOK16.8bn in state sup-
look at some of the countries at the forefront of port for the sector, although it is yet to take the
CCS development. FID needed to commit these funds.
Over in the UK, various consortia was work-
Europe ing on plans to decarbonise the Humber and
Europe has been researching and trialling CCS Teesside industrial clusters using CCS. The Zero
for decades, but the sector is now reaching a Carbon Humber (ZCH) and Net Zero Teesside
tipping point, with a number of major projects (NZT) projects aim to capture 17mn tpy and
now working towards final investment deci- 10mn tpy of CO2 respectively. The CO2 will be
sions (FIDs). Many of the schemes are situated stored offshore under the Northern Endurance
in northwest Europe, where offshore reservoirs Partnership (NEP) scheme.
can be used for storage. NZT and ZCH also comprise sub-projects to

P6 www. NEWSBASE .com Week 46 18•November•2020