Carbon capture technology holds potential to unlock around £40 billion investment for UK economy by 2030
Accelerating deployment of carbon capture and storage in the UK could secure around £40 billion of inward investment by 2030, a new study of the technology’s potential reveals today.
The Carbon Capture and Storage Association’s (CCSA) new Delivery Plan has examined the pipeline of potential projects across the United Kingdom to identify the economic opportunities available and threats to successful deployment.
Since the plan was last updated in March 2022, the number of carbon capture and storage (CCS) projects planned for the UK has grown from 55 projects to over 90 – with enough schemes now in the pipeline to capture around 94 million tonnes of CO2 per year – up 29% from 73 million tonnes last year. To put that in context, that’s equivalent to more than a quarter of total UK emissions. The projects would protect thousands of jobs in existing industries which currently emit lots of CO2, such as cement and steel and other manufacturing, and create many more in new green economy sectors, whilst making a huge contribution to meeting the UK’s 2050 net zero target.
Earlier this year, the CCSA welcomed the government’s commitment to £20 billion of revenue support for CCS deployment. Four industrial clusters have been selected across England and Scotland in a bid to kick start the industry.
But the CCSA study published today warns government support for CCS projects is behind schedule and there isn’t enough clarity on how the £20 billion will be allocated. As many as one in three projects are considering relocating overseas to countries backing the technology more vigorously.
Cross-party consensus is vital for delivery of major infrastructure, which is why, alongside the Delivery Plan, the CCSA is today also publishing a manifesto setting out pledges that MPs on all sides could adopt to speed up the deployment of carbon capture technology across the country. The CCSA will use an extensive programme of events through the party conference season to campaign on the pledges.
The CCSA today outlines five key asks of Government to unlock private capital investment:
1. Enable timely cluster delivery, including allocation of the £20 billion support
2. Publish a clear deployment plan for CCUS and commit to regular allocation rounds
3. Accelerate permitting and consenting
4. Deliver a healthy supply chain and skilled workforce
5. Build public support
Ruth Herbert, Chief Executive of the Carbon Capture and Storage Association, said:
“This year has seen a lot of progress for CCUS technology and we welcome the strides forward taken by the government to date.
“But our Delivery Plan makes clear there is much more to do to secure the tens of billions of direct investment which widespread deployment of CCUS technology could bring to the UK. This is investment which will support tens of thousands of new jobs, and retain existing jobs, across the country.
“The UK has the opportunity to lead the next industrial revolution and be at the forefront of the global deployment of this essential technology, rather than import low carbon products made elsewhere. But there is a global race underway, so we have to speed up, secure these investments and create the clean industries of the future here in the UK.”
ENDS
Notes to Editors
Read the Delivery Plan Update CCUS Delivery Plan Update 2023 FINAL
Read the Delivery Plan Update Executive Summary CCUS Delivery Plan Update Exec Summary 2023 FINAL
Read the CCSA Manifesto 2023 CCSA Manifesto September 2023
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 public.affairs@ccsassociation.org
To find out more about the Carbon Capture Storage Association (CCSA) please visit the CCSA website at http://www.ccsassociation.org