UK Advanced Power Generation Technology Forum (APGTF) - CO₂ Capture and Storage Mission to US and Canada - 27 October - 7 November 2002

The UK Advanced Power Generation Technology Forum (APGTF) (http://www.apgtf-uk.com), with support from the DTI, sponsored an International Technology Services Mission to the USA and Canada to investigate Carbon Dioxide (CO₂) Capture and Storage Technologies over the period 27 October to 7 November 2002. This gave an ideal and timely opportunity to assess the status and implication of these technologies in the light of the forthcoming UK Energy White Paper. The mission also examined associated economic, environmental, infra-structural, political, social and public acceptance issues. One particular aspect was the use of CO₂ for Enhanced Oil Recovery (EOR) in the North Sea and the potential for subsequent CO₂ storage.  The delegation was headed by the chairman of APGTF Nick Otter, Director of External Affairs at ALSTOM Power.  A member of the delegation was Philip Sharman (philip.sharman@pera.com) of the DTI's International Trade Promoters initiative (http://www.globalwatchonline.com).  Here he reflects on the key messages to come out of the mission. A more detailed report on the mission by Brian Ricketts of UK Coal plc, COALPRO and the World Coal Institute can be found on the WCI website (http://www.wci-coal.com/uploads/CarbonMissionReport.pdf).

Key messages from USA and Canada

• There is a strong view that fossil fuels will continue to be an important part of the fuel mix and substantial evidence that their clean use is being promoted as a key issue in the transition to a sustainable energy future. Increase in power plant efficiency and the capture and storage of CO₂ is therefore being tackled alongside renewable energy technologies, working towards the generation of hydrogen and the prospect of a “hydrogen” economy.
  
• EOR using CO₂ is an established technology in both the USA and Canada, with over 20 years experience of transport of CO₂ in pipelines at the level of several million tonnes per year (for example the billionth barrel of CO₂-EOR oil was produced from West Texas this year). The volumes and distances are commensurate with those required in the North Sea. There is also evidence of CO₂ capture at large scale and importantly, of long term contracts between CO₂ suppliers and users (for example at the Weyburn Project between Dakota Gasification and Encana).
  
• It is recommended that the forthcoming White Paper should set a framework to extend the life of the North Sea oil reserves using EOR as a way of stimulating a market for CO₂. There is a major window of opportunity over the next decade as the oil/gas fields enter their final phases of production. It is therefore essential to address this issue urgently now, the next policy review on energy will be too late due to field depletion and subsequent abandonment.
  
• Strong parallels exist between the current position in the North Sea with the situation in West Texas at the time of the last major oil crisis when EOR was used to boost US production. Security of supply, as in the UK now, was an increasingly important issue. Successful implementation relied on the introduction of financial incentives and had major benefits in terms of increased security of supply, more jobs and a greater contribution to the GDP. Importantly these were longer term in nature and necessary to encourage the required investment. It is recommended that such an approach be taken now to encourage CO₂ EOR in the short term, thus establishing a North Sea infrastructure that could be subsequently used to address CO₂ storage.
  
• As recognised by Canada, it will be necessary to introduce “carbon saving” based measures that encourage the take up of new technologies (be it from power generation or other intensive energy processes using fossil fuels) alongside emission trading and other policies. Such measures must balance the different drivers of the environment, security of supply and the competitiveness of UK industry. At the present time the changes in the market arising from increased deregulation, privatisation and liberalisation do not reward those willing to invest in new technologies other than renewables. In contrast Canada is actively considering the setting up of a “partnership fund” targeting the demonstration of Clean Coal Technologies (CCT) linked to CO₂ Capture and Storage. This will enable them to take a strong lead in the international community, building on their proactive work with the IEA, and establishing a project that other countries will join. It is clear that their proactive role will secure benefit to Canada. The USA also has an aggressive CCT/CO₂ programme under their Clean Coal Power Improvement Programme (CCPI) and Vision 21. It is recommended that the UK maintains and expands its involvement in international programmes to ensure that the commensurate benefit comes to the UK.
  
• The UK actions need to be part of a long term strategy for carbon management, involving a greater co-ordination between the different governmental and private funding bodies. The development of technology route maps backed by deployment studies will considerably help this process. It is clear that technological innovation will continue to be a critical parameter in meeting future energy demands and environmental needs at an acceptable cost. There is strong evidence that such an approach is currently underway in Canada with the introduction of the newly established CO₂ Capture and Storage Network.
  
• While technology solutions are already being developed, demonstrated and, in some cases deployed in the USA and Canada, further technological development and basic scientific understanding should be underpinned by significantly increased research activity in university and research institutions. High levels of integration and co-ordination between industry, government and academic partners were witnessed in the USA and Canada - the UK should have a similar strategy.
  
• It is clear there needs to be a greater effort to raise public awareness of the issues within the UK (for example in Canada there are national and regional advertisements and radio programmes addressing Kyoto/GCC and what the individual can do to help the country meet its targets).
  
• In addition, work is necessary to support the development of a protocol for CO₂ Capture and Storage. The strong lead being taken by Canada needs to be supported so that the interests of the UK are represented in the international debate.

UK Mission Representatives

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