Comprehensive CCUS Research Report: Storage, Value Chain, Policy & Regulation and Financing

Table of Contents

• Table of Contents -1
• Geological Storage Potential of CO2 in Southeast Asia -1
• Establishment of Asia CCS/CCUS Value Chain as a Collective Framework in the Asia Pacific Region -1
• Legal and Policy Framework for Deployment of CCUS in Asia Region, focused on ASEAN -1
• Study on Financial Framework for Deployment of CCUS in the Asian Region, including ASEAN -1
• Geological Storage Potential of CO2 in Southeast Asia -1
• 1.1. Southeast Asian CO2 Storage Resource Development -1
• 1.1.1. Current CCS Deployment Status -1
• 1.2. Methodology -1
• 1.2.1. Basin Suitability Assessment and Source Sink Matching -1
• 1.2.2. Resource Calculation -1
• 1.2.2.1. Depleting and Depleted Hydrocarbon Fields -1
• 1.2.2.2. Saline Formations -1
• 1.2.2.3. CO2 EOR-Storage (CCUS) -1
• 1.3. Results and Discussion -1
• 1.3.1. Indonesia -1
• 1.3.1.1. CO2 Storage Resources Summary -1
• 1.3.1.2. Prospective Basins with Potential Clusters -1
• 1.3.1.2.1. Central Sumatra -1
• 1.3.1.2.2. South Sumatra Basin -1
• 1.3.1.2.3. Java Island -1
• 1.3.1.2.4. Kutei -1
• 1.3.1.3. Summary of storage deployment prospects, barriers, and issues -1
• 1.3.2. Malaysia -1
• 1.3.3. CO2 Storage Resource Summary -1
• 1.3.3.1. Prospective Basins with Potential Clusters -1
• 1.3.3.1.1. Malay Basin (Thailand and Malaysian Waters) -1
• 1.3.3.1.2. Sarawak -1
• 1.3.3.1.3. Sabah - Baram Delta -1
• 1.3.3.2. Summary of Storage Deployment Prospects, Barriers, and Issues -1
• 1.3.4. Brunei -1
• 1.3.4.1. CO2 Storage Resource Summary -1
• 1.3.4.2. Prospective Basins with Potential Clusters -1
• 1.3.4.2.1. Sabah - Baram Delta -1
• 1.3.4.3. Summary of Storage Deployment Prospects, Barriers, and Issues -1
• 1.3.5. Thailand -1
• 1.3.5.1. CO2 Storage Resource Summary -1
• 1.3.5.2. Prospective Basins with Potential Clusters -1
• 1.3.5.2.1. Pattani -1
• 1.3.5.2.2. Khorat, Greater Choa Phraya and Phitsanulok basins -1
• 1.3.5.3. Summary of storage deployment prospects, barriers, and issues -1
• 1.3.6. Viet Nam -1
• 1.3.6.1. CO2 Storage Resource Summary -1
• 1.3.6.2. Prospective Basins with Potential Clusters -1
• 1.3.6.2.1. Cuu Long Basin -1
• 1.3.6.3. Summary of Storage Deployment Prospects, Barriers, and Issues -1
• 1.3.7. Philippines -1
• 1.3.7.1. CO2 Storage Resource Summary -1
• 1.3.7.2. Prospective Basins with Potential Clusters -1
• 1.3.7.2.1. North Palawan Basin -1
• 1.3.7.3. Summary of Storage Deployment Prospects, Barriers, and Issues -1
• 1.3.8. Singapore -1
• 1.3.9. Cambodia, Lao PDR, and Myanmar -1
• 1.4. Summary and Recommendations for Storage Development -1
• Establishment of Asia CCS/CCUS Value Chain as a Collective Framework in the Asia Pacific Region -1
• 2.1. Introduction -1
• 2.2. Understanding Clusters, Hubs, and Networks -1
• 2.2.1. Clusters -1
• 2.2.2. CCS Hubs -1
• 2.2.3. CCS Networks -1
• 2.3. Strategic Benefit of CCS Networks -1
• 2.3.1. Cost Reductions through Shared Infrastructure -1
• 2.3.2. Enabling the Use of CCS for Smaller Emissions Sources -1
• 2.3.3. Enabling CCS in Regions without Access to Suitable Local Storage -1
• 2.3.4. Enabling Low-Carbon Industrial Production -1
• 2.3.5. Reduced Exposure to Resource Constraints -1
• 2.4. CCS transportation methods -1
• 2.4.1. Pipeline -1
• 2.4.2. Shipping -1
• 2.4.3. Rail and Truck -1
