0 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Ba o doda The Building momentum for the long-term CCS deployment in the CEE region project is funded by Iceland, Liechtenstein and Norway through the EEA and Norway Grants Fund for Regional Cooperation. BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION CCS National Roadmap [Czechia] Michal Hrubý, Alexandra Visnerová, Vladimír Bartovic 1 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Chapter 1. The role of CCS in decarbonisation pathways..........................................................................................2 Chapter 2. Opportunities and barriers for deployment of CCS and its related technologies in Czechia.............5 Chapter 3. Policy roadmap for the scaled-up deployment of CCS and its related technologies in Czechia ......9 A) Scaling up RD&D activities and building national knowledge and experience.................................................10 B) Policy, standards and regulations............................................................................................................................14 C) Stakeholder engagement, cooperation & know-how dissemination ..................................................................17 D) Social aspects and public support...........................................................................................................................19 Chapter 4. Next and immediate steps..........................................................................................................................21 2 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Chapter 1. The role of CCS in decarbonisation pathways In 2019, the EU launched the European Green Deal to transform the EU into a modern, resource-efficient and competitive economy, cut greenhouse gas (GHG) emissions by at least 55% by 2030 and reach net-zero GHG emissions by 2050. Many 1.5°C compatible scenarios have assessed these targets and shown that a credible but narrow pathway exists and will require the use of all decarbonisation tools available. Renewables and energy efficiency are key components of that pathway, accounting for 80% of emissions reductions. But to reach net-zero emissions, renewables and energy efficiency need to be supplemented by CO2 capture and storage (CCS), utilisation (CCU) and carbon dioxide removal (CDR) (particularly bioenergy with CCS/CCU also known as BECCS/BECCU) technologies (Figure 1), particularly in sectors such as cement, chemicals, iron and steel, waste incineration, and power and heat production. To address emissions from other sources as well as historic emissions, the role of direct air capture with storage (DACCS) or utilisation (DACCU) should be further explored. While these technologies are distinct in some ways, they use the same components of the value chain: CO2 transport, storage and utilisation. Together they can mitigate 20% of global CO2 emissions, but to do so, the scale of their deployment has to increase significantly (Figure 2) from the current 0.04 gigatonnes (Gt) of CO2 per year to approximately 8.5 Gt of CO2 per year in 20501 . The benefit of CDR processes is that they remove CO2 from the atmosphere, not simply reduce what was added and in combination with long-term storage can result in negative emissions. As such they are a critical component of net-zero pathways in the European Green Deal and most recently in line with the COP26 Glasgow Climate Pact. There are however preconditions to be assessed, such as biomass for BECCS needs to be sourced sustainably, while DACCS requires access to abundant and low cost renewable energy. The pace of progress in validating and deploying these technologies across sectors has been slow to date and in many cases with significant cost overruns. Currently, CCS, CCU and CDR plants globally capture 40 megatonnes (Mt) of CO2 per year2 , with many more being developed. An increasing number of pilot and demonstration projects focus on safety issues, environmental impacts and costs, and generate lessons learned to be used to further improve these technologies and bring their costs down. To remain on track to reach net-zero emissions by 2050, activities and changes to the current status quo have to be significantly accelerated already in the current decade. That requires activities at the national and regional levels to enhance the collective understanding of the issues surrounding CCS, CCU and CDR, build confidence and massively scale up CCS deployment to reduce costs of these technologies and related infrastructure. 1 https://irena.org/-/media/Files/IRENA/Agency/Technical-Papers/IRENA_Capturing_Carbon_2021.pdf 2 Ibid. 3 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Figure 1: Carbon cycle with the use of CCS/CCU, BECCS/BECCU and DACCS/DACCU technologies3 Figure 2: Carbon capture and storage as a part of the global decarbonisation toolbox4 3 Ibid. 4 Ibid. 4 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION CCS deployment at the European level The EU has put forward several mechanisms and instruments to enhance the understanding of various decarbonisation pathways consistent with the 1.5°C scenario. One of the mechanisms, the European Strategic Energy Plan (EU SET-Plan) aims to accelerate the development and deployment of low-carbon technologies. Its Implementation Working Group 9 on CCUS (IWG9, or CCUS SET-Plan) specifically focuses on strengthening international cooperation and speeding up the deployment of CCS and CCU technologies. Czechia is a member of the CCUS SET-Plan. CCUS SET-Plan estimates that under the 1.5°C scenario, 230-430 MtCO2 per year would have to be captured and stored by 2030. This will increase to 930-1200 MtCO2 per year in 2050. BECCS itself would need to be scaled up to capture and store approximately 30 MtCO2 per year in 2030, increasing to 400 MtCO2 per year in 20505 . In November 2021, CCUS SET-Plan