Project Title

Capacity building role on CCUS deployment and development in APEC economies for Sustainable Development Goals 

Project Year

2023   

Project Number

EWG_205_2023A 

Project Session

Session 2   

Project Type

Standard 

Project Status

Project in Implementation   
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Project No.

EWG_205_2023A 

Project Title

Capacity building role on CCUS deployment and development in APEC economies for Sustainable Development Goals 

Project Status

Project in Implementation 

Publication (if any)

 

Fund Account

APEC Support Fund 

Sub-fund

ASF: Energy Efficiency, Low Carbon and Energy Resiliency Measures (EELCER) 

Project Year

2023 

Project Session

Session 2 

APEC Funding

99,204 

Co-funding Amount

Total Project Value

99,204 

Sponsoring Forum

Energy Working Group (EWG) 

Topics

Energy 

Committee

SOM Steering Committee on Economic and Technical Cooperation (SCE) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Thailand 

Co-Sponsoring Economies

China; Japan; Korea; Philippines; Chinese Taipei; United States 

Expected Start Date

01/05/2024 

Expected Completion Date

28/02/2025 

Project Proponent Name 1

Apiradee Suwannathong 

Job Title 1

Geologist, Senior Professional Level 

Organization 1

Department of Mineral Fuels, Ministry of Energy 

Postal Address 1

Not Applicable 

Telephone 1

+669 6829 6747 

Fax 1

Not Applicable 

Email 1

apiradee@dmf.go.th; asuwannathong@gmail.com 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Apiradee Suwannathong 

Project Summary

The challenges for CCS development are how to assess the geological resource to store CO2, maturity of regulations and economic policy (e.g. cross-border trading,CO2 Tax, CO2 price) that are keys to ensure the success. There are 2 expected outputs of the one workshop and the Project Summary Report. The workshop for general to depth detail discussion in aspects of technic/geological storage, regulation and policy planned to run over one year are vital (1) to accelerate and drive forward of CCUS deployment and development in many aspects, reaching to Net-zeroe mission and(2) to Strengthen confidence, skills, knowledge, and resources to support on CCS/CCU activities. In addition, building up a CCUS working group network among APEC economies and any non-APEC parties in Energy sector including electricity and industry from this workshop is key platform to share further experiences and discuss what the barriers are and how to solves the challenges.

Relevance

Benefits to Region

CO2 emissions from fossil fuel combustion, associated with different economic activities, are an important driver of global climate change. The Paris Climate Agreement requires global reducing GHGs emissions as soon as possible. Tremendous efforts are being put into minimizing GHGs emissions, such as using renewable energy resources, energy efficiency, bioenergy, electrification, and hydrogen. With regard to the climate commitment contributed to the global and regional climate agenda at COP-26, more than 110 countries globally have pledged to reach the goal of the Paris Agreement in the next 30 years.  In addition, at COP-27, APEC member economies have identified their Nationally Determined Contributions (NDC) towards reducing GHG and have reaffirmed their commitments to the UNFCCC and the Paris Agreement.  Achieving net-zero GHG emissions integrated with ensuring a secure, affordable, and sustainable manner in the energy sector for serving economic growth has been increasing attention globally, so considering the comprehensive understanding and the political attention to the urgent need for reductions of GHG emissions are necessary.

Owing to high economic growth, the energy demand of APEC Southeast Asia subregion (“SEA”) is expected to grow to almost double with continued reliance of fossil fuels.  From the APEC Energy Demand and Supply Outlook (8th Edition), SEA’s energy demand of fossil fuels grows nearly 60% from 2018 to 2050 in the Reference Scenario, while CO2 emission grows 45% during the same period.  At the same time, SEA economies have pledged for net-zero GHG targets between 2050 and 2065.

Therefore, SEA economies realize that Carbon Capture Utilization and Storage (CCUS) technology is vital to reduce the GHGs emissions in order to meet the pledged targets.

However, understanding and awareness as well as networking and collaboration on CCUS technology are the primary phase to do, leading to accelerating CCS development among APEC economies. The project will be key platform to engage APEC economies and non-APEC parties for building up public-private-government and

government-government cooperation to clarify what the technical/regulation/policy barriers are and what the government/private can do to support. In addition, it is the platform to share research, development, and demonstration and to develop skill and capacity Building.

