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

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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.

 

 

CCSA Blog: Carbon Capture & Storage at Party Conferences: Capturing the Conversation, by Joe Butler-Trewin, Senior Public Affairs & Communications Officer, CCSA

Posted on: November 15th, 2023 by ccsaEditor

Party conferences are strange beasts. Thousands of stakeholders convening in one place, all in a hectic scramble to influence both serving & prospective governments. This year was no exception, but the question lingers: were they actually listening?

In 2022, the Carbon Capture & Storage Association (CCSA) attended the Labour & Conservative Party Conferences, adopting a modest approach to engagement. While we achieved some success, it was clear that neither Labour nor the Tories fully grasped the immense potential of Carbon Capture, Utilisation & Storage (CCUS) in achieving their net zero ambitions: creating and saving jobs across our industrial heartlands and boosting inward investment into our economy. Determined to be heard, we resolved to return with even greater vigour, waving the flag for CCUS.

This year, alongside colleagues from eight of the UK’s ever growing number of CCUS Industrial Clusters, we embarked on the most ambitious political engagement programme the UK CCUS industry has ever seen. With our collective aim in sight, we made our way to Manchester & Liverpool, to ensure that we captured the CCUS opportunity.

Here are some thoughts on what we saw.

Conservative Party Conference – One year in, has Rishi made his mark on a net zero energy sector?

In his net zero speech this summer, Sunak quoted the Climate Change Committee in saying “you don’t reach net zero simply by wishing it.” Yet despite finally seeing (severely delayed) progress to the CCS deployment in the UK, it is fair to say that as we arrived in Manchester for what could potentially be the Conservatives’ last conference before a general election, we weren’t holding our breath for any bold moves from the PM.

Alas, the atmosphere in Manchester seemed somewhat downtrodden – the conference hall was hardly more than half full, seeing a cabinet minister was a rarity, and indeed many MPs simply didn’t attend at all. Was this really the pre-election conference of the UK’s traditional governing party?

Yet there was hope. MPs, party members and businesses alike were significantly more positive than they had been the year before in the dying days of the Truss administration. While not everything was rosy for those wearing blue rosettes (cancelling HS2 whilst in Manchester might not have been the smartest move), there was a clear ambition to ‘get the job done’ in transitioning to net zero. We heard this first-hand when Claire Coutinho MP, the recently appointed Secretary of State for Energy Security & Net Zero, visited our exhibition stand and reiterated the government’s commitment to CCUS and rollout of four CCUS Industrial Clusters by 2030.

The Conservative messaging on net zero was confusing, to say the least. We must not forget what this government has already delivered in establishing the UK as a CCUS leader, with four clusters in development, the biggest piece of energy legislation in over a decade, and £20bn earmarked for the development of CCUS technology. The Tories have put in the hard graft in delivering these enormous milestones, and I’d urge the Prime Minister to stay on course, get spades in the ground and take the credit the Party rightly deserves.

Labour Party Conference – Ready for power, but are they ready to deliver a just transition?

Arriving in Liverpool we felt a different energy in the air. This is a party that can see the finish line in sight and exuded confidence going into the next election. With over 15,000 delegates in attendance, the conference buzzed with energy. The CCSA stand welcomed visits from dozens of MPs, including Ed Miliband, Rachel Reeves, and the new Shadow Minister for Industry and Decarbonisation, Sarah Jones. It was clear by just skimming through the list of exhibitors and the dozens of fringe events that the big-ticket item of the conference was energy security and net zero. Forget ‘education, education, education’, 2023 was the year of ‘energy, energy, energy’.

While Labour proudly presented its plans for what many within the party deem to be the inevitable orientation of a Labour Government, a question loomed – were they going to have the courage to make their policies happen?

Labour spoke all the right words, but there is a lot of work to do. Alan Whitehead has been an obvious champion for the sector but as he comes toward the end of his parliamentary career, we will be looking to the shadow Energy and Business team to take up the mantle as Labour’s industrial decarbonisation champions. We had positive engagement with Ed Miliband, Johnny Reynolds and Sarah Young and will be looking to them to drive development of CCUS from within the Labour ranks.