published the CCUS Roadmap to 20306 , in which it advocates for the launch of the EU strategy for CCS and CCU as a pivotal component of net-zero GHG emissions goals. The Roadmap proposes also amendments to existing plans and regulations including strengthening the role of CCS in National Energy and Climate Plans (NECPs), Trans-European Networks for Energy (TEN-E) Regulation, CDR accounting scheme and the CCU guidance. Focus on Czechia – Pathway modelling In 2017 the Ministry of Environment prepared a Climate Long-Term Strategy7 that included CCS in one of three scenarios to achieve 80% CO2 emissions reduction by 2050. This ‘CCS scenario’ was limited to CCS in the power generation by 2050 in gas and coal-fired power plants and did not include CCS in the industry. Czechia is the EU's 4th largest GHG emitter per capita and all available studies to decarbonise the Czech economy highlight a need to scale up deployment of CCS and/or BECCS, particularly in the industry sectors. The 2020 McKinsey & Company study8 estimates CCS’s potential to abate 8 MtCO2 per year in 2050 from residual use of natural gas in refining processes and steel production and BECCS in the cement and lime sector. Industrial capture is recommended where CO2 can be effectively reused. A 2022 detailed study on the Czech decarbonisation pathways9 by the Charles University Environment Centre estimates CCS's potential to capture up to 20 MtCO2 per year in 205010 . The study foresees CCS for power and heat production with biomass and natural gas, cement and lime and blue hydrogen production. BECCS represents the potential for negative emissions11 . 5 https://www.ccus-setplan.eu/wp-content/uploads/2021/03/CCUS-SET-Plan_Review-of-CCU-and-CCS-in-future-EU- decarbonisation-scenarios_09.2020.pdf 6 https://www.ccus-setplan.eu/wp-content/uploads/2021/11/CCUS-SET-Plan_CCUS-Roadmap-2030.pdf 7 Officially Climate Protection Policy of the Czech Republic, our roadmap refers to it as Climate Long-Term Strategy in line with: https://unfccc.int/files/na/application/pdf/cze_climate_protection_policy_summary.pdf. 8 https://www.mckinsey.com/cz/our-work/pathways-to-decarbonize-the-czech-republic 9 https://www.mpo.cz/assets/cz/energetika/vyzkum-a-vyvoj-v-energetice/resene-dokoncene-projekty-a-jejich- vystupy/projekty-podporene-v-ramci-1-verejne-souteze-programu-theta/2022/4/Vyvoj-elektro-energetiky-a- teplarenstvi-v-CR-_vystup-V1_.pdf 10 An example: a single stationary CO2 source such as selected cement plant can emit around 0.5 MtCO2 per year 11 BECCS has to be assessed also from the perspective of soil carbon stock, agriculture and priorities for biomass use. 5 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Chapter 2. Opportunities and barriers for deployment of CCS and its related technologies in Czechia12 The energy mix and CO2 emissions in the power and energy-intensive sectors in Czechia The energy mix is dominated by fossil fuels, followed by nuclear. Renewables play a minor role: Table. 1: Czech energy mix13 Coal Oil Nuclear Natural gas Biofuels and waste Wind and solar Hydropower 30% 21% 19% 18% 12% <1% <0.5% In the pre-pandemic year of 2019, total GHG emissions were 124 MtCO2eq, or 102 Mt was CO2 only (82% of total emissions)14 . The energy sector was responsible for 52 MtCO2eq, or 49 MtCO2. The industry was responsible for 26 MtCO2eq, or 21 MtCO2. Based on the European Pollutant Release and Transfer Register (E-PRTR), the table on the left includes the most emitting industrial activities in 201915 (in MtCO2 release to air, including biomass). The table on the right lists selected EU ETS companies with verified emissions for 201916 (in MtCO2eq)17 . Table 2: Emission-intensive industries and installations Selected NACE activities in E-PRTR 16.5 Selected EU ETS installations 10.3 • Iron and steel 5.2 • Třinecké železárny 2.7 • Chemicals 4.9 • Liberty Ostrava 2.5 • Cement 3.2 • Unipetrol Petrochemie 2.5 • Paper and pulp 1.3 • Unipetrol Agrochemie 0.8 • Lime 1.0 • Českomoravský cement (Mokrá) 0.8 • Refinery 0.6 • CEMEX 0.6 • Glass 0.3 • Vápenka Čertovy schody 0.4 12 This chapter is a summary of the national CCS report published under previous Work Package 3 of CCS4CEE project, see: https://ccs4cee.eu/wp-content/uploads/2021/11/CCS4CEE-Czechia.pdf. 13 https://www.iea.org/countries/czech-republic 14 Total emissions reported to UNFCCC. See: https://www.eea.europa.eu/data-and-maps/data/data- viewers/greenhouse-gases-viewer 15 https://portal.cenia.cz/irz/formularUnikyPrenosy.jsp 16 https://ec.europa.eu/clima/ets/allocationComplianceMgt.do 17 The reportings under E-PRTR and EU ETS are different in their methodology, the numbers do not have to correspond. 6 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Lack of policy and regulations for CCS/CCU • The EU CCS Directive has been transposed into the Czech law by Act No. 85/2012 Coll.18 on the Storage of Carbon Dioxide into Natural Rock Structures and Amending Certain Acts. The Act introduces a limit to commercially storing a maximum of 1 MtCO2 annually per site. • To allow commercial storage of CO2 above the limit requires an ’implementing decree‘ that would also set up financial security for CO2 storage. The decree is currently missing. • The State Energy Policy (2015) and the Climate Long-Term Strategy (2017) reference the prospect of applying CCS to power production from natural gas and coal. Both documents require revision and should be updated in 2023. • The NECP (2019) references CCS/CCU deployment only in connection with natural gas and the production of synthetic gases (incl. hydrogen). CCS/CCU technology is not considered readily available. • The National Hydrogen Strategy (2021) references the prospect of blue hydrogen production from natural gas with CCS/CCU. The Strategy concludes that CCS/CCU deployment is not yet feasible from an economic and efficiency standpoint, foresees low demand for captured CO2 and outlines