There is no point of return. First we must capture it before it rushes off into the atmosphere, then move it to a suitable location before storing it for hundreds of years. I am, of course, speaking about CO2, the biggest environmental challenge ever.
Unfortunately, large-scale carbon capture and storage (CCS) is still at an immature stage for both coal and gas. However, the technology has the potential to be one of the most significant contributors to solving the future’s global climate challenges. And there is no doubt any longer, the climate will change.
There is no quick fix, though – mainly due to a number of risks and dilemmas related to CCS, especially the vast number of stakeholders which may have conflicting goals.
Every country faces political risks when it comes to deciding ways of reducing emissions and spending money. Linked to this are the risks to society of leakage during transportation or storage. Also, it has to
be decided where infrastructure should be built in order to minimise the risks posed to humans and nature.
Technologically, there are several logistics risks, ranging from capture and transportation to storage. The commercial risk relates to the challenge of building a complete new value chain, in which several stakeholders need to have a balance between their risks and rewards. The power and industrial plants, transportation infrastructure, and operators of reservoirs and wells will be driven by totally different players.
A whole new marketplace needs to be created, with long-term predictable conditions for everyone, including a transparent decision basis and interfaces that need to be defined. Otherwise, it will be like dancing to music with an ever-changing rhythm and with dance partners who don’t always move in the same direction.
However, I am glad to see that the party has started. Many companies and some countries are developing both technology and policies for CCS. Norway plans to build its first full-scale plant already in 2012. In Europe, demo projects will be developed in 2015 and full-scale plants in 2020. North America and Australia are taking active roles and the world is discussing how to incorporate CCS in quota trading schemes to ensure that the price of CO2 will be a driving force. DNV is also facilitating, on behalf of the different industries and authorities, the development of standards for capturing, transporting and storing CO2. This work will be finalised in 2010.
Today we know the risks of not acting. For this reason, the players must learn to dance the carbon waltz together.