1. MEP MeetingBrussels, 1 October 2014Rotterdam Opslag en Opvang Demonstratieproject (ROAD)Stepping Stone for CCS in EuropeHans Schoenmakers, Project Director ROAD

2. Page 2Agenda Need and necessity of CCS: contributing to strategic energy objectives CCS in Europe Update on ROAD project ROAD: stepping stone for CCS in Rotterdam and Europe 3. Page 3Agenda Need and necessity of CCS: contributing to strategic energy objectives CCS in Europe Update on ROAD project ROAD: stepping stone for CCS in Rotterdam and Europe 4. Page 4Need and Necessity of CCSCCS contributes to 3 strategic objectives of energy policyCosts of climate policy40-70% higherwithout CCSClean ReliableCCS realizes large-scalereductions of CO2emissions in bothpower sectorand (heavy) industryCCS strengthenssecurity of supply(e.g. diversification offuel mix)Efficient 5. Without CCS, overall costs of 50% CO2 emission reduction by 2050 increase by 40-70%Page 5Need & Necessity of CCSCCS contributes 14% of total emission reductions through 2050Source: Technology Roadmap CCS (IEA, 2013) 6. Page 6Technologies to Reduce Power Sector CO2 EmissionsCCS largest contributor of CO2 emission reductions in power sectorSource: Energy Technology Perspectives 2010: Scenarios and Strategies to 2050 (IEA, 2010) 7. Page 7Global Deployment of CCS 2015-2050 by SectorCCS deployment: not only in power sector, also essential for industrySource: Technology Roadmap CCS (IEA, 2013) 8. Page 8CCS as Efficient Low Carbon Energy TechnologyLevel playing field between LCETs requires equal financial support mechanismsSource: The Costs of CCS and other Low-Carbon Technologies (Global CCS Institute, 2011) 9. Page 9Opportunities for Carbon Negative EmissionsBio-Energy combined with CCS (BECCS) allows for negative carbon emissions 10. Page 10Agenda Need and necessity of CCS: contributing to strategic energy objectives CCS in Europe Update on ROAD project ROAD: stepping stone for CCS in Rotterdam and Europe 11. Page 11European CCS ProjectDon Valley (UK)Pre combustionOffshoreGas reservoirRotterdamPost combustionOffshoreGas reservoirBechatw (Poland)Post combustionOnshoreSaline aquifersJnschwalde (Germany)Oxy fuel / post combustionOnshoreCompostilla (Spain)Oxfuel + CFBOnshoreSaline aquifersPorto Tolle (Italy)Post-combustionOffshoreSaline aquifersROAD is one of the last six EEPR projects 12. Page 12Agenda Need and necessity of CCS: contributing to strategic energy objectives CCS in Europe Update on ROAD project ROAD: stepping stone for CCS in Rotterdam and Europe 13. Page 13Co-operating Partners ROAD Maasvlakte CCS Project C.V. is a joint venture of: E.ON Benelux GDF SUEZ Energie Nederland In co-operation with intended partners: TAQA Energy GDF SUEZ E&P With financial support of: European Commission (EU) Government of the Netherlands Global CCS Institute Private partners (discussions pending) 14. Page 14Integrated CCS Chain ROAD 15. Page 15Pipeline Routing ROAD 16. Page 16CO2 TransportShippinglanecrossingHarbourcrossing25 kmP18-ATAQA Pipeline length: 5 km onshore, 20 km offshore Diameter: 16 inch Transport capacity: 5 Mt/yr (dense) Design specs: 140 bar (max.) 80 oC (max.) Pipeline insulated 17. Page 17CO2 Storage Location Depleted gas reservoir P18 Operator: TAQA Depth: -3,500 m Storage capacity: 35 Mt (P18) 8 Mt (P18-4) Available: 2014 Alternatives / future expansionoptions are in focus (i.a. EOR) 18. Currently, phased approach is being investigated by EC and several Member StatesPage 18Status ROAD Engineering Permits Contracts Finance Detail engineering of capture plant underway Some long lead suppliers chosen and components engineered Pipeline route engineered and flow assurance study completed Tie-ins (i.a. flue gas, steam) with power plant installed Storage design complete, detail FEED ready to start Permitting procedures finalized (beginning 2012) Capture permits are definitive and irrevocable Storage permits are definitive and irrevocable (TAQA) Sept 2013 Transport permits agreed, with publication imminent Capture supplier selected and EPC contract was ready to be signed Contracts with power plant (utilities etc) ready for signature Commercial contracts for transport (GDF Suez) and storage (TAQA) are agreedtextually, and will be signed at FID But, price validity has expired - reconfirmation once funding gap is closed Very low CO2 prices have caused a financing gap compared to plan (>100M) Delay in CCS role-out and loss of confidence in EU low carbon energy policy hasalso weakened the strategic case for the demoin order to finance operational phaseROAD remains ready to start construction as soon asthe funding gap has been closed 19. Page 19ROAD: not a typical CCS projectROAD Typical CCS ProjectMinimum Injection Period 3-5 years >15 yearsTotal COinjected 3-8 Mt >50 Mt2 Storage field life (from FID10 years >50 yearsto full decommissioning)Storage risk Single well into deepdepressurised gas fieldLarge connected reservoir,multiple wellsFinancial Risk CAPEX largely grantfunded, OPEX loss-making,therefore it can stopwithout major financialimpactMajor financial impact forwhole chain if unable tooperate ROAD is funded as true demonstration project 20. Page 20Agenda Need and necessity of CCS: contributing to strategic energy objectives CCS in Europe Update on ROAD project ROAD: stepping stone for CCS in Rotterdam and Europe 21. Page 21Why Rotterdam? Europes largest port A major hub forpetrochemical industries And a major centre for CO2emissions 22. Page 22ROAD as Stepping Stone for CCS in EuropeROAD is one of best positionedCCS demonstration project in EUready to be implemented: Efficient, new generationpower plant (capture ready) Port and industrial area ofRotterdam (local support) Proximity of source to sink (25 km) Offshore storage (availablestorage capacity) National regulation and requiredpermits completed Start of integrated CO2 network inRotterdam and NW Europe 23. Page 23Rotterdam CCS Network (2025) 24. Page 24ROAD | Maasvlakte CCS Project C.V.VisitParallelweg 13112 NA SchiedamThe NetherlandsContactT: +31 (0)10 75 34 000F: +31 (0)10 75 34 040E: info@road2020.nlW: www.road2020.nlPostP.O. Box 1333100 AC SchiedamThe Netherlands