that Czechia does not have suitable geological conditions to store CO2 . • The Recovery and Resilience Facility Plan (2021) does not include any reference to CCS/CCU. Level of experience in CCS/CCU Research and development (R&D) projects • Between 2004 and 2020, over 20 projects and studies were carried out. • Mostly theoretical studies and assessments of geological CO2 storage capacity and transport infrastructure have been conducted. Capture technologies have been tested in Universities‘ research centres. None of the R&D projects have led to pilot projects yet. • There are currently 6 ongoing projects, 4 of them funded by the EEA/Norway grants, 3 of them with the support of the Technology Agency of the Czech Republic: CO2-SPICER, METAMORPH, BIOCCS, RPB19 , CCUS CZ-NO and CCS4CEE. These projects could lead to a pilot storage project in 2024 and the industrial deployment of capture technologies in the future. • BECCS is being assessed as part of the BIO-CCS project focusing on the exploration of biomass and waste-to-energy processes with CO2 capture. Pilot or demonstration projects • No pilot CCS/CCU projects. Benefitting from the R&D outputs and outcomes from studies and research projects done in the past, several companies and institutions are planning a full-chain CCS project, which is subject to various enabling conditions. This information has not been disclosed. Commercial projects • No commercial CCS/CCU projects. 18 Further called Czech CCS Act in this roadmap. 19 RPB stands for Rotating Packed Bed. It is not an official acronym of the project, we use it for its simplicity. 7 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Status of CCS/CCU CO2 capture • Research centres have carried out several R&D projects on various capture technologies, including ongoing METAMORPH, BIO-CCS and RPB projects. Due to missing transport, storage and utilisation infrastructure, no projects have been piloted yet. CO2 transport • Czechia has a large infrastructure for natural gas which could be under several conditions retrofitted for CO2. While experience with building the gas infrastructure is vast, legal obstacles remain and include the building of new linear constructions, conflict of interest, environmental considerations and would require inspections of technical aspects20 . • Stakeholders see the role of railways and roads for CO2 transport but shipping has not yet been considered a feasible option. CO2 storage • The conservative estimate of storage capacity is over 850 MtCO2: saline aquifers (766 MtCO2), hydrocarbon fields (33 MtCO2) and coal fields (54 MtCO2). The storage would accommodate more than 50 years of continuous storage of CO2 emissions from the energy-intensive sectors (~16 MtCO2 per year). The capacity estimates, especially in saline aquifers, are burdened by considerable uncertainty due to a lack of site-specific geological data. CO2 utilisation • CCU deployment is part of the research currently under the BIO-CCS project. Several stakeholders highlighted the need to create a CO2 market to incentivise CO2 utilisation, which would in turn help scale up the deployment of capture technologies. CO2 utilisation has also historically supported industries such as chemicals, pharmacy, building and construction. Public perception The only comprehensive survey on the awareness and acceptance of CCS/CCU in Czechia was done as part of the EU 2011 Special Barometer. It showed very limited knowledge of CCS amongst the public (6%), with around 33% believing CCS would benefit their region. Since then, no survey on public awareness and perception in Czechia has been conducted. The need for such a survey was emphasised as one of the conclusions of the ENOS project. Key stakeholders and their overall positions Research Institutions and Academia • Czech research institutions and academia engage in a high activity (pace-setter). Czech Geological Survey is the leader in the research of CO2 geological storage and the assessment of potential geological storage structures, followed by the Czech Academy of Sciences. ÚJV Řež has been active in capture technologies. 20 Technical aspects of retrofitting existing pipeline infrastructure are being questioned by several stakeholders. For this reason, CO2 liquefaction and freight or trail transport are being mentioned as preferred options. 8 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION • Universities, including CTU (Czech Technical University in Prague), UCT (University of Chemistry and Technology in Prague), BUT (Brno University of Technology) and VSB-TUO (Technical University of Ostrava) are leading the research in different аspects of CO2 capture, storage and utilisation. Governmental Institutions • The Ministry of Environment and the Ministry of Industry and Trade engage in a medium activity (fence-sitters). While they do not focus on CCS/CCU as a primary decarbonisation pathway, Ministries provide up-to-date information on the upcoming or foreseen legislative changes and may be a source of financial support for activities such as CCS-dedicated platform. • A dialogue between governmental institutions, research institutions and the private sector is ongoing and focuses on the preparation of the currently missing implementing decree. Private sector • The companies with high activity (pace-setters) are MND oil & gas company, C-Energy power and heat provider, Českomoravský cement, InoCure nanomaterial producer and BeePartner consulting. • The companies PREOL, a biofuel producer, Energetika Třinec, a power supplier, as well as the Steel Union and the Association for District Heating of the Czech Republic, engage in a medium activity (fence-sitters). • MND company and Českomoravský cement are planning to deploy a full-chain CCS as the result of the CCS strategy of Českomoravský cement (part of the HeidelbergCement) and as a follow-up of the currently ongoing CO2-SPICER research project