CCSA Blog: From Kyoto to Dubai: The Evolution of CCS and the Urgent Call for Global Carbon Capture Action, by Dr. Jeff Chapman

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CCSA Blog: From Kyoto to Dubai: The Evolution of CCS and the Urgent Call for Global Carbon Capture Action, by Dr. Jeff Chapman

Posted on: December 22nd, 2023 by ccsaEditor

Picture it – the United Nations Framework Convention on Climate Change (UNFCCC) Conference (COP3). The Kyoto Protocol had just been agreed upon, and it became very clear to me that there would, sooner or later, be an enormous potential for UK business in the energy and climate change sector. This realisation sparked discussions with the Department of Trade and Industry and UK Trade and Investment, culminating in my appointment as Trade Promoter for UKTI in 2000.

My mission was clear: focus on UK business opportunities in Emissions Trading (ET) and Cleaner Coal Technologies, later known as Carbon Capture and Storage (CCS). Backed by six forward-thinking companies, I spearheaded two business working groups, aiming to identify market opportunities, foster collaboration, promote the UK brand, and dismantle barriers to trade. As the landscape evolved, the need for an industry group independent of government support became evident. In 2006, we laid the foundation for the Trade Association London Climate Change Services, the UK service sector’s offering. However, the journey with CCS was laden with challenges, particularly its reception in the UNFCCC negotiation process.

CCS encountered resistance from environmental NGOs during UNFCCC negotiations, demanding strategic intervention. It was clear that unless CCS was recognised as a valid mitigation technology in the UNFCCC, it would not be able to develop as needed to mitigate global emissions. There were several attempts to write a methodology that would be accepted by the UNFCCC all to no avail. Then Tim Dixon was drafted in to become lead negotiator in this area for the UK and EU who played a crucial role during COP17 in Durban (2011) in getting the proposal passed. This was a major step forward for the recognition of CCS and laid the ground for CCS to assume its rightful place in the Paris Agreement.

I established the CCSA in 2006, out of the CCS Working Group at UKTI, thus delivering on my mission of launching a self-sustaining UK business group in the CCS sector. I was delighted that Lord Oxburgh, the most prominent Peer in this field, agreed to be our Honorary President. Gardiner Hill, who had already established his prominence in this sector, was appointed Chairman of the Board. The membership grew significantly, from an initial 11 who took up places on the CCSA Board, to a peak of 85 in 2014, at which point I retired.

I have followed the development of the Association with great interest, and I have been very proud to see the CCSA ride through the many bumpy policy challenges, as well as de-stabilising external factors such as the pandemic. The management of the CCSA has been exemplary in driving home the essential role of CCS in global mitigation, supporting a cluster-based development programme in the UK, influencing European developments and recruiting members to a new record level.

Observing recent developments in the CCS sector in the UK, EU and globally, I am very pleased indeed to see that the policy on CCS is changing for the better with, at last, a realisation that climate objectives cannot be achieved without CCS. The inclusion of CCUS in the final COP28 decision on December 13, 2023, signifies a significant milestone. For the first time, global efforts explicitly recognise the role of CCUS in achieving deep, rapid, and sustained reductions in greenhouse gas emissions, aligning with the ambitious 1.5-degree Celsius pathways.

The global conversation on carbon capture is gaining momentum, and the urgent need for the continued development and success of the CCS sector is unmistakable. As the world acknowledges the necessity of transitioning away from fossil fuels, achieving net zero emissions by 2050, and embracing low-carbon technologies, the role of CCUS has never been more crucial.

Dr. Jeff Chapman established the Carbon Capture and Storage Association in March 2006 following a long period of supporting UK businesses to establish a position in greenhouse gas emissions trading and carbon capture & storage.

Jeff has over thirty years of management experience in industry, consultancy and more latterly in government circles. He has specialised in the energy sector with a focus on the business opportunities that arise from climate change mitigation. Jeff has been a significant contributor to the establishment of London as the World centre of emissions trading.

Silixa’s monitoring solution to assist in the assessment of the suitability of Perenco’s Leman sandstone reservoir for storing CO2

Posted on: December 21st, 2023 by ccsaEditor

UK CCUS Industry Reaction to Government’s CCUS Vision & Cluster Sequencing Announcements

Posted on: December 20th, 2023 by ccsaEditor

20th December 2023, London

Today the Department of Energy Security & Net Zero published its CCUS Vision and updates on the cluster sequencing process, to “set out plans for a new competitive UK carbon capture, usage and storage market by 2035 – delivering new jobs and supporting net zero.”

