DNV Supports European Commission in Updating Carbon Capture and Storage Guidance Documents

DNV Supports European Commission in Updating Carbon Capture and Storage Guidance Documents

(IN BRIEF) DNV has supported the European Commission in updating guidance documents on geological carbon storage (CCS) under the CCS Directive to streamline permitting procedures and enhance sustainable CO2 storage in the European Economic Area (EEA). The updates integrate the latest advancements in CCS technology and provide clearer guidelines on suitable storage areas, financial provisions, and risk management. This initiative, which involved extensive stakeholder input and public consultations, aligns with the EU Net Zero Industry Act, aiming for 50 million tonnes of annual CO2 injection capacity by 2030.

(PRESS RELEASE) ARNHEM, 24-Jul-2024 — /EuropaWire/ — DNV, the independent energy expert and assurance provider, has played a crucial role in assisting the European Commission with the update of the four non-binding Guidance Documents (GDs) on geological carbon storage under the Carbon Capture and Storage (CCS) Directive. This initiative aims to streamline permitting procedures and promote sustainable CO2 storage solutions within the European Economic Area (EEA).

Key Updates and Focus Areas

Enhanced Clarity and Technology Integration: The updated GDs provide Member States with clearer guidelines for identifying suitable geological areas for CO2 storage and exploration. The revisions include the latest advancements in CO2 storage technologies, such as those involving mafic/basalt rocks and depleted hydrocarbon reservoirs. They also address aspects of the CCS value chain, corrosion and safety issues, and the regulatory transition from hydrocarbon production to CO2 storage.

Balanced Financial Provisions: A notable feature of the updated documents is a more balanced, risk-based approach to establishing financial provisions for CO2 storage permits. This is aimed at making the process more transparent and manageable for stakeholders.

Stakeholder Engagement: The update process was enriched by extensive stakeholder input and public consultations, which helped clarify interpretations and methodologies related to CO2 leakage definitions, “expected value” techniques, and acceptable levels of risk.

Alignment with EU Net Zero Industry Act

The update comes at a pivotal time following the enactment of the EU Net Zero Industry Act (NZIA1), which designates CCS as a strategic net-zero technology. The NZIA sets a target of 50 million tonnes of annual CO2 injection capacity by 2030, with contributions from oil and gas companies. Member States are also mandated to make geological data on potential CO2 storage sites publicly accessible.

DNV’s Role and Expertise

Jamie Burrows, Head of CCUS, Energy Systems at DNV: “As a global assurance and risk management expert with experience in over 200 CCS projects, DNV is well-positioned to support this initiative. Our responsibilities include the technical update of the Guidance Documents, capacity building for Competent Authorities and permit applicants, and handling stakeholder change suggestions. Each proposed change was thoroughly evaluated to enhance the usability and content of the Guidance Documents before being approved by the Commission’s services.”

Project Milestones: The project began with an assessment phase, evaluating the current use of Guidance Documents by Competent Authorities and storage operators. Following a stakeholder workshop in June 2023, the revised Guidance Documents were finalized and adopted by mid-2024. Capacity-building workshops from February to April 2024 provided further support, and the project concluded in July 2024 with the delivery of a Final Report containing recommendations for further guidance.

Future Prospects and Industry Impact

Prajeev Rasiah, Executive Vice President & Regional Director, Northern Europe, Energy Systems at DNV: “DNV aims to facilitate the adoption of sustainable CO2 storage solutions, promote best practices, and ensure effective implementation of CO2 storage regulations in the EEA. By supporting the Commission to develop comprehensive guidelines and best practices, DNV assists operators and Competent Authorities in navigating the regulatory landscape, ensuring transparency and access to essential information. These documents support a transparent and secure framework for CO2 storage, contributing to greenhouse gas reduction and climate goals in Europe.”

Industry Outlook

According to DNV’s latest Energy Transition Outlook, Europe is projected to hold about 17% of global CCS capacity by 2050, trailing North America’s 19%. Despite this capacity, CCS is expected to reduce less than 4% of global fossil CO2 emissions by 2050. However, a significant scale-up of CCS is anticipated in the next five years as carbon prices are expected to align with CCS costs in the 2030s, likely accelerating its adoption.

Upcoming Events

To explain the main changes and address questions from the consultation period, DNV will support the Commission’s in-person capacity-building workshops on September 17 and 19, which will also be livestreamed. For more information about the technical update of the CCS Directive Guidance Documents, please visit the EU Commission’s website or the project website.

About DNV
DNV is an independent assurance and risk management provider, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry standards, and inspires and invents solutions.

Whether assessing a new ship design, qualifying technology for a floating wind farm, analyzing sensor data from a gas pipeline or certifying a food company’s supply chain, DNV enables its customers and their stakeholders to manage technological and regulatory complexity with confidence.

Driven by its purpose, to safeguard life, property, and the environment, DNV helps its customers seize opportunities and tackle the risks arising from global transformations. DNV is a trusted voice for many of the world’s most successful and forward-thinking companies.

In  the energy industry
DNV provides assurance to the entire energy value chain through its advisory, monitoring, verification, and certification services.  As the world’s leading resource of independent energy experts and technical advisors, the assurance provider helps industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally, in the energy industry. DNV is committed to realizing the goals of the Paris Agreement, and supports customers to transition faster to a deeply decarbonized energy system.

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Phone: +44 2038165702

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SOURCE: DNV