What will it be; define the value

Transcription

1 Level 2 Frame Facility: Greenfield Power Plant with Carbon Capture All 6 Project Phases All aspects for the relevant facility Stage Identify (Concept Study) Evaluate (Pre-Feasibility Study) Define (Feasibility/FEED Study) Execute Operate Closure Description What could it be Comparatively, what the cases might be, and select the best one Project Context Project sponsor to prepare a Draft Business Detail the Business case and Opportunity Case that is developed to increasing levels Definition and of detail as the Project progresses through Recommendation the various stages in its life-cycle Assessment of project opportunities, rationale for investment, business plan, regulatory drivers, economic and technical viability of proposed project, assessment of appropriate capture technology (pre/post/oxy). Provide a recommendation that the opportunity does, or does not, warrant further funding to determine the likely economic and technical viability of the proposed opportunity. Benchmark conceptual data against base case options and overarching project criteria to rank and select most appropriate power plant and capture plant. Provide a recommendation that the selected optimum case does, or does not, warrant further funding to determine the likely economic and technical viability of the proposed opportunity. Secure funding for the FEED phase What will it be; define the value Finalise the Business Case for Power Plant and Capture Plant. Prepare Board Paper identifying: Project Status Business Drivers Market tested project costs Remaining uncertainties / risks and mitigations Risk reduction trajectory / timing Exit Strategy Key Financial metrics (NPV, IRR etc) Future Work Plan Report Funding Recommendations Recommendation to proceed / terminate Measure progress against business case on a periodic basis during the execute phase to ensure continued viability. Revise business case to reflect the out-turn project. Prepare detailed annual operating plans on the basis of the updated business case. Assessment of project closure opportunities and costs. Provide recommendation for preferred option. Project Development Approach Site Selection Identify and agree project success criteria / high level requirements and secure funding to the Evaluate Stage activities Outline a draft process development approach for capture plant requirements and key work streams for different technology options, commercial, project stakeholder engagement, HSE and consenting. Outline management systems and proposed organisational responsibility structure. Provide a statement as to whether (or not) the proposed project adheres to the proponent s Business Expansion Policy. Screening for appropriate power plant & capture plant location (depending on technology post/pre/oxy) for integrated new build capture plant, screening for most appropriate location for plant efficiency and minimal development constraints. Report any infrastructure and waste disposal structures. Within the different work streams evaluate different capture processes, capacities, locations, and plant configuration scenarios Evaluate the technical and economic viability of the project for the overall plant life cycle (cradle to grave) Select favoured option for development during Define Stage. Building upon screening undertake more detailed pre-feasibility analysis of site selection including to filter into the Feasibility/FEED (consider requirements for Site plot plan, Topographical survey, EIA, Air dispersion); nominate where all facilities are located and why the specific sites have been considered. Identify preferred site. Provide an overview of the project development approach. Describe the optimised selected business case. Advise the project structure, list all the alliances required whether commercial or technology based. Undertake selected site survey Undertake topographical survey Soil investigation Identify sensitive receptors (noise / visual impacts) Negotiate and finalise site leasehold (including necessary easements), ready for execution Nominate where all the facilities are located and why the specific site has been considered. Implement the project execution and delivery strategy and revise / maintain a project execution plan. n/a Outline process for capture plant closure. Outline management systems and proposed organisational responsibility structure. n/a n/a Asset deconstruction Stakeholder and External Relations Identify an appropriate stakeholder register and engagement requirements with Identify for each stakeholder if a specific report will be required and create a scope to be Undertake community engagement, and other stakeholder engagement, according to Interface / communicate with internal and external Stakeholders Interface / communicate with Interface / communicate with

