Beruflich Dokumente
Kultur Dokumente
Authors:
_________________________________________________________________________________________
UCG&CO2 STORAGE Project
Funded under the Research Program of the RFCS, Coal RTD
Grant Agreement No. RFCR-CT-2010-00003
TABLE OF CONTENTS
1. Introduction
2. UCG Regulations Worldwide
2.1.
3. European Regulations
3.1.
3.2.
3.3.
3.4.
3.5.
3.6.
Mining regulations
Ground Water Requirements
Air Emissions
Interpretation of EU Directives on CCS
Public Perception issues in Bulgaria to CCS
6. Conclusions
7. References
LIST OF FIGURES
Figure 1: UCG Activity Worldwide (courtesy of UCG Association)
Figure 2: Scheme of the EIA procedure for investment proposals
INTRODUCTION
Carbon capture and storage (CCS) is a crucial part of worldwide efforts to limit global
warming by reducing greenhouse-gas emissions. The broad deployment of low-carbon energy
technologies could reduce projected 2050 emissions to half 2005 levels and that CCS could
contribute about one-fifth of those reductions. Reaching that goal, however, would require
around 100 CCS projects to be implemented by 2020 and over 3000 by 2050. CCS
regulations need to manage the risks and liabilities of CCS, distinguishing between risks that
should be assumed by the operator, those that can be mitigated through regulation, and those
that can be transferred. However, risk and liability are not the only drivers for CCS
regulations. Issues related to competition, climate regime commitments, tax policy, financial
responsibility, property rights and international treaties will also shape the CCS regulatory
framework.
The UCG and CO2 Storage project is of significant interest as an effective and longterm solution to Bulgarian energy demands in compliance with the environmental
requirements that may apply during the implementation of such technologies. The proposed
UCG method has significant environmental and technological advantages over traditional coal
mining. In fact, the traditional extraction of coals is inapplicable in deeply buried coal seams,
and even in shallow layers mining can create unavoidable disorders of the landscape,
substantial amounts of overburden, host rocks and accumulation of other solid wastes. There
are also preconditions to protect the hydrogeological regime, surface and drainage
wastewaters generation, emission of greenhouse gases, sulfur and nitrogen oxides and other
negative environmental effects.
The combination of underground coal gasification with carbon dioxide capture and
storage is one of the most innovative methods to reduce greenhouse gas emissions. Certainly
for the realization of such a technology it is therefore necessary to evaluate the particular
environmental risk in each case.
In the case of Dobrudja coal deposit, one cannot talk at this stage about specific
environmental risk because the project objectives do not set tasks to implement a particular
technology, but rather to make an assessment of deposits of coals appropriate for gasification
by this method and to establish the most suitable areas for its application.
The main environmental risks of this technology are quite specific and they are related
to varying environmental conditions in the gasification area - high temperature and pressure,
forming a high temperature gradient and the zone of stress before and after the impact. These
risks can be defined for the unique geological and hydrogeological conditions of each field.
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
In general the risks of pollution are well known in world practice and consist of
pollution of the groundwater in the upper aquifers, the risk of uncontrolled migration of the
obtained Syngas, as well as the stored CO2 in aquifers and/or atmosphere, risk of provoking
seismic activity and more. These environmental risks are described in detail in WP6 of the
project, there is a reference to the data for hydrogeological and geological characteristics of
the deposit in WP4.
Specifically, the data indicate location of coal seams at depths at about 1,200 m in areas
with relatively low permeability and poor filtration properties and significant coal seams
diffusion in the deposit. The width of the carbonate layer over the coal layers range from
several tens to several hundreds of meters below the aquifer, which is also characterized by
significant width. In WP4, data is presented on the chemical composition of coal, their
calorific value, sulfur content, moisture content etc., also within certain limits. The variation
of all these parameters is contained in a 3D model of the field developed under WP3. Based
on this model it is possible to do simulation studies concerning the implementation and future
technological developments and major parameters related to the possible environmental
impact.
It is clear from the data that it is possible to realize the technology at an appropriate site
within the area, by implementation of the best available European and international practices
and observing all environmental requirements listed in European and national legislation,
reflected in the EIA report and the IPPC permit.
The issue of environmental legislation concerning the UCG-CCS technology can be
related to a series of regulations including - Water Framework Directive (2000/60/EC), the
Groundwater Directive (2006/118/EC) and the Directive on mining waste management
(2006/21/EC) and Directive 2008/50/EC relating to air quality, and Directives 85/337/EEC
and 97/11/EC for EIA procedures.
In addition, the Directive - 2009/31/EC concerning the storage of carbon dioxide in
geological formations as well as the European Commission Decision of 02.10.2011 of
introduction of a questionnaire for the initial report on implementation of Directive
2009/31/EC are applicable.
UCG is under consideration or active development in most coal producing countries (cf.
Figure 1) but very few have firm UCG regulations or guidance in place. Jurisdictions have
tended to consider any application for a UCG project in isolation, and are adapting existing
legislation to the new process. Project developers have found that the uncertainties of the
permitting process are a major cause of financial risk and investor decision for UCG project.
The regulatory process, as discussed in the sections for Europe (Chapter 3: European
Regulations), is a multi-layered process involving mineral rights, environmental control, the
regulation of industrial plant and processes, and rules for the control of energy production and
utilisation. Often, the lead is given to one Government Department, typically mining, which
then obtains approval with the other regulatory parties.
2.1.
Mining Law has generally been the basis for the licensing process, although some have
considered using the petroleum licensing option currently applied to coal bed methane and
natural gas production. Authorities are divided on whether to issue specific licenses for UCG
or rely on the existing mining license, suitably adapted. For countries, where UCG projects
are just at the feasibility stage, often no decision has been taken, but those with more
advanced UCG developments, like Australia and Canada, licensing for pilot and
demonstrations studies has been given with certain restrictions.
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
The royalty issue for UCG has not been actively addressed to date, but where it has been
considered, the basis has generally been the energy content of the gas produced, which is then
equated to an equivalent tonnage of coal exploited.
Environmental Approval normally follows the local requirements for the approval of ground
water, air quality emissions, and those generally applied to surface plant e.g. noise, visual
impact, night working, lighting, and site restoration.
Public perception and public consultation vary from country to country, and is traditionally be
associated with the local, regional or national planning laws. Most countries require
consultation, local impact studies, and many will require approval by the communities.
United States
The United States associates mineral rights with the land owner, and generally requires no
separate licensing process to use the coal for UCG. The underground process, however, is
subject to the legislation of the Environmental Protection Agency (EPA) which has published
(EPA 1999) requirements for UCG wells. These prohibit injection of contaminants and call
for assessments of the likely effect of UCG on drinking water. States like Wyoming require
one years base monitoring of the proposed UCG site, as a condition of approval. The
regulatory process also distinguishes between pilot and commercial operation, and will
generally require a pilot test first. Other conditions include mine and reinstatement plans,
water well and storm permits, and an assessment of subsidence.
India
India has identified specific blocks for UCG, determined by the relevant Government and
State bodies. These blocks are subject to a bidding process, where operators are assessed for
their technical and financial competence, and a royalty payment is required. Furthermore,
each stage of the project, like exploration, pilot and expansion to commercial operation is
monitored and approved separately. At the time of writing, only one test project, in Gujarat
has advanced to the pilot stage.
Australia
All UCG field activity to date has been in the State of Queensland, although feasibility studies
in other areas have been considered. The Department of Environment and Resource
Management (DERM) in Queensland has restricted the piloting of UCG to three UCG
demonstration sites, one of which, Cougar, has been closed down on environmental grounds.
A government panel is now assessing the environmental results of the other two sites, namely
Chinchilla, and Bloodwood Creek, with a view to approving commercial operations, with
appropriate conditions, in the future. The process has repeatedly been delayed due partly to
the competing claims for resources between the coal seam gas industry and UCG interests.
