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Building the Pipeline Infrastructure (GHG/07/49)Building the Pipeline Infrastructure (GHG/07/49)

• Cost curve studies for North America and Europe completed to date indicate that you need a big pipeline network to connect all sources to stores• Europe:

• 150,00 km of pipelines required

• Investment cost of €15bn

• North American study indicated that careful thought was needed on how network was built to avoid stranding sources

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Building the Pipeline InfrastructureBuilding the Pipeline Infrastructure

• Currently focusing on 12 demonstrations projects before 2012.

• After that time we may need several thousand projects

• Aim of study is to look post 2014 to implementation

• Help guide future thinking so that pipeline network does not become a barrier to wide scale implementation

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Outline Scope of the Study -1Outline Scope of the Study -1

• Study to focus on 4 areas• Financing and timing

• Regulatory needs

• Legal issues

• Transboundary issues

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Outline Scope of the Study - 2Outline Scope of the Study - 2• Financing and timing.

• In absence of a CO2 market how can such a project be financed?

• Intuitional lenders

• Consider existing business models• Norwegian sector

• Aim to compare and contrast and identify most likely cases for different regions

• Case study approach could be used

• Consider how long such an infrastructure will take to build and then set a time line to fit global GHG mitigation needs

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Outline Scope of the Study - 3Outline Scope of the Study - 3• Regulatory developments

• Only USA has a developed framework and an extensive CO2 pipeline network (2,400km) so far

• Study will consider how regulations might differ in regions• Population density

• Routing issues• Easier to follow existing rights of way but are their issues with

CO2?

• Planning issues• In many countries natural gas pipelines getting preferential

planning treatment will this be the same for CO2 pipelines

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Outline Scope of the Study - 4Outline Scope of the Study - 4• Legal issues

• Jurisdictions – national/international boundaries• Access rights – third part access• Ownership of equipment• Monitoring and verification for CER’s and apportionment of

fugitive emissions• Assignment of liability – cross boundary cases• Abandonment cost apportionment• Responsibility for monitoring/surveillance

• Transboundary issues• Impurities in CO2

• Basel convention

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Collaboration with other GroupsCollaboration with other Groups

• Other groups to link/discuss with include:• EC Zero Emission Platform

• UK/Norway North Sea Basin Task Force

• Gasunie, Netherlands

• Regional Partnerships, USA?

• DNV

• Weyburn Project• Possible financial support

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Building the Pipeline InfrastructureBuilding the Pipeline Infrastructure

• Committee is asked to:• Approve proceeding with the study

• Suggest possible contractors

• Suggest expert reviewers for the study report

• Resources:• Financial – Average• Management – Average