2 Environment required regulatory bodies (i.e. HSE, Environmental Agency, Local Government, Transport, Public Authorities, District Network Operator) Prepare stakeholder engagement strategy. High level list of preliminary environmental impact possibilities and consultation procedures, outlining applicable project environmental permitting processes and timetable (based on professional judgement, accessing knowledgeable local personnel and obtaining brief views, no detailed studies). Outline potential unfavourable public responses to project s environmental issues. covered at feasibility stage. Identify any prequalification requirements for specialist consultancy requirements and if public consultations are required. Revise Stakeholder engagement strategy (if necessary) Develop stakeholder management plan. For all the alternatives considered describe all requirements, including a detailed timeline for environmental approvals. Undertake a more detailed environmental assessment study, identify impacts on regulatory consent to project time frame, understand cost implications, and if environmental licenses will cause the project to be deferred or cancelled. Stakeholder Management Plan Obtain key regulatory consents / approvals required to commence the execution of the project Planning Consent (Section 36 or similar) Pollution Prevention & Control Permit Application (or similar) Prepare Pre Construction Safety Report (or similar) Hazardous Substances consent Construction Consent Water abstraction consent (if required) Effluent discharge consent Undertake Surveys as identified by Environmental Regulator: Ecological Surveys Wildlife Surveys Flora &Fauna Surveys Cultural Heritage Surveys Background Nose Monitoring Assessment Background Air Quality Assessment Ground Survey involved with the project including Government and statutory authorities and non Government agencies. Obtain balance of regulatory approvals for completion of project Ensure environmental compliance for the Carbon Capture element of the project. Carry out site decontamination works, i.e. asbestos removal if applicable internal and external Stakeholders involved with the facility including Government and statutory authorities and non Government agencies. Ensure environmental compliance for the Carbon Capture element of the project. internal and external Stakeholders involved with the facility closure including Government and statutory authorities and non Government agencies. Obtain balance of regulatory approvals for closure of facility. Ensure environmental compliance for the closure of the Carbon Capture facility. Initial review of the regulatory landscape in project jurisdiction to identify where there are regulatory gaps wrt carbon capture. Health and Safety High level review of HSE implications imposed by capture plant scale, location, operational conditions, materials handling and by-product disposal options. Identify gaps in the HSE regulations (if any) wrt carbon capture. Scope out preliminary engagement plan with regulatory bodies. Outline HSE systems that will be put in place and considered during FEED including deliverables scope for studies to be included at FEED such as HAZID, HAZOP and ALARP. Engage with HSE authorities to progress regulation development. Undertake Environmental Impact Assessment and Report Describe at summary level the status of all licensing activities and any licenses yet to be achieved. H&S Management Study & Report Establish safety management team for construction and commissioning Establish H&S procedures for site surveys. Provide a schedule nominating when H&S systems will need to be finalised. Ensure H&S (CDM) statutory responsibilities are carried out. Establish H&S (CDM) duty holder roles (Client, Principle Contractor, er, CDM Co-ordinator). Focus on Contractor safety and engagement, for assurance of a well trained and safety motivated workforce. Implement a design led hazard and risk mitigation process to design out (or mitigate) risks in advance of works. risk reviews should be a regular feature during the works, to ensure emergent design safety issues are addressed. Ensure H&S compliance for the Carbon Capture element of the project. Ensure H&S compliance for the closure of the Carbon Capture facility. Fuel Supply Preliminary definition of fuel supply requirements and capture plant implications. Any further onsite or off-site processing must be defined. Undertake Feasibility analysis of fuel impacts on capture plant and overall CCS process. Consider requirements for power purchase agreements in relation to fuel. Note method of fuel transport and what products (waste or other) are likely to be generated or handled. Negotiate and finalise all fuel supply contracts appropriate for the power plant (coal / gas / distillate fuel / biomass), ready for execution. Note the method of fuel transport and what products (waste or other) are likely to be generated or handled. Execute fuel / consumable Contracts (for new build power station only). Execute ongoing fuel / consumable Contracts Terminate fuel / consumable Contracts Power Plant Identify potential alternative core Consider initial pre-feed design philosophies, Undertake Front End Engineering (FEED) Interface design between power Modify the capture Asset deconstruction

3 (including capture) CO 2 Product technologies and most likely options. Facility description and supporting design criteria, design basis and engineering deliverables to block diagram definition. Identify impacts of capture plant options on power plant, ensure technology work stream looks an optimal design option for concept stage. Initial process risk assessment and mitigation strategies identified for potential and alternative core technologies. High level analysis the impacts of capture technology on flue gas stream and the resulting composition (specification) of CO2 produced. Any further onsite or off-site processing must be defined. process flow mapping (PFD level) of selected options, mass balance, equipment requirements, ramp rate, capture plant integration, external interfaces and end to end design basis. Rank and select preferred options for FEED Feasibility analysis on plant equipment selection and O&M. Feasibility analysis of CO2 composition (product specification) from capture plant selection on transport and storage costs