Canada
UCG, or ISCG as it is known in Canada, has largely focused on the Province of Alberta,
where all the current trials and commercial development has so far taken place. The process is
controlled by the Energy Resources Conservation Board (ERCB) which regulates the safe,
responsible, and efficient development of Albertas oil, natural gas, coal and oil sands
resources.
Alberta Energy manages the commercial development of all non-renewable resources, grants
rights to explore and develop energy resources, and monitors royalty systems. Currently, insitu coal schemes are required to have coal, petroleum and natural gas rights for the targeted
coal seams, although this is being reviewed.
The ERCB recently changed the Coal Conservation Act, the Oil and Gas Conservation Act,
and the Pipeline Act, to include provisions for experimental or commercial ISCG and their
measurement and reporting requirements.
Safety approval of ISCG in Alberta is a three step process for:
There are rigorous surveillance and enforcement procedures to ensure compliance with
regulations by teams of inspectors, including professional engineering and environmental
staff, monthly production reporting and quarterly and annual reports, presentations, and
meetings.
China
The approval process in China is not clearly stated, but those overseas companies who have
attempted Chinese UCG projects, have found legal ownership of the relevant coal license,
which must be a Chinese entity, sometimes difficult to establish. Project approval is given
subject to an extensive technical review by a central committee, and thereafter, all activities
are closely monitored. In the past, UCG was only permitted for coal of a certain depth,
typically >1,000m, but this may vary between Provinces.
New Zealand
New Zealand Petroleum and Minerals is the agency within the Ministry of Economic
Development that regulates allocation of rights to petroleum, mineral and coal resources. It is
complicated however, by complex patterns of coal ownership, and the State only regulates the
use of coal it owns. Land access rights need a separate agreement.
There is no specific regulatory regime for UCG in New Zealand but UCG can be carried out
in existing mining licences (Coal Mines Act 1979) under a variation to existing conditions,
which is currently being reviewed. Coal seam gas (CSG/CBM) is managed under the
petroleum regulations, and any conflicts arising between CSG and UCG are expected to be
resolved on a case by case basis.
Environmental regulation is managed under the Resource Management Act 1991. Local
government authorities require a district plan and they issue consents for all environmental
effects on land, air and water including potential environmental impacts of UCG. The act is
also the vehicle for public participation in the consenting process.
Conclusions
Countries outside the European Union with established UCG programmes are well advanced
in the development of UCG regulatory regimes. They have generally used the mining laws for
licensing of the resource, and existing Regulation to cover the environmental impact
assessment and approval.
Currently Alberta, Canada has been the most proactive and transparent in UCG regulation,
with a well established approval and compliance programme. Two pilot projects have been
approved under the process.
Queensland has approved pilot and demonstration projects under its licensing and
environmental legislation, and is currently assessing its requirements for commercial UCG
operation in Queensland.
Wyoming leads the United States in UCG project approval, and other States tend to follow
and use their approval procedures.
India, China, and South Africa are active at the pilot and demonstration stage and are using
the knowledge gained to evolve their approval procedures.
No country, inside or outside the European Union, has yet approved a fully commercial UCG
project and further development of the legislation can be expected as experience from the
UCG demonstration scheme is made available.
3. EUROPEAN REGULATIONS
In summary, the CCS Directive is concerned with the safety of storing CO2
underground, and ensuring that the risk of leaks are minimal and fully understood.
Directive 2009/31/EC lays down requirements for the lifetime of a CO2 storage site. It
covers measures for dealing with potential CO2 leakage, the need for storage site permits, and
the responsibility for storage sites once they are closed. Operators of CO2 storage will need to
apply to the competent Authorities in the Member State for the exploration permit, the storage
permit, and the application for closure and transfer to the Competent Authority (CA).
The storage permit requires:
Proof of technical competence,
Characterisation of the storage site and storage complex
Specifications related to CO2 streams (total quantity to be injected and stored,
composition, injection rates and pressures),
Description of preventive measures to prevent significant irregularities,
Monitoring plan for the storage complex and the injection facilities,
Corrective measures plan for leakages or significant irregularities,
Provisional post closure plan,
Proof of financial security.
The cycle of injection under the CCS Directive consists of 5 phases, each with its own
programme and milestone. The milestones by the CA are Exploration permit, storage permit,
operations, closure and transfer of responsibilities to CA. The whole process may take 50-70
years.
Coal is specifically identified as a permanent storage medium for CO2. The others are
EOR, hydrocarbon reservoirs and saline aquifers.
And at a high level, storage opportunities will need to satisfy three principle
requirements:
Capacity sufficient storage volume is available, or can be engineered.
Integrity confidence that the site is secure with no significant risk of leakage.
Injectivity suitable reservoir properties exist allowing sustained injection at
industrial supply rates into the geological formations.
It is necessary to prove sites in a practical and technical sense, and not in theory.
Depending on the particular site, it could require seismic and well-drilling activities designed
specifically for CO2 storage site evaluation, including, potentially:
Acquisition and processing and interpretation of 2D or 3D seismic data;
Drilling wells to acquire core, log and cutting samples to evaluate and characterise
reservoir and seal sequences, supported by laboratory analysis;
Injection tests with CO2 or water and testing pressure regimes in the subsurface.
It is vital to show how CO2 will be trapped at a site. A prospectivity assessment can also
identify if a basin is likely to trap CO2 through either conventional structural or stratigraphic
traps, or through migration assisted storage mechanisms.
3.1.
In the last few years, amendments to allow CO2 injection and transboundary
transportation of CO2 have been made to two major marine treaties, known as the London
Protocol and the OSPAR Convention.
The London Convention, "Convention on the Prevention of Marine Pollution by
Dumping of Wastes and Other Matter 1972", protects the marine environment from human
activities. Its objective is to promote the effective control of all sources of marine pollution
and to take all practicable steps to prevent pollution of the sea by dumping of wastes and other
matter. It was amended in 2007 to allow CO2 storage under the seabed. Eighty-five States
have signed the Convention.
The OSPAR Convention is the current legal instrument guiding international
cooperation on the protection of the marine environment of the North East Atlantic. The work
is managed by the OSPAR Commission, made up of representatives of the Governments of 15
nations and the European Commission. It is a mechanism by which fifteen Governments of
Europe cooperate to protect the marine environment of the North East Atlantic. The objective
is to conserve marine ecosystems and safeguard human health in the North East Atlantic by
preventing and eliminating pollution; by protecting the marine environment from the adverse
effects of human activities; and by contributing to sustainable use of the seas.
Initially, OSPAR and The London Convention did not allow CO2 storage, but these
regulations were amended in 2007 to permit CO2 storage under the seabed.
3.2.
offshore. Member States retain the right not to allow storage in their territories, in whole or in
part, although those that choose to permit storage must carry out an assessment of their
region's potential CO2 storage capacity. Another aim of the Directive is the safe storage of
CO2, meaning the permanent containment of CO2 to prevent and eliminate the possible
negative effects on environment and human health.
While the Directive focuses primarily on the storage aspect of CCS, it does briefly
address the capture and transport elements. Importantly, CCS is removed from the scope of
EU waste and water laws to provide certainty as to the legality of CCS activities. Through
amendments to the EU's Emission Trading Scheme (ETS), however, efforts have been made
to incentivise investment in CCS.
The capture process of CCS will primarily be regulated through incorporation within the
EU's Integrated Pollution Prevention and Control (IPPC) Directive. The CCS Directive also
lays down, through an amendment to the Large Combustion Plant (LCP) Directive, a 'Carbon
Capture Readiness' (CCR) requirement.
Transport of CO2 from capture facilities to storage sites is most likely to be through
pipeline networks. The Directive addresses the transport aspect of CCS with few provisions,
relying principally on national pipeline regulations, and property and planning laws, together
with existing European legislation. Transport of CO2 via pipeline will be subject to an EIA, as
above with regard to capture facilities. While the Directive does not require a permit for
pipeline transport of CO2, any assessment carried out pursuant to the EIA Directive will need
to be taken into account in the respective consenting procedures within the Member States.
