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EPPM P2 EPPM P2 - - W4: Workshop on Regulatory Framework for Carbon Capture & W4: Workshop on Regulatory Framework for Carbon Capture & Storage (CCS) ; with focus on storage into geological formations, HSE, Storage (CCS) ; with focus on storage into geological formations, HSE, CDM and Flaring CDM and Flaring CDM CDM d Fl d Fl i i Phuket Phuket, Thailand , Thailand 29 June – 29 June – 1 July 2010 1 July 2010 MEMBER COUNTRY MEMBER COUNTRY MEMBER COUNTRY MEMBER COUNTRY PRESENTATION PRESENTATION - - PHILIPPINES PHILIPPINES Department of Energy Department of Energy Redentor Redentor D. D. Pascual Pascual Neil O. Neil O. Pesa Pesa

Outline Outline Outline Outline � Current Status of CCS regulations g & challenges � CO 2 regulations (including flaring from Oil and Gas Activities) f O G ) � CO 2 sources & possible capture/ technologies technologies � Potential areas for CCS � Legislative barriers for CCS � Legislative barriers for CCS implementation & solutions � Future of CCS in the Philippines pp

Current Status of CCS Regulations and Challenges • No current government regulation for CCS • Expected Challenges: - Social perception / acceptability - High cost of upgrading infrastructure / High cost of upgrading infrastructure / processing facilities - Stability of geological formations - Viability in deepwater environment Vi bilit i d t i t - Applicability to marginal fields

CO 2 Regulations (including flaring from Oil and Gas Activities) • No regulation governs CO 2 emission except No reg lation go erns CO emission e cept that of the guidelines issued by the Environmental Management Bureau of DENR Environmental Management Bureau of DENR as stated in the Environmental Compliance Certificate (ECC) ( ) • In the ECC, gas flaring restrictions / limits are stated but no specific volume or amount of gas to be flared f t b fl d • Operators are required to submit monthly reports on their gas emission / flaring reports on their gas emission / flaring

Possible CO Possible CO 2 Sources & Sources & Potential Areas for CCS Potential Areas for CCS Potential Areas for CCS Potential Areas for CCS • Power Plants P Pl t Power Plants • Oil & Gas fields Camago- Malampaya gasfield Galoc oilfield Dabakan Gas Di Discovery

MALAMPAYA DEEPWATER GAS MALAMPAYA DEEPWATER GAS- -TO TO- -POWER POWER PROJECT PROJECT PROJECT PROJECT

Legislative Barriers for CCS Legislative Barriers for CCS Implementation & Solutions Implementation & Solutions Implementation & Solutions Implementation & Solutions • BARRIERS: - Technology acceptability & feasibility SOLUTIONS: SOLUTIONS - Pilot projects - Cooperative projects with other countries Cooperative projects with other countries - Implement and adapt Clean Development Mechanism (CDM) Projects ( ) j - Grant additional fiscal incentives

Future of CCS in the Philippines Future of CCS in the Philippines • Research and development as well as pilot projects should be conducted • Work cooperation with other countries and agencies (i.e. CCOP) working on CCS CCS projects should be encouraged j t h ld b d

CONCLUSION CONCLUSION • CCS Technology can be viable and feasible for the Philippines in the near future

End of Presentation End of Presentation Thank you for your Thank you for your attention! attention! tt tt ti ti ! !