Government Commits to Establishing Carbon Capture and Storage Industry

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Government Commits to Establishing Carbon Capture and Storage Industry

Posted on: October 4th, 2024 by ccsaEditor

• The CCSA welcomes Government commitment to fund the UK’s first carbon capture and storage projects.
• Important step in efforts to decarbonise the UK’s industrial heartlands and create thousands of skilled jobs, as well as protecting existing jobs in energy intensive industries.
• Announcement highlights the Government’s commitment to net zero targets and decarbonisation, not de-industrialisation.

[London, 4 October] – The Carbon Capture and Storage Association (CCSA) welcomes the Government taking this significant step in providing funding commitment to establish the UK’s first carbon capture industry in the North East of England (the East Coast Cluster), and North West of England and North Wales (HyNet).

Carbon capture and storage technologies offer a vital route to decarbonise our industrial heartlands. With Carbon Capture, Utilisation and Storage (CCUS), we can futureproof key British industries such as cement, chemicals and other manufacturing sectors, which are critical to the UK’s clean industrial growth.

This decision demonstrates the Government’s understanding of the urgency needed to deliver net zero at pace. The deployment of the world’s first two large-scale CCUS clusters will be instrumental in achieving net zero and clean power ambitions, as well as driving sustainable economic growth across the UK’s industrial regions.

By taking this landmark step, the UK is on course to solidify its position as a world leader in CCUS and low carbon hydrogen production, as well as to meet the Climate Change Committee’s target of 20-30 million tonnes (Mt) of CO2 captured and stored by 2030, rising to 50-60 Mt by 2035.

The CCUS sector holds huge potential for economic prosperity across the UK by creating 70,000 new skilled jobs and protecting 77,000 jobs in critical industries. This is not counting the jobs and inward investment into the UK as companies re-locate here to take advantage of the CO2 transport and storage, and low carbon infrastructure that will be available in the UK’s CCUS Clusters. Industry will continue to work with government and others to achieve financial close so they can start construction as soon as possible.

CCUS and low-carbon hydrogen are essential components of any pathway to net zero power by 2030 and net zero by 2050, and today’s announcement is a significant boost to local economies, jobs and industrial decarbonisation efforts.

Olivia Powis, Chief Executive Officer at the CCSA said:

“The Government’s confirmed support for carbon capture and storage and low-carbon hydrogen demonstrates their commitment to the UK’s journey to net zero. Today’s announcement shows that decarbonisation does not mean de-industrialisation, and highlights the UK’s leadership in these important technologies.”

“The industry has made significant strides towards deploying carbon capture projects and by progressing the first two CCUS clusters in the North West and North East of England, it means that we can deliver thousands of new highly skilled jobs whilst reducing our CO2 emissions and retaining existing jobs in our industrial areas in critical industries like cement, chemicals and manufacturing across the UK.”

David Parkin, Chair of the HyNet Alliance said:

“HyNet was formed to meet the demands of industry wanting to decarbonise to deliver sustainable products and compete in the global low carbon economy. We need to decarbonise, not by de-industrialising, but by investing in the industries that we rely on for the every day products in our lives – from the glass bottles we use for our food and drink to the cement we use to build roads and buildings.”

“Government’s commitment to HyNet will also enable generation of resilient low carbon power, right here in the industrial North West and North Wales, supporting its Clean Power 2030 Mission.”

“This will create new roles and safeguard existing jobs, attracting investment and catalysing growth.”

Chris Daykin, General Manager, Northern Endurance Partnership, said:

“Today’s announcement is a significant milestone in the development of CCUS infrastructure in the UK and the journey to Net Zero emissions by 2050. The Northern Endurance Partnership, as the CO2 transportation and storage infrastructure provider to the East Coast Cluster, has a crucial role to play in the decarbonisation of Teesside and the Humber – helping create and support thousands of jobs and helping to establish the regions as globally-competitive low carbon hubs for industry and innovation.

“Construction will commence once all statutory processes are complete and financial close is achieved.”

Notes to Editors

Interview requests: To interview Olivia Powis, Chief Executive of the CCSA please contact press@ccsassociation.org

Press Pack: Infographics and an animation accompanies the press release for use. Download the press pack here.

