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Progress Towards Demonstration of Carbon Capture and StorageBrad Page, Chief Executive Officer, Global CCS Institute At their Hokkaido Toyako Summit in 2008, G8 Leaders expressed strong support for the launch of 20 large-scale carbon capture and storage (CCS) demonstration projects globally by 2010, taking into account various national circumstances, and with a view to beginning broad deployment of CCS by 2020. At the L'Aquila Summit in 2009, Leaders reaffirmed this commitment, and agreed to a range of measures intended to help reach this goal. In the few years since these commitments, national circumstances in many countries have changed considerably. Global economic conditions and the financial situation of many nations have deteriorated. This has contributed to slower progress at the international level on actions to combat climate change than had been expected in 2008 and 2009. But the need for such actions is even more urgent now than it was then. In Durban in late 2011, the Conference of the Parties to the United Nations Framework Convention on Climate Change noted "with grave concern" the significant gap between the aggregate effect of Parties' mitigation pledges in terms of global annual emissions of greenhouse gases by 2020 and aggregate emission pathways consistent with having a likely chance of holding the increase in global average temperature below 2 °C or 1.5 °C above pre-industrial levels.It is well established that CCS is an essential component of the portfolio of technologies to reduce global emissions. Together with renewable and other complementary energy technologies, as well as greater energy efficiency, it can contribute significantly to the reduction and stabilisation of Pictured: (below) Graph showing the 'Number of large-scale integrated projects by Stage' (facing page) Graph showing the 'Number of large-scale integrated projects by region'the concentration of CO2 in the atmosphere. But given the changed circumstances since 2009, this is a timely point to examine the progress towards reaching the 2008 G8 goals, and what more needs to be done to achieve broad deployment of CCS.The Global CCS Institute tracks progress towards the G8 goals by continually monitoring the status of large-scale integrated CCS projects (LSIPs). As of March 2012, the Institute has identified 75 LSIPs around the world, including 8 that are currently operating and a further 7 in construction (figure 1). These 15 projects have a total confirmed carbon dioxide (CO2) capture capacity of 35.4 million tons a year. A further 59 LSIPs are in the planning stages of development, and a significant number of these expect to be in a position to make a final investment decision in the next year or two.5 10 15 20 25 30 Identify Evaluate Execute Operate Number of projects 2012 (March)20102009DeneFigure 1: Number of large-scale integrated CCS projects by stage068 clean coal technology

While on the surface this seems to indicate that the G8 goal is within reach, a more detailed examination reveals a mixed picture. The overall number of projects has changed little in the past three years. More projects have advanced through the project lifecycle, but the number of projects at the very early planning stage has decreased. There are significant challenges facing CCS project developers, and there continue to be high-profile project cancellations or delays. The most frequently cited reason for projects being cancelled or put on hold is that the project was deemed uneconomic in its current form and environment. A lack of government funding was a decisive factor for many project proponents in these situations, followed by uncertainty regarding public carbon abatement policies in the longer term. As Figure 2 illustrates, a large majority of the LSIPs are concentrated within a small number of developed economies. While this is perhaps not surprising for a technology in the early demonstration phase, the potential role of CCS in large-scale global emission reduction means that it is vital that the technology eventually be demonstrated in many different environments and circumstances. For that reason, it is important to continue widely sharing the lessons learnt from early demonstration projects, and to continue investing in capacity development in economies where CCS may have a large role to play in future years. Some large emitting countries do not have any LSIPs at present, and several such countries have none in prospect.An important development in potentially paving the way for CCS in developing countries is inclusion of CCS in the Clean Development Mechanism (CDM) at COP 17 in Durban last year. This Inclusion sets an important precedent Figure 2: Number of large-scale integrated projects by regionfor inclusion into other financing and support mechanisms. A further important point is that all of the most advanced LSIPs have links to the oil and gas sector. Six of the eight LSIPs in the operational stage capture CO2 from natural gas processing plants while two capture CO2 from the production of fertiliser or synfuels. CO2 captured from five of these projects, including the fertiliser and synfuel projects, is used in enhanced oil recovery (EOR), while that from the other three is injected into deep saline formations. Of the LSIPs under construction, there are five with direct links to the oil and gas sector. Very importantly, two power generation facilities including CCS are under construction - Mississippi Power's Kemper County in the US and SaskPower's Boundary Dam project in Canada. In both cases, the captured CO2 from these projects will be injected for EOR. EOR is one way in which captured CO2 can be used for direct benefit, and also to generate revenue that can be an important driver for the capture process. Continuing to investigate and exploit uses of captured CO2 is important for providing potential commercial incentives for early demonstration projects, to supplement essential government funding. Overall, progress is being made towards the broad-scale demonstration of CCS in advance of its eventual deployment. To keep this progress on track, CCS must remain on the agendas of high-level energy and climate change discussions.Continued political leadership is essential at both national and international levels to achieve the G8 goals. This commitment is still achievable, but heightened urgency on the part of all stakeholders is needed to realise the number of large-scale projects that constitute the critical first steps in the deployment of CCS. n For further information on the status of CCS please visit: www.globalccsinstitute.comAbout the AuthorAs CEO of the Global CCS Institute, Brad Page brings exten-sive knowledge and experience on Australian and international climate and energy issues. Prior to the Institute, Mr Page served as CEO of the Energy Supply Association of Australia (esaa), the country's peak representative organisation of the electricity and downstream gas industry. Before this, Mr Page enjoyed a long career in the Australian Public Service, departing at senior executive level.5 10 15 20 25 30 35 Africa Other Asia Middle East China Canada Australia and New Zealand Europe United States Number of projects 2012 (March)20102009"cCS is an essential component of the portfolio of technologies to reduce global emissions"clean coal technology 069