Member Article

Government launches carbon capture and storage programme

Energy and Climate Change Secretary Edward Davey has launched a new competition for Carbon Capture and Storage (CCS).

The ‘CCS Commercialisation Programme’ aims to drive down costs by supporting practical experience in the design, construction and operation of commercial scale CCS with £1bn capital funding.

The DECC has also set out the first UK CCS Roadmap, which details the steps towards developing a world-leading CCS industry, including £125, funding for R&D, planned long term ‘Contracts for Difference’ through Electricity Market Reforms to drive investment in commercial scale CCS, and a focus on international engagement, particularly in sourcing knowledge from foreign projects.

Edward Davey, Secretary of State for Energy and Climate Change said: “The potential rewards from Carbon Capture and Storage are immense: a technology that can de-carbonise coal and gas-fired power stations and large industrial emitters, allowing them to play a crucial part in the UK’s low carbon future.

“The CCS industry could be worth £6.5bn a year to the UK economy by late next decade as we export UK expertise and products.

“This is a really exciting time for the fledgling CCS industry. Our offer is one of the best anywhere in the world.

“We have £1bn available to support the upfront costs of early projects along with a commitment to further funding through low carbon Contracts for Difference, we have £125m to support research and development including a new UK CCS Research Centre, and we have the long term incentives in place through our Electricity Market Reforms.”

The announcement has been welcomed by a consortium of organisations, aiming to build the first CCS project on Teesside.

Teesside Low Carbon, formed of BOC, International Power, National Grid, Fairfield Energy, Premier Oil and Progressive Energy, is planning to bid for funding to develop a CCS project on the Wilton site, an industrial complex.

It would provide sufficient low carbon electricity for over half a million households, as well as enable vital carbon capture infrastructure for key industrial emitters of carbon dioxide in the region.

An estimated 250 direct jobs would be created, with a workforce of over 1,000 involved in its construction over a four-year period.

Peter Whitton, Progressive Energy’s Managing Director said: “We welcome the launch of the UK Government’s CCS Commercialisation Programme and the opportunity it presents to help deliver this innovative clean energy project for Teesside. This Programme recognises the value CCS has to play in delivering a low carbon economy for the UK.

“Teesside Low Carbon will safeguard and create jobs in the industrial heartland of the North East of England, driving investment and growth in the region and the UK as a whole.

“The UK is uniquely placed in Europe to capitalise on the opportunities provided by carbon capture and storage. We look forward to taking this innovative project forward and securing the many benefits it will bring to Teesside.”

Rhian Kelly, CBI Director for Business Environment policy, added: “While we welcome today’s announcement, the Government must learn lessons from its previous competition, which took too long and was eventually abandoned.

“This time around the competition must be simpler and completed as quickly as possible.

“CCS has the potential to contribute significantly to our energy security, reduce carbon emissions, create jobs and become a major UK export for the future.

“If we are to gain any advantage from developing this important technology in the UK, the Government cannot afford to waste this opportunity.”

This was posted in Bdaily's Members' News section by Tom Keighley .