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 industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. 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 accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. 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 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please contact Sara Price on 07825235313 / press@ccsassociation.org

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Pivotal role of CCUS technology in the net zero transition highlighted in new publication

Posted on: August 23rd, 2024 by ccsaEditor

[London, 23 August 2024] – The Carbon Capture and Storage Association (CCSA) has today published CCUS Voices. This publication brings together experts from across the Carbon Capture, Utilisation, and Storage (CCUS) value chain, who have provided their independent insights into the forward-looking opportunities for the industry.

Drawing on expertise in areas such as power and industrial decarbonisation, innovation and skills, CO2 transport and storage, carbon markets, governance, sustainability and public perception, these Voices set out their ambitions for the delivery of a new CCUS industry at pace across the UK and EU.

The deployment of the world’s first large-scale CCUS clusters in the UK will be instrumental in achieving net zero ambitions and driving sustainable industrial growth, and will provide learnings to other countries with ambitious CCUS plans.

As CCUS transitions from concept to large-scale reality, the perspectives set out in CCUS Voices from thought leaders in industry, academia, and policy, offer an in-depth analysis of the challenges as well as the important opportunities ahead.

These experts have put forward recommendations on the immediate actions needed to advance CCUS. This includes establishing clear policy direction and expansion plans for CCUS clusters, reforming planning and permitting systems to accelerate project timelines, and implementing supportive revenue models to drive private sector investment.

These CCUS Voices have shared their long-term vision for the use of CCUS to meet ambitious climate goals, secure a sustainable future for heavy industries and produce clean power that will help deliver energy security.

Ruth Herbert, Chief Executive of the CCSA said:

“The UK CCUS industry has come a long way in recent years and is now poised ready to deploy the first two CCUS clusters. I have been encouraged by the level of innovation, insight and expertise in the industry, as well as the ambition to drive forward projects to create the low carbon economy.”

“These experts have provided their perspectives on the future opportunities that the industry can unlock, as well as what is needed to further develop the industry from both the Government and through industry lead initiatives, in order to navigate the next set of challenges and seize the global opportunities.”

Tom Glover, Chair, CCSA, and UK Country Chair, RWE:

“I am excited to be part of the UK’s CCS journey and to see the role it will play in shoring up vital energy security and resilience, whilst driving a global transition to a sustainable future. As UK Country Chair at RWE, we recognise our responsibility. We’re committed to the net zero transition to support the UK’s decarbonisation targets whilst maintaining security of supply.”

Notes to Editors

The full report is available here.

Interview requests
For interview request to CCUS Voices contributions, please contact press@ccsassociation.org

About the CCSA

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 industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. 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 accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. 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 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please email press@ccsassociation.org

CO₂ Vessel Supply and the Global Shipbuilding Picture – By CO₂ Gases team, Clarksons

Posted on: August 12th, 2024 by ccsaEditor

Clarksons’ CO₂ Gases team hosted a Member Discussion Forum in partnership with the CCSA, focused on ‘CO₂ Vessel Supply and the Global Shipbuilding Picture’. The event included a presentation from Stephen Gordon (Managing Director, Clarksons Research), followed by a panel discussion, moderated by Olivia Powis (UK Director, CCSA) and featuring:

The panel explored the full shipbuilding mix – from design to delivery – and covered a range of topics, such as the benefits of synchronising Carbon Capture and Storage (CCS) project timelines with shipbuilding and chartering, and the need to protect key stakeholders in shipping projects via thorough due diligence, clear processes and intelligent decision making.

Several themes emerged during the session, reflecting topics and trends that are being more widely observed across Clarksons. These included:

1.   Why CCS needs shipping

Shipping is critical for CCS projects which do not have nearby access to CO₂ storage facilities, allowing CO₂ to be transported to storage sites and enabling the widespread deployment of CCS technology. Not only is shipping important for individual project success, it also helps meet global decarbonisation goals. Speaking at the Member Discussion Forum, Oliva Powis said:

“We estimate over 90 projects are looking to potentially deploy carbon capture to enable us to reach net zero and the targets for capturing and storing 50 to 60 million tonnes by 2035. Shipping will be absolutely critical to getting a lot of those projects underway.”

2.   Shipbuilding’s challenges

While the CCS industry is rapidly expanding (we’ve seen a 100% increase in projects globally over the past year), the shipbuilding sector faces constraints, including a reduction in global shipbuilding capacity. Panellist Stephen Gordon said:

“We think shipbuilding capacity is about 35-40% lower today than it was in 2010. We believe there will be some incremental increases in shipbuilding capacity, but we may only get halfway back to where we were previously, by the end of the decade. At the moment, shipbuilding capacity is very tight.”