If the Labour Party aspires to be the government that truly delivers the UK’s energy transition, they must surpass the government’s CCUS commitments and unleash the potential of our industrial heartlands.

Red or blue: the future looks bright for CCUS.

Party conferences are a double-edged sword for organisations trying to engage with political parties. They offer fantastic opportunities to connect with stakeholders, but also reveal the extent of competition for attention. Despite the political uncertainty and deployment challenges we face, we leave party conference season confident that CCUS remains a critical part of both major parties’ strategies for delivering a net zero Britain.

CCSA Blog: Reflections from new CCSA staff members

Posted on: September 29th, 2023 by ccsaEditor

Over the past 7 months the CCSA team has expanded rapidly, and we have been delighted to welcome 6 new staff members across our London and Brussels offices. Here our new hires reflect on their time at the CCSA so far, and discuss what they have been working on and what they are most looking forward to in the future. 

Olivia Trimborn, Public Affairs and Communications Officer

I joined the CCSA team in mid-February, and my current responsibilities encompass supporting the CCUS All Party Parliamentary Group and influencing legislation, coordinating with parliamentarians and stakeholders, and engaging with the press and social media. 

Looking ahead, I’m excited to support the CCSA’s presence at the Party Conferences, which are taking place over the next couple of weeks. A significant milestone we eagerly anticipate is the Energy Bill reaching royal assent, a crucial piece of legislation that has been propelled by the collective determination of the CCSA, our members, and supporting parliamentarians, ensuring the significance of CCUS remains at the forefront. 

As we witness the escalating momentum within the CCUS industry, I am humbled to contribute my efforts as part of the diligent and accomplished team here at the CCSA. 

Kristina Antoniou, Membership Communications and Events Officer

I joined the CCSA at the end of February, supporting the London team’s communications, events and membership activities. I have particularly enjoyed supporting the CCSA’s busy programme of events, especially the new Member Discussion Forums, and our President’s Reception in July. 

The CCUS sector has seen tremendous growth in the past few months, with major government announcements on the Cluster Sequencing Programme. I’m looking forward to seeing the industry further develop and truly start kicking into action, as well as supporting the extensive ongoing preparation for the CCSA’s annual conference taking place in just under three weeks. 

Max Musing, Policy Officer

Since I joined the CCSA back in March, at a critical moment for the CCUS sector, my focus has been on helping to formulate our response to key CCUS policy developments, and building momentum for the development of a homegrown CCUS supply chain through the work of the Supply Chain Working Group and the publication of the CCSA Supply Chain Good Practice Guidance and the CCUS Workforce and Skills Position Paper.                               

I am particularly looking forward to building on this foundational work and galvanising the opportunities offered by CCUS supply chain development, and assisting our members to take advantage of the various domestic and international opportunities that are on offer. 

Rebecca Bell, Research and Projects Manager

I joined the team at the end of May – although part of the London team, I live in Edinburgh, so I spend a lot of time being envious of the weather my colleagues are enjoying!  Since I started, I’ve been working on the update to our Delivery Plan, which has just been published this week – and it feels like I’ve released my baby into the world! I’ve also been working on a map of the CO₂ capture projects in the UK, and a study looking at the potential size of the global market for low-carbon products made using CCS and/or hydrogen. 

I’m looking forward to getting the capture map published and having people use the map and our updated Delivery Plan. I’m also looking forward to getting some spades in the ground and getting CCS projects and infrastructure built – and doing what I can to help the industry get to that stage. 

Kristin Heidebroek, EU Public Affairs and Communications Officer

I have joined the CCSA team based in Brussels, supporting the work of the Zero Emissions Platform – the European initiative advising the EU and advocating for the accelerated deployment of CCS and CCU. As part of the Secretariat, my primary focus has been on ensuring that the voices of the CCS and CCU community resonate in European policymaking.  

This is a turning point to achieve climate neutrality. By being part of the CCSA at this pivotal moment, with CCS gaining tremendous traction, I am looking forward to contributing actively to the collective efforts that steer European policies in the right direction. 

