Challenges and Opportunities in Implementing the EU CO2 Storage Directive

1. Implementing the EU CO2 Storage Directive: Challenges and Opportunities 7 November 2011Public Engagement in the UKLouise Barr, Head of Outreach and EngagementOffice of Carbon Capture and StorageDepartment of Energy & Climate Change 1

2. What do we mean by public engagement? • What is the national message?

3. “CCS has a key part to play in ensuring that we can keep the lights on at the same time as fighting climate change..….The UK has the skills and opportunity to lead the world in this technology, which is why in the spending review we committed to investing up to a billion pounds in CCS” Chris Huhne, Secretary of State 3

4. Why CCS is important… UK has legally binding CO₂ reduction targets under the Climate Change Act 2008: 80% by 2050 Through the Copenhagen Accord, the EU agreed global temperatures should not increase above 2oC According to estimates made by the IEA, tackling climate change will cost more in the future without CCS by 70% 4

5. 2050 Pathways – CCS will have a key role enabling us to meet targets 5

6. Why CCS is a major opportunity for the UK: oil and gas expertise and potential storage locations Map showing the location of offshore hydrocarbon fields and the major oil and gas-bearing sedimentary fields • UK is ideally placed for offshore CO₂ storage; • The estimated CO₂ storage capacity of the UK and its continental shelf ~ 25 GTonnes; • Over 100 years of capacity at UK current rate of emissions from energy supply. • Offshore EOR potential significant, but more difficult compared to onshore • CCS could sustain 70,000-100,000 jobs by 2030 alongside other related Carbon Abatement Technologies in the power sector Source: British Geological Survey 6

7. Generic Regulatory Map Chain Element Project Phase Contract Award Construction Preconstruction Operation Decommissioning Generation & Capture Approval of Pre-Operation Safety Report Section 36 Consent/Development Consent Order (inc energy policy clearance & deemed planning permission) [Quotes from Longannet decision] [NGO] Environmental Permit/Pollution Prevention and Control Permit Hazardous Substances Consent Approval of Pre-Construction Safety Report Any necessary way leaves and/or compulsory purchase orders COMAH License (if needed) New Grid Connection Agreement Greenhouse Gas Emissions Permit Any necessary Appropriate Assessments CAR registration or licence Greenhouse Gas Emissions Permit Pipeline Construction Authorisation/Development Consent Order (inc deemed planning permission) Notification of commencement of construction Transport (onshore) Approval of Pre-Operation Safety Report COMAH License (if needed) Planning Consent for AGIs (eg compressor stations) European Protected Species License if required FEPA Licence Environmental Permit/Pollution Prevention and Control Permit (compressor stations ) Notification before ceasing operations Any necessary way leaves and/or compulsory purchase orders Any necessary Appropriate Assessments Approval of Major Accident Prevention Document Notification before use of a major accident hazard pipeline Transport (offshore) & Storage Environmental Statement and/or PON15B/C/D Approval Field Development Plan Approval Oil Pollution Emergency Plan Approval Approval of decommissioning programme FEPA Licence PON15D Approval (injection of CO2) Any necessary Appropriate Assessments Agreement for Lease Carbon Storage Permit Marine Licence Greenhouse Gas Emissions Permit Exploration License Carbon Storage License Lease PON15E Approval Decommissioning operations Oil Pollution Prevention and Control Permit Consent to survey (PON14A) Consent to locate (CPA=1 Drilling, CPA2 (Permanent Structures, CPA3 Pipeline Works Authorisation) Approval of Major Accident Prevention Document PON15F Approval well abandonment PON15B Approval for drilling new/sidetracked wells Chemical Permits (PON15B Drilling Ops, PON15C Pipeline Ops PON15F Well Intervention/Workover Ops) Consent to cease injection and storage operations PON15D Approval (establishment of installation) Approval of Installation Safety Case Approval of COMAH Safety Report Notification before construction of a major accident hazard pipeline Consent to hand over storage facilities/site

8. Public Awareness of CCS in the UK (March 2011)

9. Challenges to overcome… • Access to finance: difficult economic circumstances, uncertainty over the future shape of the energy markets, challenges and risks associated with ‘first of a kind’ • Commercial: frameworks to integrate all elements of the chain • Ensuring value for public money: Huge amounts of taxpayers money committed in UK and globally, how do we ensure we are getting value? • Managing risk allocation : How is risk shared between the public and private sector? • Regulatory: Regulation for key elements of the CCS chain not yet finalised. • Technical: Challenges in, for example, scaling up of capture technologies, identification, characterisation and operation of storage, integration of the full chain • Public acceptance: Will public opposition be an issue in the UK as in other countries? 9

10. Learning Lessons from Longannet: Findings From FEED Public Opposition Despite all the positive engagement work, the risk of public opposition to the Project was still one of the top 5 highest scoring risks on the risk register. Early Engagement Early engagement with key decision makers, internal stakeholders, local communities, regulators and potential partners, proved hugely beneficial. Tangible Examples CCS is a complex topic that can be helped with visual aids. The MTU and Visitor Centre were highly successful tools, but simpler methods like plasticine storage models, video clips and opportunities to meet CCS team members also work well. CCS Story Capture, transportation and storage should always be bundled together for stakeholders, although Consortium Partners should be responsible for their own detailed messaging. Building Trust Invest in your Project Team – experts who can communicate well are the best proponents of your work. The importance and value of 3rd party advocates should not be underestimated. CCS requires more than a business as usual approach to engagement

11. What influences public acceptance: some observations..… • Background and location specific factors (social characterisation) • Proactive, early and tailored engagement • Honesty and transparency • CCS specific public perceptions including concerns and perceived risks and benefits

12. http://www.decc.gov.uk/en/content/cms/emissions/ccs/demo_prog/feed/feed.aspxhttp://www.decc.gov.uk/en/content/cms/emissions/ccs/demo_prog/feed/feed.aspx 12