Insights and Commentaries

A CCS Roadmap for Portugal

15th April 2015

Topic(s): law and regulation, Policy

The overall need for carbon capture and storage (CCS) to decarbonise power production and heavy industry in Europe remains genuine and urgent. These were the key findings of the 2015 final report reviewing the CCS Directive 2009/31/EC on the geological storage of carbon dioxide (CO₂). The report concludes that if the European Union (EU) intends to have CCS play a serious role in carbon mitigation, a much stronger policy drive is needed.

A critical area of policy action is the development of CCS Roadmaps. Roadmaps clarify the role of CCS in the decarbonisation of a country's economy and, consequently, of the EU. The CCS Roadmap in Portugal assesses the role of CCS in the country. In doing so, it explores challenges and opportunities faced in the national context.

Key Roadmap Findings

The findings are the result of a one-year collaborative project with CENSE research group, CGE research group, National Laboratory of Energy and Geology, REN and Bellona Foundation. They are based on desktop research, questionnaires and in-depth consultation with Portuguese CCS stakeholders from industry, NGOs, Academic Institutions and the Portuguese Ministry.

The study outlines the following findings:

1. In the power sector, CCS becomes a cost effective mitigation option in the long run under a deep decarbonisation scenario (80% GHG emissions reduction by 2050 compared with 1990 levels). This is mainly influenced by the energy profile of the country. Current renewable power capacity in Portugal accounts for 54% of the total. The power generation profile of Portugal is characterised by a strong policy drive for renewable power generation (mostly wind power), driven by national support schemes.
2. There are opportunities for carbon dioxide (CO₂) capture in the industrial sector. Portugal has six cement manufacturing units exporting almost 50% of their production. Under all the mitigation scenarios modelled according to the GHG reductions of the EU Energy and Low carbon Roadmaps, CCS is deployed in significant volumes in the cement sector.
3. The vast majority of storage capacity is in offshore storage sites. Offshore sites are located in the shallow continental shelf, at very short distance from main industrial GHG emission point sources. Onshore storage faces political issues, while offshore CO₂ storage is more expensive than onshore and may be capacity constrained.
4. CCS is part of a least-cost approach to achieving climate targets in Portugal in a deep decarbonisation scenario. For this to happen, a number of supporting pillars need to be in place, including a proactive policy approach that addresses not only the lack of specific legislation for transport of anthropogenic CO₂, but also provides direct public funds to develop pilots and demonstration projects, such as the EU Structural Funds. This allows for the timely establishment of required infrastructure, addresses upfront finance issues and creates a stable regulatory framework.

From an EU perspective, it is worth noting the cement sector as the first CCS mover in Portugal. The study recommends the two national cement companies act as a cluster of competencies and test the feasibility of CCS deployment.

In fact, the Institute has recently observed a growing interest in establishing industrial CCS clusters in other EU countries. The industrial complexes of Teesside in the UK, Rotterdam in the Netherlands and Antwerp in Belgium are potential CO₂ hubs that could pave the way for a cost-effective decarbonisation path in Europe.

The publication is available both in English and in Portuguese on the Global CCS Institute website. 

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