Beth Hebditch, Policy Manager

This September I joined the CCSA’s UK Policy team, where my primary focus will be co-ordinating the CCSA’s Technical Working Group. During my first few weeks I have thoroughly enjoyed engaging with industry, committees, and policy makers on the technical aspects of CCUS research, planning and deployment.  

I have joined the team at an action-packed time as the CCUS sector reacts to crucial announcements (such as the £20 billion funding allocation and Track 2 cluster sequencing). With our members I am excited to explore the practical realities of CCUS policy as projects gain momentum and the UK’s industrial and energy sectors make considerable steps towards decarbonisation.  

The full CCSA team at our President’s Reception in July.

CCSA Blog: Delivering a just transition, by Lucy Hanlon, Policy Manager at SSE Thermal

Posted on: August 31st, 2023 by ccsaEditor

There are less than one billion seconds until the net zero deadline – a reminder from Siemens Energy’s vice president for the UK, Steve Scrimshaw, at a thought-provoking CCSA Member Discussion Forum that took place recently. While Steve’s “time is ticking” message was clear, so too was SSE Thermal’s view that we must incorporate social value into the heart of our energy transition.

This gathering of industry leaders was convened at our London offices and the attendees were left in no doubt that we must ensure we deliver a just transition as we move towards net zero.

Led by the CCSA’s UK Director Olivia Powis, the panel consisted of SSE Thermal’s Hannah Bronwin and Helen Sanders; Steve Scrimshaw; Mitsuaki Kato of Mitsubishi Heavy Industries; and Francesca Bell from CCUS Kickstarters.

The conversation was wide-ranging, touching on the need for CCS projects to be delivered, the importance of the supply chain and the need to ensure that communities aren’t left behind as we decarbonise the power system. Of particular relevance were the three key priority areas identified – the 3 Ps – which are crucial to delivering a just transition and protecting our domestic supply chains. These are Purpose, People and Place.

Purpose, People and Place

It is imperative that we decarbonise our power system on the way to net zero. Renewables will lead that charge, but we also need flexible generation to provide vital backup and this must be decarbonised in its own right. That is why low-carbon technologies like CCS and hydrogen are so important.

The Climate Change Committee (CCC) published a report which demonstrates that we need at least circa 17GW of low-carbon dispatchable power to be brought online by 2035. By decarbonising the power sector, we will not only support the net zero transition but provide new opportunities for those people working within the sector currently, while creating economic benefits for the regions in which assets are located.

Beyond the power sector, CCS can decarbonise industry, delivering clean steel and cement in the UK, leveraging our depleted gas fields to create a global competitive advantage and, in return, greater economic benefit. Having a purpose is nothing without people. CCS will provide essential jobs in our industrial heartlands which would otherwise be at risk as industry relocates. SSE is at the ‘pointy end’ of the transition and we have committed to reducing our carbon intensity by 80% by 2030. As we strive to meet that goal we have closed our coal-fired power stations, opened Europe’s most efficient gas-fired power station and are developing multiple low-carbon projects. The need to transition in a fair and just way is central to everything we do, and we recognise that we need a skilled workforce that can develop, design, construct and operate low-carbon assets. In the last two years, 900 people have joined SSE from high-carbon jobs and that is something we take great pride in.

We firmly believe that our low-carbon plans can create further opportunities – our proposed Peterhead Carbon Capture Power Station, for example, would deliver 1000 jobs during construction and support 240 jobs locally through its operational phase.

SSE has set out plans to invest up to £40bn across the next decade, with a focus on low-carbon infrastructure. Significant amounts of that investment will be focused on our industrial heartlands, which have been home to power generation for decades. We believe it’s essential that these heartlands are not left behind – they have so much to offer as we continue this net zero journey.

The role of CCS in that journey continues to be recognised, with the Government outlining £20bn in funding and now identifying four clusters in which carbon capture technology will be deployed. Now, we must all work together to ensure that workers and communities aren’t left behind while outlining the size of the opportunity to the local supply chain.

