MAKING CO2 CAPTURE PROJECTS HAPPEN

Nick Flinn Myrian Schenk

Isabel Conradus Julie Cranga
Devin Shaw Technip Energies
Laurent Thomas
Shell Catalysts & Technologies
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Speakers

Presenter Moderator

Nick Flinn Justin Swain

VP Decarbonisation Technologies Strategic Marketing Manager
Shell Catalysts & Technologies Shell Catalysts & Technologies

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Agenda

PART 1 PART 2 PART 3

The outlook for CCS Panel session Live Q&A
CANSOLV* CO2 Capture
System overview
Regional overview
Sector overview
The outlook for costs
Shell’s activities in CCS
*CANSOLV is a Shell trademark

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The outlook for CCS has never been more positive, with dozens of
projects moving into development over the past 12 months...

44% increase in CO2 190+ facilities in the project pipeline

capture capacity of all CCS
facilities under development
Dozens of blue hydrogen
61 facilities added to projects in development
the project pipeline
(30 in operation, 11 under
construction, 153 in Unprecedented interest
CCS is becoming
development) and engagement in
increasingly commercial
DAC with CCS
and competitive in many
countries…more strategic
partnerships and
collaboration are expected Rise of clusters

Source: Global CCS Institute 6

…however, investment in CCS is still “grossly inadequate”

2021 2050

40 Mtpa

5600
CCS capacity required to limit
global warming to 2°C, according
to the Global CCS Institute
Mtpa

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Or, to put it another way, the number of facilities needs to grow

from 27 in 2021

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Or, to put it another way, the number of facilities needs to grow

from 27 in 2021 to some 2732 (or more) by 2050

Source: Global CCS Institute 9

The CANSOLV CO2 Capture System is a simple amine unit

1400 plants use our gas processing technologies Low energy consumption
High loading efficiency
(up to 99% capture Low degradation rate
Over 50 years of gas processing efficiency)
licensing experience Low emissions

Based on proprietary amine for

post combustion capture

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For technical details about the Shell pre- and post-capture solutions,
please refer to our previous webcasts and white papers

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Recognising (some of) the 2022 CCS pioneers 1 Humber Zero – VPI Immingham

Humber Zero – Phillips 66 Limited’s

2
Humber refinery
2
8 3 Net Zero Teesside Power (NZT Power)
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3 4 (Confidential Client)
7

1 5 Calpine Deer Park Energy Center

6 Shell Chemical Deer Park

7 Shell Polaris

Hafslund Celsio CCS Oslo (formally

8
Fortum Oslo Varmes)

9 (Confidential Client)
5
(Confidential Clients) 10 (Confidential Client)
6
4 9 10
11 Calpine Baytown Energy Center

H2

Power and WtE Oil Gas Heavy industry Hydrogen

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Strong policy on CCS is having a positive impact
on project development

USA Canada UK Northern Europe

POLICY, LEGAL AND Infrastructure Proposed federal Post-Brexit plan for Innovation fund
REGULATORY Investment and Jobs investment tax credit energy transition EU Emissions Trading
Act for CCS CCUS Innovation Scheme (EU ETS)
Inflation Reduction 2022 Federal Budget Programme Policy initiatives from
Act/45Q tax credit strongly supports CCS Infrastructure individual member
scheme CCUS via an Fund states
CCS-specific legislation investment tax credit

NEW PROJECTS 34 19 13 Norway: 8

LAUNCHED SINCE 2021 The Netherlands: 6

Rest of the world: Ramp-up of policy and legislation by national governments; Policy is advancing in Asia Pacific region, and
there has been notable progress over the last 12 months

Source: Global CCS Institute 13

Most of the existing CCS capacity is concentrated in natural
gas processing plants, but now other sectors are growing

2022 analysis: Power is the biggest sector and there is a trend towards clusters and smaller-scale projects

2023 analysis: The majority of CANSOLV deals did not make major progress and it’s difficult to predict which ones will

26%
Europe and Clusters have a Power and
of projects have
North America (marginally) better hydrogen are
progressed
progressing equally chance of progressing advantaged

Source: Shell Catalysts & Technologies analysis 14

Costs are falling – and will
likely fall further
According to the IEA:
Experience indicates that CCUS should become
cheaper as:
the market grows
the technology develops
finance costs fall
economies of scale are reached
experience of building and operating CCUS
facilities accumulates.
This pattern has already been seen for renewable
energy technologies over recent decades.
https://www.iea.org/commentaries/is-carbon-capture-too-expensive
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 We have continued to drive down costs – but may be
approaching a limit

2021

5–20%
lower capex*

15–30%
lower opex*
*Versus 2020 cost
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 We have continued to drive down costs – but may be
approaching a limit

2021 2022

5–20% Further
lower capex*
15–20%
15–30% cost reduction
achieved*
lower opex*
*Versus 2020 cost
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 We have continued to drive down costs – but may be
approaching a limit

2021 2022 2023

5–20% Further
lower capex*
15–20% Further15%
15–30% cost reduction
achieved* cost reduction
lower opex* targeted*

*Versus 2020 cost

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 We have continued to drive down costs – but may be
approaching a limit

2021 2022 2023 2025

5–20% Further
lower capex*
15–20% Further15%
15–30% cost reduction
achieved* cost reduction
Further10%
lower opex* targeted*
cost reduction
*Versus 2020 cost targeted*
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 We have continued to drive down costs – but may be
approaching a limit

2021 2022 2023 2025

5–20% Further
lower capex*
15–20% Further15%
15–30% cost reduction
achieved* cost reduction
Further10% + another wave of
lower opex* targeted* improvements is
cost reduction likely when units are
targeted* operational
*Versus 2020 cost
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Selecting the right capture technology is important, but there are
numerous other dimensions to a successful CCS project

EXPORT
TECHNOLOGY SELECTION
Transportation
Duty/rating CANSOLV Storage
Plot space Utilisation
Type

MANAGEMENT

Project execution
Construction
De-risking
INTEGRATION

Pre-treatment
FINANCING
Power & utilities
Tie-Ins Funding support
Lay-out Optimisation Approvals
Conditioning Risk

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CCUS IN SHELL: PROJECTS
SHELL’S 2022 CCUS PROJECT PORTFOLIO 1 Quest

2 Polaris/Atlas*

3 Gorgon

4 Southeast Asia Hub

9
7 5 Louisiana Hub*
1 2
8 11
10
11
6 Ohio River Valley*
6
5 7 Acorn*
12
8 South Wales Industrial Cluster*
4 9 Northern Lights

10 Aramis*
13
3

Projects in operation 11 Porthos*

Projects in development
12 Daya Bay*
CCUS Hubs
CCUS study agreements 13 Angel*

* Pre-FID
Shell | December, 2022 22
From SO2 to CO2: This isn’t the first time the world
has faced a major emissions issue
1970s 2020s

The challenge: Acid rain caused by SO2 emissions from various The challenge: Climate change caused by CO2 and other
sources, including power generation and natural gas production greenhouse gases

One of the solutions: The Shell Claus Off-gas Treating One of the solutions: The CANSOLV CO2 Capture System
(SCOT) process

We’ve done it before – and we can do it again

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