ISO/TR TECHNICAL REPORT 27918 First edition 2018-04 Lifecycle risk management for integrated CCS projects Gestion du risque du cycle de vie des projets CSC integrés Reference number IS0/TR 27918:2018(E) Tso @IS02018 IS0/TR 27918:2018(E) COPYRIGHTPROTECTEDDOCUMENT @ IS0 2018 All rights reserved. Unless otherwise specified, or required in the context of its implementation, no part of this publication may be reproduced or utilized otherwise in any form or by any means, electronic or mechanical, including photocopying, or posting on the internet or an intranet, without prior written permission. Permission can be requested from either IsO at the address below or Iso's member body in the country of the requester. ISO copyright office CP 401 : Ch. de Blandonnet 8 CH-1214 Vernier, Geneva Phone: +41 22 749 01 11 Fax: +41 22 749 09 47 Email: [email protected] Website: www.iso.org Published in Switzerland ii @ IS0 2018 - All rights reserved IS0/TR 27918:2018(E) Contents Page Foreword ..V Introduction. ..vi 1 Scope. ..1 2 Normative references 3 Terms and definitions ..2 4 General information on lifecycle risk management for CCS .2 4.1 Usefulness and benefits of lifecycle risk management. .2 4.2 Defining lifecycle for an integrated CCS project. .2 4.3 Examples of overarching risk assessment processes conducted for CcS projects .5 4.4 Examples of ISO risk standards that may be applied to CCS projects ..8 4.5 Description of how risk is addressed in other standards and regulations 9 4.5.1 General 9 4.5.2 Treatment of CcS risk in international agreements, .9 4.5.3 CSA Standard (z741-12, Geological Storage of Carbon Dioxide) ..12 4.5.4 US DOE Best Practices for Risk Analysis and Simulation for Geologic Storage of CO2 ·13 4.5.5 WRI CCS Guidelines. 13 4.5.6 IEA Carbon Capture and Storage Model Regulatory Framework ..14 4.5.7 United States EPA regulations. .14 4.5.8 EU Directive 2009/31/EC on the geological storage of carbon dioxide .15 4.5.9 Regulation of geological storage in Japan. .16 4.5.10 Technical guidelines for CCS in China. .16 4.5.11 Summary of key features of cS risk assessment requirements ..17 5 Overarching and crosscutting aspects of risk management in ccS projects. ..18 5.1 Introduction ..18 5.1.1 Scope. .18 5.1.2 Terms relating to risk. .18 5.1.3 Project components and phases .19 5.1.4 Responsibilities and risk ownership .19 5.2 Risk identification .19 5.2.1 General .19 5.2.2 Identifying overarching and crosscutting (OA-XC) risks 20 5.3 Rating and evaluating risk 24 5.3.1 Risk assessment, risk tolerance, and risk evaluation processes 24 5.3.2 Risk scales and expert judgment 24 5.3.3 Risk evaluation for overarching or crosscutting risks 25 5.4 Risk treatments 25 5.4.1 General 25 5.4.2 Aspects of risk treatment that are overarching and/or crosscutting. 25 6 Inventory of overarching and crosscutting risks .25 6.1 General 25 6.2 Identification of overarching and crosscutting risks over the lifecycle of CCS projects 26 6.3 Overarching risks. 26 6.3.1 Over-arching risks 26 6.3.2 Policyuncertainties 27 6.3.3 Uncertain cost or regulations for integrated project. 28 6.3.4 Engagement 29 6.3.5 Project permits not obtained .29 6.3.6 Lack of or changes in financial driver ..30 6.3.7 Changes in financial factors external to the project/Insufficient project financial resources/Changes to the cost of capital .31 6.3.8 Unexpected construction or operational cost changes. ..32 @ IS0 2018 - All rights reserved ii IS0/TR 27918:2018(E) 6.3.9 Uncertainty in CO2 supply 32 6.3.10 Lack of emissions accounting 34 6.3.11 Technology scale-up.. 34 6.3.12 Lack of knowledge or qualified resources for operating the unit 35 6.3.13 Project impacts on the environment 35 6.3.14 External natural impacts on project 36 6.3.15 External man-made impacts on project. 36 6.3.16 Conflicts with other land-use rights. .37 6.4 Crosscutting risks 39 6.4.1 General. 39 6.4.2 Accidental or intentional interruption or intermittency of CO2 supply, CO2 intake or transportation 40 6.