Scottish and Viking Clusters join the UK Government CCUS Programme

31st July 2023, London

The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in Europe, welcomes today’s announcement from the UK Government regarding the selection of the next two CCUS clusters in the UK to be built by 2030.

The Government has today announced that the Scottish Cluster and the Viking cluster in the Humber, will move forward to the next stage of deployment as ‘Track 2 clusters’, as part of the Government’s CCUS cluster sequencing programme. These clusters have the potential to reduce carbon dioxide emissions by up to 19 million tonnes collectively, thereby making a significant contribution to the Government’s ambition to store 20-30 million tonnes of carbon dioxide by 2030, as well as helping to put the UK on a pathway to storing over 50million tonnes a year by 2035, in line with its Net Zero Strategy.

Ruth Herbert, Chief Executive at the CCSA, said:

“We are pleased to see the UK Government pushing ahead with its CCUS deployment programme and selecting the next two CCUS clusters, as time is running out to meet 2030 targets. This CO₂ infrastructure is critical to safeguarding the UK’s supply chain security, enabling local industries to continue to thrive whilst reducing their emissions as we transition to a net zero economy.

It is therefore vital that the Government urgently sets out clarity on the process and timeline for selecting carbon capture sites within these ‘Track-2’ clusters and within the previously announced Track-1 cluster expansion.  Billions of pounds of investment is waiting to be deployed to decarbonise these industrial regions, but firm plans are required to secure it.

There are a number of other clusters under development across the country, which is why last year we asked government for visibility of the longer-term CCUS deployment plan. Collectively, CCUS clusters could protect 77,000 current jobs and create a further 70,000 jobs across the UK. Government’s forthcoming vision for the UK CCUS sector needs to be published as soon as possible, to avoid investment flight in those regions that have not been selected today.”

Dr Nick Cooper, CEO of Acorn lead developer Storegga, said:

“We are thrilled that the Acorn Project has advanced directly into Track-2. Acorn has been progressed by the development partners as the Track-1 reserve since late 2021 and is ready to move promptly to support the decarbonisation of Scotland and the wider UK.

“Today’s news is a defining milestone for us, and the Scottish Cluster. Acorn will be a major contributor towards meeting the UK and Scotland’s carbon reduction targets, able to serve emitters connected by pipeline and ship.

“As Lead Developer, Storegga thanks Acorn partners and Scottish Cluster participants for their support and we look forward to working with Government to deliver the multiple benefits of creating and future-proofing jobs, bringing inward economic investment, developing green-tech industries and, crucially helping decarbonise Scotland and the UK.”

Harbour Energy’s Executive Vice President of Net Zero and CCS Steve Cox said:

“The successful award of Track 2 status to Harbour’s Viking CCS project in the Humber as well as Acorn in northeast Scotland is another demonstration of how we are well positioned to use our existing skills and infrastructure to help develop the burgeoning CCS industry in the UK.

“More widely, the announcement today shows the key role the North Sea oil and gas sector will play in helping to deliver the UK’s carbon capture goals.”

ENDS

Notes to Editors

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables the production of clean power, clean products (such as steel and cement) and clean hydrogen – which can then be used to decarbonise heating and transport. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).

The CCSA is the lead European association accelerating the commercial deployment of CCUS. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.

The CCSA currently has over 100 member companies who are active in exploring and developing different applications of carbon capture, CO₂ transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, as well as members from management, legal and financial consulting sectors.

For media enquiries please contact +44 (0)20 3031 8750 or email info@ccsassociation.org

To find out more about the Carbon Capture Storage Association (CCSA) please visit the CCSA website at http://www.ccsassociation.org/.

This is the CCSA’s latest position on carbon storage obligations. Building on our previous outputs in this area and following discussion with CCSA members, we have today:

• Co-signed a letter with other European organisations to support the EU’s carbon storage target; and
• Committed to further analyse the role such obligations could play alongside other drivers for the commercial deployment of CCUS.

Download the paper here.

CCSA paper – Storage obligations

New Carbon Capture Supply Chain Strategy calls for coordinated action from UK Government and industry to create a new homegrown industry and support tens of thousands of jobs

The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in Europe, is today launching a CCUS Supply Chain Strategy which sets out a number of actions to deliver a successful CCUS industry that has the potential to safeguard 77,000 existing jobs in heavy industries such as steel and cement, while creating 70,000 new jobs in the green economy.

The CCSA has launched the strategy jointly with the CCUS Council Supply Chain Working Group, chaired by Make UK Chairman Lord Hutton. The working group advises ministers on deploying and scaling up carbon capture technology.

In order to achieve a target of 50% UK content in the manufacturing, goods and services underpinning new carbon capture and storage technology the Supply Chain Strategy sets out three key actions for Government and industry during the early phase of subsidised deployment:

1. A clear timetable for when and where government support will be allocated to capture projects to drive confidence and raise the profile of the sector,
2. Flexibility in bilateral negotiations on cost and delivery dates where there is an opportunity to secure higher UK content; and

• Targeted financial support for building capacity and transitioning existing supply chain businesses to serve the CCUS programme

Today’s strategy includes a Good Practice Guidance document for industry which, provided the above actions are met, sets out a pathway for delivering the UK content ambition. This guidance is aimed at supporting developers and contractors to build local supply chains by improving planning and engagement at an early stage and throughout the procurement process.