Eligibility and Fund

Priorities

International Energy Agency (2020) mentioned that the CCUS is the one of the most effective options for allowing many economies to continue using their fossil fuel resources within the efforts being made to mitigate climate change, leading to sustainable and secured energy development. Therefore, improving human resources on CCUS is vital key to build up CCUS network. Furthermore, the network will support to reach goals of APEC, which are 1) To attain sustainable growth and equitable development in the Asia-Pacific region, 2) To reduce economic disparities among APEC economies, and 3) To improve the economic and social well-being of the people. The project aligns to sub-fund on Energy Efficiency, Low Carbon and Energy Resiliency Measures that supports capacity building initiatives contributing to the promotion of energy efficiency and low carbon measures in the APEC region.

Capacity Building

Considering Thailand’s attention to achieve net-zero emission by 2065, Thailand has set strategy and action plans of CCUS to reduce GHG emission at different levels of management. CCUS plays a crucial role in energy sectors for achieving the goals of 38.8 MtCO2e/year emission reduction in 2050 (Carbon Neutrality) and of 61.3 MtCO2e/year emission reduction by 2065 (Net Zero GHG). The Department of Mineral Fuels (DMF) has realized that CCUS is the key to reduce effectively CO2 emissions and to ensure a secure, affordable and more sustainable pathway for the energy sector in Thailand and global. Therefore, DMF has evaluated the 13 CCUS projects in 5 potential areas for CCS deployment based on matching of CO2 point sources and sink that is an important first step  to ensure CCS success. Indonesia and Malaysia are taking similar steps to deploy CCUS for helping to meet the emission targets. In this regard, each economy has the unique challenges and constraints due to regional differences. Encouraging collaboration between member economies and leveraging regional cooperation in research,  development, and deployment of CCUS technology are keys to understand on concept, vision, challenge, barriers of each economy. Working together as SEA CCUS network is essential not only to tackle  climate change issues, but also to ensure energy security and accelerate CCS investment in the region. The results will be shared with this network to maximize benefit and value of new economic opportunities (e.g., CO2 cross border trading, CO2 hub, CO2 pricing in APEC) as well as to reduce risk (e.g., shared infrastructures of pipeline, port, and investment cost). This project engaged stakeholders from various organizations/economies covers a series of actions and workshops in aspects of CCS regulation, enabling policy, and storage resource to accelerate investment in Carbon Capture and Storage (CCS) in APEC.

In addition, some economies especially, Indonesia, Malaysia, and Thailand, integrate CCUS into policy and planning to mitigate climate change as well as take more actions on essential enablers such as supportive policy, regulatory framework, economic mechanisms (i.e. emission trading system, cap and trade, CO2 tax)  and storage assessment to promote their CCS development. There are many CCUS projects proposed in Southeast Asia such as Kasawari CCS Facility (Malaysia) PTTEP Arthit CCS Project (Thailand), Sukowati CCUS project (Indonesia) that are the keys to built up capacity building and promote the energy efficiency and low carbon measures in the APEC. Therefore, this proposed project is key to support capacity building covering areas of technique, regulation and policy that is vital to drive force and accelerate the collaboration of policymakers, regulators, and operators of multilateral organizations in APEC to share perspective and steps to develop the critical issues (i.e., regulation, transboundary legislation, broader education across the region).


Objectives

1. To develop and strengthen the skills and competencies of human resources on CCUS in 4 aspects: (1) Technical aspects, (2) Standard and regulatory framework, (3) Economics and market mechanisms, and (4) Stakeholder engagement;

2. To develop perspective and strategies on CCUS deployment to achieve sustainable growth;

3. To propel co-operation and collaboration on CCUS in APEC economies as the fastest-growing sub-region for improving the economic and social well-being of the people;

4. To build understanding on concept, vision and perspective among APEC member economies on CCUS developments in different environments; and

5. To promote CCS/CCUS cooperation and collaboration across APEC as CCUS Network under work streams of EGCFE.

Alignment

APEC

The Chair’s Statement of the 13th APEC Energy Ministerial Meeting stated that “we aim to support energy transitions by promoting energy security, and ensuring access to affordable, reliable, sustainable, and modern energy for all, and resilient energy systems including by fostering collaboration, such as voluntary sharing of emerging and available technologies under mutually agreed terms, capacity building, transparent and interoperable regulatory frameworks, and exchange of best practices and experience”. International Energy Agency (2020) mentioned that the CCUS is the one of the most effective options for allowing many economies to continue using their fossil fuel resources within the efforts being made to mitigate climate change, leading to sustainable and secured energy development. Improving human resource on CCUS is vital key to build up CCUS network. Furthermore, the network will support to reach goals of APEC.