Member States must ensure that potential users can obtain fair and open access to
transport and storage facilities, on the basis of transparent and non-discriminatory criteria. In
doing this, they can take into account certain factors, such as the storage and transport
capacities that can reasonably be made available, the proportion of the Member State's CO2
reduction obligations that it intends to achieve through CCS, the need to refuse access on
grounds of technical incompatibility which cannot reasonably be overcome, and the need to
respect the reasonable needs of storage and transport owners and operators, and of all other
uses of the network.
Member States are obliged to implement dispute settlement arrangements for third party
access and the Directive lays down briefly conditions for cross-border disputes. More
generally, in cases involving transboundary transport or storage of CO2, the competent
authorities of the relevant Member States must act jointly to meet the requirements of the
Directive.
The European Commission enjoys enforcement powers through infringement
procedures against Member States failing to comply with their obligation to implement EU
law. The Commission has discretion as to when, and whether to start the procedure, but the
flexibility of negotiation is normally preferred over the burden of a formal infringement
procedure. However, when no national legislation is received by the deadline required, the
standard procedure is for the Commission to automatically initiate the first stage of
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
infringements proceedings the sending of a formal letter to the Member State. Often the
procedure needs go no further since this alone puts sufficient pressure on the Member State
concerned. This has indeed been the case with the CCS directive. As of July 2011, the
Commission had already initiated 25 infringement procedures for failure to communicate
national transposition measures. Only Spain was considered to have fully transposed and
Romania required a more careful assessment (and eventually was added to the list). Some
cases have been already closed (Denmark, the Netherlands, Italy, France, Lithuania, Malta
and Slovenia), but more cases are still open and under assessment, which is less encouraging.
Bulgaria has successfully transposed the requirements of the Directive 2009/31/EC to the end
of 2011.
3.3.
The EC Directive on CCS 2009/31/EC requires that injection and storage of CO2 may
only take place in sites that are suitable, meaning that storage in a site must not pose any risk
of leakage or damage to the environment and human health. This is determined through a
detailed process of 'site characterisation' outlined in Annex I, where data is gathered in order
to create a computerised three-dimensional model of the storage area, which is then used to
predict and model the way in which CO2 will behave in the formation. A distinction is drawn
between the storage site (a defined space within a geological formation into which CO2 is to
be injected, together with its associated surface and injection facilities) and the storage
complex (the storage site and the surrounding geological features which can affect storage
integrity). Site characterisation will involve a consideration of the entire complex, and the
Directive recognises that more invasive activities (such as drilling into the subsurface) may be
necessary to obtain sufficient information. As such, this process of exploration will be
allowed, but it must not be carried out without an exploration permit. Member States must
ensure that these permits are open to all those with the necessary expertise, and are granted on
the basis of objective, published and non-discriminatory criteria.
Once site characterisation, perhaps accompanied by exploration, has demonstrated the
site's suitability, then a potential operator may apply for a storage permit. Holders of
exploration permits are afforded priority in applying for a storage permit in order to provide
the necessary commercial incentives. As with exploration, Member States are to ensure that
no storage site is operated without a permit. The Directive provides minimum criteria for the
contents of a permit application, and for the conditions and contents of any permits eventually
granted. Importantly, the Directive requires all storage sites to be assessed in accordance with
the EIA Directive. The results of this will need to be submitted as part of the permit
application.
Operators must be able to demonstrate that they are technically competent and reliable
to operate storage sites, including that necessary technical training and development of staff
has been provided. Additionally, operators are required to show that they are financially
sound and provide financial security to cover the costs relating to the operation and postclosure periods of the storage site until responsibility is transferred. This financial security can
be drawn upon by the competent authority should the operator default on its obligations under
the Directive. Proof that this can be established must be submitted with the permit application.
It must be valid and effective before injection commences and must be maintained thereafter.
A major part of the risk management scheme adopted under the Directive is the process
of developing a series of plans concerning the operation and closure of the site. In these plans,
operators are to outline the proposed method of monitoring the site, details of the corrective
measures to be taken in the case of CO2 leakage, risk of leakage or risk to health or the
environment, and the proposed course of action for the post-closure period. Approved
versions of these plans form part of the final granted permit. The monitoring plan is to be
designed in accordance with Annex II to the Directive, which in turn is linked to the site
characterisation methodology provided for in Annex I.
Storage permits are also to include details relating to the CO2 that is to be injected. This
includes the total quantity to be stored, its sources and transport methods, and the composition
of CO2 streams to be injected. The term 'CO2 streams' recognises the fact that there may be
incidental substances from the capture process and that substances may need to be injected
into the formation for the purposes of monitoring. The Directive will therefore allow such
substances to be injected, provided their concentration poses no risk to transport infrastructure
and the storage site or to the environment and human health. Nonetheless, a stream is to
consist 'overwhelmingly' of CO2, and must not contain waste or other matter which is added
for the purpose of disposal. Operators are required to carry out a risk assessment in respect of
the stream composition and maintain a register of the quantity, properties and composition of
streams injected.
Competent authorities are to submit each draft storage permit to the Commission, who
may give a non-binding opinion on it. The competent authority may depart from the opinion,
but must give reasons for its decision. This is to ensure consistency in the granting of storage
permits across the EU, as well as to promote public confidence in the storage permit regime.
Importantly, storage permits are 'living' documents, subject to mandatory periodic review
during the operational phase, and may be changed, updated or withdrawn in response both to
technological developments and to matters giving rise to concern about the operation of the
site and its integrity.
Once a storage permit has been granted, the operator may begin injection of CO2 into
the storage site. This period of operation is characterised by a regime of monitoring, reporting
and inspection. These are the key methods by which problems with the storage site, namely,
significant irregularities or leakage, are to be identified and addressed.
As above, monitoring is carried out in accordance with the approved monitoring plan.
The Directive sets out the purposes of this monitoring: in essence, to detect any problems
affecting the storage integrity of the site and potential impacts on the surrounding
environment, including drinking water, human populations and users of the surrounding
biosphere. Operators are obliged to submit reports at least annually, based on the monitoring
of the storage site, as well as details relating to CO2 stream acceptance, proof of continued
financial security and any other matters that the competent authority considers relevant.
Importantly, competent authorities must design a system of routine and non-routine
inspections for all storage complexes within the scope of the Directive. Routine inspections
must be carried out at least annually. The Directive provides a list of events/situations which
trigger a duty on the competent authority to carry out a non-routine inspection. A competent
authority must carry out an inspection of the site if, for example, it has been notified or made
aware of leakages or significant irregularities, and must investigate serious complaints related
to the environment or human health. Following every inspection, the competent authority is to
prepare a report on its findings, evaluating the operator's permit compliance and indicating
whether further action is necessary. This is to be made publicly available within two months
of the inspection.
Member States are also to lay down rules for, and implement, penalties for
infringements of national provisions adopted under the Directive. Those penalties must be
'effective, proportionate and dissuasive'.
3.4.
Water Directives
The marine scope of the WFD is 12 nautical miles from the coast for surface
waters only; hence it would not apply to sub-sea aquifers beyond that distance,
such as those proposed for CO2 storage in the North Sea.
In the European Union, both member states and the European Commission are involved
in regulating CCS, with countries required to put in place measures that reflect EU-level
directives and regulations. In the case of CCS, this primarily means meeting the CCS
Directive, but the EU Emission Trading System (EU ETS) Directive also applies. The CCS
Directive had to be transposed into Member state law by June 2011. This process allowd
each country to develop a CCS framework that takes into account its particular circumstances,
while ensuring that all member states share some core framework elements. When developing
a CCS legal and regulatory framework, it may be most easily regulated by modifying
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
frameworks that are already in effect - jurisdictions of oil and gas production, which is similar
to some components of CCS.
