Element Energy

Project Case Studies

CCUS and Industrial Decarbonisation

Policy Mechanisms to support the largescale deployment of Carbon Capture and Storage (CCS), for the Oil and Gas Climate Initiative (OGCI) (2017)

Key outcomes:

  • Reasons explaining why CCS has failed to build momentum, despite the central role that CCS plays in many deep decarbonisation trajectories.
  • Policy and market mechanisms that could stimulate investment across the stages of deployment.
  • Principles that could help governments and firms to collaborate.
  • Timeline and policy roadmap for the successful scale up and deployment of CCS, detailing the roles of government and business, and how policies may differ across regions globally.

Vicious cycle of inaction

Overview of four policies chosen for further analysis

Report: http://www.element-energy.co.uk/wordpress/wp-content/uploads/2018/05/Element-Energy-Vivid-Economics-Report-CCS-Market-Mechanisms.pdf

Press release: http://www.element-energy.co.uk/2018/05/carbon-capture-and-storage-ccs-is-necessary-for-a-2c-scenario-but-wont-work-without-public-private-collaboration/

 

Enabling global deployment of industrial CCS clusters, for the International Energy Agency

Key outcomes:

  • A number of viable business models including the commercial and economic arrangements needed to enable the deployment of industrial CCS clusters considering both common and region-specific issues
  • Assessment of expectations of key market players including industrial emitters, Governments, cluster developers, T&S operators, EOR operators, and investors (e.g. potential providers of equity and debt) based on in-depth interviews
  • Detailed cash-flow modelling of an illustrative industrial CCS cluster project including all major project partners based on various incentive, risk sharing and financing assumptions

Emitter cash-flow (Illustrative)

Business model diagram (Illustrative)

Emitter costs and revenues (Illustrative)


Funds and financing options for an industrial CCS cluster in Rotterdam, for i2-4c and European Climate Foundation

Key outcomes:

  • Funding pathway combining existing and future European funds and other financing instruments to leverage private investment and successfully deliver an industrial CCS cluster in Europe.
  • Key requirements of a potential industrial CCS cluster in Rotterdam
  • Specific actions for various stakeholders in order to successfully embark on this pathway and key messages for cluster development across Europe using Rotterdam as a case study

More information is available on the i2-4c website: http://i2-4c.eu/financing-industrial-ccs/

 

Building the UK carbon capture and storage sector by 2030 – Scenarios and actions, for the Energy Technologies Institute

Key outcomes:

  • Assessment of the UK Continental Shelf geological storage resource and modelling of transport and storage infrastructure using “CO2NomicA” – an economic CO2 transport and storage network design tool developed by Element Energy
  • Assessment of CO2-enhanced oil recovery in the UKCS using Element Energy’s in-house CO2-EOR assessment model
  • A range of realistic and deliverable scenarios for the development of CCS at scale in the UK by 2030 by considering the key considerations around the scale, siting, sequencing/timing and inter-dependencies of capture projects, clusters, storage hubs, infrastructure and supporting investments needed

Transport and storage networks in 2030

Annual CO2 capture including industrial CCS (Balanced)

Timelines for capture and storage development (Balanced)

Summary report: https://s3-eu-west-1.amazonaws.com/assets.eti.co.uk/legacyUploads/2015/03/CCS-Building-the-UK-carbon-capture-and-storage-sector-by-2013.pdf

Detailed report: https://s3-eu-west-1.amazonaws.com/assets.eti.co.uk/legacyUploads/2015/05/2015-04-30-ETI-CCS-sector-development-scenarios-Final-Report.pdf