1) To attain sustainable growth and equitable development in the Asia-Pacific region; 2) To reduce economic disparities among APEC economies; 3) To improve the economic and social well-being of the people.

Forum

The EWG’s work for 2023 include (1) promoting sustainable growth across sectors and the development of cost effective low and zero emissions technologies, (2) seeking to deliver existing Leaders’ commitments on energy issues: particularly to accelerate energy mix, including in power generation, from 2010 levels to by 2030; and to deliver a plan to reduce aggregate energy intensity by 45%, from 2005 levels, by 2035.

Considering Thailand’s attention to get to net-zero emission by 2065, Thailand has set strategy and action plans of CCUS to reduce GHG emission at different levels of management. CCUS plays a crucial role in energy sectors for achieving the goals of 38.8 MtCO2e/year emission reduction in 2050 (Carbon Neutrality) and of 61.3 MtCO2e emission reduction by 2065 (Net Zero GHG). DMF has realized that CCUS is the key to reduce effectively CO2 emissions and to ensure a secure, affordable and more sustainable pathway for the energy sector in Thailand and global. Therefore, DMF has evaluated the 13 CCUS projects in 5 potential areas for CCS deployment based on matching of CO2 point sources and sink that is an important first step to ensure CCS success. Indonesia and Malaysia are taking similar steps to deploy CCUS to help meeting the emission targets. The aforementioned projects are relevant to the sub-expert groups: Clean Fossil Energy (EGCFE).

In this regard, each economy has the unique challenges and constraints due to economic/regional differences. Encouraging collaboration between economies and leveraging regional cooperation in research, development, and deployment of CCUS technology are keys to understand on concept, vision, challenge, barriers of each economy. Working together as APEC CCUS network is essential not only to tackle climate change issues, but also to ensure energy security and accelerate CCS investment in region. The results will be shared with this network to maximize benefit and value of new economic opportunities (e.g. CO2 cross border trading, CO2 hub, CO2 pricing in APEC) as well as to reduce risk (e.g. shared infrastructures of pipeline, port and investment cost). This project engaged stakeholders from various organizations/economies cover a series of actions and workshops in aspects of CCS regulation, enabling policy, and storage resource to accelerate investment in Carbon Capture Storage (CCS) in APEC.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs

1) Workshop: 

Pre-workshop survey will explore the concept, vision and perspective on based on 2 aspects of (1) Technical approach and (2) Regulatory framework,  and  then arranging the workshop  to encourage the collaboration, discussion, deliberation and revision perspective and strategies  on geological formation assessment and regulation on CCUS development with APEC’s member economies and another economy.  This workshop is key to improve the policy, legal and regulatory conditions for amending to existing laws or frameworks/establishing for a standard/guideline, thereby creating better economic opportunities and promoting sustainable growth across sectors and the development of cost effective low and zero emissions technologies

Planning to set a 2-day workshop in October 2024 in Bangkok, Thailand.

The tentative program for workshop:

Day one - Give information to reduce gap of knowledge

Morning session (8.30 -12.00) updating CCUS projects from APEC economies

Afternoon session (13.00-17.00) provide knowledge in lights of Regulations and standards, CO2 Geological storage from GCCSI and policy)

Day two - Discussion part can be separated into 2 groups in terms of geological storage and regulatory framework

Morning session (8.30 -12.00) separate 2 groups for discussing on how to develop and propel the areas of Geological storage and regulatory framework)

Afternoon session (13.00-17.00) discussion on the topic of how to develop the international standard and regulation and pilot project in the APEC regions, then wrap up key discussions and recommendations resulted from the workshop.