Key updates in the announcement were:

– Invitation for expressions of interest for Track-1 cluster expansion in the Hynet cluster

– Agreed commercial terms with the Northern Endurance Partnership

– A streamlined process for Track-2 cluster anchor projects to deploy from 2028-2029

– Competitive allocation process for carbon capture projects from 2027

– Plans to enable CO2 transport by ship, road and rail and support longer term cross border CO2 transport

– Details on the proposed commercial frameworks and alignment of the GGR and Power BECCS Business Models, alongside indicative Heads of Terms

– An industry led working group to look into further reduction of capture costs will be established

The Government’s CCUS Vision references the work of the industry, led by the Carbon Capture & Storage Association, in its Delivery Plan 2035 and accelerating deployment proposals put forward to the CCUS Council. Voices from across the UK CCUS industry have commented on the announcements, praising this crucial step forward and urging for continued momentum to deliver the aims of the Vision.

Ruth Herbert, Chief Executive, CCSA said:

“We welcome the government’s CCUS Vision published today, setting out a long-term strategy for the UK’s CCUS industry to be able to store over 50Mt a year by 2035 to support the decarbonisation of domestic industries and take advantage of export opportunities.

“It is great to see CO2 transport by ship, road and rail will be enabled from 2025 onwards, as well as cross-border CO2 transport. which will also support longer-term cross-border CO2 transport solutions.”

“The CCSA Delivery Plan detailed a development pipeline of over 90 carbon capture projects. Those project leaders will welcome the commitment to allocation rounds from 2027, provided they are of sufficient frequency and volume to unlock continued investment. We look forward to building on this pipeline through the proposed industry working group.”

“Investors need to see accelerated progress on the first four CCUS clusters. Today’s other announcement, inviting expressions of interest for Track-1 cluster expansion in the HyNet cluster is very welcome, along with the government’s agreement of Heads of Terms with the East Coast Cluster (ECC). It is also good to see a more streamlined process for selecting Track-2 cluster capture projects. Projects on the East Coast will need more clarity on the timescales going forward for both Tracks if we are to meet the UK’s 2030 target to reach 20-30Mtpa by 2030.”

David Parkin, Director, Progressive Energy said:

“We very much welcome Government’s announcement on HyNet Track 1 expansion, which will provide further opportunity for industrial decarbonisation in the NW region, while optimising value for money for the taxpayer by maximising use of the HyNet assets.”

“More broadly, the CCUS Vision document help sets a roadmap for longer term expansion of carbon storage, which will enable a much broader range of industries across the region decarbonise and open up storage opportunities across the Irish Sea. This will enable vital industries, such as the cement and lime sector in the Peak District, to decarbonise through CCS in the medium term.”

Luciano Vasques, Managing Director, ENI UK said:

“We see strong demand from businesses across the UK for CCS so today’s announcement is a welcome step forward. We look forward to providing transportation and storage at HyNet for a wider range of companies in North West England and North Wales, helping them to reduce CO2 emissions, protect local jobs and boosting industrial competitiveness for the region.”

Chris Daykin, General Manager, Northern Endurance Partnership said:

“Today’s announcements mark another positive milestone in the development of the East Coast Cluster and the UK CCUS industry.”

“Agreeing the key commercial principles through the Heads of Terms is a crucial step in the decarbonisation of the North East region and delivering jobs. We look forward to the expansion process launching from 2024 and agree that the selection of projects by HMG should be matched to the available transportation and storage capacity, so that projects and stores are developed at the same pace and equivalent level of maturity”.

“We thank the UK Government for their continued support as we work to complete the final agreements in the coming months, enabling NEP to take Final Investment Decision in September 2024”.

Louise Kingham, UK Head of Country and senior Vice President of Europe, bp said:

“We welcome the announcement of the UK government’s CCUS Vision, which sets out a bold plan for making the UK a global leader in carbon capture, utilisation and storage, as well as the positive steps forwards announced for both Track 1 and Track 2 CCUS clusters. CCUS has an important role to play in helping the UK deliver on its net zero targets and bp is committed to continuing to make progress on its projects, and helping to ensure this vital industry can deliver on its significant potential.”

Graeme Davies, Project Director, Viking CCS said:

“Today’s announcement on the progress towards Track 2 capture project selection marks another significant step forward for the Viking CCS project, and the development of the UK’s carbon capture and storage industry, which is critical to delivering the energy transition.”

