Lee Beck Clean Air Task Force

1. A Carbon Capture and
Storage Strategy for
Europe
2 2 J u n e 2 0 2 2

2. Introduction to
Clean Air Task Force
Founded in 1996.
Headquartered in Boston, 100 global staff from Berlin to Brazil
to San Francisco to China.
The Mission: Lead the way to an affordable, zero-carbon
energy system by advocating for pragmatic policies, new
business strategies, and advanced technologies.
Change the Narrative: to communicate the size
of the problem and totality of solution
requirements.
Change Technology: to have the full suite of
options, including affordable and safe nuclear
energy and decarbonized fossil fuels.
Change Business Models: to include modular,
manufacturable energy systems that can be
deployed anywhere quickly.
Change Policy: to develop, demonstrate, and
scale up all the technologies and systems needed
to achieve zero emissions by midcentury.

3. Carbon capture and storage technologies offer…
A pathway for
industrial
transformation of
energy companies
enabling job retention
and creation in
productive industries
while keeping
productive assets in
use and enhancing
energy security
A solution for
decarbonising
heavy industry such
as cement, steel,
and chemicals
which together
account
for around 12% of
European CO2
emissions
A solution for
eliminating
greenhouse gas
emissions from
unrecyclable waste
The opportunity to
unlock cheap low-
carbon hydrogen
production to kick-
start the hydrogen
market
A pathway to
permanent carbon
dioxide removal via
CO2 storage

4. Why does Europe need carbon capture and storage?
Deep decarbonisation requires much greater deployment of carbon capture and storage and
greater attention from EU policymakers. In this deck, we'll outline seven unaddressed
challenges AND recommend solutions for each.
"Currently, global rates of carbon capture and
storage deployment are far below those in modelled
pathways limiting global warming to 1.5°C or 2°C.
Enabling conditions such as policy instruments,
greater public support and technological innovation
could reduce these barriers.”
IPCC, Working Group III, Mitigation of Climate Change,
Summary for Policymakers (SPM), p.37

5. A critical decade for carbon capture and storage
 Over 50 capture and storage projects planned across Europe
(mainly around the North Sea)
 Shift in focus to industrial emissions and development of open-
access CO2 transport and storage infrastructure
 EU Innovation Fund first call for large-scale projects awarded
up to €778 million to four projects based on carbon capture
 Significant national funding in place or proposed in the
Netherlands, Norway, UK, Denmark, Sweden
 EU and national governments need to develop a coordinated
policy framework that allows first-mover projects to progress
and develop into a viable, region-wide industry for CO2 storage.

6. Key projects and policy landscape

7. We can lower the
cost of industrial
decarbonization through
shared infrastructure.
CO₂ transport and storage infrastructure
has strong economies of scale: larger
infrastructure handling greater CO₂
volumes has a lower unit cost per ton of
CO₂.
CO2 networks can set European
nations up for at-scale decarbonization
extending beyond industrial sectors,
potentially allowing negative emissions
through carbon removal.
TEN-T - Transport of CO2 to Permanent Storage | 2022
7

8. TEN-E Revision
Initial proposal covered pipelines only – scope eventually extended by Parliament and Council to cover CO2 storage
projects.
While all transport modalities are now recognised, only pipelines have access to full funding and policy support.
The key to net-
zero by 2050:
CO2 transport via pipeline
and CO2 storage currently
included in the TEN-E
Permanent CO2 storage and
CO2 transport modalities such
as ship, barge, rail, and truck
are excluded from TEN-E
CO2 CAPTURE CO2 STORAGE CO2 TRANSPORT

9. Challenge #1: Closing the funding gap
Taking into account the carbon price and existing funding schemes, there is a revenue shortfall
for currently announced projects which amounts to a cumulative €10 billion by 2030.
Key recommendations:
 Increase the size of the EU’s Innovation Fund
programme and consider frontloading funding
to promote earlier project development
 Introduce new operational subsidies for
capture plants at the EU and national level, for
example, via a contracts for difference model
 Ensure new and existing funds for industrial
decarbonisation funds are accessible to
carbon capture and storage

10. Challenge #2: Establishing large scale, open-access storage
Based on currently announced project timelines, there could be a 50% shortfall in developed storage
capacity by 2030, and yet, Europe boasts an estimated 500 Gt of theoretical capacity for CO2 storage.
Key recommendations:
 Public support for the characterisation and development of
large-scale stores (>100 MtCO2) on a coordinated, cross-
border basis
 Introduce regulatory requirements for oil and gas industry
to undertake steps towards storage site development
(including data acquisition and permitting)
 Incentivise industry to reuse existing oil and gas
infrastructure for CO2
 Provide EU guidelines to streamline storage site permitting
 Develop new financial instruments to cover the small risk
of CO2 leakage