SSE Thermal’s Keadby site

CCSA Blog: What are the next steps for UK Carbon Capture, Utilisation and Storage (CCUS) from industry’s perspective? By Oly Moir, Partner at Slaughter and May

Posted on: June 30th, 2023 by ccsaEditor

For the first time the Carbon Capture and Storage Association (CCSA) held a Member’s Discussion Forum to consider the next steps for UK CCUS. Slaughter and May were delighted to host the event and to welcome senior industry representatives to our offices in London on 15 June.

The panel, chaired by Ruth Herbert (CCSA Chief Executive), considered the UK Government’s latest CCUS announcements and what’s next for Track-2, Track-1 expansion and beyond. I joined Chris Manson-Whitton (CEO of Progressive Energy Ltd), Guy Appleton (CFO and MD of New Energies at Kellas Midstream), Nicola Cocks (Head of Regulation and Policy at Storegga) on the panel.

We agreed that the UK’s geography presents a unique opportunity to successfully cover the UK’s CO2 storage needs and to develop a market for CO2 imports from the EU. The business models that are currently being developed by the Government with input from CCSA members are helping to build the right base to do so. However, these need to be sufficiently flexible to accommodate the CO2 markets of the future. A key focus of the discussion was, therefore, to assess what will be required both in the short-term and in the longer-term, to turn this opportunity into success.

My key take-aways:

Chris emphasised that the UK’s well-suited geology, the clusters of coastal emitters and the good overall strategy that is being deployed all present an excellent opportunity to develop a very strong and internationally competitive CCUS sector. Based on current projections, the UK has greater storage potential than is needed to meet the UK’s domestic emissions reductions targets. This opens the opportunity for the UK to offer storage to emitters from beyond its shores. Nicola’s vision captured this market potential, envisaging in the not all too distant future a ship leaving port in Germany and deciding, on a cost basis, to head to the UK rather than say Norway or the US, to deliver its CO2 cargo for storage.

The key to unlocking this potential is the rapid development of the UK’s CO2 transport and storage infrastructure that will form the cornerstone of the sector’s development. This needs to be operational as quickly as possible.

The announcements of the £20bn Government funding envelope, the Track-1 capture project negotiations, the Track-2 expressions of interest and the promise of an expansion to Track-1 capture projects have all been encouraging. But Ruth highlighted that industry is still awaiting the Government announcement of time-lines for Track-2 and Track-1 expansion. The panel observed that the lack of certainty as to when a project may be able to apply for support could, in the worst case, lead to projects that could have been viable being abandoned. To ensure that momentum is kept high, panel members called for a clear timeline setting out the stages for the expansion to Track-1 and the development of Track-2.

The current selection process, with lumpy allocation rounds and a lack of visibility on timelines for future rounds, runs the risk of congesting supply chains as projects seek to commission at the same time and making it difficult for projects to arrange longer term financing. The panel acknowledged and agreed with the need to focus on value for money. However, Guy emphasised that using the current approach for future rounds is likely to increase costs for projects and therefore ultimately drive down the value for money that can be offered.

We also discussed the importance of providing industry with visibility on the expansion of both the ranges of emitters eligible to apply and the types of storage covered by the business models, as well as on the role of shipping-based CO2 transport. It is time to make tangible progress on the business models Greenhouse Gas Removals and Power BECCS, and to provide clarity on how non-pipeline CO2 transportation can integrate into the transport and storage regulatory investment model.

The need to keep up momentum is important not only for achieving net zero targets but also for building strong supply chains and keeping expertise in the UK. Attention to detail in the business models and the more extensive protection against cross-chain risks, for example, were highlighted as key differentiators in the UK’s approach vis-à-vis the US’s tax credit-based approach under the Inflation Reduction Act. However, the US’s model, while potentially riskier for project developers, offers far greater investor certainty through its simplicity, which is in turn allowing for quicker development of projects and the establishment of supply chains and job creation.

Overall, the sentiment across the discussion was that the UK business models are approaching the right balance – and that DESNZ should be commended for the work done to-date in developing those models – , but, in the face of growing international competition, the UK must make sure that it takes full advantage of its strong starting position and avoids further delays which may result in both losing viable projects and the UK being left behind in the process of developing CCUS expertise and supply chains.

