CCS Cost Reduction Taskforce Final Report CCS Cost Reduction Taskforce -PUHS9LWVY[ May 2013 15/05/2013 16:28 Inner_covers 1 16/05/2013 13:46 CCS Cost Reduction Taskforce Final Report The Potential For Reducing The Costs of CCS in The UK FINAL REPORT PUBLISHED BY THE UK CARBON CAPTURE AND STORAGE COST REDUCTION TASK FORCE MAY 2013 LONDON, UK Contact details Dr Jeff Chapman The Carbon Capture & Storage Association [email protected] 6th Floor, 10 Dean Farrar Street, +44 (0) 20 3031 8750 London, SW1H 0DX, UK Dr Ward Goldthorpe The Crown Estate [email protected] 16 New Burlington Place, London, W1S 2HX, UK John Overton Department of Energy and Climate Change [email protected] +44 300 068 5828 Patrick Dixon OCCS Expert Chair [email protected] DECC Dr Phil Hare Pöyry Management Consulting [email protected] King Charles House, Park End Street, +44 7770 828644 Oxford, OX1 1JD, UK Stuart Murray Pöyry Management Consulting [email protected] Portland House, Bressenden Place, +44 20 7932 8244 SW1E 5BH, London, UK CCS Cost Reduction Taskforce Final Report.indd 1 20/05/2013 15:02 CCS Cost Reduction Taskforce Final Report Jeff Chapman Thomas Stringer Chair – CCS Cost Reduction Taskforce, Director, R&D Carbon Capture Chief Executive, Carbon Capture Systems, Alstom & Storage Association Tom Stringer is Director R&D for Alstom’s Dr Jeff Chapman established the CCSA in Carbon Capture Systems. He has overall 2006 with a group of 11 founder members. responsibility for developing Alstom’s Since then the Association has grown carbon capture technologies, which to include 70 organisations consisting of includes fundamental lab work, through representatives from oil and gas, power process development, plant testing generation, coal, steel, cement, industrial and validation. Tom is also responsible gases, pipeline operators, shipping lines, for the operations of Alstom’s pilot and equipment suppliers, contractors, management/environmental/ demonstration plants worldwide. He is based in Baden, Switzerland. engineering consultants, finance, insurance, law, regional agencies and academic institutions. Ian Donaldson Jeff currently sits on various Committees, Steering Groups and Project Manager – CCS & Renewable Advisory Boards in the UK, Europe and internationally where his Energy, The Crown Estate knowledge of CCS supports his advisory role in research and Over the past 12 years, Ian has managed development and policy matters in relation to carbon capture and a variety of projects in a range of industries storage that are necessary to tackle the challenges of climate in both Australia and the United Kingdom; change to build a sustainable future. initially in the corporate development sector, In recognition of his services to the CCS sector Jeff has been followed by change management and awarded an honorary professorship at Nottingham University. information technology with his most recent 4 years being spent in the renewables The then Energy Minister, Charles Hendry invited Jeff to lead the sector at The Crown Estate. Ian’s previous Government/Industry Cost Reduction Task Force in May 2012. role was to manage the Offshore Wind Cost Reduction pathways development project which was released as a report to industry Allan Baker and government in 2012. Lessons learnt from that experience Managing Director, Global Head of have been brought to bear in the development of this report. Power Advisory and Project Finance, Societe Generale Jason Golder Senior Development Manager, Allan Baker has worked at Société Générale The Crown Estate for four years and has been involved in the power sector for more than 25 years, initially Jason has worked for The Crown Estate for as an engineer and then in the finance 22 years in a variety of roles but primarily sector. During his career he has advised in the offshore sector relating to marine on and financed projects in Europe, MENA, aggregates, oil and gas pipelines, telecom the US and Asia, and in sectors ranging cables, gas storage and for the past 9 years from green-field renewable energy to the acquisition of large on CO2 storage. Jason has been an ever thermal power portfolios. This experience has also encompassed present on the North Sea Basin task Force regulated, partially deregulated and merchant power markets. that has been in existence for 8 years and In recent years he has become a leading figure in the CCS area, is now extended to 6 countries. Jason has led the negotiations for having been instrumental in bringing the financing perspective to both of the existing lease agreements with Shell and National Grid the policy debate based on his experience of advising on to two of as part of the commercialisation programme, as well as setting out the world’s largest carbon capture and storage (CCS) projects and the current leasing process. participation in the UK Government’s CCS Development Forum. Allan has a BSc (Hons) in Mechanical Engineering, an MBA, Patrick