Carbon Capture and Storage, Second Edition
The Legal Landscape of Climate Change and Mitigation Technology
Published: 2024
Pages: 90
eBook: 9781837230204
This Special Report explores the most recent regulatory, political and economic trends and themes arising from CCS technologies and projects. It will be an invaluable resource for in-house counsel, senior managers, engineers, consultants, researchers and policy makers with an interest in the energy sector and CCS technologies and projects.
In its second edition, this Special Report provides a general update on these key features of the technical, political and regulatory aspects of CCS technologies by:
Focusing on recent changes to the regulatory frameworks for CCS in the European Union and Germany, but also on the international level;
Assessing the impact of emission trading systems on the economic viability of CCS technologies;
Providing an overview on recent public funding programmes for creating a market for CCS technologies; and
Exploring various recent CCS projects and national strategies in implementing CCS technologies.
Pilot CCS projects are successfully proliferating and this Special Report provides the regulatory and political insights to succeed in the rapidly changing CCS market. It will be an invaluable resource for in-house counsel, senior managers, engineers, consultants, researchers and policy makers with an interest in the energy sector and CCS technologies and projects.
Table of Contents
Cover | Cover | |
---|---|---|
Title | 1 | |
Copyright | 2 | |
Contents\r\n | 3 | |
I. Introduction | 7 | |
II. Terminology | 9 | |
III. Technological aspects and challenges | 11 | |
1. Separation and capture | 11 | |
1.1 Pre-combustion | 11 | |
1.2 Post-combustion | 12 | |
1.3 Oxy-fuel | 12 | |
1.4 Direct air capture | 13 | |
2. Transport | 14 | |
3. Storage | 15 | |
3.1 Saline aquifers | 15 | |
3.2 Depleted oil and gas reservoirs | 15 | |
3.3 Basalt formations | 16 | |
3.4 Storage capacity | 16 | |
3.5 Monitoring | 16 | |
4. Usage | 17 | |
IV. Economic viability | 19 | |
1. Economic costs | 19 | |
1.1 Capture costs | 20 | |
1.2 Transport and storage costs | 21 | |
1.3 Emissions trading: the EU Emissions Trading System | 23 | |
1.4 Carbon contracts for difference | 26 | |
1.5 Looking beyond ‘first-of-a-kind’ costs | 27 | |
2. Public funding | 28 | |
3. CCS/CCU project financing and bankability | 32 | |
4. CCS risk profile and insurability | 32 | |
V. Networks and initiatives | 33 | |
1. International level | 33 | |
2. European level | 34 | |
VI. CCS/CCU projects and national strategies | 37 | |
1. Scandinavia | 38 | |
1.1 Sleipner and Snøhvit Projects | 38 | |
1.2 Longship Project | 39 | |
1.3 Project NOR-GE | 39 | |
1.4 Norcem Brevik | 39 | |
1.5 Project Greensand | 39 | |
2. United Kingdom | 40 | |
2.1 East Coast Cluster | 40 | |
2.2 Acorn Project | 42 | |
2.3 Caledonia Clean Energy Project | 42 | |
2.4 Viking CCS | 42 | |
3. Netherlands | 43 | |
3.1 Porthos Project | 44 | |
3.2 Aramis/Delta Rhine Corridor | 44 | |
4. Eastern Europe | 45 | |
5. United States | 46 | |
5.1 Petra Nova | 48 | |
5.2 Illinois Industrial CCS Project | 49 | |
6. Canada | 49 | |
6.1 Boundary Dam CCS | 51 | |
6.2 Quest | 51 | |
6.3 Polaris | 51 | |
7. Middle East | 52 | |
VII. Sources of law | 53 | |
1. International law | 54 | |
1.1 UNCLOS | 54 | |
1.2 London Protocol | 57 | |
1.3 OSPAR Convention | 63 | |
2. EU law | 65 | |
2.1 EU Carbon Storage Directive | 65 | |
2.2 Hydrogen strategy | 76 | |
2.3 Sustainable carbon cycles | 77 | |
2.4 Carbon removal certification | 79 | |
2.5 Net-Zero Industry Act | 81 | |
2.6 Other EU legislation | 84 | |
2.7 Assessment of the EU regulatory framework | 87 | |
3. National laws | 90 | |
3.1 Implementation of EU law | 90 | |
3.2 German law | 91 | |
4. Standard setting | 98 | |
VIII. Conclusion | 99 | |
Notes | 102 | |
About the authors | 116 | |
About Globe Law and Business | 119 |
This Special Report is a must-read for anyone seeking to gain an understanding of the carbon capture and storage (CCS) industry. It concisely covers the key challenges and complexities surrounding CCS implementation, and gives an insightful and holistic overview of the international legal framework for CCS. It will be essential reading both for industry professionals and newcomers to the CCS business.
