Facts:

Main developer: E.ON GDF SUEZ

E.ON and Electrabel Netherland (part of GdF Suez) are jointly developing, under the Maasvlakte CCS Project C.V. partnership, the Rotterdam, Opslag en Afvang Demonstratie (ROAD) CCS project, which involves building a CO2 capture unit at E.ON's new 1,100MW coal-fired power plant in Maasvlakte, near Rotterdam (currently under construction).

The project will demonstrate CCS at a capacity of 250MW equivalent – a quarter of the plant’s total capacity – using post-combustion technology. It intends to capture 1.1 million tonnes of CO2 per year, and will need 25 kilometres of pipeline to transport the captured gas to a nearby depleted offshore gas field.

The ROAD project's funding agreements were finalised in Spring 2010, giving it a firm grant income (up to €180 million from the EU and up to €150m from the Dutch Government). The engineering, building and commissioning of the CCS chain is expected to occur between 2012 and 2014. It is one of five European CCS projects that will, via the terms of its EEPR funding, share and disseminate the results of any technological advances through the European CCS Demonstration Project Network.

In early March 2012, the European Commission adopted its first opinion on a member state draft permit for the project - under the requirements of the EU CCS Directive. The opinion, which confirmed the suitability of the chosen storage site, is non-binding, and the project now requires the Dutch authorities to issue the final permit.

The project, announced in February 2009, is part of the Rotterdam Climate Initiative (RCI), which aims to halve CO2 emissions by 2025, compared to 1990 levels, while providing a boost to the country’s economy. CCS is a key part of the initiative, which involves development of a CO2 transport and storage infrastructure for the region. The TNO-CATO test installation for trapping CO2 from flue gases – the CATO-2 catcher pilot unit – has already gone online.

Construction of E.ON's multi-fuel (coal and biomass) power plant began in April 2008. It is scheduled to go online in 2013. The new plant has met strong resistance from the general public, and Greenpeace has asked the European Council to refuse environmental licences for the project.

E.ON and Electrabel agreed to merge their originally separate projects because they have complementary technical skills, similar objectives, and sharing costs and risks made the project more robust.

Timing and future strategy

Capture installation is expected to be operational in 2015. In March 2012, the project partners prepared a strategy outlining the future direction of ROAD. This outlined the organisational structure as the project gathered momentum. Following final investment decisions, still awaited, two consecutive organisations will be formed, the first focusing on design and construction up until 2015. The second will focus on operation of the project between 2015 and 2020.

Current schedule, as of March 2012:
1st quarter 2012 : Final Investment Decision
2012 : Start execution phase (procurement, construction, etc.)
2014 : CCS chain mechanically complete
2015 : Start of operations, CCS chain
2015-2019 : Demonstration operation phase CCS chain

Storage

Offshore storage is proposed in depleted oil and gas reservoirs in the Dutch North Sea. Storage capacity in field P-18 is estimated to be 35Mt. The first storage field will be available from 2013/2014.

Financing

The ROAD-project is co-financed by the Government of the Netherlands, the European Commission within the framework of the European Energy Programme for Recovery (EEPR) and the Global CCS Institute. The project, which is expected to cost €1.2 billion ($1.53 bn), was awarded funding of up to €180m from the European Commission’s European Economic Recovery Plan in December 2009. It has an additional €150m from the Dutch Government. The Rotterdam Climate Initiative expects support from government, business, NGOs and the Clinton Climate Initiative.

Other Sources:

• EU opinion on selected storage site, March 2012
• E.ON starts construction of Maasvlakte power station, April 2008
• Link to Rotterdam Climate Initiative
• CO2 sequestration for new Maasvlakte power station, press release, Feb 2009
• E.ON Presentation at the 3rd International Symposion, November 2009

Contact Info:

E.ON Benelux – Marjolein Boer, 0031 10-289 5800 or  communications@eon-benelux.com

Electrabel – Sarah De Bruyn, 0032 519 2769, or  presse@electrabel.com