led by the Czech Geological Survey. • CO2 Czech Solution Group and the Association of Chemical Industry engage in a high activity and aim to scale up CO2 capture and transport activities. Major news not yet covered by the WP321 national reports • The project proposal on CCS was submitted to the Innovation Fund (large-scale projects call). • MND publicly announced22 plans to explore saline aquifers as a storage solution. • The Ministry of Environment has started preparing the implementing decree (financial security regulation). • BeePartners held a final conference of their CCUS CZ-NO project with Czech and Norwegian partners. • BUT (Brno University of Technology) is currently developing an advanced Rotating Packed Bed system for CO2 capture in cooperation with German and Polish universities and the private sector. • A study by the Charles University Environment Centre was published23 . It became the most detailed study on Czech decarbonisation pathways, with CCS foreseen to play a significant role in selected sectors. 21 Work package 3, see: https://ccs4cee.eu/wp-content/uploads/2021/11/CCS4CEE-Czechia.pdf. 22 See, for example: https://oze.tzb-info.cz/klimaticke-zmeny/23442-mnd-chce-ukladat-oxid-uhlicity-do-hlubinnych- usazenin-nasaklych-pravekou-morskou-vodou 23 https://www.mpo.cz/assets/cz/energetika/vyzkum-a-vyvoj-v-energetice/resene-dokoncene-projekty-a-jejich- vystupy/projekty-podporene-v-ramci-1-verejne-souteze-programu-theta/2022/4/Vyvoj-elektro-energetiky-a- teplarenstvi-v-CR-_vystup-V1_.pdf 9 THE BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Chapter 3. Policy roadmap for the scaled-up deployment of CCS and its related technologies in Czechia The roadmap provides an overview of various ambitious policy actions along the innovation cycle, from research and development to the commercialisation of CCS technologies to reach climate targets set by the EU and national strategies. While the roadmap aims to create an enabling environment to deploy CCS, it increasingly focuses on ways to develop transferable knowledge and skills by national stakeholders (government, research organisations, academia and the private sector) and set up channels to access knowledge and exchange experience from international stakeholders. It also underlines the importance of cross-border activities and joint regional demonstration projects to increase the stakeholders’ prospects to access public and private funding. Technical note Proposed actions are bundled under a common title with each action including a description, relevant stakeholders and a proposed time frame. There is no prescribed order of actions. • Short-term – actions to be carried out between now and 2025. • Mid-term – actions to be carried out between 2025 and 2030. • Long-term – actions to be carried out after 2030. 10 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION A) Scaling up RD&D activities and building national knowledge and experience Key action Number Approach Stakeholders Timeline Knowledge platforms A1.1 • A national CCS-dedicated platform should be created jointly by the private sector and the Czech Geological Survey in the lead. The platform would be a leading partner in discussions with the government. It could manage an interactive website in Czech and English focused on knowledge sharing, targeting national and international stakeholders. The website can be linked to the CCUS SET-Plan website. Private sector, NGOs24 , civil society organisations, research institutions, Ministry of Environment, Ministry of Industry and Trade Short-term A1.2 • Stakeholders could consider joining the recently launched CO2 Czech Solution Group platform focusing on CCU. Provided growing interest from stakeholders, the national CCS-dedicated platform could align its activities with the CO2 Czech Solution Group whichcould lead to a full CCUS value-chain platform. Private sector, NGOs, civil society organisations, research institutions, Ministry of Environment, Ministry of Industry and Trade Short-term A1.3 • The Ministry of Environment, Ministry of Industry and Trade, Czech Chamber of Commerce and/or CzechInvest should support the CCSdedicated platform and share it via their official websites. Ministries, chambers, unions, investment platforms Short-term A1.4 • The Czech Geological Survey, VSB Technical University of Ostrava and other institutions and universities together with the private sector could collaborate on developing new interdisciplinary Bachelor/Master and PhD programmes and curricula covering capture, transport and storage technologies. Universities (CTU, UCT, BUT and VSB-TUO), private sector Short-term 24 Non-governmental organizations. 11 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Engagement with international fora A2.1 • The Ministry of Industry and Trade should increase its engagement in the EU SET-Plan (IWG9) that focuses on R&I and establish a channel to regularly disseminate knowledge and plans of the EU SET-Plan to national stakeholders and actively seek their feedback. Ministry of Industry and Trade Short-term A2.2 • The Ministry of Industry and Trade should play a more active role in the global Carbon Sequestration Leadership Forum (CSLF) and disseminate international knowledge and best practice to national stakeholders. Ministry of Industry and Trade Short-term A2.3 • Czech stakeholders, including MND, Českomoravský cement, Czech Geological Survey and the CO2 Czech Solution Group, should join the EU Zero Emission Platform (ZEP) and/or CO2 Value Europe (focused only on CCU) to benefit from the shared knowledge and have access to networking activities across the EU. The same stakeholders should join the IEAGHG25 to benefit from global knowledge and networking. Private sector, research institutions Short-term Identifying industrial hubs, clusters, CO2 transport networks A3.1 • Municipalities should access the available support from the EU