“We look forward to continuing with this positive momentum towards bringing greater clarity on investment across the CCS value chain in Track 2, for both the anchor projects and the Viking CCS network.”

Jonathan Briggs, Director of Development & Delivery, VPI said:

“We welcome this news that the government plans to move forward at pace with a track 2 CCUS deployment process next year. As one of the principal participants of the governments Industrial Decarbonisation Challenge program run by UK Research Innovation, VPI’s Humber Zero project has completed its early engineering and FEED program and is ready to move forward into construction as an anchor project to the Viking CCS cluster next year.”

“We are delighted to support the CCUS vision, we are looking forward to working with all parties through 2024 developing the industry to a sustainable and accelerated level of capture in the future. At MNZ we are focussed on developing a safe, low cost and scalable CO2 storage solution to exceed the 2035 targets and beyond. The target of an additional 6MPTa per year from 2031 is achievable and aligned to the MNZ and Peak Cluster solution which we are excited to bring to the UK’s CCUS industry.”

Simon Holt, Manager, Emerging Energy Europe, Phillips 66 said:

“We welcome the UK Government’s announcement on the Track 2 process for carbon capture and storage (CCS).”

“This is a positive step forward and we look forward to continuing our work with Viking CCS and the UK Government on delivering CCS for the Humber region. This will support us to reduce our operational emissions as we deliver vital products for the EV supply chain and lower carbon transport fuels.”

“We believe energy security is crucial for the UK to continue to grow and flourish and CCS will play a vital role in this.

Ben Burggraaf, CEO, Net Zero Industry Wales said:

“Net Zero Industry Wales has welcomed the UK Government’s announcement that Non-Pipeline-Transport (NPT) solutions, e.g. the shipping of CO2, projects will be eligible for selection as capture projects from 2025 onwards and intent to provide clarity on the timeframe for the deployment as soon possible, to allow projects to progress”.

“Deploying NPT solutions, to ship the captured CO2 in South Wales to a permanent store at the East Coast of England & Scotland, is pivotal to kickstarting the delivery of the South Wales Industrial Cluster Plan and delivering a net economic impact of £7.9 billion over 20 years”.

A spokesperson for Acorn said:

“We welcome the publication of the UK Government’s Vision to establish a competitive carbon capture, usage and storage (CCUS) market.

“In particular we appreciate that DESNZ is continuing to take a pragmatic approach to drive Track 2 forwards, and we look forward to continuing to engage constructively with the DESNZ team and the emitters who will connect to Acorn over the coming months.

“We look forward to working with Government to create and future-proof jobs, attract inward investment, develop green-tech industries, and crucially, help decarbonise Scotland and the UK.

“The CCUS Vision sets a clear direction – we now need to see pace and momentum on delivery.”

Catherine Raw, Managing Director of SSE Thermal said:

“It’s positive to see the publication of the UK Government’s CCUS Vision. This sets out a long-term strategy for creating a CCUS market which will be fundamental for delivering a reliable, decarbonised power sector, and providing security of energy supply in the transition to net zero. It is particularly welcome to see Government recognise the need for multiple additional power CCUS projects by 2030.

“The UK Government’s decision to progress Track 2 clusters in early 2024 should see the Scottish Cluster progress, providing opportunities for Peterhead Carbon Capture Power Station to access CO2 transport and storage infrastructure by 2028-29, and enabling the delivery of Scotland’s decarbonisation targets. The reality is that the UK will need around ten new power stations like Peterhead Carbon Capture to successfully decarbonise, alongside other technologies like hydrogen, by 2030.

“As the UK’s most carbon-intensive cluster and one of the UK’s industrial heartlands, the Humber remains a key strategic location for decarbonisation. It’s important that UK Government provides further detail on the approach to delivering much needed CCS infrastructure to this region beyond the initial projects already identified. This will enable projects like Keadby 3 Carbon Capture Power Station, and our newly formed hydrogen production joint venture with Kellas Midstream, H2NorthEast, to continue to develop at the pace required. We look forward to further updates early next year.”

Neil McCulloch, CEO, Spirit Energy said:

“We are delighted to support the CCUS vision, we are looking forward to working with all parties through 2024 developing the industry to a sustainable and accelerated level of capture in the future. At MNZ we are focussed on developing a safe, low cost and scalable CO2 storage solution to exceed the 2035 targets and beyond. The target of an additional 6MPTa per year from 2031 is achievable and aligned to the MNZ and Peak Cluster solution which we are excited to bring to the UK’s CCUS industry”.