11. Challenge #3: Building beyond the North Sea
To ensure Europe’s emitting industries have equal access to the decarbonising potential of this
infrastructure, it is vital to promote and facilitate the development of other suitable storage
geology throughout the region, including onshore storage in Central and Eastern Europe, and
offshore storage in the Mediterranean.
Key recommendations:
 Promote capacity building initiatives for government and other
stakeholders in key Member States
 EU-coordinated efforts to update carbon storage regulations in
Member States
 Identify promising, large-scale onshore or offshore storage
regions in Southern, Central, and Eastern Europe and ensure they
are developed to the point where they are ‘injection ready’
 Explore ways in which the Just Transition Fund could be used
more broadly to help industrialised regions to access CO2 storage
Emission sources (red) and potential CO2 storage areas
(blue) in the Czech Republic

12. Challenge #4: Coordinating clusters and common infrastructure
A separate commercial framework for CO2 transport and storage can enable shared infrastructure
and economies of scale – but also brings challenges for coordination and expansion.
Key recommendations:
 Enable national and EU funding to use regional
synergies and scalability of climate impact as criteria
 Develop risk management strategies and business
models which enable the steady expansion of
cluster networks
The proposed CO2 infrastructure and potential capture plants in
Net Zero Teesside and Zero Carbon Humber

13. Challenge #5: Driving permanent carbon dioxide removals
Large-scale removal of CO2 from the atmosphere will be required at net zero to offset remaining
fossil emissions and address any climate ‘overshoot’. Policy must establish rigorous certification
mechanisms and introduce funding streams for higher-cost, high-value forms of carbon removal,
without compromising efforts to reduce emissions.
Key recommendations:
 Develop a portfolio of removal options for Europe while progressing towards higher
permanence solutions
 Ensure the forthcoming EU certification mechanism for carbon removal is based on
full life-cycle analysis and minimises uncertainties around permanence and leakage
 Targeted funding mechanisms to support the early development of technological
removals
 Set scientifically informed targets for technology-based removals
 Set standards to encourage the use of waste biomass feedstocks and limit new
land clearing

14. Challenge #6: Developing a flexible and
international market for CO2
The ability to move CO2 across borders is essential in creating Europe-wide access to a portfolio
of potential storage sites, enabling economies of scale and reducing individual project risks – but a
patchwork of regulatory agreements and technical specifications could emerge.
Key recommendations:
 Include all transport modalities in the revision of the TEN-T regulation
 Develop a Europe-wide set of CO2 specification standards for
transportation and storage
 Establish a platform for coordination between transport network
operators
 Encourage MS to ratify the London Protocol and establish
guidelines for bilateral agreements

15. Challenge #7:
Building broad stakeholder support
Governments can take a leading role in clearly laying out
the compelling case for carbon management in the
context of a transition to net zero, while ensuring new
policies are rooted in an open dialogue with civil society,
labour unions, industry, and other stakeholders.
Key recommendations:
 Evidence-based messaging from all levels of government
on the role of carbon management in reaching net zero
 Support policy announcements with good communication
and inclusive stakeholder consultation
 Encourage local governments or other local entities to
help coordinate regional clusters

16. No Deployment Plan
While CCS is part of almost every
EU decarbonisation plan, there is no
strategy for its deployment in the EU
Lack of comprehensive
plan and strategy for the
development and
deployment of carbon
management
technologies in Europe
Current situation for Carbon Capture at the EU level
Lack of Studies
Insufficient studies, data, and
projections on CCS, storage
availability, the most cost-efficient
way to deploy infrastructure, the
needs of different industrial sectors.
Insufficient Funding
Lack of appropriate funding for
the deployment of CCS in Europe,
and the funding is scattered across
different programmes
Scattered Across Legislation
CCS is covered as an after-thought across several
pieces of legislation (TEN-E, ETS, ESR, Horizon
Europe) or forgotten in ones that could have been
relevant (Gas Package, TEN-T)
Priorities
While CCS received more attention
in recent months, the priority of the
Green Deal remains focused
on renewables first, instead of
looking at sectors that
renewables can't decarbonise

17. An EU strategy for carbon capture and storage
 Set clear milestone targets for industrial capture
and permanent CO2 removals based on scientifically
sound long-term modelling and a climate risk
minimisation approach
 Develop a plan to identify and develop strategically
placed storage sites, based on Member State
submissions of prospective capture and storage volumes
 Coordinate relevant EU legislation and EU funding
with Member State initiatives
 Establish a position on the appropriate manner of
regulation for CO2 storage to avoid monopoly power,
stimulate competition and expansion
 Develop an overarching plan for the development
of optimised cross-border CO2 transport infrastructure,
including solutions for dispersed emitters
 Establish a Europe-wide regulatory platform
for CO2 transport infrastructure
 Encourage relevant Member States to ratify the London
Protocol amendment and address any regulatory gaps
on CO2 storage
 Create a regional coalition to ensure the North Sea
Basin is developed on schedule to deliver on the order of 1
Gt of storage by 2050
 Provide guidelines on how to collaborate and trade CO2
with non-EU countries
 Establish a dedicated European forum on carbon
capture and storage for coordination between industry and
other stakeholders

18. Read the Full Report:
A Policy Framework
for Carbon Capture
and Storage in Europe
View online

19. Phone: 617-624-0234
Email: info@catf.us
CATF.US