Annexes to COM(2008)13 - Supporting early demonstration of sustainable power generation from fossil fuels - Main contents
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This page contains a limited version of this dossier in the EU Monitor.
| dossier | COM(2008)13 - Supporting early demonstration of sustainable power generation from fossil fuels. |
|---|---|
| document | COM(2008)13  |
| date | January 23, 2008 |
[11] ETP-ZEP, IEA, the Stern Review, and others (IAES).
[12] In the period until 2020 or so, the incremental costs incurred by early CCS demonstration projects woulers (IAES).
[13] In the period until 2020 or so, the incremental costs incurred by early CCS demonstration projects would correspond to significantly higher CO2 prices (up to 70 €/tCO2).
[14] European energy companies, equipment suppliers and oil/gas businesses as well as NGOs are actively involved in the ETP-ZEP.
[15] Priorities for European R&D on CCS have been identified on the basis of EU-supported R&D and knowledge and experience in the ETP-ZEP (IAES).
[16] IAES.
[17] UK, Netherlands, and Norway; in preparation in Poland, Germany and Spain.
[18] See IAES for a preliminary opinion on the criteria to be used.
[19] In particular, the European Community Steering Group on Strategic Energy Technologies and the Energy Technology Information System. Furthermore, the Research Alliance might align existing R&D activities in Europe in the relevant fields.
[20] In addition to its continued engagement with China (namely through the "Near-Zero Emission Coal project - NZEC" following on the heals of the 2005 EU-China partnership on Climate change and the subsequent 2006 Memorandum of Understanding), the Commission also laid the groundwork in 2007 for CCS collaboration with India and South Africa.
[21] Equipping a new power plant with elements needed for early demonstration of the full CO2 capture, transport and storage chain would entail incremental costs requiring (for a 300MW plant) either an additional upfront capital allocation of roughly €300-500m or ongoing additional revenue of €45-125m per year over the life of the project.
[22] While there was no "Clean Coal" action in FP6, the "CCS" action disposed of allocations of €15-20m on annualized basis. The combined allocations for "Clean Coal" and "CCS' actions in FP7 will use more than double. In addition, part of the annual sum of ca € 9m dedicated to coal-related research from the Research Fund for Coal and Steel will continue to go to complementary R&D.
[23] Although no Member State has created specific provisions in their operating plans for the period 2007-2013, some assistance to CCS demonstration power plants could fall within planned research and innovation activities. Opportunity for amendments to explicitly cover such plants can arise following strategic reviews of programmes.
[24] After the demonstration period, CCS will be expected to compete on a commercial basis, within the future ETS.
[25] SEC(2008) 64 adopted concurrently.
[26] The guidelines state that the use of CCS in power generation, practically non-existent to date, is likely to be limited in the next decade mainly to demonstration projects. Insofar as projects are not subject to other state aid guidelines, the Commission believes that a declaration of compatibility of the limited number of state aid cases arising in connection with such projects could be best granted directly under the provisions of the primary European legislation: Articles 87(3)(b) or (c) and 88(3) of ECT.
[27] RSFF is a joint initiative of the EIB and the Commission aimed at providing risk financing for new technologies and R&D implementation projects.
[28] In a related development, the EIB signed a China Climate Change Framework Loan in the margins of the 10th EU-China Summit on 28 November 2007 and, subject to the proposals from Chinese authorities, is considering its use to support CCS demonstration in China.