CCUS Supply Chain Report Showcases Major UK Opportunity

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CCUS Supply Chain Report Showcases Major UK Opportunity

Posted on: July 22nd, 2021 by ccsaEditor

The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in the UK, has today published a report on developing the UK supply chains to deliver a successful CCUS rollout programme, in line with Net Zero.

The report “Supply Chain Excellence for CCUS” has been developed with input from sector experts from almost 50 organisations; including BEIS and the Energy Industries Council (EIC).

The report concludes that expenditure on CCUS (including hydrogen and greenhouse gas removals) could reach £41 billion by 2035, and with strategies to support domestic companies, the UK could develop a CCUS supply chain with a high proportion of UK jobs and local manufacturing of products and goods – delivering significant benefits to regional economies in the UK’s industrial heartlands.

Olivia Powis, Head of UK Office at the CCSA, said:

“Due to geographical advantages and world-leading skills and expertise, the UK has a unique opportunity to become a global leader in the development of CCUS. The next decade will be critical for CCUS deployment and by implementing the recommendations in today’s report, we have the opportunity to create a strong UK supply chain, providing significant domestic jobs and growth.

This will boost the UK’s prosperity and make a significant contribution to the Government’s levelling up agenda, whilst at the same time creating important export opportunities for UK companies in a global market estimated to be worth several hundreds of billions of pounds by 2050”.

James Smith, Co-chair of the CCUS Council, said:

“Net zero is by far the biggest infrastructure project the UK has pursued in peacetime. Successful delivery demands excellent supply chains. Excellent supply chains create major opportunities for the UK to rejuvenate and rebuild its industrial base.”

 

ENDS

Notes to Editors

The CCSA report “Supply Chain Excellence for CCUS” is published on the 22nd July and can be downloaded below.

The report sets out five key recommendations:

1. Clusters to work with industry and mobilise a cross-industry team to build on this report and develop supportive supply chain strategies for the CCUS industry.

2. Work with industry on the development of strategies for the following opportunities:

3. Clusters to inform and prepare UK supply chains on the equipment and services that will be required by the emerging CCUS sector to avoid future bottlenecks and provide visibility for the near-future opportunities.

4. Industry to develop strategies that focus on creating skilled, long-term jobs, a diverse workforce and levelling-up the regions.

5. Government to ensure effective delivery and coordination of UK supply chain activities.

For media enquiries please contact Judith Shapiro on 07719763133 or email judith.shapiro@ccsassociation.org

Carbon Capture and Storage Association appoints its new CEO

Posted on: July 20th, 2021 by ccsaEditor

20 July 2021, London – The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in the UK, is delighted to announce the appointment of Ruth Herbert as its new Chief Executive Officer. Ruth will take up the CEO post in October 2021.

Ruth is an experienced senior executive with a strong background in energy policy. She currently holds the position of Director of Strategy & Development at the Low Carbon Contracts Company – set up to primarily manage the UK Government’s Contracts for Difference with low carbon electricity generators and more recently positioned as the future counterparty to its power and industrial CCUS contracts. Ruth has also held a number of roles at the previous Government Department of Energy and Climate Change (DECC) where she worked on Electricity Market Reform, the 2010-11 Energy Bill and was Head of International Cleaner Fossil Fuels policy in the Cleaner Fossil Fuels Directorate (subsequently the Office of CCS).

Ruth Herbert said:

“I am extremely excited to be joining the CCSA at such an important time. CCUS is a vital solution to deliver net zero across the economy. I look forward to working with the CCSA team and its members to build this critical industry and bring forward a successful CCUS programme to achieve UK climate goals”.

Jonathan Briggs, Chair of the CCSA Board said:

“The CCSA Board is delighted to welcome Ruth to the CCSA and we are confident that she will build on the current positive momentum for CCUS and lead the CCSA in the next stage of its development. Ruth brings with her a wealth of experience and knowledge on CCUS, climate and energy policy, which will be a tremendous asset as the CCSA goes from strength to strength”.