The European Union, which has amended the EU Emission Trading System Directive to
fully include CCS from 2012, has also allocated the revenue from the sale of 300 million EU
ETS allowances to support CCS and novel renewable technologies - 12 CCS and innovative
renewable energy demonstration projects to start operating by the end of 2015, in the power
and industrial sectors. In the EU the emissions trading scheme (EU ETS) puts a price on CO2
emissions, but at the moment the price of buying an emission allowance is cheaper than the
cost of building a coal or gas power plant with CCS. The EU will reduce the number of
emission allowances gradually in the years to come, and that will increase the price of
emission allowances. Eventually, the cost of emitting CO2 will be higher than the cost of
CCS, and when that happens, industry will start to build CCS projects.
Additional regulations might be required. When the EU endorsed the energy package in
2008, the possibility of including an Emission Performance Standard (EPS) that sets a ceiling
on CO2 emissions from power production was discussed. A suggestion was made to include
an EPS of 350 grams CO2 per kWh, which would have banned coal power plants without
CCS. However, the suggestion to include EPS in the EU energy package failed and a new
proposal of 450 g/KWH has been proposed, which would allow natural gas but require all
new coal plant to be equipped with CCS.
Liability for localised environmental damage under the Environmental liability
Directive is complemented by financial liability under the EU ETS for 'climate damage'.
Operators will be required to surrender purchased EU emissions allowances in respect of any
leaked CO2. It has been noted that the requirement to purchase allowances is not a penalty in
itself, and there is the potential for perverse incentives should the price of carbon allowances
fall below a level which would address any financial gain of non-compliance.
Civil liability for harm to individual human health such as personal injury (as opposed to
the duty to take measures to protect human health), together with private rights relating for
example to property damage, will also fall to be addressed outside the CCS Directive, though
in this case under existing national laws.
Member States are also to lay down rules for, and implement, penalties for
infringements of national provisions adopted under the Directive. Those penalties must be
'effective, proportionate and dissuasive'.
The IPPC Directive 2008/1/EC of the European Parliament and of the Council of
15 January 2008 concerning integrated pollution prevention and control, which sets out the
main principles for the permitting and control of installations based on an integrated approach
and the application of best available techniques (BAT) which are the most effective
techniques to achieve a high level of environmental protection, taking into account the costs
and benefits. In essence, the IPPC Directive is about minimising pollution from various
industrial sources throughout the European Union. Operators of industrial installations
covered by Annex I of the IPPC Directive are required to obtain an environmental permit
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
from the authorities in the EU countries. The IPPC Directive is suitable for regulating the
risks of CO2 capture to the environment and human health and, as a result, should be applied
to the capture of CO2 streams for the purposes of geological storage from installations
covered by that Directive. Combustion installations, except small ones, are covered by the
IPPC Directive. IPPC imposes a permitting regime on a range of specified industrial
activities, controlling the release of contaminants into air, water and land. As such, all
operators of capture installations will be required to obtain a IPPC permit, which will demand
the use of 'best available techniques' (BAT) for CO2 capture, impose clean-up requirements in
cases of unauthorised release and site closure, and involve important rights to public
participation. Operators will also be required to carry out an assessment of the likely
significant effects on the environment of any capture facilities in accordance with the
provisions of the Environmental Impact Assessment (EIA) Directive. Importantly, public
consultation will be required, and the assessment carried out must be taken into account when
permitting the facility under IPPC.
The Environmental Impact Assessment Directive (EIA Directive 85/337 EEC as
amended by 97/11/EC and 2003/35/EC) introduced a Europe-wide procedure to ensure that
environmental consequences of projects are identified and assessed before authorisation is
given. The public can give its opinion and all results are taken into account in the
authorisation procedure of the project. The public is informed of the decision afterwards. It
has become an integral and vital part of the planning of development projects, and requires
the submission of an EIA with the application for development consent. This Directive
applies to the assessment of the environmental effects of public and private projects which are
likely to have significant effects on the environment. It affects the execution of "construction
works, other installations or schemes and for the interventions in the natural surroundings and
landscape including the extraction of mineral resources". Council Directive 85/337/EEC of 27
June 1985 on the assessment of the effects of certain public and private projects on the
environment should be applied to the capture and transport of CO2 streams for the purposes
of geological storage. It should also apply to storage sites pursuant to this Directive.This
Directive should apply to the geological storage of CO2 within the territory of the Member
States, in their exclusive economic zones and on their continental shelves. The Directive
should not apply to projects with a total intended storage below 100 kilotonnes, undertaken
for research, development or testing of new products and processes. This threshold would
also seem appropriate for the purposes of other relevant Community legislation. The storage
of CO2 in storage complexes extending beyond the territorial scope of this Directive and the
storage of CO2 in the water column should not be permitted.
Member States should retain the right to determine the areas within their territory from
which storage sites may be selected. This includes the right of Member States not to allow any
storage in parts or on the whole of their territory, or to give priority to any other use of the
underground, such as exploration, production and storage of hydrocarbons or geothermal use
of aquifers.
Council Directive 99/31/EC of 1999 on the landfill of waste entered into force on
16.07.1999. The objective of the Directive is to prevent or reduce as far as possible negative
effects on the environment from the landfilling of waste, by introducing stringent technical
requirements for waste and landfills. The Directive is intended to prevent or reduce the
adverse effects of the landfill of waste on the environment, in particular on surface water,
groundwater, soil, air and human health. It defines the different categories of waste
(municipal waste, hazardous waste, non-hazardous waste and inert waste) and applies to all
landfills, defined as waste disposal sites for the deposit of waste onto or into land.
The Landfill Directive's definition of waste reflects that of the Waste Framework
Directive (Directive 2006/12/EC) and thus depends upon whether captured CO2 is to be
considered waste for the purposes of that Directive.
The Landfill Directive contains other definitions, which may prove to be relevant to the
storage of captured CO2. The term underground storage is defined in the Directive as a
permanent waste storage facility in a deep geological cavity such as a salt or potassium mine,
Liquid waste is defined as any waste in liquid form including waste waters but excluding
sludge, the definition of inert waste may also be of significance for CO2 that is to be
stored; waste that does not go undergo any significant physical, chemical or biological
transformations. Inert waste will not dissolve, burn or otherwise chemically react,
biodegrade or adversely affect other matter with which it comes into contact in a way likely to
give rise to environmental pollution, or harm human health. The total leachability and
pollutant content of the waste and the ecotoxicity of the leachate must be insignificant, and in
particular not endanger the quality of surface water and/or groundwater'.
Member States may declare, without prejudice to the Waste Framework Directive, that
underground storage may be exempted from certain requirements of the Directive. These
provisions include, amongst others, closure and aftercare procedures, certain water control,
leachate management and meteorological monitoring requirements.
The key issue to consider, with regard to CCS, is whether this activity constitutes
landfill for the purposes of the Directive. A paper prepared for the European Commission by a
consortium of environmental experts in February 2007, highlighted the necessity of clarifying
this issue. The report highlighted the list of waste disposal activities provided in Annex IIA of
the Waste Framework Directive, which would seemingly apply to CCS activities: D1 Deposit
into or on to land (e.g. landfill, etc); D3 Deep injection (e.g. injection of pumpable discards
into wells, salt domes or naturally occurring repositories); D7 Release into seas/oceans
including seabed insertion.
CO2 is not classified as a dangerous substance under the Seveso II Directive 96/82/EC
on the major-accident hazards, and CCS sites are not covered by the directives requirements.
