The Getica CCS project (Carbon Capture Storage) has only recently become popular, but its development started in February 2010, writes Business Magazin weekly.
Now, Getica is among 77 such global investments on a list put together by Global CCS Institute, and it is believed to have significant chances for massive funding by the European Union.
All the commotion that the project stirred on the market comes in the context where in the past 20 years Romania has never been short on ideas, but in terms of implementation and completed projects, things have not worked out very well. Lacking new thermal power stations, investments in nuclear energy, notable hydropower projects, and in the absence of a strategy, Romania has now joined a tough race with a project that seems avant-garde at the very least. The big players in this project are Romgaz, the largest local gas producer, state-owned gas transporter Transgaz (TGN.RO), and CEN Turceni, the largest thermal power producer in the south. Also involved are the Institute of Energy Studies and Power Engineering (ISPE), GeoEcoMar, the Economy Ministry and the Government.
The motivation behind this project is Romania’s commitment to reduce CO2 emissions and the European Union’s involvement in a tough war of attrition against pollution.
The project targets thermal power producer CE Turceni, one of Romania’s greatest polluters. The carbon dioxide that would normally be released into the atmosphere by CE Turceni, is set to be captured, transported through Transgaz pipes and buried deep underground in a storage facility. This is a demo project, so it will not be done without EU funding, considering that it could cost EUR1 billion.
“On May 9 we submitted the literature to the European Investment Bank. In all there were 13 projects submitted. Seven are from the UK, and the rest come from France, Germany, Italy, the Netherlands and Poland. After being reviewed by the EIB, the eligible projects will be announced. (…) Only 8 such projects will receive funding eventually,” said Carmencita Constantin, director of the energy and environment division within the institute.
Here is what drives this project: as of 2013 big polluters will no longer get their emission rights for free, but will have to buy them. Waivers can be obtained, but in order to do that, Romania needs to submit investment plans that include concrete sources of funding for each thermal power station it wants to exempt from this financial effort. Unless these waivers are obtained, big polluting companies will have to buy a CO2 emission right, or green certificate, for every ton of CO2 released into the atmosphere. Experts say prices will skyrocket as of 2013, and could reach EUR30 per certificate, compared to the current EUR16.
“Everybody knows Romania is in the books to attract EU money, otherwise there wouldn’t be such commotion. Romania is one of the few European countries with more than 150 years of background in the oil and gas industry. This means good knowledge of underground geology (…),” says the institute’s representative, explaining Romania’s edge in the race for EU funds.