There are also other challenges such as high demand (due to an ageing world fleet), high costs (pricing has gone up 40% in the last four years), and long lead times for building new vessels (these have increased to three to four years), Combined, these are impacting how long it will take and how much it will cost to roll out CO₂ shipping. As Matt Neale put it:

“The shipbuilding business is extremely firm at the moment. Whereas before, the buyers had all the power, that has now completely gone. The power is very much in the hands of the shipyards, and I don’t think anyone would debate that.”

This mismatch between demand and the pace of supply could create bottlenecks and delays in getting the necessary shipping infrastructure in place to support CCS projects.

3.   Collaboration is essential

Collaboration, coordination, and information sharing between the CCS and shipping industries is crucial. Aligning project timelines, streamlining commercial models, exploring innovative financing models, and developing technical standardisation specifications will be key to unlocking the full potential of CO₂ transportation in the CCS value chain. If we are going to scale up global CCS capabilities, maintaining cross-industry open dialogue and finding creative solutions will be essential. As Bruce Moore said during the panel discussion:

“We need to find a way to actually commercially structure it to incentivize everybody to take their place in the supply chain.”

Involving the full value chain (shippers, technology providers, CCS experts etc.) will also help to develop much-needed industry codes and standards. This will make it easier for the shipping technical authorities to understand what is being loaded, what is being discharged, its composition, the required temperatures etc., and help establish a liquified CO₂ spec.

Challenges and opportunities

When it comes to CO₂ vessel supply and the global shipbuilding picture, how can we overcome challenges and capitalise on opportunities?

Challenge: CO₂ vessel supply and CCS projects are both dynamic spaces

Opportunities and solutions: Market players must constantly adapt and respond to new technology and fast-paced regulatory change around decarbonisation. While speaking on the event panel, Matt Neale highlighted there is still a lot of uncertainty in CO₂ newbuilding, saying:

“Even the shipyards themselves don’t yet know exactly what the market is going to ultimately demand. We’ve seen a lot of discussion around different vessel sizes, different propulsions, and whether to go for low or medium pressure. There are a lot of decisions still to be made.”

Given this, engaging shipping experts to validate projects, understand the scale of the undertaking, and provide guidance on project development and contracting processes can be hugely beneficial. Having been involved in liquefied gases since the early 1960s, here at Clarksons we consider ourselves well placed to advise clients operating in this space. Speaking during the Member Discussion Forum, Tommy Baggio encouraged CCS projects to:

“Speak to the experts when it comes to shipping. Clarksons has extensive experience in running competitive processes and has contracted over 100 gas carriers in the last ten years. We have the information and the know-how which a successful shipping strategy will need to draw on.”

Tommy also highlighted the strength of the ship owning community, pointing out that:

“This industry is blessed with a group of shipowners who are really innovative and actively looking to find solutions to complex problems. These are great guys to work with.”

Challenge: Finding creative solutions to shipbuilding challenges

Opportunities and solutions: To overcome limited shipbuilding capacity, we recommend broadening the industry’s understanding of timescales and the stages of CCS projects so that shipping timeline requirements can be integrated into CCS project planning as early as possible. Similarly, the CCSA’s continued work to reduce costs across the CCS value chain, including contracting strategies, will help tackle high costs.

Challenge: How to capitalise on the huge potential for UK-based CO₂ storage

Opportunities and solutions: The UK coastline is home to ⅓ of Europe’s potential CO₂ storage, representing a significant opportunity for importing CO₂ storage from EU emitters. But the UK must move quickly to capitalise on this, which may require governments to provide targeted support to kickstart this emerging market and ensure the UK’s participation.

Challenge: Identifying any viable alternatives to Asia in order to meet global shipbuilding requirements

Opportunities and solutions: Speaking during the Member Discussion Forum, Elwin Taylor pointed to the remaining installed shipbuilding capacity in Europe and government objectives to sustain a level of shipbuilding activity for strategic reasons. Whether this could translate into competitive pricing of CO₂ carriers is questionable, and a level of subsidy would almost certainly be required. Additionally, Stephen Gordon suggested that local content requirements could be met by gas plant and equipment suppliers, as these are fields in which European designers and manufacturers maintain a strong position.

For more information you can speak to Clarksons’ CO₂ Gases team.

