Workshop on Clean Development Mechanism (CDM)

 Methodological Issues in regard to

Carbon Dioxide Capture and Storage (CCS)

 

Hosted by the Ministry of Economy, Trade and Industry, Government of Japan

  Introduction

In response to the request by the COP, in its decision 9/CP.7, IPCC Special Report “Carbon Dioxide Capture and Storage (CCS)” (IPCC SRCCS) was accepted in September 2005 and subsequently submitted to the UNFCCC. The UNFCCC, Subsidiary Body for Scientific and Technological Advice (SBSTA), at its twenty-third session, considered the Special Report and acknowledged that “carbon dioxide capture and storage is an option, in the portfolio of mitigation options, for stabilization of atmospheric greenhouse gas concentrations.”

Meanwhile, two CDM methodologies for CCS projects have been submitted to the CDM Executive Board. One is for CDM project activities which involve storage of CO2 in an oil reservoir, the other for storage of CO2 in a deep saline aquifer.

While the CDM Executive Board decided to put on hold the methodologies for CCS projects and referred them to the COP/MOP, the COP/MOP, in its decision at its first session, established the process with a view to making its final decision at its second session to be held in November 2006, identifying the three key issues to be addressed, i.e., project boundary, leakage and permanence. In accordance to this decision, the CDM Executive Board will consider proposals for new methodologies for CCS projects and make recommendations to the COP/MOP at its second session. In addition, a workshop for considering CCS projects as CDM will be organized in conjunction with the twenty-fourth session of SBSTA scheduled in May 2006.

Against these backgrounds, the Ministry of Economy, Trade and Industry of Japan (METI) hosted “Workshop on CDM Methodological Issues in regard to CCS”. The workshop was intended to develop and deepen mutual understanding among both sides of CCS and CDM, and to discuss how to implement CCS projects as CDM through examining the two proposed CDM methodologies as applied to potential actual CCS projects, focusing on the three key methodological issues.

It was expected that the result of the workshop would provide useful input for the workshop on considering CCS projects as CDM at the twenty-fourth session of SBSTA as well as for the discussions at the CDM Executive Board and the COP/MOP at its second session.

The workshop was held in Paris on April 20th and 21st. Experts from both CCS and CDM fields and governmental representatives of the countries concerned were invited to the workshop. There were 64 participants from various fields such as governments of investing countries, governments of host countries, the Methodology Panel, the UNFCCC secretariat, the IPCC, DOEs, oil majors, the IEA-GHG and the field of geology. There were 20 participating countries.

 

General Information

 Date   20-21 April, 2006

Venue   Le Palais des Congrès de Paris, Paris, France Room 352AB

Moderator Dr. Makoto Akai National Institute of Advanced Industrial Science and Technology (AIST), JAPAN

Secretariat

 Mitsubishi Research Institute, Inc.

 Mr. Norio Shigetomi

 3-6, Otemachi 2-Chome, Chiyoda-ku, Tokyo 100-8141 Japan

 Tel: +81-(0)3-3277-0777                     Fax: +81-(0)3-3277-0523

 E-mail: norio@mri.co.jp

 

 ICS Convention Design Inc.

 Ms. Keiko Hattori, Ms. Megumi Inagaki

 Sumitomo Corp. Jinbocho Bldg.

 3-24, Kanda-Nishikicho, Chiyoda-ku, Tokyo 101-8449, Japan

 Tel: +81-(0)3-3219-3541                     Fax: +81-(0)3-3292-1811

 E-mail: cdm-ccs@ics-inc.co.jp

 

Supported by Mizuho Information & Research Institute, Inc.