The inclusions of CO2 would impede the development of CCS as a greenhouse gas mitigation
measure. This decision assumes that the CCS Directive imposes very strict safety
requirements for the operators of CCS sites. The Seveso III Proposal still excludes carbon
dioxide from its scope. There could be a major accident hazard potential if CO2 is used in
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
large quantities, in particular from the transport and storage of large quantities of CO2 or use
in industrial-scale fire extinguishing plants. CO2 is a colourless and odourless gas which is
heavier than the breathing air. It can cause asphyxiation and could therefore cause serious
damage to human health and the environment. Nevertheless the Commission has not included
storage (under- or aboveground) of large amounts of CO2 within the scope, arguing that CO2
is not classified as a dangerous substance as such, and more importantly that CCS schemes
are only at an early stage, it is premature to judge on whether a major accident hazard would
emerge should the technology be widely used in the future, and that further development of
the technology will help to better understand potential risks. The CCS Directive does not
deal with safety related aspects, several important and necessary elements such as the taking
into consideration of CCS-installations during the land use planning, development of a major
accident prevention policy, the drafting of safety reports and emergency plans are missing.
The major reason to include or to exclude a certain installation within the scope should be the
major accident potential constituted by the substances stored or treated in that establishment.
Carbon Dioxide becomes in effect a dangerous substance if liberated in large amounts.
EUs Roadmap 2050 for moving to a competitive low carbo economy in 2050,
COM(2011) 112 fin. refers to the separation of CO2 from other components, liquefying it and
storing it in secure locations (primarily geological formations). It can in theory be applied to
any plant involving the combustion of carbon-based fuels, but the roadmap applies only to
coal and CCGT plants. The baseline assumes no signifcant CCS deployment. For the
decarbonized pathways, CCS is assumed to be progressively available from 2020 onwards,
both for coal and for CCGT plants. All fossil fuel plants built after 2020 are assumed to be
equipped with CCS. Coal plants built in the period 2011-2020 are assumed to be retroftted
with CCS in the 2020-2030 decade. Adding CCS to power plants will reduce CO2 emissions
by 90% and reduce effciency by 20%. CCS may reduce plant operational fexibility but is not
assumed to do so here. The quantity and suitability of storage options is not assessed as part
of this project, and indeed these are important questions for the ultimate potential for CCS
deployment; existing studies have identifed ample amounts of promising geological storage
opportunities, sufficient in theory to accommodate the envisioned quantity of production in
any of the pathways studied, but how much liquefed CO2 can actually be injected and retained
in various formations remains unclear. Priority will be given to storage requirements for
heavy industry (since there are few if any alternative abatement options), which may in
practice restrict the amount of CCS that can be sustained for power generation, particularly in
the 40% RES pathway where fossil with CCS is expected to supply 30% of EU power
demand.
3.6.
The European Commission has launched the "NER 300", the world's largest
demonstration programme for low-carbon technologies, which will act as a catalyst for the
demonstration of new low carbon technologies on a commercial scale. Decisions will be made
at the end of 2012. NER 300 enables the safe capture and storage of CO2. It will be funded
from the sale of 300 million emission allowances held in the New Entrants Reserve (NER) of
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
the EU Emissions Trading System (ETS) - aims to encourage private sector investors and EU
Member States to invest in commercial low-carbon demonstration projects. It focuses on
environmentally safe capture and geological storage of CO2 (CCS) and innovative renewable
energy technologies. NER 300 will establish an EU-wide demonstration programme
comprising the best possible projects using a wide range of technologies and involving all
Member States.
CCS projects must meet the following specific constraints:
1. Each CCS project has to implement the full chain (capture, transport and storage);
2. Each project must implement heat integration for the capture component of the
process;
a. For power generation applications as set out in Annex 2, the Project
Sponsor must demonstrate that it has aimed to maximize heat integration
between the Power Plant and the capture facility, taking into
consideration operational and economic constraints. There is no
minimum integration threshold;
b. For industrial applications of CCS as set out in Annex 2, and including
CCS on refineries, cement kilns, primary production routes in iron and
steel or aluminium production, the Project Sponsor must demonstrate that
heat integration between the CO2 source and the capture facilities has
been considered and justify the approach taken. There is no minimum
integration threshold.
3. The capture rate has to be at least 85% of CO2 from the flue gases to which capture
is applied. The 85% is to apply at normal operating conditions;
4. Each CCS Project has to contain an independent research block related to safety of
storage sites and improvement of monitoring technologies, especially in the field of
brine migration, its possible pathways and impacts.
The Decision identifies potential beneficiaries in the refining sector as 'industrial
applications implementing CCS on refineries with 500kt/y stored CO2 from one or more
sources within the refinery'. In line with the rationale of Recital 23 of the EU ETS Directive,
which states that distortion of competition should be avoided between industrial activities
carried out in installations operated by a single operator and production in out sourced
installations, this provision should be interpreted so as not to discriminate between CO2
captured from hydrogen production within the perimeter of the refinery, and CO 2 captured
from the production of hydrogen supplied to the refinery from an out sourced installation.
Thus for the refining sector, for any product in the process which can be produced either onsite or by outsourcing, 'stored CO2 from one or more sources within the refinery' should be
interpreted to include also CO2 captured from the production of an imported product stream.
Where a Member State is not in a position to submit proposals for Projects falling under
any of the Sub-categories specified in A.II. which meet the relevant Capacity Thresholds,
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for CCS for UCG-CCS opportunities
(Deliverable 7.2)
proposals for Projects below the relevant thresholds may be submitted by the Member State
and will be considered potentially eligible for an Award Decision pursuant to Article 6 (2) of
the Decision, provided that the derogation from thresholds is supported by a well-founded,
credible justification given by the Member State.
In order to be eligible for the First Round of Funding, Project Sponsors must
demonstrate in the Application Forms a reasonable expectation of entry into operation by 31
December 2015 on the basis of the adoption of the respective Award Decision by 31
December 2011. Delays are likely, in view of the revised date for awards, but means in effect
that a reasonable expectation of entry into operation within four years of the adoption of the
respective Award Decision has to be demonstrated.
Projects must be located in the territories of the Member States, their exclusive
economic zones and their continental shelves. The Decision requires that all relevant national
Permits for the project must be in place and in line with relevant requirements under EU
legislation, or the relevant Permit procedures underway and sufficiently advanced to ensure
start up of the commercial operation could take place by 31 December 2015 on the basis of
the adoption of the respective Award Decision by 31 December 2011.
In respect of Permits relating to the geological storage site for a CCS project in
accordance with Directive 2009/31/EC, in cases where exploration of the site is required
pursuant to Article 5 of the Directive, it will be considered sufficient if the exploration permit
procedure is underway, given that the permit procedure for the storage permit is temporally
dependent on the permit procedure for the exploration permit.
The specification in the previous paragraph is without prejudice to the Eligibility
Criterion in Annex I.B.I of the Decision that Permits shall be sufficiently advanced to ensure
that start-up of commercial operation could take place by 31 December 2015 for the First
Round on the basis of the adoption of the respective Award Decision by 31 December 2011;
or to the condition on Award Decisions in Article 9 of the Decision that all Permits, including
the Storage Permit, must be in place within 24 months of the Award Decision, or 36 months
for saline aquifer storage.
regulatory acts. Regarding the legislative texts relating to the deep underground coal
gasification and permanent storage of CO2 in geological formations ("UCG and CO2
Storage") it may be said that legal regulations concerning that issue are not sufficiently
developed because this technology is relatively new to national and global scale. For CCS
Storage, the requirements of the Directive 2009/31/EC have been successfully transposed into
Bulgarian environmental legislation in the middle of 2011. On the other hand the problem of
deep underground coal gasification has not been really considered until now in any legal
reference in the Bulgarian environmental legislation.
4.1.
Mining regulations
components of the environment, safety and human health. In connection with the project
"UCG and CO2 Storage" and under these regulations it is necessary to classify the waste.
Mining wastes that may be generated in the course of practical realization of the project are
typical wastes occurring in classical drilling operations.