PO will conduct a post-event evaluation right after the Workshop to assess whether the Workshop has met the project's objective/s, as well as to measure the outcome/s of the project.

2) Project Summary Report: The project summary report at least 50 pages  (excluding annexes), which includes all contents (i.e. questions from the delegates, the discussion points and recommendation and suggestion to overcome the barriers and challenges in aspects of technical, regulatory and political aspects, summary (including  detailed part, solution and  recommendation to overcome the challenges and small group of each aspect for monitoring  updating and reporting the situation as well as further work). For annexes will include such as workshop agenda, presentation from speakers.  

Outcomes
1)  Strengthened technical and regulation groups working on geological formation and regulation, which will serve as a platform to update situation, share information, report  and monitor CCUS projects in the APEC region. Increased understanding of what the key hurdles and enablers to assess geological formation are effectively and precisely to store the CO2 as well as how to developing regulation and guideline to support CCS projects.  In addition, building the capacity and International collaboration with strategic partners. Furthermore, raising the awareness and momentum to policy makers and regulators to develop regulation and guideline of the geological formation assessment as well as private sector and relevant stakeholders to support CCS project.

2) Increased APEC economies awareness on the concept idea and direction to assess the geological formation effectively and precisely, leading to building of confidence in an investors.

Beneficiaries
A variety of participants from governments, multilateral organizations and the private sector of APEC member economies will be engaged in this project. Workshop will be in person format. Personnel from APEC will participate in persons under funding supports from this project.  Encouraging and accelerating participants from governments, multilateral organizations and the private sector to learn and take action on CCUS development and to overcome the challenges in many issues of common rules and procedure for CCUS deployment; financial analysis of CCUS development and deployment; carbon trading/Joint Credit Mechanism are the benefits of the projects. The other  beneciaries of the project is increasing the sustainable growth and growing of the economic as social well-being of the people in APEC. At the starting point, policy makers realize CCUS is an essential option to support energy sector and industries to mitigate climate change. Regarding this workshop, the policy makers can develop mechanism /instruments to support private sector and to overcome barriers/obstacles on CCUS development. Member economies in APEC will have opportunities for learning the good practices beyond borders and working with members from advanced economies on the CCUS technology partnership.  Leveraging the collaboration between member economies to maximize benefit and value of new economic opportunities (e.g., CO2 cross border trading, CO2 hub, CO2 pricing) as well as to reduce risk (e.g., shared infrastructures of pipeline, port and investment cost).

Dissemination

Based on work plan and timeline of this project, the workshop is structured under two pillars of 1. Technical and technological advancements, and 2. Legal and regulatory frameworks. The project summary report  (at least 50 pages) includes all contents (i.e., questions from the delegates, the discussion points and recommendation and suggestion, summary (including  detailed part, the evaluation part, solution and  recommendation to overcome the challenges and small group of each aspect for monitoring  updating and reporting the situation as well as further work ). For  annexes will include such as workshop agenda, presentation from speakers.   This report will be distributed to all EWG delegates via email for review and endorsement. The project summary report  will be submitted to APEC for publishing in forms of electronic file in the APEC website and will be published on Department of Mineral Fuels (DMF), Ministry of Energy website or social media to introduce APEC member economies and interested people in many aspects including a portfolio of CCUS technologies and good practices. The information will be essential to support government and private sector for more understanding in aspects of technic, regulatory framework and etc. Subsequently, it is key to build capacity in the region in transition with regard to CCUS.

Gender

Please see Project Proposal in Supporting Documents folder.

Work Plan

Please see Project Proposal in Supporting Documents folder.

Risks

Please see Project Proposal in Supporting Documents folder.

Monitoring and Evaluation

Please see Project Proposal in Supporting Documents folder.

Linkages

The project interlink with other APEC fora to collaborate on CCUS deployment and development in the project by inviting member as participants to give commences and reviewer of the Project Summary Report.

The framework/network for CCUS collaboration will be opportunities for member economies in APEC economies to work with members from advanced economies on the CCUS technology partnership, promoting energy transition and achieving climate change.