 

Take a look at our Member Discussion Forum highlights video here.

CCSA Blog: Recent CCUS announcements and delivering the next wave of clusters in the UK, by Ruth Herbert, CCSA CEO

Posted on: May 25th, 2023 by ccsaEditor

At the CCSA we’ve been taking some time to reflect on the momentous announcements over the past few weeks. I’m delighted to finally see the decades of hard work and collaboration between industry and government come to fruition. This is a pivotal moment which fires the starting gun on the UK CCUS industry. 

The Government’s Spring Budget announced £20billion of funding had been allocated for CCUS projects, an unprecedented recognition of the importance of CCUS in delivering net zero and boosting the UK’s economic growth. The funding means the initial Track 1 CCUS clusters can truly start moving forward with the first eight projects – a critical springboard for the UK industry to further develop and a kickstart for the decarbonisation of North-West and East Coast of England. The funding will provide operational payments to cover the use of carbon capture on power, industry and hydrogen production and this will unlock private sector capital for its construction.  These eight projects will collectively capture and store around seven million tonnes of CO2 a year and create thousands of jobs.  

These projects are just a small proportion of what is required to reach Net Zero. But they represent just one tenth of the current project pipeline, demonstrating the scale of the opportunities in front of us.  Last year the CCSA identified over 70 million tonnes of carbon emissions from around the UK which could be abated with Carbon Capture and Storage by 2035. Delivery of all of these projects would keep the UK on track with its Net Zero Strategy trajectory and provide significant economic benefits to disadvantaged regions.  

Critically, this is not just a Net Zero opportunity. The CCUS pipeline can provide 70,000 new jobs, as well as protecting 77,000 existing jobs, across the UK’s industrial heartlands, all while positioning our country to export low carbon products and CCUS skills and services around the globe. There is more to do and the necessary next steps are set out in Chris Skidmore MP’s Net Zero Review recommendations.  

We urgently need to see a clear CCUS deployment plan for the whole of the UK. To have a fighting chance of reaching Net Zero and leading the low carbon industries of the future, it is vital all of the industrial clusters across the UK get up and running with carbon capture and storage as soon as possible. 

Delivery of this plan offers an exciting, near-term opportunity to put our industrial regions at the forefront of the next industrial revolution – leading the way in the transition to a global low carbon economy in the same way as British industry led the world in the first industrial revolution. So great is this opportunity – the kind that only comes every few hundred years – other countries are racing to take up the mantel. Both the US Inflation Reduction Act and the EU’s Green Industrial Plan and Net Zero Industry Act set out powerful CCUS measures.  We risk falling behind despite the UK’s 18-year head start (the CCSA was established in 2006).   

We need a longer-term commitment to remain an attractive proposition to investors and to develop our own supply chain. Ahead of the Spring Budget, the CCSA made a Budget Submission requesting funding to cover the period to 2035. We believe this would provide sufficient forward visibility to develop a UK-based supply chain capable of both servicing the UK project pipeline and exporting technology and services to other emerging CCUS markets. We will keep up the pressure on the Government to deliver this. 

The recently announced Track 1 expansion will provide an important opportunity for the remaining shortlisted projects, as well as new projects. The expansion will launch later this year and government is expected to engage with the sector on delivery shortly. We urgently need to see more detail before the summer regarding the timeline for the expansion, the eligibility criteria, and what the industry can expect going forward. 

The Track 2 process for the next two CCUS clusters was also launched at the end of March. It’s important this process moves forward quickly if the UK is to meet its 2030 target of storing up to 30 million tonnes of CO2 a year. However, we are still awaiting further details on the timeline and criteria for selecting capture projects under Track 2.  

The Chancellor has said he will be setting out the UK’s response to the US Inflation Reduction Act and the EU Net Zero Industry Act this Autumn. While I am relieved to hear the UK will not sit back and shrug its shoulders as good people and projects leave the UK, the question on everyone’s lips is “can he afford to wait that long?”. Boards are already impatient to see the case for continued and new investment here in the UK. It is time for the government to set out its stall – persuasively – and action a swift response: every week counts in the race to build this industry. 