Tom Glover, UK Chair, RWE said:

“RWE welcomes the launch of the Government CCUS Vision. We’re pleased to receive further clarity on the Track One expansion, and an update on Track Two of the Government’s Cluster Sequencing Process. These announcements mark a milestone in the development of the UK’s Carbon Capture economy and provide important clarity for companies that are advancing pioneering carbon capture projects.

As a key partner in the decarbonisation of the UK’s energy networks, RWE is actively developing projects to retrofit carbon capture technology at its existing combined cycle gas-fired power stations at Pembroke and Staythorpe. In addition, we are developing a new combined cycle gas turbine (CCGT) generating plant with carbon capture at Stallingborough, located close to the Humber Estuary.

These projects are key to the energy transition, and could deliver over 4.7GW of decarbonised, flexible and reliable generation, with captured CO2 being safely transported by either pipeline, in the case of Staythorpe and Stallingborough, or by shipping from Pembroke, to one of the UK storage networks. We are a key partner in the Viking CCS project and will continue our engagement with them as we progress Staythorpe and Stallingborough as key expansion projects for that network.

We welcome the requirement for ‘Track-2’ stores to demonstrate the potential to receive and store CO2 delivered via shipping. South Wales is home to a significant industrial base of national importance, including our Pembroke CCUS project. The capability to access CO2 storage via shipping will be critical to decarbonising the South Wales economy and strengthening employment prospects in the region.

We look forward to further engagement with government on the Track 2 stores to ensure that CO2 from Pembroke can be included in the proposed 2025 competition round.”

Tom White, CEO, C-Capture said:

“We welcome the improved clarity for carbon capture projects. This will enable new technology to be deployed and enter the supply chain, creating new sources of value for the UK economy”.

Simon Hicks, CEO, Evero Energy Group said:

“This is great news for Evero, the North West and the UK’s transition to net zero. Evero has multiple projects across the North West of England that are eligible for this round of government support. Our pathfinder InBECCS project would generate as much as 250,000 tonnes of engineered carbon removals a year, once operational in 2029.”

“Fitting CCUS across our wider portfolio would enable us to capture a million tons of carbon a year – making a material contribution towards the Government’s Greenhouse Gas Removals targets.”

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 trade association promoting 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, joe.butler-trewin@ccsassociation.org press@ccsassociation.org or Joe Butler-Trewin on 07908141067

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

CCUS Supply Chain Reporting Process – Letter of Support

Posted on: December 19th, 2023 by ccsaEditor

Letter of Support signed by Lord Hutton (Chair, CCUS Council Supply Chain Working Group), James Smith (Co-Chair, CCUS Council) and Ruth Herbert (CEO, The Carbon Capture and Storage Association).

To the Carbon Capture, Utilisation and Storage Industry,

The Carbon Capture, Utilisation and Storage (CCUS) industry set out its own strategy to build a domestic supply chain with the publication of the Supply Chain Good Practice Guidance1 earlier this year. This Guidance is aimed at supporting developers and contractors to build local supply chains by improving supply chain planning and engagement at an early stage and throughout the procurement process. Voluntary industry reporting will support the deployment of the first Track-1 CCUS Clusters as well as shape the direction of subsequent CCUS Clusters.

Read the full Letter of Support here:

CCUS Supply Chain Reporting Process – Letter of Support

Kellas Midstream and SSE Thermal form Joint Venture for H2NorthEast hydrogen project on Teesside

Posted on: December 13th, 2023 by ccsaEditor

Keeping 1.5 Alive – By Ruth Herbert, Chief Executive, Carbon Capture & Storage Association

Posted on: December 12th, 2023 by ccsaEditor

Attending my third Conference of the Parties since joining the Carbon Capture and Storage Association, I felt that familiar pang of excitement tinged with dread.  Would this COP deliver real progress, what would be announced on carbon management, would the debate on fossil fuels be all-consuming, what would be the outcome of the global stocktake and would it lead to further action, and what does 70,000 people even look like?

