ANP expert: bottlenecks in regulatory issues, investment risks. BRL 50 mi invested in R,D&I now. Around 20% of CCS projects cancelled due to regulatory issues. Reuse of infrastructure is enabled. Waiting law backbone to progress.
Equity expert: financing challenges mostly coming from lack of regulatory, tax, incentives and general methodologies for carbon credits. Petrobras integrity concerns, given huge market share. CCS opportunities when combined with renewables. In overall, Brazil’s at a good position to receive external funding.
Climate justice expert: consequences of climate change and impact on people. BNDES disbursement policy for green projects, but less investment in contrast with global averages. Promises and challenges from government. Funding should reach local innitiaves and allow policymakers to decide on application. How best to create avenues for agribusiness, farmers, smaller enterprises, and sustainability projects? Brazil has interesting resources and structure to be harnessed.
Questions: offshore or onshore storage? No preference, but proximity of consuming markets and carbon-intensity areas is taken into account for decision making.
Opps & Challgs:
IBP’s opinion: speed of CCS deployment / CAPEX is slow. We have capacity for CO2 storage in terms of demands, geologic reservoirs, and logistic. Ultra-deep reinjection and EOR is good. CCS not only in oil and gas operator hands, but other members of supply chain. A lot to grow in regulatory aspect and capacity building. CCS is a potential new business for the country.
Petrobras opinion: two announcements relating to CCUS. 1) Revision of commitment of reinjection targets (double by 2025); technology deployed onboard of FPSOs. 2) Areas for further development and CCUS will have a larger window. Lots of things in technology: carbon capture costs (things to do); reservoir and transportation safety. Main constraint of CCUS, like in the rest of the world, is the cost. Compensation, incentives, regulations, have still to be studied. Rethink frameworks.
FS (Fueling Sustainability) company opinion: BECCS in negative carbon footprint in biofuels plants (Paraná, Parecis - MT). Previsibility and feasibility study; seismic study; stratigraphic research. Brazil’s potential to lead on BECCS too. Big challenge on regulatory framework.
Golden point: set out the regulatory framework to unlock the gates.
Misc
Real World Visuals: How can you visualize 1 ton CO2 (or 1 carbon credit)?