Another important legal reference is the Protected Areas Act, SG 133/1998, last
amended of October 9, 2009. This Act regulates categories of protected areas, their purpose
and mode of preservation and use, notification and management, and also prohibiting and
permitting regimes in protected areas for any mining work including drilling operations.
4.2.
4.3.
Air Emissions
provisions are implemented by the Bulgarian EPA. The coordinating authority for the
implementation of the Directive in Bulgaria is the Bulgarian Competent Authority MOEW.
Under the requirements of the EPA, all plants performing an activity that falls within the
scope of the ETS Directive 2003/87/EC (eg, energy activities, metal processing, mineral
industry operations, cellulose and paper production) must obtain a permit for greenhouse gas
emissions issued by the MOEW.
As a rule, no plants (installations) may undertake any of the above-mentioned activities
without holding a permit. The permit includes a detailed description of the plant, the
methodology and frequency of monitoring requirements relating to the reporting of emissions
and the obligation to return (surrender) the allowances. The issued permit is for an indefinite
term and contains requirements for monitoring the emissions and preparing an annual report
on the emissions.
All operators of installations that have received a permit are required to provide to the
responsible authority a monitoring plan and annual monitoring report on emissions released
from the installation during the preceding year. The annual report must be prepared pursuant
to certain directions and formats and is subject to verification. Furthermore, each operator has
the obligation until 30 April of each year to surrender to the competent authority (by
presenting a verification report) a specific number of allowances equal to the total amount of
the emissions released from the installation during the preceding calendar year. Any operator
who fails to return the required quantity of allowances by 30 April of each year to cover its
emissions during the preceding year shall pay a pecuniary penalty of exceeded emissions of
100 for each tonne of CO2 equivalent that has not been surrendered. The payment of the
sanction does not release the operator from the obligation to surrender the missing quantity of
allowances in the next calendar year.
With the amendments to the EPA as from 2010 Directive 2008/101/EC of the European
Parliament and of the Council amending Directive 2003/87/EC was implemented with the
EPA in order to include aviation activities in the EU ETS. Furthermore, the Act established
the legal framework for Bulgaria's participation in international trading of assigned amount
units (AAUs) under article 17 of the Kyoto Protocol through introducing a national green
investments scheme. The National Trust Eco Fund has thereby been assigned as the leading
authority in the implementation of this scheme. The recent amendments of the EPA (in force
from 3 June 2011) concern the partial implementation of the following directives:
The new ETS Directive 2009/29/EC amending Directive ETS 2003/87/EC to improve
and extend the greenhouse gas emission allowance trading scheme of the Community for the
reason of introducing the trading allowances greenhouse gases emissions during the third EU
ETS period 2013-2020; and Directive 2009/30/EC amending Directive on the quality of petrol
and diesel fuels 98/70/EC as regards the specification of petrol, diesel and gas-oil and
introducing a mechanism to monitor and reduce greenhouse gas emissions and amending
Council Directive 1999/32/EC relating to a reduction in the sulphur content of certain liquid
fuel sand as regards the specification of fuel used by inland waterway vessels and repealing
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
Directive 93/12/EEC (relating to the sulphur content of certain liquid fuels) with the aim of
reducing greenhouse gas emissions per unit of energy of the entire lifecycle of fuels for
transport. The transposition of the texts of the Directive on the quality of petrol and diesel
fuels refer to the obligations of producers and importers of liquid fuels to reduce greenhouse
gas emissions, the ways to achieve this reduction of such emissions, as well as the obligations
for reporting on greenhouse gas intensity of the delivered liquid fuels in the country.
Further, the Bulgarian EPA states that for the period 2013-2020, the distribution of free
greenhouse gas allowances of plants other than generators of electricity and plants for capture
of carbon dioxide shall be carried out in accordance with the decision of the European
Commission to determine the validity throughout the European Union of transitional
harmonized rules for free allocation of emission allowances.
Pursuant to the requirements of EU Regulation . 2216/2004 of the European
Commission, a national register for maintaining registration of the issuance, ownership,
transfer and cancellation of greenhouse gas emission permits is managed by the Bulgarian
Executive Environmental Agency.
4.4.
Along with the adopted changes to the EPA (mid 2011) mentioned above, the
transposition of Directive 2009/31/EC in the legislation of the Republic of Bulgaria ended
with the adoption of the Carbon Dioxide Storage in Depths of Earth Act (from 02/17/2012) in
early 2012. This law transposes all restrictive conditions (protected areas, hydrological,
geological, hydrological, etc.) in the application of this technology, determines the
government body issuing the permit for areas in which this technology can be practiced;
creates and maintains a register and card authorizations granted for a period up to 30 years.
Thereby, the companies that manage the carbon storage would have to follow strictly the
requirements related to the carbon dioxide storage in the depths of earth, as prescribed in the
issued permit. It must be an obligation of the operator also to prepare periodic monitoring of
the repository and to monitor for leakage of gas or its movement and at least annually to
prepare monitoring of the territory for storage, the volumes and characteristics of gas flow,
and to submit evidence of financial security of the activity. The Act regulates also the
prohibition of CO2 storage as follows: in storage area outside suitable geological formation in
the ground, in water column, outside geological formation and in geological aquifers.
In the near future it will be possible to build underground storage for carbon dioxide,
where the thermal power plants shall 'inject' the greenhouse gases emitted from their
operation, instead of expelling them into the atmosphere and paying for pollution of the
environment. The way for investment by global energy companies that are already developing
technology for the capture and underground storage of carbon emissions is now opened.
4.5.
considered in any legal reference in the Bulgarian environmental legislation. In cases similar
to the above mentioned project, however, the order of proceeding is predictable. Rights for the
mineral resources are provided through:
-
5.1.
natural resources
mineral deposits
mineral water
Concession for extraction of natural resources includes the right to obtain ownership of the
extracted types of minerals for which the concession is granted, to acquire the beneficial
ownership of mining waste from the extraction and primary processing, and also to carry out
all necessary activities related to the extraction, including secondary prospecting within the
deposit, storage, processing, transportation and sale of natural resources for which the
concession is granted.
Stages for granting a concession - Preparatory activities
Procedure
- Launch of the procedure for granting a concession can be requested by any person or
by decision of the competent authority;
- Initiative of the concerned person shall be accompanied by reasons for the
appropriateness of the concession in terms of the grantor, and at concession for
construction and pre-investment studies;
- The preparatory activities include ensuring by the competent authority the drafting
of rationale of the concession, which motivates the proposal for granting concession
and determine its object and its basic content.
Deadlines
The competent authority shall notify the interested part not later than three months after the
written justification for the results of the survey on the initiative and its decision to deny or to
begin preparations for granting the concession.
Decision for launch of the procedure for granting a concession
Procedure
- As a result of the preparatory activities the authority performing the same, makes
motivated proposal to the concedent for the concession initiation;
- The rationale of concession and any other documents specified in the Concessions
Act and its Implementing Regulation are applied to the proposal;
- The decision for launch of a concession defines all basic parameters of the
concession.
The concessionaire may be determined by means of an open procedure, a restricted procedure,
a competitive interview procedure and an electronic auction, as a supplementary procedure to
the open or restricted procedure.
Deadlines
Within 7 days from the date of the decision for launch of the procedure for granting a
concession, the competent body shall prepare drafts for a decision for the launch of a
concession procedure, an announcement of the conduct of a concession procedure, a
concession agreement, bidding documentation, in case of an open or restrictive bidding
The decision shall be published in State Gazette and may be appealed against within
10 days of its publication
The concession Agreement is signed without negotiation in accordance with the
project included to the documentation of participation, and with bid of the
participant who is ranked first.
Deadlines
- The concerned participants shall be notified for the decision and of the reasons for
its adoption and can be appealed within 10 days of notification
- The deadline for signing the Concession Agreement is determined by the resolution
of the concedent to select the concessionaire and cannot exceed three months.