Apart from that, DMF is currently working on many CCS projects in Thailand such as an exploration and an assessment of carbon dioxide storage potential in the Northern Gulf of Thailand, offshore Arthit project, and onshore Mae Moh project in Lampang province. As a result of this, Thailand is one of the members that have competency to be the CCUS hub in APEC. In addition, Thailand is amending and enacting laws and regulations including the Petroleum Act, ministerial regulation and CCS guideline so as to accommodate energy transition. Hence, financial support from APEC, which will have huge impact to the deployment of CCUS in APEC in the near future, is essential. 

Therefore, capacity building is key to support, drive force and accelerate the developing the CCUS projects in APEC’s member economies in terms of technical development. Working together of multi stakeholders (policymakers, regulators, and operators of multilateral organization in the region and beyond borders to share perspective of the critical issues (i.e. regulation, transboundary legislation, broader education across the region) is key to overcome the challenges.

Concrete outcomes of strategy, policy, regulations to overcome challenges and sustainable growth.

At the starting point, the framework/network for CCUS collaboration will be opportunities for member economies in APEC to work with members from advanced economies on the CCUS technology partnership, promoting energy transition and achieving climate change. Multi-sector- shared CCUS networks, storage resource, laboratory, human resources and infrastructure reuse will be considered, leading to accelerating CCS investment (e.g. CO2 hub, carbon pricing and carbon trading). In addition, facilitating cross-sectoral engagement will have advantages in terms of value-chain formulation by leveraging the collaboration between member economies to maximize benefit and value of new economic opportunities (e.g. CO2 cross border trading, CO2 hub, CO2 pricing) as well as to reduce risk (e.g. shared infrastructures of pipeline, port and investment cost).

- CCUS legal and regulatory framework-International T&S Law and Regulations

- Reusing and sharing the existing gas infrastructure (Cross-border pipeline andPorts)

-  Boosting on Carbon Market in APEC

Roadmap-International collaboration with strategic partners.

Sustainability

A variety of participants from governments, multilateral organizations and the private sector of APEC member economies will be engaged in this project. Workshops and training will be hybrid format. Personnel from APEC Southeast Asia involving authorities will be participants from other APEC economies will be invited to join online to share expertise and gain knowledge. Focus will be on deployment of CCUS projects in Southeast Asia economies, but other APEC economies can benefit from sharing, learning, and establishing the CCUS Networking for long-term co-benefit. The strong CCUS collaboration and co-operation network with the shared visions, shared goals and shared purposes as well as co-creation practices and activities in APEC will subsequently carry out future good opportunities on CCUS deployment and development through APEC in many aspects as follows.

-  Conceptual CCUS development report

-  Collaboration with strategic partners

-  CCUS capabilities (knowledges, activities and experiences)

- CCUS legal and regulatory framework-International T&S Law and Regulations

- Reusing and sharing the existing gas infrastructure (Cross-border pipeline and Ports)

Boosting on Carbon Market in Region- ASEAN Emission Trading System - Promoting sustainable growth across sectors.

Project Overseers

CCUS development in Thailand. The import roles:
1. Promoting and supporting CCUS projects/studies in Thailand in 4 aspects of Technic, Regulatory framework, Economic and incentive policy and stakeholder engagement.
2. Seeking collaboration from international organization to propel CCUS project in Thailand.
For achievement, 2.1) Proposing the project “Initiative to Conduct the Study on CCS/CCUS Development and the Collaborative Network in ASEAN” in ASEAN. TheCCUS Network in on-going process to set up.
2.2) Proposing the CCUS projects to get financial support from Japan. The cooperation between the Ministry of Energy of Thailand and The Ministry of Economy, Trade and Industry of Japan on CCUS under “the Memorandum of Cooperation on the Carbon Capture, Utilization and Storage Technology Partnership” singed on on 4 March 2023 at Tokyo Japan.
2.3) Developing guideline and Amending the Petroleum Act to support CCS Activity in Thailand
2.4) Steering the assessment of geological formation to store CO2 in both onshore and offshore areas.
2.5) Collaborating with international agencies (JOGMEC and CLDP) and domestic agencies to develop regulatory framework, economic instrument and incentive, cross-border trading and etc.

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

Please see Project Proposal in Supporting Document folder.

Waivers

Not Applicable.

Are there any supporting document attached?

Yes 
Attachments
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Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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