and project implementation. Resulting impacts on transport (pipeline) design and specific impacts on storage dependent on geological requirements of selected site. Note what products (waste or other) are likely to be generated and handled. studies, designing and costing the optimal power plant configuration to a completed point such that no material variations are required following Financial Investment Decision (FID) General site specific specifications to provide the basis of work to be conducted at the power plant (applicable to brown field site) Produce Power plant & Capture Plant FEED deliverables Undertake Front End Engineering (FEED) studies, designing and costing the optimal compression / dehydration process configuration to a completed point such that no material variations are required following Financial Investment Decision (FID). Note method of CO2 transport, and what products (waste or other) are likely to be generated or handled. Define CO2 product specification. Produce Compression & Dehydration Plant FEED deliverables Negotiate CO 2 reuse contracts, ready for execution (if applicable) Produce FEED close out report plant and capture plant. Complete the detailed design for building the power plant with carbon capture asset including: Updated basis of design P&ID Development Equipment PDS s Civil Structural / Architectural HVAC Fire Detection and Protection Piping Layout, Materials, Stress and Supporting Fully functional 3D model with integrated plant engineering and clash modelling functionality. Power Distribution System Cable Routing Grounding Instrumentation DCS Hardware and Software Complete the detailed design for building the CO2 compression and dehydration asset including: Updated basis of design P&ID Development Equipment PDS s Civil Structural / Architectural HVAC Fire Detection and Protection Piping Layout, Materials, Stress and Supporting Fully functional 3D model with integrated plant engineering and clash modelling functionality. Power Distribution System Cable Routing Grounding Instrumentation DCS Hardware and Software asset to comply with legislative regulatory changes & Best Available Techniques Modify the capture asset to comply with legislative regulatory changes & Best Available Techniques Asset deconstruction Infrastructure Outline infrastructure (onsite and off-site) Select most appropriate option and identify any Negotiate and finalise Generator Connection Implement infrastructure Modify the infrastructure Rehabilitation of

4 requirements for associated capture plant options (i.e. power, steam, land availability, other ancillaries) Identification of potential constraints and the mitigation / costs. feasibility deliverables required. Describe all criteria for the infrastructure for all the various options. Agreement with network operator, ready for execution Produce HV connection FEED deliverables Produce Fuel Infrastructure Connection FEED deliverables requirements to enable the execution of the project. Let and manage any sub/contracts in a timely manor in order to achieve these requirements and avoid any delay to the project schedule. to comply with legislative regulatory changes & Best Available Techniques infrastructure and corridors to postclosure condition. Water abstraction. CO2 transportation Project Delivery Initial high level implementation plan approaches to be defined, including manpower requirements, team disciplines required, draft deliverables scoped. Outline potential approaches to project delivery (i.e. EPC, EPCM, LSTK) that will form the proposed basis for implementing the project. Select appropriate option for project delivery linking into project development approach. Clearly scope out the phase gate approach to project implementation plan (PID) through the different cycles of the delivery and FEED contract to O&M. Describe what alternative strategies have been considered and the recommended delivery option. Describe all criteria for all required infrastructure. Develop and manage a fully resourced and cost loaded FEED programme, optimise implementation programme Describe the project delivery status, and describe what strategies are recommended. Issue specification, and undertake tender negotiations with capture equipment suppliers and construction contractors. Outline status of significant procurement negotiations. Negotiate and finalise contractual arrangements with transport and storage partners (i.e. establish joint venture or similar contractual arrangement). Develop procedures for interfaces between project partners. Finalise project organisation structure for Execute Stage Develop detailed site development plan identifying activities and timing required for site enabling works. Execute Capture Plant contract Build organisation to manage the execution of the Capture Plant Asset and deliver project governance, assurance and project controls. Development and management of scope, schedule, budget,, risk and expectations. Manage a fully resourced and cost loaded execution programme covering project management / governance, engineering, procurement, manufacturing, construction, commissioning and acceptance testing. The programme shall be fully logic linked to show the timing of all activities and to provide a comprehensive critical path. Order equipment, manufacture, FAT and delivery in line with the project programme requirements Execute Capture Plant contract for modification to comply with legislative regulatory changes & Best Available Techniques Asset deconstruction Place and manage Major Sub Contracts in line with project programme requirements Build the Capture asset (safely, on time, scope & quality) Commission the Capture asset to operating state Performance Testing