 

Acorn Project Partners select Carbon Clean to deliver Acorn carbon capture plant FEED study.

Posted on: July 15th, 2021 by ccsaEditor

New report highlights the economic benefits of scaling up CCUS in the 2020s, and the required funding to deliver this

Posted on: July 8th, 2021 by ccsaEditor

The Carbon Capture and Storage Association (CCSA) has today published a report written by international engineering consultancy Afry and Cambridge Econometrics on the economic impact of scaling up CCUS in the 2020s. It also looks at the funding required to deliver this and the lessons that can be learned from offshore wind deployment in the 2010s.

It explores the impact of rolling out CCUS in the 2020s under two scenarios:

  1. The Government’s Ten Point Plan scenario to capture 10 million tonnes (Mt) of CO2 a year by 2030, before scaling up in the 2030s; and
  2. The Climate Change Committee’s (CCC) Balanced Net Zero Pathway in the Sixth Carbon Budget to capture 22 Mt of CO2 a year by 2030, before more than tripling capacity in the 2030s.

Using Cambridge Econometrics’ E3ME model, the report looks at the economic benefits of CCUS deployment in the 2020s. The CCC scenario could see up to ten thousand new jobs created in the mid-2020s in the UK’s industrial heartlands and give the UK early mover advantage in the global CCUS race, creating export opportunities and with this, a potential 50,000 additional jobs. This level of deployment would also help to safeguard more than 50,000 jobs in iron, steel, cement, chemicals and refining – that could otherwise be at risk.

The report also maps out the annual funding requirements to deploy CCUS at the necessary scale to deliver these two scenarios by 2030 – which ranges from £1.2bn under the Ten Point Plan scenario to £2.6bn under the CCC scenario.

The renewable power sector, and in particular offshore wind, benefited in the early 2010s from long term annual funding envelopes known as the Levy Control Framework, which is set at £8.6bn for 2020/21. This long term certainty drove deployment and cost reductions in the 2010s, so there is precedent for decarbonisation spending at this level to successfully develop new industries that will be crucial for the net zero transition.

Ahead of the upcoming Comprehensive Spending Review, the report also considers what lessons can be learned from offshore wind support ten years ago in order to build a similarly successful CCUS industry in the UK today. It concludes that there is an immediate need to de-risk CCUS today, which requires visibility of a long term funding framework up to 2030 to deliver CO2 capture targets. This needs to provide an equivalent to the Levy Control Framework which provided both funding visibility and consumer protection for renewables a decade ago.

The executive summary of the report “Economic Analysis of UK CCUS” can be downloaded below.

The full report is available on request.

New forum to unlock co-location opportunities for CCUS and offshore wind

Posted on: July 7th, 2021 by ccsaEditor

The CCSA is proud to be a founding member of a new Offshore Wind and CCUS Co-location Forum, which has been set up by The Crown Estate.

The Forum, which also includes RenewableUK, the Oil & Gas Authority (OGA), Government and Crown Estate Scotland, will “provide strategic coordination of co-location research and activity and help maximise the potential of the seabed” for offshore wind and CCUS – two industries which will be critical to achieve the UK’s net zero target.

Olivia Powis, Head of UK Office at the Carbon Capture and Storage Association (CCSA), says: “We are delighted to be part of the new Offshore Wind and CCUS Co-location Forum, bringing together two industries that will be critical to achieving net zero. As the UK prepares to host COP26 later this year, it is vital that we work together to bring forward all solutions that will be needed to solve the climate crisis.

“Offshore wind is already a UK success story and through initiatives such as this forum, we can develop the framework that will bring forward CCUS projects in line with the Climate Change Committee’s Sixth Carbon Budget – thereby creating another tremendous success story, with high UK content.”

The full press release can be found here.

Alongside the forum, a new “CCUS & Offshore Wind Overlap Study Report” has also been published. The report can be downloaded here.