There is a powerful case to make. The UK is blessed with significant CO2 storage capacity in the North Sea and the East Irish Sea, and a strong offshore skills base, both of which make us uniquely placed to become one of the global leaders on CCUS deployment.  Critically for long term planning, there is widespread political consensus around CCUS’ vital role in reducing industrial emissions and enabling a Net Zero power system, as evidenced by the recent second reading of the Energy Bill in the House of Commons. The Bill provides an investable regulatory framework for CO2 transport and storage and world-leading carbon capture business models that minimise subsidy and provide long-term contractual certainty to investors.   

All that is needed to create a haven for CCUS development is an injection of confidence to take the big decisions, to accept some inevitable risks and to set aside any philosophical discomfort with the “build it and they will come” approach which is being pursued elsewhere.  The UK has developed a strong framework for a new industry – it just needs to turn on the funding tap and watch the inward investment flood in.   

The counterfactual of continuing to constrain the roll-out of CCUS through extended allocation processes will slam the brakes on the UK economy as private investment across a range of key ‘economic lifeblood’ sectors, such as manufacturing, energy and transport is either put on hold or finds another home.  Where civil servants and regulators need more resources to move at pace they should be given them, and quickly.  There is no option for the UK economy to stand still in this global race for the ‘once in a century opportunity’ – we have to speed up or we will be left behind. 

The UK’s CCUS policy has made tremendous progress in the past few months. I’m thrilled the industry is finally able to advance towards delivering the first eight projects on the ground. It really does feel like the official beginning of CCUS implementation in the UK.   

Just think what could be achieved with a bit more ‘bounce’ in the springboard. 

 

Current CCUS cluster proposals in the UK

CCSA Blog: Looking back at the CCUS 2022 Conference, by Murillo Salvador, CCSA EU Communications and Events Officer

Posted on: November 25th, 2022 by ccsaEditor

When I arrived in London on the week of 17 October, the air was full of tension. The whole country was in a critical state. The negative consequences of both the climate and energy crises converged, and the government was on the brink of collapse. In a strangely positive way, our CCUS 2022 conference could not have been more timely.

Many of these themes – energy, climate, jobs, justice and the transition – were discussed during our conference. There were protesters, too. And it was a pleasure to witness these discussions. The panels, mixing speakers from across the continent, pointed at the clear momentum we now see in Europe for carbon capture and storage, as well as carbon removals. Enabling these discussions was but one aspect of the increasing coordination between CCSA’s Brussels and London offices, reflecting the need for Europe to tackle challenges together.

There were many speakers from the EU at the conference. Take for instance the session on strengthening cooperation for cross-border transport of CO2 (recording here). The panellists explained how policy can build confidence into the value chain, providing legal predictability for investors and generally speeding up deployment across Europe. The need to enable storage capacity was stressed by a European Commission official, with 4.6 million tonnes of CO2 that will need to be stored by key EU-funded projects between 2028-29.

I was delighted to meet so many of our members at the event, even if only briefly as I ran around backstage, fuelled by coffee, doing my small part to ensure that everything went smoothly. It feels particularly good to contribute towards making such a grand (and in-person!) event happen, after the successive lockdowns and pandemic.

This sounds like common sense: Wandering around the coffee breaks, the buffet, and the drinks reception, it was clear to me that bringing people together is extremely important. I hope that all delegates left the venue with their pockets full of business cards, and questions to follow up on and relationships to develop. This is also what the conference was all about.

There will be opportunities to meet and pick up the discussions again next year. A European conference will take place in the Spring and the annual CCUS Conference will also return in the Autumn. Our Brussels office remains open and actively engaged and we warmly welcome you to come and visit us on the 6th floor of Avenue des Arts 44.

Check out this page to read a summary of the CCUS 2022 conference, download the presentations and view photos and videos from both days.

CCSA Blog: CCUS in the Energy Bill – Why policy is key to delivering Net Zero, by Joe Butler-Trewin

Posted on: August 3rd, 2022 by ccsaEditor

During my first week with the CCSA, London was baking in 40-degree heat. This followed a trend of ever-increasing global temperatures. I could not help but think that while I sweltered on my commute, this should come as a stark reminder that our planet needs help.

