Pathways to CCS Commercialization
May 22-26, 2017
It is recognised by many that CCUS is needed to obtain Net Zero Emissions (NZE), later this century, at the lowest cost to society. CCUS is an essential technology that can reduce CO2 emissions from fossil fuels and particularly important for industries that cannot use alternative renewable energy sources. CCS also potentially enables negative CO2 emissions through combination with biomass, with Bio Energy CCS (BECCS) one of the key levers in a NZE future. To meet current climate aspirations of “well below 2degC” a steep build out rate of CCS is required as the IEA states 540 million tonnes per annum CO2 storage will be required by 2050 simply for 2degC. Although CCS is technically proven, with a number of demonstration projects operating, its commercial deployment is stalling. Challenges remain that society needs to recognise the value of CCS and decarbonised fossil energy; project investors need confidence that their investments will be supported in the longer term under the conditions that project decisions were taken and governments need confidence that CCS will deliver on CO2 reduction potential at a lower cost than alternatives (where they exist). Therefore, it is clear that if CCS is to deliver on its potential for CO2 emissions reduction, alternative routes towards commercial deployment are required. This is where market mechanisms play a role. A number of different market mechanisms that could be used to drive the roll out, and potentially the earlier phase scale up of CCS will be discussed. It is recognised that different regions and countries will not all preferentially support the same mechanisms – therefore a suite of options will be required for a global CCS roll out. Examples of market mechanisms include CO2 tax or credit schemes and CCS Certificates associated with obligations or emissions performance standards, next to carbon pricing. How the aspects of market mechanisms can be combined in different ways and for different phases of CCS commercialisation and the associated benefits and challenges will be addressed.
Wilfried Maas and Lily Gray, "Pathways to CCS Commercialization" in "CO2 Summit III: Pathways to Carbon Capture, Utilization, and Storage Deployment", Jen Wilcox (Colorado School of Mines, USA) Holly Krutka (Tri-State Generation and Transmission Association, USA) Simona Liguori (Colorado School of Mines, USA) Niall Mac Dowell (Imperial College, United Kingdom) Eds, ECI Symposium Series, (2017). https://dc.engconfintl.org/co2_summit3/49