Page 24 - Gi flipbook June/July 2018

CCS AND THE

SUSTAINABILITY

CATCH 22

arbon capture and storage in point, demonstrating the
(CCS) is a key technology inextricable relationship between
for mitigating climate profitability and responsibility. As part
change to unlock the of in-depth interviews for DNV GL’s
C continued use of fossil Industry Outlook report, Brian
fuel reserves in the future. CO Sullivan, Executive Director with
2
capture from gas-fuelled power plants IPIECA, said: “I can’t see how we will
could increase the appeal of natural achieve the goals of the Paris
gas for electricity generation in the Agreement without CCS. It’s scalable,
transition to more intermittent and can become a cost-effective way
renewable power. However, despite to reduce the emissions associated
wide recognition of the need to with power generation and industry.”
include deployment of CCS in global CCS is attractive as it allows for
climate change mitigation efforts, the fossil fuels to be used without the
uptake has been slow, chiefly due to detrimental emission of greenhouse
lack of policy support and the right gases. Captured CO can also be used
2
commercial conditions. to support enhanced oil recovery
Senior oil and gas professionals (EOR) by injecting it into reservoirs to HELGE HANSEN
responding to a DNV GL annual survey, help extract gas and oil.
Confidence and Control: the outlook for Among recent positive CO2 Technology Centre Mongstad, Norway
the oil and gas industry in 2018, were developments in key global regions,
asked to choose the biggest drivers of the US Congress approved a tax credit Norwegian state-owned enterprise
sustainability in their organisations. for CO storage in what the Global Gassnova is demonstrating this by
2
From a long, diverse list, the top three CCS Institute described as “the most leading the development of what will
choices were all related to commercial significant pro-CCS national policy in a become Europe’s first full-scale CCS
success: business opportunities (40 per decade”; the European Parliament project to transport CO2 from
cent), reputation and brand (39 per passed into law CO2 emission- industrial emission sites to storage
cent) and competitive advantage (36 reduction measures including setting sites in oil and gas fields of the North
per cent). The Paris Agreement on up a multi-billion-euro fund for CCS Sea. In October 2017, Equinor
climate change readiness (10 per cent) innovation and other low-carbon (formerly Statoil), Shell and Total
and the UN Sustainable Development projects; and, China, which has eight signed a contract to jointly develop
Goals (seven per cent) feature much CCS facilities at different project the storage component of the project.
less prominently. stages, launched an Emission Trading The first phase will be capable of
The top three barriers to Scheme which will help with the sequestering 1.5 million tonnes per
sustainability were similarly financial: economics of CCS and other low- year, and the project will ultimately
the capital investment required (39 carbon technologies. be the first storage site in the world
per cent), operational costs (34 per The CO2 Technology Centre that can receive CO2 from several
cent), and low short-term profitability Mongstad (TCM), Norway, is one different countries.
(31 per cent). The survey found just 10 example of an industry-backed research “This project shows that large
per cent of respondents expect to facility pursuing more efficient CO2 companies do see CCS as a business
make investments in CCS within 12 capture. It has hosted industrial-scale opportunity in the long-term, which is
months, and only 15 per cent think a test campaigns for a range of industry key because to grow globally you
carbon pricing model will be clients, and continues to do so. need the oil majors,” explained Trude
successfully implemented in 2018. And the technology is proven. “CO2 Sundset, CEO of Gassnova. “We have
This suggests that some companies injection has been used for EOR for a to think of the CCS market like we did
are in a sustainability ‘Catch-22’: while long time,” added Sullivan. “There are renewables some years ago: wind and
there is an intention to invest, there is about 20 demonstration projects for solar were too expensive in the
a perceived lack of funds to do so. CCS around the world – the beginning – they needed incentives
engineering and technology are there. and frameworks until the market grew
THE CHALLENGE OF The main need is to create the big enough. The way to get the prices
CARBON CAPTURE environment that will enable down is to create a big enough
The motivation to adopt and investment at commercial levels market. That’s when you’ll see the
implement CCS technology is a case and at scale.” prices of CCS dropping.”

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