• 2.5. CCS Transport Cost Trends -1
• 2.6. Hypothetical CCS Network Design and Costs -1
• 2.6.1. CCS Network Configuration -1
• 2.6.2. Vertically Integrated CCS Project Configuration -1
• 2.6.3. CCS Network Emissions Sources -1
• 2.6.4. Design Basis -1
• 2.6.5. Cost Basis -1
• 2.6.6. CCS Network Design Costs -1
• 2.6.7. Conclusions and Recommendations -1
• 2.7. Regional Legal and Institutional Frameworks Necessary to Support CCS Hub and CO2 Transport Networks -1
• 2.7.1. Introduction -1
• 2.7.2. Regional Legal and Regulatory Frameworks for Southeast Asia -1
• 2.7.2.1. International Legal Frameworks - London Protocol Implications for Transboundary Transport and Storage of CO2 -1
• 2.7.2.2. Transboundary transport of CO2 -1
• 2.7.2.3. Storage of CO2 - Allocation of Responsibilities -1
• 2.7.2.4. Acceptance and Application of the London Protocol and Its Amendments -1
• 2.7.3. Regional Legal and Regulatory Frameworks for CCS -1
• 2.7.3.1. Cooperative Legal Framework – EU Directive Case Study -1
• 2.7.3.2. Cooperative Regulatory Framework -1
• 2.7.3.3. Enabling Policies -1
• 2.7.4. Models for Regional CCS Cooperation -1
• 2.7.5. Integrated Regional Emissions Trading System (ETS) -1
• 2.7.6. Project Considerations -1
• 2.7.6.1. Cost competitiveness of Southeast Asia -1
• 2.7.7. Integrated Investment Frameworks -1
• 2.7.8. Institutional Frameworks in Southeast Asia -1
• 2.8. Asian CCS Value Chain Centre -1
• 2.8.1. The Opportunity -1
• 2.8.2. Focus Areas for a CCS VCC -1
• 2.8.2.1. Policy, Regulations, and Standards -1
• 2.8.2.2. Network and Infrastructure Planning -1
• 2.8.2.3. Funding for CCS Infrastructure/Projects -1
• 2.8.2.4. Storage Resource Appraisal and Development -1
• Legal and Policy Framework for Deployment of CCUS in Asia Region, focused on ASEAN 1
• 3.1. Introduction 1
• 3.2. Overview and Methodology 2
• 3.2.1. Stakeholder Engagement 2
• 3.2.2. Review and Analysis 3
• 3.2.3. Structure 4
• 3.3. Policy Architecture for CCS – Overarching Considerations 4
• 3.3.1. Integration of CCS within Wider Domestic/International Commitments 4
• 3.3.2. Energy Roadmaps/Climate Strategies 5
• 3.3.2.1. National CCS Roadmaps/strategies 5
• 3.3.2.2. ASEAN Strategy for Carbon Neutrality 12
• 3.3.3. Paris Commitments/NDCs and CCS Specific Commitments 19
• 3.3.3.1. Singapore 19
• 3.3.3.2. Indonesia 19
• 3.3.3.3. Thailand 20
• 3.3.3.4. Malaysia 20
• 3.3.3.5. The Philippines 21
• 3.3.3.6. Viet Nam 21
• 3.3.3.7. Brunei Darussalam 21
• 3.3.4. Consideration and Position of CCS in Existing or Proposed Incentives and Support Mechanisms 22
• 3.3.4.1. Carbon Credits/Tax Credits/Funding/Finance 22
• 3.3.4.2. Transboundary Bilateral Agreements 27
• 3.4. Designing CCS-Specific Law and Regulation 28
• 3.4.1. Approach to Developing CCS-Specific Legislation 28
• 3.4.1.1. Supporting Domestic Policy Priorities 29
• 3.4.2. Role of Existing Regulatory Pathways 29
• 3.4.3. Social License Considerations 30
• 3.4.4. Scope of Frameworks 32
• 3.4.4.1. Permitting Various Applications 32
• 3.4.4.2. The Inclusion of Carbon Dioxide Removal (CDR) within CCS-Specific Legislative Frameworks 33
• 3.4.5. Detailed Review and Assessment of Domestic Regimes 34
• 3.4.6. Identifying and Designating a Regulatory Authority 36
• 3.4.7. Stakeholder Engagement in the Development of Legislation 37
• 3.5. Overarching Legal and Regulatory Considerations 39