Just Transition Fund for 3 Czech regions and include plans for CCS projects for selected waste incineration plants or high-emitting companies. Municipalities, private sector, Permanent Mission of the Czech Republic to the EU Short-term A3.2 • Through the national CCS-dedicated platform, there should be a university collaboration including Czech Technical University, the University of Chemistry and Technology and the Technical University of Ostrava to deliver needed research tools, data and knowledge for industrial clusters. Universities, private sector Short-term A3.3 • Municipalities should develop partnerships with the waste-to-energy (WtE) and biomass-to-energy (BtE) plants to jointly explore possibilities of CO2 capture and storage. Municipalities, private sector Short-term A3.4 • A new map could reproduce existing knowledge from the EU-level projects (CASTOR, EU GeoCapacity and ENOS) and include further information such as available transport modes, existing infrastructure for gas transport and main road connections from large-scale CO2 sources. The map can be incorporated into the website of the national CCSdedicated platform. Czech Geological Survey Mid-term 25 International Energy Agency (IEA) Greenhouse Gas R&D Programme 12 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Funding and financial support for RD&D projects A4.1 • Companies could share their knowledge and experience with the Innovation Fund and cooperate with the Permanent Mission of the Czech Republic to the EU and the Ministry of Environment which has already developed the guidance for the Innovation Fund. • Technology Agency of the Czech Republic (TACR) could finance the preparation phase of grant proposals into the Innovation Fund or others. Private sector, Ministry of Environment, TACR, Permanent Mission of the Czech Republic to the EU Short-term A4.2 • The Ministry of Environment with assistance from the Permanent Mission of the Czech Republic to the EU should develop guidance for interested stakeholders for other grant opportunities, operational programmes, Just Transition Fund and Modernisation Fund. Ministry of Environment, Ministry of Industry and Trade, Permanent Mission of the Czech Republic to the EU Short-term A4.3 • The Ministry of Industry and Trade, the Ministry of Environment and the private sector should regularly invite the European Investment Bank (EIB) to share with national stakeholders the technical and funding process-related expertise, opportunities to access the project development assistance, including the loan guarantees and create guidelines based on these recommendations. Private sector, Ministry of Industry and Trade, Ministry of Environment, EIB Short-term A4.4 • The private sector should be better informed about the role of EIB as a financial enabler for first demonstration and commercial CCS projects. The National Development Bank or CzechInvest on the other hand could initiate pilot small-scale capture projects, for example in WtE sector. Financial institutions, ministries, private sector Mid-term A4.5 • A consortium of partners including Central and Eastern European companies, institutions and universities could be formed to apply for Horizon Europe or Innovation Fund (i.e. full-chain CCS development). Experience from unsuccessful proposals should be shared, too. Private sector, institutions, universities Mid-term A4.6 • The Ministry of Finance and the Ministry of Environment should redistribute revenues from the EU ETS allowances to also support CCS projects. Ministry of Finance, Ministry of Environment Short-term A4.7 • The government and respective ministries should allow for direct financing of pre-feasibility and feasibility studies and the exploration of the saline aquifer from the state budget to scale up CCS deployment. Government, Ministry of Finance, Ministry of Environment, Ministry of Industry and Trade Short-term 13 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Storage site exploration A5.1 • The Ministry of Finance and the Ministry of Environment should allocate appropriate funding to Czech Geological Survey to explore the most promising saline aquifer sites and confirm their potential. Ministry of Finance, Ministry of Environment, Czech Geological Survey Short-term A5.2 • The CO2 storage permitting process should be incentivised for depleted oil & gas fields. Coal seams could be inspected for CO2 storage in more detail. Czech Mining Authority, Ministry of Environment Mid-term A5.3 • The Ministry of Environment and the Ministry of Industry and Trade should jointly communicate to the European Commission the need for budget allocation (e.g., through CEF) for new EU-wide CO2 storage projects that would finance the exploration of saline aquifers. Ministry of Industry and Trade, Ministry of Environment Short-term Bridging the valleys of death A6.1 • Interested stakeholders should consult respective ministries and consulting companies on the availability of funding opportunities and the application process. Private sector, ministries, consulting companies Short-term A6.2 • There must be a concerted action at the EU level to pursue PCI26 that would finance the pipeline infrastructure for CO2 transport. • Net4gas (Czech natural gas TSO27 ) could join the newly formed consortium of TSOs of Poland, Slovakia, Hungary and Romania to develop hydrogen and CO2 transport infrastructure. European Commission, Ministry of Industry and Trade, TSO Net4Gas, Permanent Representation of the Czech Republic to the EU Long-term A6.3 • PCI could be developed for the CO2 transport by local oil & gas companies, either to transfer CO2 to interim storage hubs (as planned in the EU CCS Interconnector, Gdansk) or to connect the onshore storage locations with industrial hubs. These could seek financial support through the CEF28 fund. European Commission, private sector, Permanent Representation of the Czech Republic to the EU