Compared to previous years it felt bigger than ever, but when you consider the scale of what we need to achieve to decarbonise the lives of over 8 billion people living on this planet, delegates are a fairly small contingent (less than one thousandth of a percent of the world’s population) and the clear message from the outset is that collaboration is essential if we are to achieve the Paris goal of limiting warming to 1.5 degrees (or “North Star” in COP-speak).  Although there had been a lot of debate about the role of business at COPs, I was buoyed by the messaging from Christiana Figueres in her recent podcast that the time for negotiating is drawing to a close and it is time to move into implementation.  Implementation is definitely what business is interested in.

Moving into delivery

The past year has seen Carbon Capture, Utilisation and Storage (CCUS) move into the delivery phase around the world.  Many who follow this topic will be aware that in Europe, Norway has almost finished building its flagship Northern Lights facility, which will be ready to store CO2 from next year. With the capture on a cement plant in Brevik, Norway, close to completion and the Final Investment Decision on the Porthos Cluster in Rotterdam taken just over a month ago, Europe’s first-mover full-scale CCS projects are underway, providing confidence to rest of the industry.  In the US, hundreds of projects are moving forward on the back of the tax credits available under the Inflation Reduction Act.  What was striking at COP, however, was how much CCUS China is building and how many developing countries are putting together deployment plans, having included CCUS in their NDCs.  This was evident from pavilion agendas, many of which featured CCUS side events, as well as the traffic to our booth, where many officials from the global south discussed their plans for CCUS, driven by their desire to continue to industrialise whilst they also decarbonise.

Carbon Management Challenge

It was no surprise then that the Presidency Roundtable on the Carbon Management Challenge, chaired by James Mwangi, included five new joiners to the initiative – Iceland, Kenya, Mozambique, Netherlands and Senegal  – who joined existing members Australia, Brazil, Canada, Denmark, Egypt, European Commission, Indonesia, Japan, Saudi Arabia, Norway, Romania, Sweden, UAE, UK and US.  Fatih Birol set the scene by saying that fossils fuels would need to be phased out and the purpose of the Challenge was to urgently deal with the emissions sources we have today.  This was an important moment and a narrative echoed by several countries in their national statements, that CCUS should be prioritised on hard-to-abate sectors.  This chimed with the prior announcement on the same day of a demand-side policy from the governments of Canada, Germany, UK and US, who pledged to procure low emissions steel, cement and concrete – a policy move that, if followed by others, could really start to drive the business case for industrial CCS. US Climate Envoy John Kerry and Chinese Climate Envoy Xie both referred to the Sunnylands agreement on 14 November between President Biden and President Xi Jinping, where both countries had committed to advance at least five large-scale CCUS projects each by 2030.

 

“Gigatonne scale per annum”

However, the big news announced at the CMC Roundtable was the call to action – a new commitment by member countries to collectively aim to capture and store carbon dioxide at gigatonne scale per annum by 2030.  That’s a billion tonnes a year. To put this in context, the Brevik plant aims to capture around 800,000 tonnes per annum, so 0.08% of the target.  Netherlands stated that they were already well on the way to contributing 2.5Mtpa, a quarter of a percent of the target. The UK’s four CCUS clusters, which the government hopes will deliver up to 30 million tonnes a year by 2030, would contribute just 3% of the goal.  We heard about many plans from member countries, but it was clear that current commitments would fall short of 1 GT and developing countries would want support on costs to deliver projects.

No time to waste…

So my take away was that the Challenge is going to need more members or to step up existing national plans significantly.  The good news is that China and Bahrain both made supportive statements during the roundtable and Netherlands suggested that other EU countries were likely to join going forward.  For an initiative like this to launch in week 1, amidst all the tension of the debate on fossil fuels, looked like an impressive achievement for the Presidency and the secretariat of the Clean Energy Ministerial.  As an observer in the room representing CCUS businesses, it was clear to me that were we all going to be very busy indeed with projects, whilst at the same time needing to support the putting in place of regulatory, planning and incentive frameworks in countries that are starting out on this journey. A key pillar of the CMC, alongside putting in place national targets and policies, is participating in multilateral initiatives with other countries to share knowledge so we can all move quicker. It’s clear there’s no time to waste – we now need to implement.

 

 

Carbon8 secures Innovate UK grant to increase CO₂ removal in heavy industries

Posted on: December 7th, 2023 by ccsaEditor

Cory announces exclusive commercial agreement with Harbour Energy, bp and Associated British Ports

Posted on: December 5th, 2023 by ccsaEditor

Kellas Midstream recognised for its Outstanding Contribution to UK Energy Security at OEUK Awards 2023

Posted on: December 5th, 2023 by ccsaEditor