• 3.5.1. International Obligations and Considerations 39
• 3.5.2. The Legality of Transboundary Offshore CO2 Storage Value Chains under the London Protocol 46
• 3.5.3. Interactions with Wider Domestic Legal Frameworks 49
• 3.5.4. Enabling Emerging Project Models 51
• 3.5.5. Eligibility under Carbon Crediting Mechanisms 52
• 3.5.6. Interaction with Reporting and Accounting Mechanisms 53
• 3.5.6.1. Accounting and Reporting Obligations in the Context of Transboundary CCS Value Chains 54
• 3.5.7. Developing National Protocols and Regulatory Guidelines 55
• 3.6. A CCS-Specific Legal and Regulatory Framework 58
• 3.6.1. Identifying the Key Elements of a Legal and Regulatory Framework 59
• 3.6.1.1. Assessment and Guidance Frameworks 59
• 3.6.2. ASEAN Nations’ Perspectives 61
• 3.6.3. Developing a Permitting Model for CCS Activities 63
• 3.6.4. Core Legal and Regulatory Issues Across the CCS Project Lifecycle – the Institute’s Model 66
• 3.6.5. Pre-Injection 68
• 3.6.5.1. Classification and Purity of CO2 Streams 68
• 3.6.5.2. Ownership of the Pore Space within CO2 Storage Sites 69
• 3.6.5.3. Ownership or Title to Stored CO2 70
• 3.6.5.4. Authorisation to Conduct Assessment for Potential CO2 Storage Sites 71
• 3.6.5.5. Site Characterisation Requirements 72
• 3.6.5.6. Construction and Development Requirements 73
• 3.6.5.7. Environmental Impact Assessments 74
• 3.6.5.8. Public Engagement Requirements 76
• 3.6.5.9. Clarification of Obligations where There are Interactions with Existing Resource Interests 77
• 3.6.5.10. Transboundary CO2 Storage Considerations 78
• 3.6.6. Operation 79
• 3.6.6.1. CO2 Capture 80
• 3.6.6.2. CO2 Transport 80
• 3.6.6.3. Authorisation of Storage Activities 81
• 3.6.6.4. Development of Plans 82
• 3.6.6.5. Monitoring, Reporting and Verification Requirements 83
• 3.6.6.6. Corrective Measures and Remediation Measures 84
• 3.6.6.7. Liability During the Project Period 85
• 3.6.7. Closure 87
• 3.6.7.1. Authorisation for Storage Site Closure 88
• 3.6.7.2. Well Plugging and Decommissioning Requirements 88
• 3.6.8. Post-Closure 89
• 3.6.8.1. Post Closure Site Care and Monitoring Requirements 90
• 3.6.8.2. Transfer of Liability and Stewardship 90
• 3.6.8.3. Financial Security 92
• Design and Structure of Indonesia’s New CCS-Specific Regime 63
• Study on Financial Framework for Deployment of CCUS in the Asian Region, including ASEAN -1
• 4.1. Introduction -1
• 4.2. Global Economic Net Zero Optimization (GENZO) Model -1
• 4.3. Scenarios -1
• 4.4. High-Level Results -1
• 4.5. CCS -1
• 4.6. The CCS Financing Challenge -1
• 4.7. Policies to Incentivise Investment in CCS -1
• 4.7.1. USA -1
• 4.7.2. European Union and the United Kingdom -1
• 4.7.3. Japan -1
• 4.7.4. Effective Policies – Observations -1
• 4.8. Public Finance for CCS in ASEAN -1
• 4.9. Potential Sources of External Finance -1
• 4.9.1. Multilateral Development Banks -1
• 4.9.2. Voluntary Carbon Markets -1
• 4.9.3. Sustainable Finance – Green and Climate Bonds -1
• 4.9.4. The Loss and Damage Fund -1
• 4.10. The Role of Carbon Pricing -1
• 4.11. Policy Recommendations -1
• 4.11.1. Phase 1 – First Projects; 2020s -1
• 4.11.2. Phase 2 – CCS Network Establishment and Deployment Ramp-up; 2030s -1
• 4.11.3. Phase 3 - CCS Industry Maturity: 2040s and beyond -1
• References -1
• Appendices -1
• Appendix A -1
• Appendix B -1