Mid-term A6.4 • Stakeholders should follow the nearby Gorazdze (PL) cement plant, where a pilot capture project with the transport of CO2 to the North Sea is being developed. Private sector, government Short-term 26 Project of Common Interest 27 Transmission system operator 28 Connecting Europe Facility 14 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION B) Policy, standards and regulations Key action Number Approach Stakeholders Timeline Policies B1.1 • The Czech government should consult examples of climate and CCS strategies and policies with countries such as the UK, Denmark, Norway and Sweden. Government, NGOs, civil society organisations Short-term B1.2 • The Czech government should follow the available evidence of CCS importance (IPCC, IEA, IRENA and others) as one of the decarbonisation pathways in tackling climate change and benefiting also country’s economy through new foreign direct investments and jobs creation. Government, NGOs, civil society organisations Short-term Guidelines and standards B2.1 • The Ministry of Environment should request the European Commission to publish CCS guidelines on best practices on financial security mechanisms and permitting processes. European Commission, Ministry of Environment Short-term B2.2 • Czechia should explore the possibility to increase engagement in the ISO29 CCS technical committees to access global knowledge, communicate such knowledge to national stakeholders and seek their feedback as well as shape standards development within the technical committee. The latter would require Czechia to become a ‘participating member’ (instead of an ‘observing member’). A person/team should have this task allocated on CAS/UNMZ30 by the Ministry of Industry and Trade. Ministry of Industry and Trade, CAS/UNMZ, private sector Short-term Regulatory framework B3.1 • The Czech CCS Act (the transposed EU CCS Directive) should reflect the current CCS development and remove any storage capacity limitation (currently set at 1 MtCO2 per year). Ministry of Industry and Trade, Ministry of Environment Short-term B3.2 • The Ministry of Environment should finalise the proposal for financial guarantees (‘implementing decree’ of the Czech CCS Act) to enable the commercial scale of CO2 storage. Ministry of Environment, Czech Mining Authority Short-term 29 International Organisation for Standardisation 30 Czech Standardization Agency/Office for Technical Standardization, Metrology and State Testing – Česká agentura pro standardizaci/Úřad pro technickou normalizaci, metrologii a státní zkušebnictví. 15 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION • The financial security regulation should support first-movers in CO2 storage and set the guarantee on a case-by-case basis. B3.3 • The transport of CO2 by rail, truck and barge should be properly addressed by TEN-T31 regulation which would enable the CCS firstmovers to operate CO2 capture and transport projects connected to the CO2 storage facilities. • The Czech government and the Ministry of Transport should negotiate such a proposal and shape the discussion during the Czech EU presidency. Government, Ministry of Transport, Permanent Representation of the Czech Republic to the EU Short-term B3.4 • Provided the CO2 pipeline creation, the rights and obligations for CO2 transport could be transferred through a license to a Czech natural gas TSO Net4gas that owns this license for natural gas transport. Ministry of Industry and Trade Long-term Strategies for CCS application for industrial decarbonisation and climate neutrality of the economy B4.1 • The upcoming updated version of the Climate Long-Term Strategy (LTS) and NECP should reflect the current CCS development. It should avoid the language such as “CO2 storage is not available” or “CCS is not economically and technologically feasible” and remain technology-neutral. Ministry of Environment, Ministry of Industry and Trade Mid-term B4.2 • New LTS should prioritise CCS for the industry only and discourage the deployment of CCS in the power sector (e.g., coal or natural gas). Ministry of Environment Mid-term B4.3 • The Ministry of Industry and Trade, the Ministry of Environment and the Ministry for Regional Development should jointly develop the CCS national strategy in close collaboration with the CCS-dedicated platform. Ministerial collaboration, CCSdedicated platform Short-term B4.4 • Relevant stakeholders should jointly develop a sectoral decarbonisation strategy: o The Association of the Chemical Industry, High-level Group on Chemistry, and the CO2 Czech Solution Group on a chemical sector-specific strategy. o The Association of Cement Manufacturers and respective companies should cooperate on a cement sector-specific strategy. o Steel Working Group and the Czech Steel Union should cooperate on an iron and steel sector-specific strategy. Association of Chemical Industry, High-level Group on Chemistry, CO2 Czech Solution Group, Association of Cement Manufacturers, Steel Working Group, Czech Steel Union, private sector, ministries Short-term 31 Trans-European Networks for Transport. 