- The grantor has the right to sign a Concession Agreement before the expiry of 14
days from the notification of concerned participants in decision for selection of a
concessionaire.
5.3.
The control activity in imposing the EPA when starting a project proposal is
implemented by the MOEW. The control is based on guidelines and methodological
instructions.
Environmental impact assessment (EIA)
The changed in 2011 Environmental Protection Act (EPA) requires mandatory
environmental impact assessment (EIA) for all CO2 Storage in geological formations, large
pipelines for transport of carbon dioxide to storage sites, and large plants for capture of
carbon dioxide. All other pipelines and facilities for CO2 capture according to EPA shall
become subject to an assessment of the need for EIA. EIA is performed on investment
proposals (IP) construction, activities and technologies under Appendix 1 and 2 of the EPA or
their modifications or extensions, the implementation of which is likely to cause significant
effects on the environment. CCS issue is covered by Appendix 1 of EPA:
Installations for the capture of CO2 streams for the purpose of geological storage from
installations covered by this application, or where the total yearly capture of CO2 is
equal to or greater than 1.5 megatons.
Sites for CO2 storage in geological formations.
EIA Stages
1. Notification to the competent authorities (MOEW and RIEWs) and the affected population
(cf. Figure 2);
Notification to the
competent authorities
and the affected
population
Assessment of
the EIA necessity
Project proposal is
out of the scope of
the EPA
Project proposal is
in the scope of
Annex 1 of the EPA
Project proposal is
in the scope of
Annex 2 of the EPA
Consultations,
defining the scope,
content and format of
the EIA
EIA is required
No need for
EIA
Drafting of EIA
Qualitative
assessment of EIA
Public discussion
of EIA
Decision on EIA
Figure 2: Scheme of the EIA procedure for investment proposals (according to Chapter VI, EPA)
5.4.
In order to observe the provisions of the Water Act (WA) activities related to water use
and/or use of the water bodies are subject to permitting.
Competent authority
Pursuant to Art. 44 and 46 of WA each water user is required to obtain a permit. According to
the norm of Art. 52 of the same Act permit is issued from the competent authority: MOEW,
Basin Directorate (BD).
Procedure
The procedure for issuing permits for water use of groundwater takes place in two stages:
Acceptance of the application
Procedure shall be initiated by filling an application under Art. 60 of the Act as its further
development is Part II of Chapter IV. Licence applications for authorization shall be
submitted to the registry of the relevant BD (for DCD - Basin directorate for water
management in Black sea region). Director of BD verifies whether the contents of the
application and accompanying documents complies the above requirements. When
requirements are not fulfilled, the Director shall notify the applicant to remove the
deficiencies within a 14-day period.
Initiation of a procedure for a permit for water use
For affirmation of exploitational resources and the project flow rate of water intake facility,
the director of BD sends to the General Directorate of Water a copy of the documents. In one
month of receipt of the documents, the General Directorate of Water takes the necessary steps
for approval the operational resources and the project flow rate of the facility. Within 7 days
from the end of one month, the Directorate General of Water sends to the BD the order of the
Minister of Environment and Water for approval of the exploitation resources and the project
flow rate the water intake facility. The order is grounds for a permit for water use of
groundwater from the Director of BD. The duration of the permit is regulated in Article 57 of
WA. From importance is the fact that for performance of drilling and/or mining operations in
areas possessing substantial groundwater resources, consultation with the Ministry of
Environment and Water shall be required in respect of the terms and conditions for use of the
water sites containing groundwaters.
5.5.
Competent authority
Authorization for use of water subject to discharge is issued by the Director of the Basin
Directorate in accordance with Art. 52 (1) 3 of Water Act.
Procedure
The procedure for obtaining a permit for discharge of wastewater into surface water takes
place in three stages:
Acceptance of the application
When the application is for a permit for projects within the scope of App. 1 and 2 of the
Environmental Protection Act (EPA) the investor of the project should present a decision for
the assessment of the need for EIA, respectively decision on EIA.
Evaluation of the application, initiating the procedure for a permit for discharge
wastewater, public announcement in the respective municipality
Deadlines
Within one month of acceptance of the application, respectively of removing flaws,
director of BD assess the application. Within the 7 days term after the expiration the one
month period to assess the application, the Director of BD forwards it to the municipal
administration for public announcement.
Announcement of the use, submitting of request for the wastewater discharge permit for
scheduled use, reviewing documents and a decision-making
Deadlines
According to WA the initial applicant and all other persons and entities requesting the
same use, shall submit an application with the data needed according to Regulation 10 on
Issuing Permits for Waste Water Discharge into Water Bodies and Setting Individual
Emission Limit Values for Point Sources of Pollution, SG. 66/27.07.2001 within two months.
Within one month of the presentation of initial study, the Director of BD shall act issuing the
permit for discharge of wastewater or reject the same. According to Art. 128 of the WA the
term of the permit for discharge of wastewater is three years.
5.6.
- Construction and demolition waste, whereof the total amount exceeds 10 m3 per day.
Such a Programme includes information on the waste, subject to treatment, facilities and
methods of waste management, storage, treatment facilities, scheme for the movement of
waste to these facilities, funding of programme delivery, a system for reporting and
performing the monitoring and evaluation of the results, contact details of the responsibles for
waste management. Waste Management programmes are developed and adopted for a
continuous period of not less than 3 years and are updated when there is a change in the
factual and/or legal terms or at the end of their period of validity.
Competent authority
To perform the recovery and/or disposal of waste, including the pre-treatment prior, requires
IPPC permit or permit for pursuing waste (authorized under Section 37 of the Waste
Management Act). Permits for recovery and/ or disposal of waste, including pre-treatment
prior to recovery or disposal shall be issued:
- by the Director of the Regional Inspectorate of Environment and Water, on whose
territory are the operations;
- Minister of Environment and Water or by an authorized person of the activities being
carried out in more than one RIEW.
Procedure and deadlines
Before proceeding to the provision of the programme it is necessary to be prepared
worksheets for waste classification. They must be submitted and then approved by the
Regional Inspectorate of Environment and Water (RIEWs). Worksheets are prepared for all
wastes generated in the company. A draft programme is presented in the relevant RIEW.
Within 14 days of receipt of the project, the director of the Regional Inspectorate shall
approve it or return it to the specified alignment. After the adoption of the programme by
RIEWs, an application for permit under Article 37 is preparing. The application shall include
information for the period to which is applying for, the sites, data for the waste to be treated,
activities that apply for with their code, methods and technologies, installations to be used and
their capacity, security measures, a list of staff and etc. Within two months of receiving the
application and removal of the irregularities, if any, RIEWs/MOEW shall make a decision to
issue a reasoned refusal or a permit. The permit under Article 37 shall be issued for the period
specified in the application, but not longer than 5 years. Industrial, construction and hazardous
waste shall be delivered and accepted solely on the basis of a written contract with persons
holding a document under Article 12 herein on waste designated by the relevant code
according to the ordinance referred to in Article 3 herein.
5.7.
For the proposed technology of project "UCG and CO2 Storage" the expected emissions
of greenhouse gases, still to be proven will be near zero, in which case the Regulation and
procedures for issuing and reviewing permits for greenhouse gases (GHG) and monitoring the
operators of installations, participating in the GG emission trading quota system shall apply
only to monitoring but not to quotas for emissions of greenhouse gases. All operators of
installations covered by Directive 2003/87/EC introducing the European scheme for trading
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
greenhouse gas (GHG) must have a permit to emit greenhouse gases. The competent
authorities in the manner of issuance of permits for greenhouse gas emissions are the Minister
of Environment and Water and the competent authority for examining the application for the
permit for GHG emissions and prepare a draft permit is the Director of the Executive
Environmental Agency (EEA).