CCSA publishes Supply Chain Initial Forecast Report

Posted on: July 31st, 2024 by ccsaEditor

[London, 31 July 2024] – Today, the Carbon Capture and Storage Association (CCSA) published their ‘Supply Chain Initial Forecast Report’. This report sets out key trends and opportunities in the Carbon Capture, Utilisation and Storage (CCUS) supply chain across six commitment areas: transparency, skills, jobs, UK content, technology, and wider economic benefits.

The findings in the report were developed by engaging with nine Carbon Capture and Storage (CCS) project developers over a six-month period to analyse the commitments and aspirations across 11 individual CCS projects that are deploying over the next few years.

The report finds that the development of a competitive, UK-based supply chain needs certainty of future carbon capture projects. Through understanding the pipeline of projects across power CCS, hydrogen production, Greenhouse Gas Removals and industrial decarbonisation, UK supply chains can invest and grow to meet demand needs.

Importantly, the industry is committed to rolling out CCUS across the UK, with a strong ambition towards the advancement the robust UK-based supply chains and wider economic and social benefits; including local jobs, investment in skills and technology, and projects which put community benefit at the heart of their deployment plans.

To realise the six key recommendations in the report, collaborative work across the whole CCUS industry, trade associations, Government, and wider stakeholders is needed. The recommendations are as follows:

  1. Deliver the first round of CCUS projects and commit to future clusters and allocation rounds, to provide confidence to the CCUS sector.
  2. Award GIGA (Green Industries Growth Accelerator) to provide support to the supply chain and maintain the focus on developing local content opportunities across design, manufacturing, fabrication, construction and operation.
  3. Develop a set of Supply Chain Guiding Principles, encompassing transparent and fair procurement, sector development initiatives and good industrial relations, to further embed best practice early in the sector’s development.
  4. Greater coordination of skills development is critical to addressing current and future skills gaps.
  5. Increase supply chain engagement opportunities; including through events, CCUS specific supply chain directories and adjoining programmes such as Fit4CCUS, to ensure the wide variety of opportunities on offer are clearly communicated.
  6. Expand reporting processes to companies that will deliver CCUS projects (including EPCs and Tier-1 contractors) and the wider CCUS supply chain, and iterate deliverable commitments for these sectors.

Ruth Herbert, Chief Executive of the Carbon Capture and Storage Association, said:

“The findings of this report highlight the critical importance of government providing certainty and commitment to a forward plan of CCUS projects across the UK. CCUS is essential to decarbonise British industry and meet the Government’s clean power target by 2030. By targeting support to deliver the first rounds of CCUS projects, we will develop a home-grown UK-based CCUS supply chain and deliver much greater benefits to UK Plc from the scale up of carbon capture projects. A focus on targeted investment and collaboration across the CCUS industry, Government, skills providers and wider industry stakeholders will be important in order achieve the report’s recommendations, and deliver on the voluntary industry target of 50% UK content by 2030 in manufacturing, goods, and services.”

Notes to Editors

Supply Chain Initial Forecast Report

To read the full report, see HERE. For the Executive Summary, see HERE.

About the CCSA

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 industrial decarbonisation as well as the production of clean power, clean products (such as cement and chemicals) and clean hydrogen – which can also be used to decarbonise industry. 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 accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. 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 120 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users in the power, industry, waste management, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please email press@ccsassociation.org

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CCSA co-signs a cross-industry letter: Addressing skilled labour workforce shortages in the UK

Posted on: July 31st, 2024 by ccsaEditor

Today, the CCSA alongside 14 other trade associations, representing diverse production sectors across the UK economy, wrote to Government ministers, devolved administrations and shadow ministers to highlight concerns about ongoing shortages in skilled labour. Particularly trades that are vital to a growing and resilient economy today, as well as for the delivery of the UK’s net zero targets in coming years.

There are several areas where improvements are urgently needed to ensure the long-term competitiveness and resilience of our industries. These include:

  1. Delivery of long-term policy clarity and stability
  2. Establish equal prestige of trades jobs and Vocational Education Training (VET)
  3. Reform of the Apprenticeship Levy
  4. Promote Equality, Diversity, and Inclusion
  5. Delivery of a fit for purpose immigration system

To unlocking the full potential of the UK workforce and drive sustainable economic growth, it is essential that collaborative collective action across Government, industry and education providers is taken on the above five key areas.

The signatories are:

Read the letter here.