5 Capital / Operating Costs Operations Revenue and Trading Management Systems Ownership and Legal Identify initial cost ranges for Capex plant equipment for potential technology selections, installation costs (+/ %), Opex for plant including power and ancillaries (+/-15-20%) General assessment of effect of capture technology selection on power plant operations, efficiency, commissioning, start up, operation and CO2 transfer. Outline possible methods of establishing/increasing operations capability. Linking into financial analysis outline high level commercial forecasts for plant scale and energy price, impact of capture technology selections and associated carbon price mitigation depending on regulatory framework. Outline management systems and proposed organisational responsibility structure. Explain how the capture management will integrate with both the proposed transport and storage structure to ensure effective implementation of an overall CCS process. Including RACI level description of key project leads and contractors Outline ownership and legal systems to be implemented for all project facets Study of equipment list options relating to cost variations and ranges, development of Capex cost model and initial engagement with major suppliers to improve cost estimation (+/ %). Further analysis of capture plant design on Opex (+/ %) prior to full cost modelling market analysis at Define stage For the various options investigated provide descriptions of the organisation structure and strategy, industrial relations, employee relations strategy, and business start-up plan. Consider deliverables required from selected operational process at Feasibility/FEED stage. Undertake feasibility cash-flow analysis and sensitivity analysis to select most appropriate power plant & capture plant implementation considering information from conceptual stage and impact of any Clean Development Mechanism. Include the sale of power, sale of other by products, cost of waste disposal, carbon trading all of which is to include a revenue analysis and forecast. Outline how the management system will operate in the project execution and operation phases of the CCS project lifecycle. Identify any specific requirements to be further considered at the Feasibility/FEED stage and which (ISO) quality system the structure will be operating under. Describe the framework for the ownership and legal systems for all facets of the project, including implementing any pre-feasibility legal contractual requirements between project team, sub-contractors, and partners Estimate order of magnitude costs of the capture plant (both capital (+/-10-15% accuracy) and operating (+/-5-10% accuracy)) Build organisation to commission and manage power and capture plant assets (recruitment of staff & negotiate long-term maintenance agreements). For the selected option investigated provide descriptions of the organisation structure and strategy, industrial relations, employee relations strategy, and business start-up plan. Negotiate and finalise Power Purchase Agreement, ready for execution Negotiate and finalise emissions trading strategy, ready for execution Finalise forecast load plan (interface with financial model), identifying base-load, part load operating regimes, and outage schedules. Include the sale of power, sale of other by products, cost of waste disposal, carbon trading all of which is to include a revenue analysis and forecast. For the selected option describe the Information Management Plan that is proposed to address the Execution and Operation phases. Finalise partner agreements and have arrangements in place to create necessary investment vehicles ready for execution following FID. Describe the framework for the ownership and legal systems for all facets of the project. Manage capital expenditure and project manpower budgets and optimise operating and maintenance budgets. Finalise long term service agreement contracts with OEM s. Develop the organisational structure and strategy and build organisation to commission and manage assets (recruitment of staff & negotiate long-term maintenance agreements) Develop Asset Operation & Maintenance Procedures Develop operations start up plan including industrial relations and employee relations strategy Handover to Operations and implement start up plan Execute Power Purchase Agreement and emissions trading strategy. Implement the Information Management Plan that is proposed to address the Operation phase. Implement the framework for the ownership and legal systems Manage capital expenditure and project manpower budgets and optimise operating and maintenance budgets. Ramp-up operation of the capture asset to full Operate capture asset to achieve required Maintenance of capture asset to achieve design life & Control and manage plant modifications to achieve required Modify and operate the capture asset to realise identified opportunities Manage Power Purchase Agreement and emissions trading strategy. Modify the Information Management Plan for the Operation phase. Modify the framework for the ownership and legal systems. Manage capital expenditure and project manpower decommissioning budgets. Operation of asset ceased Management of postclosure asset (as required) Terminate Power Purchase Agreement and emissions trading strategy. Develop and implement the Information Management Plan for the Closure phase. Modify the framework for the ownership and legal systems for the Closure phase.

