“Technically we can manage the challenges involved in storing CO2. Now the regulatory and financial gaps must be closed through a tight partnership between the industry and authorities. A common understanding and approach will accelerate the process of Carbon Capture and Storage becoming a sustainable industry,” says Martin Jagger, Shell’s CCS and Contaminated Gas Manager.
Shell was one of the first companies to commit to voluntary CO2 emission reduction. “The company has set a target of a 5% reduction of emissions by 2010, compared to 1990 levels. We are well on track to exceed that target,” says Martin Jagger.
“Recently our focus has been on the changing mix in the energy world. In the decades ahead, the world must grapple with the twin pressures of rising energy demand and the threat of climate change. As fossil fuel is going to be an important part of this mix there has to be a commitment to managing CO2 emissions responsibly,” he says.
Shell has chosen a structured move towards a low emissions future and, to support this, it has identified six CO2 reduction pathways. One is Carbon Capture and Storage (CCS). “But we also have efficiency, technology, advocacy, developing low CO2 sources of energy, including natural gas and low CO2 fuel options and in addition to helping the customer to make better use of the fuels and changes to the energy mix,” says Mr Jagger.
Long-term commitment
Shell has injected CO2 since 1972, when Shell and Chevron worked together to put the world’s first CO2 projects in place in the USA. “Back then, we built a 500-kilometre pipeline which is still operating today. So we have injected and we’ve transported, but not on the scale at which we need to do in the future.
“If we just look at our own major assets, our own refining and petrochemical base – that’s at least 20 assets worldwide. Each one of those has to have a CO2 abatement option clearly set out for it, and it has to have an energy and CO2 efficiency option.
“But – and this is at least as important – we also have to look at our future projects, all of which must be able to manage their CO2 emissions. Shell, like all the other energy companies, must be able to demonstrate that it can manage CO2 in a cost-effective and responsible manner,” Mr Jagger emphasises.
Driving a full-scale partnership
At the moment, the industry is in a demonstration phase. This means that technologies and methodologies are being developed on a small scale to ensure everything works as intended. Mr Jagger does not believe there are any technological barriers to capturing, transporting and storing CO2 in a safe and responsible manner.
“However, there must be economic drivers in place here to support early movers. I think we are heading towards a world where clear and binding emission targets are being set. Together with cap and trade systems, these targets could perhaps be effective in supporting the true cost of CCS in the business. But in the short term, before economies of scale bring down overall costs of CCS, I think projects will need to be supported through public-private partnerships and we are seeing just that in different areas of the world at the moment,” he says.
Until now, the deployment of CCS has been hampered by a lack of tailored regulatory frameworks and established industry practices. “This was the reason for Shell joining the DNV-led CO2QUALSTORE project. Through this global partnership the industry, with valuable input from a number of authorities, has developed a unified guideline. We have now created a knowledge document which provides a comprehensive and systematic process that covers the full lifecycle of a CO2 storage project,” Mr Jagger explains.
“We hope this approach will accelerate the implementation of CCS by providing a common, predictable and transparent decision-making basis for project developers, operators and regulators.”
Importantly, Shell colleagues from CCS projects across our global portfolio have contributed review comments at a number of times during the guidelines development. This means that the guidelines are applicable to real projects being developed today, and makes their broader applicability credible.
The guidelines should provide project developers with a procedural framework for selecting and managing sites, delivering consistency and efficiency. Regulators can on their part use the guidelines to verify that sites have been selected and assessed as suitable for the geological storage of CO2 by following a standardised and globally recognised procedure.
The general public may also be given assurance that a storage site is safe and responsibly managed.
“The storage of CO2 is not a replacement for renewable energy, it is a transactional technology. There is no option, and I hope we can soon take the next step towards full-scale capture and storage,” concludes Martin Jagger.