16 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION B4.5 • The Ministry of Industry and Trade should establish a Working Group specifically focused on the CCS covering all industries. Ministry of Industry and Trade, private sector Short-term B4.6 • The Ministry of Industry and Trade and the Ministry of Environment should work on a strategy that would take account of WtE coupled with CCS (also as part B4.3). The existing examples to consult include the Swiss strategy for WtE or the Norwegian WtE project in Oslo. Ministry of Industry and Trade, Ministry of Environment, private sector, municipalities Short-term B4.7 • The Ministry of Industry and Trade should amend the Czech Hydrogen Strategy to reflect the current CCS development and the production of blue hydrogen, despite the current natural gas market’s turmoil. Ministry of Industry and Trade Mid-term B4.8 • The Ministry of Environment could promote CCU mineralisation or carbonation activities32 through the operational programmes, Modernization Fund and Just Transition Fund. Ministry of Environment Mid-term Enabling environment for CO2 market B5.1 • Oil & gas companies with support from the Ministry of Industry and Trade could develop an intermediate CO2 storage hub for small-scale emitting facilities. The hub would either enable CO2 to be permanently stored either nationally or transported to another storage facility abroad. Private sector, Ministry of Industry and Trade, Ministry of Environment Mid-term B5.2 • The Ministry of Environment could negotiate a faster development of the EU CCU guidelines and inclusion of CCU storage such as mineralisation or carbonation in the revisions of the Renewable Energy Directive and the EU ETS. Ministry of Environment Short-term Resilience of CCS strategies B6.1 • Any amendments to the existing Czech decarbonisation strategies should reflect the international findings (IPCC, IEA and IRENA) which include CCS in all decarbonisation net-zero scenarios. Ministerial cooperation Short-term B6.2 • Climate Long-Term Strategy should prioritise the inclusion of industrial CCS. Ministry of Environment Short-term 32 Altough they can store only a fraction of the potential of geological storage. 17 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION C) Stakeholder engagement, cooperation & know-how dissemination Key action Number Approach Stakeholders Timeline Engagement with stakeholders C1.1 • The national CCS-dedicated platform should benefit from the financial support from the Ministry of Industry and Trade and/or the Ministry of Environment. The financial support should be directed to developing a model by (for example) the Environment Centre of Charles University, exploring macroeconomic and environmental consequences of deploying CCS in Czechia and disseminating findings from such studies to all stakeholder groups. Universities, Ministry of Industry and Trade, Ministry of Environment, Ministry of Finance, private sector Short-term C1.2 • Existing global studies from the IPCC, IEA, IRENA and others should be disseminated and external experts invited to Czechia to speak at forums, conferences and other events. This could be particularly beneficial during the Czech EU Presidency. Ministerial cooperation, private sector, universities, NGOs, civil society organisations, Permanent Representation of the Czech Republic to the EU, Permanent Mission of the Czech Republic to the OECD and the United Nations Short-term International and regional cooperation C2.1 • Municipalities and the private sector in regions bordering other countries could explore funding opportunities to estimate the CO2 transport and storage potential (see Upper Silesia as an example). Municipalities, private sector, Czech Geological Survey Mid-term C2.2 • The Czech government should initiate discussions with the V4 countries to cooperate and explore state aid to finance joint CO2 transport and/or storage projects via TEN-T, TEN-E and IPCEI33 . For example, Poland recently approved a CO2 storage hub in Gdansk (PCI) and a cement plant Private sector, ministerial cooperation Mid-term 33 Important Projects of Common European Interest. 18 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION in Gorazdze (bordering Czechia) aims to develop a CO2 transport route to Gdansk. Stakeholders cooperation to create the CO2 market C3.1 • The Nothern Moravia region could create a local heavy-industry hub and a CO2 market. Private sector, Czech Geological Survey, ministerial cooperation Mid-term C3.2 • Steel and cement companies, WtE and BtE plants considering CCU could explore cooperation with the chemical sector that can utilise captured CO2. Such examples already exist in other EU countries. In Czechia, CO2 Czech Solution Group could be the leading initiative for CO2 utilisation. Private sector, Czech Geological Survey, ministerial cooperation Mid-term C3.3 • Scaling-up capture technologies could happen fast in the chemical sector that can also use the captured CO2 as an input in their own operations. Chemical and other private sector, Ministry of Industry and Trade, Ministry of Environment Short-term C3.4 • MND or other gas storage companies could build gas storage facilities that would enable CO2 storage from small-scale sources. Larger volumes of CO2 could be delivered to the permanent storage facilities at a later stage. Private sector Mid-term 19 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION D) Social aspects and public support Key action Number Approach Stakeholders Timeline Building public support D1.1 • The Ministry of Industry and Trade (or Environment) and the foreseen Czech CCS-dedicated platform should create a communication strategy to educate the public about the needs, pros and cons of the CCS deployment. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Short-term D1.2 • High-emitting industries are at the centre of current decarbonisation efforts. The media would welcome more proactive communication and dissemination of their efforts towards decarbonisation. Private sector, NGOs, civil civil society organisations, media Short-term D1.3 • The Czech Geological Survey should continue its website dedicated to CCS and assist in spreading well-balanced news on the CCS development. It could later collaborate with the national CCS-dedicated platform with support from the Ministry of Environment and the Ministry of Industry and Trade. Czech Geological Survey, ministerial cooperation, private sector Short-term Building awareness D2.1 • Podcasts, blogs and other modern ways of communication should be deployed. National CCS stakeholders should individually and/or collectively explore opportunities in the online world to share findings from their work with international experts. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Short-term D2.2 • International experts should be invited to Czechia by the government and universities to share insights and findings from their work. • The ministries should give CCS a space in media and ministerial events during the Czech EU presidency. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Short-term D3.3 • The Ministry of Industry and Trade and the Ministry of Environment should also rely on the research done by civil societies and NGOs, including international work (Bellona, E3G, Bruegel, EPG, WiseEuropa). Ministerial cooperation, private sector, universities, NGOs, civil society organisations Short-term Improving fairness of the D3.1 • Regional governments should use existing schemes of support for local communities living in close vicinity to storage facilities of oil & gas fields, where drilling and exploration takes place. Municipalities, private sector, NGOs Mid-term 20 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION decision-making process D3.2 • The oil & gas companies with the support of the Czech Geological Survey should communicate to the general public the international scientific conclusions on negligible risks from the CO2 storage leakage. Private sector, civil society organisations, NGOs Short-term Communication of costs, risks and benefits of CCS/CCU projects D4.1 • Public consultations on the project overview must be held and environmental impact assessments must be made publicly available. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Mid-term D4.2 • The common interest in CO2 storage facilities must be stressed publicly. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Short-term Making sure the CCS project fits the local context D5.1 • CCS stakeholders can use existing infrastructure for coal and oil & gas (routes for transport, for example), which is already inherently coupled with regions. The alignment with the local needs must be ensured. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Mid-term Building trust in decision-makers and other relevant stakeholders D6.1 • The Ministry of Industry and Trade and the Ministry of Environment should stress the importance of CCS in the national decarbonisation strategy visà-vis the general public including its positive impact on the economy. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Mid-term D6.2 • All stakeholders should regularly share success stories from international CCS pilot projects, emphasising the maturity of the technology and existing experience to learn from. Ministerial cooperation, private sector, universities, NGOs, civil society organisations Short-term 21 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION Chapter 4. Next and immediate steps We see a shift in the private sector towards CCS technologies, which is exploring opportunities to collaborate with universities to use their laboratory results to pilot projects in commercial plants. This is particularly true for capture technologies. In terms of CO2 transport, no ongoing research has covered it yet, but it is becoming a focus of all key stakeholders. Geological storage of CO2 is led by the Czech Geological Survey and MND. Their joint activities aim to prepare depleted oil & gas fields for future pilot storage projects. Recurring comments from all types of stakeholders were about a lack of governmental support beyond R&D, due to which stakeholders are unable to move to pre-feasibility and feasibility studies. Stakeholders demand the government reconsider its position. Key immediate actions from Chapter 3 to be implemented: • The Ministry of Environment and the Ministry of Industry and Trade should publicly demonstrate the importance of CCS and include it in the broader decarbonisation strategies of Czechia, especially in the upcoming revision of the State Energy Policy and Climate Long-Term Strategy34 . • The private sector and all key stakeholders should launch the CCS-dedicated platform which would become a strong and stable partner to the government and respective ministries in the debate on CCS development and deployment. The platform would be the main advisor for CCS inclusion in the revision of the state energy and climate strategies. • Direct financing from the state budget would enable faster exploration of saline aquifers and prefeasibility and feasibility studies for full-chain CCS projects to be carried out. A lack of finance through other channels is a major hurdle. Overcoming it can significantly accelerate CCS deployment as can be evidenced in other EU Member States (MS) that deploy CCS at a much faster pace. • The Ministry of Environment should adopt the implementing decree to Czech CCS Act35 as soon as possible. The financial security regulation for CO2 storage is currently a missing element for successful commercial storage projects in the future. • The Czech government with respective ministries should include CCS in discussions on the EU Green Deal and decarbonisation efforts during its Czech EU Presidency. Showing the interest of CEE countries in the CCS deployment is a crucial point for the successful transfer of knowledge and could enable the inclusion of CEE countries in future international projects, especially to build CO2 transport and storage infrastructure. • The Czech government should consult other EU governments and international platforms and fora to increase collaboration and more frequently disseminate knowledge and practical experience with national stakeholders at all levels. 34 In English the official name is Climate Protection Policy of the Czech Republic. 35 Act No. 85/2012 Coll. 22 BUILDING MOMENTUM FOR THE LONG-TERM CCS DEPLOYMENT IN THE CEE REGION The Building momentum for the long-term CCS deployment in the CEE region project is funded by Iceland, Liechtenstein and Norway through the EEA and Norway Grants Fund for Regional Cooperation.