Cathrine B. Hetland
Partner, Wikborg Rein Advokatfirma AS
This book provides a concise overview encompassing key international, supranational, and national legal and regulatory aspects, along with brief discussions on the technical and economic elements of CCS/CCU. It aims to offer a streamlined presentation while ensuring essential subject matter coverage. In summary, while the book is rooted in the German context, it provides clear explanations and insightful analysis of common EU issues, making it an essential reading for anyone interested in legislation related to CCS/CCU. It is particularly valuable for those involved in implementing the CCS Directive across EU Member States.
R. Maddahi
OGEL
The work is successful in every respect and offers the application-oriented practitioner a very good overview of the technological, economic and legal framework of this forward-looking technology, which is indispensable for climate protection. It is to be recommended to any user approaching the subject of CCS/CCU from an economic, technical or legal perspective.
Prof. Dr. Sven-Joachim Otto, Lawyer
Energiesozietät GmbH; Director of the Institute for Mining and Energy Law at Ruhr University Bochum
It is likely to be a most useful primer for the practitioner, scholar, or interested reader, not least in its coverage of international law, EU law and various case studies of projects in diverse national jurisdictions. The language is clear, and terms carefully explained, with extensive notes that include references to the relevant literature. The geographical focus is heavily oriented to Europe, but there is some coverage of projects in the USA and Canada.
Professor Peter D Cameron
Global Energy Law and Sustainability (Edinburgh University Press)
Dirk Uwer
Partner, Hengeler Mueller
[email protected]
https://www.linkedin.com/in/uwerdirk/
Dirk Uwer is a partner of Hengeler Mueller in Dusseldorf and London. He has received numerous awards and accolades as one of Germany’s leading experts in regulated industries, with a particular focus on the energy sector.
Professor Uwer advises investors and energy supply companies on M&A transactions and on regulatory issues, representing them before the regulatory authorities and courts. He has been actively involved in all relevant transactions regarding the sale of German transmission system operators and has represented Germany’s largest transmission system operator in various landmark cases concerning fundamental questions of offshore grid extension and regulations on network charges. His energy law practice includes power generation, renewable energy, unbundling of distribution and transmission system operators, energy infrastructure regulation and compliance matters.
Professor Uwer holds a PhD from Humboldt University Berlin, an LLM from Northumbria University and a master’s in public administration from the Germany University of Administrative Sciences Speyer. He has authored more than 130 books and articles and lectures at several universities.
Daniel J Zimmer
Partner, Hengeler Mueller
[email protected]
https://www.linkedin.com/in/daniel-zimmer-7b8b04198/
Daniel J Zimmer is a partner of Hengeler Mueller in Dusseldorf. He advises national and international companies on all areas of energy and competition law.
In energy matters, he supports investors and energy supply companies in M&A transactions and advises clients at all market levels on regulatory issues. These include transmission systems, distribution systems and storage operators, their customers and operators of power generation facilities – in particular, in relation to unbundling, tariff and access issues. He regularly represents clients before the regulatory authorities and courts.
In competition matters, Dr Zimmer mainly focuses on the representation of companies in cartel cases, follow-on damage claims, including their extrajudicial resolution, as well as antitrust compliance issues.
Dr Zimmer lectures on energy law at the Technical University of Berlin. He holds a PhD from the University of Bonn and an LLM from Duke University. He has published numerous articles on energy and competition law.
The authors would like to thank Johannes Kühle for his invaluable contribution to this Special Report.