Opening van het CCS congres
Minister van Economische Zaken spreekt over nieuwe energiesystemen ter gelegenheid van de opening van het CCS congres op 30 juni 2008 te Den Haag. CHECK FOR DELIVERY.
Ladies and gentlemen,
Allow me to ask you a question that may seem a tad unorthodox: what do you want your life to be like 42 years from now? Who will you be, what will you do? What energises you? And also: what did it take for you to get there? What steps did you take in between?
The reason I am asking is because the Dutch government has been asking itself a similar question in relationship to energy. I have just come back from Jeddah, where the world's energy ministers talked about ways to deal with the high price of oil.
Most measures focused on the short term, but I addressed a more fundamental issue: the need for us to transition to a sustainable global energy system, based on energy efficiency, alternative fuels and cleaner use of fossil fuels.
This is in line with the vision of the Dutch government. In 42 years from now it will be 2050. By that time, the Netherlands will have an energy system that is sustainable, affordable and reliable. We will have reduced CO2 emissions by 50% and will generate 40% our electricity using sustainable source like wind at sea, biomass and small-scale, decentralised energy generation.
The remaining 60% of our electricity will come from local and foreign gas, nuclear fuel and modern coal powered plants, many of which will use CCS technology. Part of our electricity will be delivered by Western European neighbours. We no longer deal with energy in splendid isolation, but align our needs and systems with those of our neighbours.
In 2050, we also have buildings that will require little or no heating and cars that run on electricity, hydrogen and biofuels. Consumers and businesses will be largely self-sufficient when it comes to generating electricity, using heat pumps, solar cells and small wind turbines. Our grid will be intelligent enough to absorb and distribute any exceed electricity.
The high price of oil may have our immediate attention, but we need to take a big-picture view of energy. Though 42 years seems like a long way off, it will pass in a heartbeat. If we don't act now, the consequences will be ours. The looming threat of an energy crisis and the inevitable consequences of climate change are a daily reminder of what's at stake.
Today's conference is important because it is one of the many steps we need to take to transition to a sustainable, affordable and dependable energy system. But before I speak specifically about CCS, I want us to look at C02 in a broader context.
There is risk of us handling C02 as it were a problem that can only be dealt with once it's created, for example by storing it underground. This is a myopic view that will lead to partial solutions. What we need to do instead, is to handle C02 at all stages of the process. In short, we need to reduce, use and store.
By reducing, I mean we need to optimise industrial processes and methods of energy production. We need to innovate and invest in new technologies that lower the amount of C02 that's produced in the first place.
Once it is produced, we must look at ways to use it. Using CCS technology, C02 can be captured and fed into other production processes. It is already being used to heat greenhouses, which is ecologically sound and financially interesting. If we keep an open mind and give free reign to our imagination, we can come up with new ways to benefit from C02.
Finally, the C02 has to be stored. But also then we have to look after the connection between the capture technology that is chosen and its place within the overall energy system. Through pre-combustion technology for example, syngas is produced. This syngas can feed the gas network. Also it is possible to store this gas temporarily.
Overall, CCS is a valuable technology. It buys us time for the transition to a fundamentally different energy system. It has ecological value as much as has economic potential. If we reduce the cost of CCS from the current euro80 to euro90 per ton to around euro35 to euro50, CCS will become profitable within the Emissions Trading Systems. Early adopters of CCS could gain a competitive edge over their rivals, who will still be paying for more expensive emission rights.
CCS also has the potential to create an entirely new industry, which generates jobs and GDP growth. And, as the presence of attendees from gas and oil producing contains attests, CCS can revitalise previously abandoned fields. This Enhanced Oil and Gas Recovery is becoming more interesting in light of today's oil and gas prices.
Making CCS practical, economic and accepted
As things stand, CCS is a still long way off from being used on a large-scale to help us reduce, use and store C02.
For that to happen, we need to make CCS practical, economic and accepted. This means developing capture technology that is economically more feasible and building the infrastructure that allows us to transport CO2 to places where it can be used or stored. We also need to agree on organisational models and legislative frameworks. This will allow us to manage the legal and financial aspects of CCS.
In addition to these technical requirements, governments must also addressed valid concerns from our communities. Some people believe that CCS is untested, expensive and potentially harmful. Which makes them question the wisdom of their government's willingness to take any risks. It is our responsibility to address these concerns and I urge all of you to do so during the conference.
If we can meet these criteria, then it's possible to turn CCS into an economically viable and socially supported way of reducing C02 on a large scale. The Dutch government, for its part, has committed itself to two large-scale demonstration projects by 2015. In Europe, this puts us in a group of frontrunners that includes the UK and Norway.
In addition to our individual projects, we have also joined hands to look at trans-boundary CO2 capture and storage in the North Sea. I hope the conference will pursue other countries to invest in CCS and share their experiences. International cooperation and action will help all of us make the best possible use of CCS.
Ladies and gentlemen,
I started by asking you what your life would look like in 42 years. It seems like a long time, but it's little more than a single generation to achieve a significant change in the way we produce and use energy. Managing the entire lifecycle of C02 is part of this approach and in light of that, CCS is a potentially valuable technology that can support our transition.
Thank you.