Hosted by Ministry of Economy, Trade and Industry, Government of Japan

 

         Program

 Program Summary for Day 1

 

13.00   Registration & Welcome coffee

Opening

14.00     Opening Remarks (including explanation of the background)

Dr. Hiroshi Yamagata, METI

14.15     Introduction of CCS technology

Dr. Makoto Akai, AIST

14.30     Introduction of IPCC Special Report on CCS

Ms. Heleen de Coninck, Intergovernmental Panel on Climate Change (IPCC)

15.00     Coffee break

15.15     Case Study of the Weyburn Project

Ms. Isabelle Czernichowski-Lauriol, French Geological Survey (BRGM)

15.45     Case Study of the Sleipner Project

Mr. Geirr Haarr, Statoil New Energy

16.15     Introduction of accounting approaches for CDM

Mr. Kenshi Itaoka, Mizuho Information & Research Institute

16.45     Introduction of CDM scheme

Ms. Susanne Haefeli-Hestvik, Det Norske Veritas (DNV)

17.05     Presentation of discussion points for this workshop

Dr. Makoto Akai, AIST

17.20      Adjourn

18.00      Welcome reception

 

Program Summary for Day 2

 

8.00        Registration & Welcome coffee

9.00        Brief summary of Day 1 discussions

Dr. Hiroshi Yamagata, METI

 

Introduction of the proposed CCS CDM methodologies

9.10       Introduction of the MUS CDM CCS methodology “Recovery of anthropogenic CO2 from large industrial GHG emission sources and its storage in an oil reservoir”

Mr. Junji Hatano, Mitsubishi UFJ Securities (MUS)

9.40       Introduction of the CDM CCS-Aquifers methodology “The capture of CO2 from natural gas processing plants and liquefied natural gas (LNG) plants and its storage in underground aquifers or abandoned oil/gas reservoirs”

Mr. Norio Shigetomi, Mitsubishi Research Institute, Inc. (MRI)

10.10     Briefing on IEA-GHG Workshop in London

Dr. Harry Audus, IEA Greenhouse Gas R&D Programme (IEA-GHG)

10.30     Coffee break

 

Panel discussion on improving the CCS CDM methodologies

10:45      Panel discussion 1: Issue relating to Project boundary

Facilitator: Dr. Harry Audus, IEA-GHG

Panelists: Mr. Jose Domingos Gonzalez Miguez, Ministry of Science and Technology, Brazil

              Ms. Jeanne-Marie Huddleston, Department of Foreign Affairs and International Trade, Canada

              Mr. Adrian Stott, MUS

              Mr. Tsukasa Kumagai, JGC Corporation

              Mr. Hiroyuki Sangawa, JGC Corporation

 Key discussion points:

 . Issues related to Project boundary determination

 . Implications of the London Convention and other treaties

12.15     Lunch 

13.45     Panel discussion 2: Issue relating to Leakage and Permanence

Facilitator: Ms. Heleen de Coninck, IPCC

Panelists: Ms. Isabelle Czernichowski-Lauriol, French Geological Survey (BRGM)

Dr. Wenying Chen, Tsinghua University, China

              Mr. Adrian Stott, MUS

              Mr. Tsukasa Kumagai, JGC Corporation

              Mr. Hiroyuki Sangawa, JGC Corporation

 Key discussion points:

 . Applicability conditions in regard to Site selection and management

 . Effective monitoring techniques

 . Frequency of measurements and sample size

 . Whether and how to define a limit for an acceptable amount of leakage

 . How to identify a significant release of stored CO2

 . Monitoring and the reservoir model

 . How to consider a discount rate relating to leakage

 . What action should be taken in the event of leakage

 . The cost of seismic surveys and other monitoring techniques

15.15      Coffee break

15.30      Panel discussion on improving the CDM CCS methodologies (cont.)

 

Closing

16.40     Wrap up of the discussions

Dr. Makoto Akai, AIST

17.00     Adjourn

 

Summary

Summary of the workshop was drafted by its moderator, Dr. Makoto Akai, under his own responsibility. The summary was also distributed for reference at "In-session Workshop on CO2 Capture and Storage and the CDM" having taken place at Maritim Hotel in Bonn on 22 May.

Summary for Workshop on Clean Development Mechanism (CDM) Methodological Issues in regard to Carbon Dioxide Capture and Storage (CCS)