The guidance document covers six key areas of focus:

• • Target an increasing volume of local manufacturers and businesses to build and operate CCUS clusters.
  • Promote the introduction of homegrown technology.
  • Enhance the quantity and quality of local jobs created or protected.
  • Drive investment in skills and training to support CCUS.
  • Encourage transparency in the supply chain process.
  • Create wider economic benefits to the UK from investing in CCUS.

The CCSA is also today submitting a paper on CCUS skills into the Green Jobs Delivery Group, which was convened by the Government to support the creation of almost half a million green jobs by 2030. The “CCSA Workforce & Skills Position Paper” sets out the strong linkages between developing the CCUS supply chain and skills and highlights the need for urgent action to coordinate the skills requirements across the entire low carbon economy.

Ruth Herbert, Chief Executive at the CCSA, said:

“The report published today at our President’s Reception emphasises the massive opportunity that CCUS represents for the UK. Our strategy concludes that developing a UK CCUS supply chain, together with skills and training programmes, is urgently needed to decarbonise our heavy industries and protect jobs in regions such as Yorkshire & Humber, Wales, the North-West of England and the North-East of Scotland.

“The prize is significant – the opportunity for the UK to access a multi-billion-pound global supply chain market for CCUS equipment, goods and services, as well as the creation of over 70,000 new UK jobs whilst safeguarding up to 77,000 jobs in carbon-intensive industries at risk of being relocated abroad.

“This strategy requires Government to target investment on manufacturing yards which have the potential to supply high value items to the CCUS industry and will be delivering multiple large strategic infrastructure developments over the next decade. From the industry’s side, by following the guidance we aim to improve the transparency of the procurement process and ensure that local supply chain engagement is prioritised from early on in the development cycle.”

Lord Callanan, Parliamentary Under Secretary of State (Minister for Energy Efficiency and Green Finance), said:

“A successful UK supply chain is key to sustaining existing, and creating new, high-skill, high-value green jobs and supporting growth in industrial clusters.

“To achieve this, industry and government must work together and today’s new report from the Carbon Capture and Storage Association is a crucial step forward to harnessing the full potential of Britain’s CCUS industry.”

Lord Hutton, Chair of Make UK and Chair of the CCUS Council Supply Chain Working Group, said:

“It’s encouraging to see the CCUS industry take the lead in developing supply chain guidance and if projects follow this guidance, together with Government providing strong support, then a reliable, high quality and secure domestic supply chain can be achieved.”

ENDS

Notes to Editors

On the 12^th July, the CCSA published two documents which can be found below.

The Supply Chain Strategy and Good Practice Guidance Document is a joint study between the CCSA Supply Chain Working Group and the CCUS Council Supply Chain Working Group. The following organisations contributed to this study:

• Aker Solutions
• Baker Hughes
• BP
• EIC
• NSTA
• OEUK
• Phillips 66
• Progressive Energy
• SSE
• Worley

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables the production of clean power, clean products (such as steel and cement) and clean hydrogen – which can then be used to decarbonise heating and transport. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).

The CCSA is the lead European association accelerating the commercial deployment of CCUS. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.

The CCSA currently has over 100 member companies who are active in developing and deploying different applications of carbon capture, CO₂ transportation, utilisation, geological storage, and other permanent storage solutions, including end-users from the power and industrial and hydrogen production sectors and members from management, legal and financial consulting sectors.

For media enquiries please contact Judith Shapiro on +44 (0)20 4583 2295 or email judith.shapiro@ccsassociation.org

To find out more about the Carbon Capture Storage Association (CCSA) please visit the CCSA website at http://www.ccsassociation.org/.

CCSA CCUS Supply Chain Good Practice Guidance

CCSA Supply Chain Good Practice Guidance – Summary

UK CCS Supply Chain Value Study

The CCSA has today published a new “Workforce & Skills Position Paper”.

This position paper has been produced by the CCSA Skills & Training Task Subgroup, operating under the CCSA Supply Chain Working Group. Its purpose is to present the CCSA’s stance on and understanding of the skills and workforce challenges that are currently facing the Carbon Capture, Utilisation and Storage (CCUS) sector. It offers a high-level overview of the existing skills and training landscape for the CCUS and low carbon hydrogen workforce, encompassing jobs across the entire value chain from capture to transport & storage during the construction and operational phases. This includes an examination of the skills and training obstacles faced by the current workforce, as well as those who are currently in the education system and will constitute the future workforce.

The UK CCUS and Carbon Capture and Storage (CCS) enabled low-carbon hydrogen sector is encountering a scarcity of skilled personnel, particularly in design and engineering construction. This shortage has the potential to significantly impede the timely completion of CCUS projects and have adverse effects on the UK’s Net Zero objectives. The competition for skilled labour not only exists within the CCUS sector but also extends to other large-scale infrastructure projects who require the same skilled workforce to deploy across the UK within similar timeframes. The need to replace or re-train an ageing and non-diverse workforce, along with the challenge of attracting a significant number of school and college graduates to an industry that may not be perceived as glamorous, further intensifies the urgency of attracting and training new workers. The position paper outlines a series of crucial recommendations that are key to ensuring the availability of resources to facilitate the transition to Net Zero through the implementation of CCUS.

CCSA Workforce & Skills Position Paper

CCSA Workforce & Skills Position Paper – SUMMARY