http://www.nature.com/articles/nenergy201511

Nature Energy

Learning through a portfolio of carbon capture and storage demonstration
projects
David M. Reiner

Nature Energy 1, Article number: 15011 (2016)doi:10.1038/nenergy.2015.11

27 November 2015

Abstract

Carbon dioxide capture and storage (CCS) technology is considered by many
to be an essential route to meet climate mitigation targets in the power
and industrial sectors. Deploying CCS technologies globally will first
require a portfolio of large-scale demonstration projects. These first
projects should assist learning by diversity, learning by replication,
de-risking the technologies and developing viable business models. From
2005 to 2009, optimism about the pace of CCS rollout led to mutually
independent efforts in the European Union, North America and Australia to
assemble portfolios of projects. Since 2009, only a few of these many
project proposals remain viable, but the initial rationales for
demonstration have not been revisited in the face of changing
circumstances. Here I argue that learning is now both more difficult and
more important given the slow pace of deployment. Developing a more
coordinated global portfolio will facilitate learning across projects and
may determine whether CCS ever emerges from the demonstration phase.

Economic models deem rapid wide-scale deployment of CCS in the next few
years to be essential in restraining the costs of meeting the 2 °C target
for global temperature1,2, but CCS technologies are still at the pilot and
demonstration phase. Paradoxically, it is primarily the costs of the early
demonstration projects that have hampered further deployment. As each CCS
‘demonstration’ plant costs on the order of US$1 billion, during a time of
fiscal austerity it has proved difficult to justify public support.
Near-term pressure to develop CCS has also eased as most countries found it
easier to meet their Kyoto targets because of the economic crisis (and
other factors such as the US shale gas revolution). Meanwhile, unlocking
private financing remains elusive and depends on developing necessary
legal, institutional and commercial frameworks, as well as significant cost
reductions and de-risking that can only come from operating multiple
plants3.

Difficulties in justifying pilot and demonstration plants or deployment
policy are hardly restricted to CCS, and can be found for nuclear power,
renewables and indeed virtually any novel technology4,5, but the emphasis
on demonstration is most common in the process industries6. At its
broadest, CCS ‘demonstration’ has been identified as having a dozen or more
manifestations, ranging from discourse creation to coalition formation7. I
acknowledge the many important dimensions of demonstration, indeed,
different disciplines have radically different conceptions of the nature of
demonstration6. Given the overwhelming government and industry focus on
cost reduction8,9, however, I use this as a test of how learning is
operationalized. Governments should at least be able to construct a
portfolio of projects along the dimension that they deem as central to the
enterprise of demonstration.

The technical rationales for demonstrations being large-scale include
understanding power system reliability and performance10 and adequately
characterizing each geological formation11. As large-scale projects must
store roughly 1 million tCO2 per year10,11, this scale requirement poses a
number of challenges when seeking to learn from multiple projects.

In this Perspective, I explore the history of CCS demonstration in an
effort to understand how the initial optimism about large-scale rollout led
to multiple, uncoordinated efforts to learn from diversity. In the absence
of widespread deployment of CCS, the projects that have endured do not form
a coherent programme aimed at learning. Going forward, therefore, any
effort to successfully re-launch CCS at scale will need to revisit the
fundamental case for demonstration, including how best to derive the most
learning from the billions of dollars already invested and that will need
to be invested in the next wave of projects. There is a need for greater
clarity over what time frame, at what scale, at what cost and to what end
CCS demonstration is being pursued12.

Nature EnergyISSN 2058-7546 (online)

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