To help achieve the climate objectives of the Paris Agreement, key infrastructure projects that link the energy systems of EU countries are identified biannually as Projects of Common Interest (PCI). Ramboll has recently partnered with Ecorys to complete a project for the European Commission, focused on further developing a methodology and application template for PCI selection, evaluating the social cost of CO2 emissions and selecting PCI candidates.
CO2-reducing projects to gain more leverage
Ramboll and Ecorys provided a methodology for assessing candidates within the thematic area of carbon dioxide transport infrastructure. This new cost-benefit analysis (CBA) methodology may lead the way for more CO2 projects to obtain PCI status, and thereby become eligible for financial support and benefit from accelerated planning. This is expected to give impetus to such projects in the EU.
Ensuring a high standard assessment of future projects
The EU goal of reaching long-term decarbonisation requires innovative solutions. CO2 capture and storage projects could play an important role towards achieving this goal. To obtain PCI status, projects must demonstrate that they reduce CO2 emissions while maintaining EU security of energy supply, and that the benefits of these reductions outweigh their costs.
The main challenges of this study have been to evaluate the social cost of CO2 emission under various conditions and develop the cost-benefit analysis methodology for CO2 transportation projects.
By applying knowledge and experience within integrated green transition solutions across the energy sector, Ramboll and Ecorys defined a solution aligned with EU legislation and proposed a suitable template for assessing future candidates.
Four new Projects of Common Interest
The following projects were selected to be included in the Union list of Projects of Common Interest, published by the Commission on 23 November 2017. The formal adoption of the list will follow in April 2018.
Priority thematic area of Carbon Dioxide Transport Infrastructure projects:
- CO2 cross border transport connections between emission sources in the Teesside industrial cluster, Eemshaven area a storage site on the Norwegian Continental Shelf (NCS)
Project promoter: Statoil ASA
Countries: Norway, the Netherlands, United Kingdom
- The Rotterdam Nucleus
Project promoter: Port of Rotterdam Authority
Countries: Netherlands, United Kingdom
- Teesside CO2 Hub
Project promoter: Tees Valley Combined Authority
Countries: United Kingdom, Belgium, Germany, the Netherlands
- CO2 Sapling Transport Infrastructure Project
Project promoter: Pale Blue Dot
Countries: United Kingdom, Norway, the Netherlands
With the new successful methodology and the selection of these four projects, further steps may be possible in trying to reduce CO2 emissions and promoting green energy solutions across Europe.
“Despite the fact that carbon capture, transportation and storage technologies are still at early stages of development, the economic viability of such projects could be on the horizon, and we are confident that the selected projects hold great potential to contribute to sustainable energy solutions.” said Anatoli Smirnov, Project Manager at Ramboll.
“We have experienced a high level of interest in this study, which reflects the great interest and potential for such future projects”, adds Anatoli.
“We are very pleased to have participated in this study, which we believe demonstrated real and substantial social costs of carbon emissions” said Karolina Ryszka, Ecorys energy expert. “The candidate project applications were of good quality, clearly demonstrating that, on balance, their socio-economic benefits seem to outweigh their costs”.