03 Nov 2010 02:11:25
Governments urged to encourage CCS
Global CCS Institute sets out standard policy to guide government on the shift to CCS while increasing investor’s confidence.
A new paper published by the Global CCS Institute urges Governments to prepare existing power stations for a shift to Carbon Capture and Storage (CCS) and to improve more confidence over future costs for investors.
The CCS Ready Issues Paper argues that the CCS technology has the potential to make dramatic inroads into carbon reduction targets, and a number of countries are working on demonstrating projects.
However, the Global CCS Institute notes that the standard policy set out by the paper must consider that countries have widely varying policies and requirements for CCS technology. Investors have also been deterred by the high costs of CCS projects.
Last month, E.ON withdrew from the £1bn UK government’s CCS competition blaming lack of government support. The company claimed that with a broader incentive regime similar to the existing Renewables Obligation (RO), it may not have abandoned its carbon capture and storage (CCS) plans at Kingsnorth.
A CCS Ready policy would assist policy makers to define the project standards for CCS technology deployment
The Global CCS Institute, based in Australia, aims to produce a globally recognised template of best practice to guide governments and provide greater cost transparency for investors. The CCS Institute’s CEO, Nick Otter, said that investors are offered more guarantees and are more likely to invest by fully planning for costs and including the possibility that the plant may need to be adapted.
Otter encouraged companies and governments building power stations to carry out engineering and cost-estimate studies, as well as undertaking studies into future CCS technology. He added that estimates and studies into potential environmental factors, engineering and public engagement are also needed.
He said "A CCS Ready policy assists policy makers to clearly define the project standards necessary for CCS deployment as part of a transition to a low-carbon economy," and he added "CCS Ready policy needs to be rigorous enough to ensure that retrofit takes place while also being open enough to future capture technology advances."