Dixon is a Fellow of the Institution of Mechanical Engineers and Expert Chair, Office of Carbon Capture Chartered Engineer. and Storage, DECC Patrick is currently Expert Chair of the Alastair Rennie Office of Carbon Capture and Storage Project Director, AMEC (OCCS) and provides advice to Ministers Alastair Rennie worked initially for and officials in DECC on CCS issues. He Halcrow on port design and BHP on coal has had a career of more 30 years in the development construction before joining oil and chemical industries. Patrick is also AMEC in 1996 to project manage large a Non-Executive Director of the Nuclear integrated services work for Shell and BP. Decommissioning Authority (NDA). This was followed by work on supply chain management and leading projects for MoD work. In 2002 he worked on testing the options of new energy chains, such as conventional wind interfacing with wave power and hydrogen generation. He has led testing applications such as hydrogen fuelled standby power supply, and anaerobic test facilities (waste to methane, electricity to grid, heat and plant growth). He serves on the Board of the CCSA and chairs the H&S working group, with a particular interest in knowledge sharing. He also serves on the advisory board of the Scottish research centre for CCS. CCS Cost Reduction Taskforce Final Report.indd 2 20/05/2013 15:02 CCS Cost Reduction Taskforce Final Report Phil Hare Mike Saunders Vice President, Pöyry President, Power & Process Management Consulting Europe, AMEC Dr Phil Hare is a Vice President in Pöyry Mike Saunders joined AMEC in 2007 to Management Consulting and the Head of its head up its global nuclear business. He NW Europe Region. He joined Pöyry 2004 was previously Senior Vice President and has over twenty five years’ experience of the Global Nuclear Fuel business at in the energy industry. Westinghouse Electric Company. He has more than 30 years’ experience in the He specialises in corporate strategy, nuclear power industry having held a especially energy companies entering number of senior positions including new business areas. He also leads the managing nuclear licensed sites in the UK, Europe and the US. company’s carbon capture and storage practice, which he has He is a member of the board of the Sellafield parent company been involved with for six years advising private companies, (Nuclear Management Partners). regulators and Government departments. He has submitted evidence and spoken at various Government committees on Mike has an MBA and is a graduate of the Wharton Advanced energy matters as well as authoring influential reports. Management programme. He is a chartered engineer and a Fellow of the Nuclear Institute. Before joining Pöyry he held a variety of senior management posts at Powergen plc (latterly EON-UK) in both strategy and operational Mike Saunders is represented by Alastair Rennie, who leads on roles. Prior to this he worked for BP as a production engineer on the Infrastructure workstream. both Forties and on gas installations in the Southern North Sea. He is a frequent speaker at industry events in UK and elsewhere Paul Bryant in Europe. Chief Executive Officer, CCS TLM Phil has a BA (Hons) and D.Phil. from Oxford University. Paul Bryant joined CCS TLM following a 30-year career with BP during which he Stuart Murray occupied various senior executive positions most recently with BP Alternative Energy. Principal Consultant, Poyry Until leaving BP, Paul was a Director of Management Consulting Hydrogen Energy International Limited, Stuart Murray joined Pöyry in 2005 and a joint venture he originated between BP specialises in energy market modelling and Rio Tinto where he was responsible and asset valuation. Since 2008 he has for the Eastern Hemisphere and specifically advised on more than €26bn of renewable the Hydrogen Power Abu Dhabi (HPAD) and conventional power asset transactions project, a 400MW Hydrogen Power project with CCS being jointly across Europe, North America and Asia. developed with the Abu Dhabi Future Energy Company (ADFEC) He has developed financial models for or Masdar. Prior to 2005 Paul was BP’s Planning and Strategy a variety of applications including due Manager for its Wind and Solar businesses in London and spent diligence processes, FEED studies and multilateral development almost 10 years in senior commercial roles in BP’s Gas & Power bank funding applications. and Upstream businesses in London, Aberdeen and Saudi Arabia. Stuart is also an expert in the economics of Carbon Capture Paul graduated with an Honours Degree in Mechanical Engineering and Storage and has analysed various CCS concept projects in and is a Fellow of the Institute of Mechanical Engineers. markets worldwide. Stuart has also presented papers on CCS economics at conferences in the UK and Canada and assessed Ian Phillips the potential for CCS in delivering climate goals and decarbonising Director, CO2 DeepStore, energy markets.