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Partnership with Companies to Deliver Carbon Capture and Storage Demonstration Project

RWE npower today announced it had already formed a partnership with five companies to deliver its planned carbon capture and storage (CCS) demonstration project. The partners announced by RWE npower include: BOC; Cansolv Technologies Inc; IM Skaugen; The Shaw Group Inc. and Tullow Oil plc, encompassing the full range of expertise needed to demonstrate carbon capture, transport and eventual undersea storage. Discussions are continuing to take place with other leading international companies also interested in the project.

RWE npower is currently developing proposals for entry by the end of March into the pre-qualification phase of the Government’s CCS demonstration competition. The partnership structure will form part of its proposals.

RWE npower Chief Executive Andy Duff said, “Our carbon capture and storage work forms part of our wider long-term strategy of reducing our carbon intensity through investment in lower or zero carbon power generation sources. CCS is currently unproven at the level needed for full scale power generation, but if it can be demonstrated to work, the potential for global CO2 reductions is huge. Our new project partners have the experience, skill and commitment to meet the challenges of this new technology.”

Cansolv Technologies’ CEO. Bernard West, said: “We are very pleased to work with this team on developing an end to end technical solution for post-combustion capture (PCC). The project will prove the technical feasibility and establish a credible economic benchmark for PCC, two important milestones in accelerating deployment of this technology to reduce carbon emissions from fossil fuel power plants.”

Morits Skaugen, CEO of IM Skaugen SE said, “We are proud to be recognized as the first mover in large-scale CO2 shipping and partner to this highly qualified industrial group. In our vision we foresee shipping as both an enabler and an important piece in the long-term construction of a viable CO2 infrastructure. This project will play a crucial role in that development."

”Tullow is excited to be part of a scheme that will demonstrate the viability of using depleted southern north sea reservoirs as a permanent store for carbon dioxide, whilst offering the chance to reuse existing infrastructure,” said Mike Simpson, Business Manager Europe.

Mike Huggon, head of BOC’s Regional Business Unit UK and Ireland said: “This project gives us an opportunity to further extend the scope of the large-scale CCS initiatives already being undertaken by the Linde Group within the energy market around the world. BOC, as a member of the Linde Group, is keen to participate in the UK CCS competition, as this provides a platform to demonstrate our large-scale CO2 handling capabilities in the UK, where CCS has enormous potential.”

RWE npower announced its intention to go ahead with a carbon capture and storage project in October 2007. It plans to create a 1MW carbon capture pilot plant in Wales, due to be operational by 2010, scaling up to at least 100MW demonstration plant which would form part of a new cleaner coal power station at Tilbury in Essex.

RWE npower has already taken important early steps towards developing the new technology along side its proposals for new ‘supercritical’ coal fired power stations at Tilbury and Blyth - in particular by signing an agreement with leading design and engineering specialists, The Shaw Group Inc. RWE npower now looks forward to working with all its partners on design and feasibility studies, so that it can readily deliver clean coal technology.

“This is an exciting project for Shaw on many levels, said J.M. Bernhard Jr., Shaw's Chairman, President and CEO. As a partner for both the design of the potential new power stations and CCS project, Shaw continues to deliver its power industry expertise to the international marketplace. By selecting Shaw, RWE npower has demonstrated that it has the confidence in our talented people to design and coordinate projects of this magnitude,” Mr. Bernhard said. The Government’s CCS competition will open with a pre-qualification phase, followed by detailed negotiations and trials leading to the announcement of the preferred bidder in summer 2009.

In August 2007 RWE npower announced that the closure of two thirds of its coal-fired power generation capacity, and the construction of new gas and wind power plant meant it would reduce CO2 intensity by a third by 2015, compared to 2000 levels.

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