Methodology for monitoring of GHG emissions by operators participating in the scheme
for trading GHG emissions has been developed on the basis of Art. 6 of the Additional
Provisions of Regulation and procedures for issuing and reviewing permits for GHG and
monitoring the operators of installations, participating in the GHG emission trading quota
system. The methodology follows strict guidelines for monitoring and reporting of GHG. The
methodology defines the determination of GHG emissions, including the choice of type of
monitoring - measurement or calculation, by selecting specific algorithms. Monitoring
methodology determines how the plant operator to monitor and report the CO2 emissions for
that installation. Approval of the monitoring methodology is part of the process of issuance
the permit. The monitoring plan is an integral part of the permit for GHG emissions pursuant
to the Regulation.
5.8.
5.9.
Licence holders and concessionaires whose activities produce mining waste (drilling for
an UCG-CCS project), as well as any physical person or legal entity keeping mining waste
shall be responsible for management of the mining waste in compliance with the requirements
of the SRA. The same shall be obliged to undertake on own account all required measures in
conformity with a plan of management of the mining waste, elaborated by them and endorsed
by the Minister of Economy, Energy and Tourism.
The operators of mining waste facilities shall be obliged to report annually by December
31 to the Minister of Economy, Energy and Tourism on the implementation of the mining
waste management plan, including the quantities and the composition of the deposited waste,
as well as on the results and the conclusions from the carried out internal monitoring.
The operators shall be obliged to notify the Minister of Environment and Waters and the
Minister of Economy, Energy and Tourism immediately, as well as in writing, but not later
than 48 hours following the events placing at risk the stability of mining waste facility or
human heath and environment.
When an activity producing mining waste is subject to an EIA procedure under the
provisions of Chapter Six of the EPA (CCS part of project), the scope of the assessment
shall obligatorily include also the mining waste management plan. When an activity
producing mining waste is not subject to EIA (prospecting period), the management plan
shall be presented to the Minister of Economy, Energy and Tourism f or approval.
In compliance with Art. 22 (g) of the SRA, the Minister of Economy, Energy and
Tourism maintains a public register of operators of mining waste facilities and permits issued
under Art. 22 (4) of SRA.
For the preparation and maintenance of registers, each holder of an authorization or
concession or other person whose activities form the mining waste, and any natural or legal
person in whose possession are mining waste facilities, together with the management plan
for mining waste should be developed and presented to MEET more:
Filled form for registration in the public register of operators of mining waste facilities
and permits issued pursuant to Art. 22 of the SRA;
Declaration of Art. 22 of the SRA on information which the operator of commercial
secret and should not be part of the public register of art. 22 (g) of SRA.
CONCLUSIONS
Countries outside the European Union with established UCG programmes are well
advanced in the development of UCG regulatory regimes. They have generally used
the mining laws for licensing of the resource, and existing Regulation to cover the
environmental impact assessment and approval.
No country, inside or outside the European Union, has yet approved a fully
commercial UCG project and further development of the legislation can be expected
as experience from the UCG demonstration scheme is made available.
Bulgarian national environmental laws and regulations on UCG-CCS and similar
technologies are not yet sufficiently prcised and it is necessary to make changes that
will refer to the proposed method of underground coal gasification and carbon dioxide
capture and storage (CCS).
Storage of CO2 in geological formations is an issue regulated in the Bulgarian
environmental legislation as the requirements of the Directive 2009/31/EC have been
successfully transposed to the end of 2011. On the other hand the problem of deep
underground coal gasification has not been really considered until now in any legal
reference in the Bulgarian environmental legislation
On June 03, 2006 the National Assembly has approved a draft law amending the EPA,
which introduced into national legislation the requirements of Directive 2009/31/EC
(concerning, carbon storage in geological formations).
The necessary legislative changes (08.03.2011) for the storage, capturing and
transporting of carbon dioxide emitted by large combustion plants have been made in
Regulation No. 10 of 6 October 2003 on the Emission Limit Values (Concentrations in
Waste gasses) of sulphur dioxide, nitrogen oxides and total dust, discharged to the
atmosphere from large combustion plants, SG 93 of 21 October 2003, last amended
08.03.2011. According to these changes the places of storage of CO2, technical and
economic aspects of transport of CO2 and the obligation of the operator to provide
land for the site and equipment to capture and compress carbon dioxide are regulated
for large combustion plants (over 300 MW).
On February 17, 2012 the National Assembly has adopted the Carbon Dioxide Storage
in Depths of Earth Act. This law transposes all restrictive conditions (protected areas,
hydrological, geological, hydrological, etc.) in the application of this technology, as
the storage restrictions are also regulated.
There have been some changes in the legislative documents adopted of a Bulgarian
Parliament. In January 2012 the National Assembly adopted a Decision to ban on the
application of the hydraulic fracturing technology for exploration and/or extraction of
gas and oil on the territory of the republic of Bulgaria (from 24.01.2012). According to
these corrections, the amendment to the moratorium to abolish restrictions concerning
conventional oil and gas drilling procedures and injection of liquid fluids with
different compositions under pressure above 20 atm. These changes will ensure in
further the practical realization of the project "UCG and CO2 Storage"
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)
Chapter 5 of this report presents practical steps that have to be followed by a potential
Bulgarian UCG-CCS project, considering the existing regulations.
In conclusion we can say that it is imperative to make a more detailed assessment of
possible environmental risks in comparison with economic efficiency of the
implementation of the concrete technology. Geological, hydrogeological and other
characteristics of each site are unique and general conclusions valid for all objects are
not relevant. Each site in all phases of the investment process requires an assessment
of the environmental impact.
6. REFERENCES
1. Water Framework Directive (2000/60/EC), establishing a framework for Community
action in the field of water policy;
2. Groundwater Directive (2006/118/EC) on the protection of groundwater against
pollution and deterioration;
3. Directive on mining waste management (2006/21/EC);
4. Directive 2008/50/EC relating to air quality;
5. Directive on CCS 2009/31/EC concerning the storage of carbon dioxide in geological
formations;
6. The London Convention, "Convention on the Prevention of Marine Pollution by
Dumping of Wastes and Other Matter 1972";
7. The OSPAR Convention, Brussels, 8.3.2011;
8. Roadmap 2050 for moving to a competitive low carbon economy in 2050,
COM(2011) 112 fin;
9. EU ETS Directive 2003/87/EC establishing a scheme for greenhouse gas emission
allowance trading within the Community for the European Union emissions trading
system;
10. EU ETS Directive 2009/29/EC amending Directive 2003/87/EC to improve and
extend the greenhouse gas emission allowance trading scheme of the Community;
11. Directive on the quality of petrol and diesel fuels 98/70/EC of the European
Parliament and of the Council of 13 October 1998 relating to the quality of petrol and
diesel fuels and amending Directive 93/12/EEC;
12. Directive 2009/30/EC amending Directive 98/70/EC as regards the specification of
petrol, diesel and gas-oil and introducing a mechanism to monitor and reduce
greenhouse gas emissions and amending Council Directive;
13. 1999/32/EC as regards the specification of fuel used by inland waterway vessels;
14. Directive 93/12/EEC relating to the sulphur content of certain liquid fuels;
15. Regulation . 2216/2004 of the European Commission, a national register for
maintaining registration of the issuance, ownership, transfer and cancellation of
greenhouse gas emission permits;
16. The IPPC Directive 2008/1/EC concerning integrated pollution prevention and
control;
17. Environmental Impact Assessment Directive (EIA Directive 85/337 EEC);
18. Directive 97/11/EC amending Directive 85/337/EEC on the assessment of the effects
of certain public and private projects on the environment;
19. Environmental liability Directive (ELD 2004/35/EC) on environmental liability with
regard to the prevention and remedying of environmental damage;
20. Large Combustion Plants Directive (LCPD 2001/80/EC);
21. Directive 99/31/EC on the landfill of waste;
Report on the implications of the developing Framework Regulations
for CCS for UCG-CCS opportunities
(Deliverable 7.2)