6 IP Management Outline specific IP ownership for capture plant technologies under consideration. Identify any implications for project delivery Financial Analysis Undertake high level financial analysis to outline project costs and commercial benefits of operation over plant lifetime. No sensitivity analysis for individual parameters. Potential up and downside cases around base case to demonstrate range of financial outcomes possible. Risk Discussion of varying risks around possible project options. Risk management structure to be implemented which considers initial risk ranking requirements through the project lifecycles. Should clearly link to initial site option selection and HSE study. Risk management process structured to provide guidance during Evaluate phase for key areas of study (including trade-off studies). Identify perceived regulatory risks High level risk identification, scoping and where possible initial quantification. These are to be captured in a Project Risk Register. Map IP for specific parts of selected carbon capture plant development (i.e. if novel amine mixing process or membrane selection technology process). Ensure black box IP outlined to key development partners at project start up stage and cover in ownership/legal section. At Feasibility stage outline financial analysis in line with Capex and Revenue sections above. Simple form financial analysis, basis, methodology, key indicators and outcomes, describing range of possible outcomes. Describe sensitivity of financial outcomes to different parameters. Where necessary need to understand the tax situation and potential risk sharing with partners / subs etc to secure the funding for the FEED. Feasibility study identifying and clearly ranking risks to projects such as operational, technical, and commercial. Identify potential mitigation strategies for varying design options and development of key risk register and ongoing management strategy to be implemented. Define any potential fatal flaws or extreme risks, with detailed responses to extreme and high risks. Include a summary of the Risk Register. Where able, the financial / cost impact of the risks should be stated. Negotiate and finalise intellectual property rights of capture technology. Develop procedures for secure management of IP information Finalise discounted cash-flow model based on Total Plant Cost (TPC) and Total Capital Requirement (TCR), to calculate necessary parameters to make Financial Investment Decision. Net Present Value Internal Rate of Return Levelised Cost of Electricity Operating & Maintenance Costs Describe range of possible outcomes. Describe sensitivity of financial outcomes to different parameters. Make Final Investment Decision on Power Plant & Capture Plant Develop Risk register that; utilises proponents Risk Management System, ranks all identified risks, defines all potential fatal flaws or extreme risks, and identifies mitigation actions generally, and which specifically has detailed mitigation responses to extreme or high risks. Define any potential fatal flaws. Include a summary of the Risk Register. Implement procedures for secure management of IP information Optimise financial model in line with actual capital cost information and operating / maintenance forecasts. Development and management of the project risk register identifying and ranking all risks. Mitigation actions and response plans should be included along with risk post mitigation ranking. The design risk register (identified in H&S section above) should be integrated into the overall project risk register. Consider utilising advanced risk analysis tools to provide a comprehensive means of determining confidence levels for project success through advanced Monte Carlo based cost and schedule analytics. This will give the means to provide an objective view of required contingency to account for cost and schedule uncertainty and also generate and analyse the cost effectiveness of risk response plans. Modify procedures for secure management of IP information. Need to update financial model with observed degradation rates, availability, reliability etc. Periodic / annual updates required. Management of the risk register identifying and ranking all risks. Mitigation actions and response plans should be included along with risk post mitigation ranking. Modify procedures for secure management of IP information for the Closure phase. Update financial analysis for periodic changes in legislation affecting decommissioning costs. Management of the risk register identifying and ranking all risks. Mitigation actions and response plans should be included along with risk post mitigation ranking.

7 Funding Outline of potential funding sources both commercial and via public sector demonstration funding. Plus outline of options for project to meet funding requirements sourcing via private equity partner options. Preliminary statement as to what extent and who could guarantee any of the project outcomes. Identification of actual or potential funding partners. Engagement with funding stakeholders via commercial work stream and any business plan development required to secure funding for Feasibility/FEED or full scale project implementation. Describe project ownership details and how the project is to be funded, list what guarantees are anticipated and pecuniary and statutory obligations this will realise. Project to undergo financial due diligence as required Describe project ownership details and how the project is to be funded, list what guarantees are anticipated and pecuniary and statutory obligations this will realise. Negotiate funding agreements with investment partners, ready for execution Negotiate support funding agreement with government / NGO (if applicable), ready for execution Establish project accounts / balance sheet Operate project expenditure according to funding plan. Ongoing identification and management of financing / funding risks. Maintain project accounts and operate within the annual operating budget. n/a Future Work Plan Description of developed scope statement and objectives for Feasibility study; state organisation and resources needed; outline cost estimate and time to conduct. Clarify future work plan specifics in line with project development approach outlined above for Feasibility/FEED, listing all cost and schedule implications. Schedule for the FEED Phase should be to level 3 detail. Future Work Plan report for undertaking Execute Stage with: Scope statement and objectives Organisation and resources to complete Cost estimate to complete Schedule to complete Develop operating plan from business case and out-turn project. Create and maintain annual operating plans for the project. n/a Status of Studies Include description of key learning outcomes at concept stage around capture plan options and impacts Achieved progress and extent of evaluation achieved Significant issues / areas progress not achieved Any activities planned for Identify phase until next decision point Identify specific requirements of prefeasibility studies prior to Feasibility/FEED commencement in a phase gate approach to the project implementation. Advise what work/research is necessary to complete the study. Commentary on overall status of study, proposed option; describe status of study. Advise what work / research necessary to complete study or approvals necessary to commence on-site works. Describe independent peer reviews undertaken and recommendations to date, also list scheduled peer review itinerary during construction phase. Construction / execution phase learnings to be collated. Operational learning to be collated. Decommissioning learning to be collated.