London - January 11, 2010 - A recent report, published by the Global Carbon Capture and Storage Institute and produced by L.E.K. Consulting, has identified the ‘Ideal Portfolio’ of carbon capture and storage projects that have the greatest potential to significantly contribute to large-scale commercial carbon capture and storage (CCS) deployment by 2020.
The report, published on 4th November 2009, concludes that the world needs to broaden the commercial development of CCS projects across industries, geographies and technologies in order to accelerate deployment. A copy of the report can be obtained here.
In preparing the report, L.E.K. undertook three main phases of activity: identifying the most relevant CO2 emitting industries; assessing the most attractive carbon capture technologies, transport solutions and storage configurations; and analyzing the most suitable geographies for deployment. Following this, the team developed a rationale for supporting projects, providing the Global CCS Institute with a framework to guide its future interactions with CCS projects.
Clare Chatfield, Senior Partner at L.E.K. Consulting, commented “This report is a major step forward in achieving the Global CCS Institute’s goal of increasing CCS knowledge, bringing down costs and building confidence in CCS technology. L.E.K. conducted extensive analysis and consulted over 100 stakeholders and global experts from a range of organizations in order to reach these conclusions. The report provides clarity and direction for the Global CCS Institute to move forward with its objectives.”
The Ideal Portfolio prioritizes the Power Generation sector, given its contribution to global emissions and the scale and effort this sector is putting into CCS, and recommends a minimum of 17 project types across different fuel and technology combinations. It also allocates six projects to the iron & steel and cement industries, singling them out as sectors for which technological progress and potential CCS contribution is underestimated. The report points out that some industry sectors, including gas extraction and processing, while representing only a small share of global emissions, already carry out CO2 separation. These industries can provide early opportunities for CCS development, and are also prioritized in an Ideal Portfolio due to their ability to accelerate deployment.
The report recommends that the majority of projects in an Ideal Portfolio are located in North America, Europe and China, due primarily to their share of global emissions. Australia and Japan are also classified as priority regions with an allocation of approximately 15 per cent of projects, due to their favorable policy and regulatory environments.
Global CCS Institute CEO, Nick Otter said “The iron & steel and cement industries are responsible for over 20 percent of the world’s CO2 emissions. If CCS is to contribute to the deep cuts in emissions the world needs, then industry must be part of the solution. Deploying CCS is about deploying technology. If we want rapid deployment, we must build on the technology set and take advantage of the regulatory conditions which exist in those countries that have been part of the advance guard.”
Notes to editors
For further information, contact:
UK: James Lloyd + 44 (0) 207 389 7456
France: Maud Ng Kon Tia +33 (0) 1 47 03 19 60
Global CCS Institute
Chandran Vigneswaran +61 (0) 2 6175 5331
About L.E.K. Consulting
L.E.K. Consulting is an international firm that specializes in strategy, transaction services and performance improvement consulting. It advises the largest private and public sector organizations, private equity companies and smaller, more entrepreneurial businesses. The firm has built a reputation for resolving the most complex commercial challenges, helping business leaders consistently make better decisions, deliver improved business performance and create greater shareholder returns.
L.E.K.’s expertise in the strategic issues related to climate change and the environment is relied on by clients across the world. Covering a range of industries, L.E.K. advises public and private sector organizations on a wide variety of carbon-related issues, including strategic carbon management, renewable energy and CCS technology.
L.E.K. was founded in 1983 and employs over 900 staff in 20 offices across Europe, North America and Asia Pacific.
Find out more at www.lek.com
About the Global CCS Institute
The Global Carbon Capture and Storage Institute (Global CCS Institute) is a bold new initiative aimed at accelerating the worldwide commercial deployment of at-scale CCS. Announced by the Australian Government in September 2008, the Global CCS Institute was formally launched in April 2009 and became an independent legal entity in July 2009.
Recognizing the important contribution CCS can make in ameliorating climate change, the Australian Government has committed AUD$100 million annual funding for the Global CCS Institute. This will ensure the ongoing success of this independent authority on CCS.
Already the Global CCS Institute has received unprecedented international support, with more than 20 national governments and over 80 leading corporations, non-government bodies and research organizations signing on as foundation members or collaborating participants.
Find out more at www.globalccsinstitute.com
L.E.K. Consulting identifies the ‘Ideal Portfolio’ of Carbon Capture and Storage initiatives