CSLF Regulation Task Force

Takashi KawabataMETI, Japan May, 2017

産業技術環境局 環境調和産業・技術室03-3501-9271Background

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Oct 2016 @CSLF Tokyo meeting:Japan proposed to establish Regulation Task Force, and agreed to show the detail at 2017 spring meeting

Aug 2016:CO2 injection must be stopped under the regulation of Marine Pollution Prevention Act (=regulations on the offshore CCS)

To define “REASONABLE” regulations on CCSPurpose of this TF

１．Tomakomai Project Overview２．Marine Pollution Prevention Act３．What happened in Tomakomai４．Purpose of the TF

産業技術環境局 環境調和産業・技術室03-3501-9271Tomakomai Demonstration Project - Schedule

The first large scale CCS demonstration project in Japan has started from April,2016 in Tomakomai, Hokkaido

Approx. 100,000 tons of captured CO2 from gas emissions at an oil refinery will beinjected annually, and demonstration will be conducted on such technologies asstored CO2 monitoring technologies.

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~2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

SiteSurvey

Preparation- Capture Facility EPC- Drilling Wells- Test Operation etc.

Injection(100,000 tons/y)

MonitoringBaseline

Monitoring

産業技術環境局 環境調和産業・技術室03-3501-9271Capture Facility (Outlook)

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Information Disclosure

Project information (e.g. Total injected CO2 amount) is disclosed at Tomakomai City Hall and on the website of Japan CCS Co. Ltd.

http://www.jccs-tomakomai-monitoring.com/JCCS/index.php/top/

Natural earthquakes and micro seismic events are detected by monitoring, and these results are disclosed.Micro seismic events have been detected regardless CO2

injection, by pre-injection monitoring.

１．Tomakomai Project Overview２．Marine Pollution Prevention Act３．What happened in Tomakomai４．Purpose of the TF

産業技術環境局 環境調和産業・技術室03-3501-9271Regulation

8(Source: Ministry of Environment, @SG40 for LP/LC)

Prohibition of disposal of oils, noxious liquid substances and wastes under seabed (Article 18-7)

Permit issued by Minister of the Environment

be required. (Article 18-8)

1. Oily matter resulting from exploration of mineral resources in seabed and sub-seabed

2.Gases consisting overwhelmingly of CO2over 99% (hydrogen production: over 98%)

Except for

産業技術環境局 環境調和産業・技術室03-3501-9271Application

9(Source: Ministry of Environment, @SG40 for LP/LC)

1. Application form for a disposal permit– Information on the representative of the applicant– Project execution plan– Monitoring plan

2. Attached documents1. Prior assessment on marine environment 2. Site selection3. Explanation for no reasonable measure other than storing in a

formation under seabed4. Financial capability to proceed CCS and monitoring5. Technical capability to proceed CCS and monitoring6. Outline of the project

産業技術環境局 環境調和産業・技術室03-3501-9271Monitoring Phase

10(Source: Ministry of Environment, @SG40 for LP/LC)

Phase 1 : Regular monitoringMonitoring to be normally implemented during the injection phase of CO2 streams

Phase 2 : Precautionary MonitoringMonitoring to judge whether or not a (potential) negative effect on the marine environment have occurred/would occur

Phase 3 : Contingency monitoringContinuous monitoring to watch the event until no negative effect on the marine environment caused by CO2 streams is confirmed.

Exceed the threshold

Exceed the threshold

An applicant must report the monitoring result in each phase to MOE.The threshold for monitoring phase transition should be set by an applicant in the monitoring plan.

Monitoring Programme in Japanese law

１．Tomakomai Project Overview２．Marine Pollution Prevention Act３．What happened in Tomakomai４．Purpose of the TF

産業技術環境局 環境調和産業・技術室03-3501-9271Setting the threshold (1)

12(Source: Ministry of Environment, @SG40 for LP/LC)

According to the survey under operated by MOE…

y = 2E+06x-1.863

R² = 0.7498

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75 80 85 90 95 100 105 110 115

pCO

2（μatm）

DO（%）

monitoring data

累乗 (monitoring data)

Field monitoring data in Tomakomai area (4 years) and fitted curve

The values are stable throughout a year.pCO2 is inversely correlated with DO. Monitoring data for several years can be used for curve fitting.

fitted curve

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pCO

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DO (%)

Fitted Curve

Threshold Line (95%prediction interval)

○ monitoring data

産業技術環境局 環境調和産業・技術室03-3501-9271Setting the threshold (2)

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As the result of the consultation of MOE:

Threshold was set by background monitoring data for 1 year periodin accordance with MOE guideline(8 points, 4 seasons = 32 data)

産業技術環境局 環境調和産業・技術室03-3501-9271Actual Monitored Data

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The fact is … :

Injection Suspended (under the regulation by the Act);even no CO2 leakage

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PCO

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DO (%)

2016 spring survey

2016 spring resurvey

July 2016 Precautionaly Monitoring

Baseline Data

Fitted Curve (Baseline)

Threshold Line

Precautionary Monitoring

産業技術環境局 環境調和産業・技術室03-3501-9271Lessons Learned

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It’s too difficult to detect CO2 leakage accurately from offshore storage site, from only the marine water environmental data.

Regulators do not always have enough knowledge of CCS.

Too conservative regulations have negative effect on CCS project, as well as its economic performance.

Regulators may have no concern about CCS project itself; only considering about regulation target. (e.g. marine environment)

１．Tomakomai Project Overview２．Marine Pollution Prevention Act３．What happened in Tomakomai４．Purpose of the TF

産業技術環境局 環境調和産業・技術室03-3501-9271Objectives & Outcomes

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Objectives:To explore practical CCS regulations which contributes to smooth planning, development and operation of CCS projects

Outcomes:A report of case studies, findings and recommendations

産業技術環境局 環境調和産業・技術室03-3501-9271Contents

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Case studies of- Flexible CCS regulations or flexible enforcement of CCS regulations which resulted in smooth project planning, development or operation, and- Rigid CCS regulations or rigid enforcement of CCS regulations which hindered smooth project planning, development or operation.

Contents of a case study- An outline of the project to be discussed,- A description of regulations to be discussed,- What was happened?- Lessons learned

産業技術環境局 環境調和産業・技術室03-3501-9271Timeline

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Timeline:

May- early June: to finalize contents of case studies and to identify projects to request submission of a case study

Mid June: to request the identified projects to submit a case study

Early September: to compile case studies

Late October: to finalize a draft findings and recommendations

Early November: to circulate the draft findings and recommendations for comments in the Policy and Technical Groups

Late November: to finalize the report

産業技術環境局 環境調和産業・技術室03-3501-9271

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Thank you for your attention!