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Carbon Capture and Storage

Carbon Capture and Storage. Z. - ship transport of CO 2. Rieks Boekholt Groningen Centre of Energy Law. NUMBY. Why offshore CCS?. NUMBY = Not Under My Back Yard LULU = Locally Unwanted Land Use CAVE = Citizens Against Virtually Everything Result:

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Carbon Capture and Storage

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  1. Carbon Capture and Storage Z - ship transport of CO2 Rieks Boekholt Groningen Centre of Energy Law

  2. NUMBY

  3. Why offshore CCS? • NUMBY = Not Under My Back Yard • LULU = Locally Unwanted Land Use • CAVE = Citizens Against Virtually Everything Result: • In the Netherlands there is a moratorium on onshore storage of CO2 • Some German Bundesländerexcluded the option of onshore storage in their territory Alternative option: offshore storage under the seabed

  4. Pipeline transport versus ship transport • CCS Directive primarily deals with storage issues • Limited provisions on pipeline transport; none on shipping • Ship transport has become more relevant in recent years • Provides more flexibility • Lower investment costs • More economical for larger distances • Ship transport of CO2 already takes place on a small scale

  5. Going from this size … Average volume: 1250 m3 Purpose: use in food and beverage industry

  6. … to this size of ship Average volume: 15,000 m3 Purpose: transport to permanent storage site

  7. Law of the Sea • United Nations Convention on Law of the Sea (UNCLOS 1982) • Objectives: establishment ofa legal order for the seas and oceans, and protection of the marine environment • Regulates which party may undertake specific activities in the different maritime zones • Mare Liberum: Right of innocent passage and freedom of navigation remain • NB: innocent passage may not be impaired by the coastal State merely on the basis of the cargo of the ship

  8. Safety issues • The International Maritime Organization (IMO) is the primary regulatory body dealing with safety of shipping • IMO legislation includes: • International Convention for the Safety of Life at Sea (SOLAS Convention 1974) • IGC Code on Ships Carrying Liquefied Gases in Bulk

  9. IGC Code • Use of the IGC Code is mandatory for Parties to the SOLAS Convention • Objective: • to provide an international standard for the safe carriage by sea in bulk of liquefied gases and certain other substances (…), by prescribing the design and construction standards of ships (…) and the equipment (…) so as to minimize the risk to the ship, to its crew and to the environment, having regard to the nature of the products involved. • Original text does not envisage CO2 transportation • 2006 Resolution of the IMO Maritime Safety Commission adds CO2 to list of substances covered

  10. IGC Code (cont’d) • IGC Code provides framework on safety • Differentiates between different hazard groups: • Type 1G ships  Very hazardous substances, requiring maximum preventive measures • e.g. chlorine • Type 2G ships  Hazardous substances, requiring significant preventive measures • e.g. methane (LNG) and butane-propane mixtures (LPG) • Type 3G ships  Less hazardous substances, requiring moderate preventive measures • e.g. nitrogen and carbon dioxide

  11. Liability Issues • Tanker industry has history of “regulation by disaster” • Shipping of oil is extensively regulated, e.g. through: • International Convention on Civil Liability for Oil Pollution Damage (1965) • International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (1971) • Same goes for shipping of nuclear material: • Convention on Third Party Liability in the Field of Nuclear Energy (Paris Convention 1960) • Convention Relating to Civil Liability in the Field of Maritime Carriage of Nuclear Material (Maritime Liability Convention 1975) • How about shipping of CO2? Is extensive regulation of liability necessary or desirable?

  12. Pollution issues • Protocol relating to Intervention on the High Seas in Cases of Pollution by Substances other than Oil (1973) • Applies to ships carrying CO2 through the IGC Code “Parties may take such measures on the high seas as may be necessary to prevent, mitigate or eliminate grave and imminent danger to their coastline or related interests from pollution or threat of pollution following upon a maritime casualty or acts related to such a casualty, which may reasonably be expected to result in major harmful consequences.” • International Convention for the Prevention of Pollution From Ships (Marpol 73/78)

  13. Some outstanding issues • London Protocol on the Prevention of Marine Pollution by Dumping of Wastes and Other Matter: • legal barrier to transboundary transport of CO2 still remains due to lack of ratifications of the amendment • Shipping as an activity under the Emissions Trading Scheme • Revised ETS Directive lists transport of CO2 by pipeline as an activity requiring an ETS permit, but not transport by ship • What is then the consequence of a CO2-leakage from a ship? • Third Party Access: shipping of CO2 as an “essential facility”?

  14. Thank you for your attention

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