My background is strategic communications campaigns and public relations. Having previously worked for an MP with a focus on green industrialism and climate protection, I am incredibly excited to join the CCSA as their new Communications & Public Affairs Officer.

I was pleased, on my first day no less, to be reading the Government’s Energy Security Bill, and preparing for its 2nd Reading in the House of Lords. One of the key aims of the bill is to accelerate the growth of carbon capture and storage by putting in place enabling powers for the setting up and scaling up CO2 transport and storage networks across the UK. This a big step forward towards delivery of the UK’s Net Zero Strategy, which relies on the CCUS industry to capture and store over 50 million tonnes by 2035 if the UK is to remain on track to reach Net Zero emissions by 2050.

The potential of CCUS to not only help protect the environment but also to create approximately 10,000 high skilled jobs and protect up to 50,000 traditional, heavy industry careers by 2050. It’s great to see that the bill will work to incentivise businesses to build and operate CCUS initiatives by using business models such as capital and operational support funding. However, a clear deployment plan, setting out how revenue support contracts will be awarded is needed as soon as possible to maintain the level of Industry investment in project development required to meet 2030 deployment targets.

As laid out in our CCUS delivery plan 2035, the CCSA believes that an accelerated capture and storage build out rate should be pursued to reduce deployment costs and exploit the supply chain and export opportunities arising from this new global industry. The Energy Bill is a strong step from Government in establishing the UK as a global leader of CCUS and a champion of Net Zero energy and clean manufacturing – saving the planet can be good for the economy too!

CCSA Blog: CCUS Delivery Plan 2035 – The time to deliver is now, by Ruth Herbert CCSA CEO

Posted on: March 31st, 2022 by ccsaEditor

With recent record high temperatures at both of the Earth’s poles, it is clear that we cannot afford another moment of delay in combating the climate emergency.

Carbon Capture, Utilisation and Storage (CCUS) is a crucial tool in addressing this emergency, and I believe we can deliver the scale of CCUS required to meet the UK’s Net Zero pathway, rapidly reducing our emissions and leading in the development of this vital low-carbon technology.

In November 2021, the UK Government published its Net Zero Strategy which set a target for reducing Greenhouse Gas emissions to 78% below 1990 levels by 2035 – in line with the Sixth Carbon Budget. The strategy sets out pathways for the deployment of low-carbon technologies that can deliver the deep cuts in our emissions required over the coming decades.

Carbon Capture has been around for decades and when combined with permanent storage, it can be used to abate emissions at source or remove greenhouse gases directly from the atmosphere. The Net Zero Strategy envisages that the UK will need to store up to 30 million tonnes of CO2 a year by 2030, rising to at least 50 million tonnes a year by 2035 to remain on a pathway consistent with achieving Net Zero by 2050.

The strategy includes a number of envisaged pathways for capture and storage of emissions from power, industrial and hydrogen production plants, as well as for greenhouse gas removals through Bioenergy with CCS (BECCS) and Direct Air Carbon Capture and Storage (DACCS). The Net Zero Strategy also requires the UK power sector to be fully decarbonised by 2035, subject to security of supply, and this will require a proportion of  carbon capture on gas-fired power stations and switching to CCUS-enabled (blue) hydrogen.

Ambition and government strategies are one thing. Delivery is another. Our CCUS Delivery Plan 2035 is the industry’s response to these ambitions. We can and must deliver, and we need to act now to stay on the pathway to meeting the Sixth Carbon Budget.

Only by building all the major projects currently under consideration in CCUS clusters and deploying CO2 shipping and other non-pipeline transport solutions alongside rapid CO2 pipeline network and storage development, can we meet the UK Governments 2035 ambition. Given the long lead in times for this infrastructure, the clear message from industry is that ‘2035’ is essentially ‘now’ in terms of the urgent need to plan the roll-out of CCUS across all regions in the UK.

CCUS is crucial for the competitiveness of the UK. Deploying CCUS in all of our industrial heartlands will provide an opportunity to lead the global green industrial revolution and reduce our reliance on imports with new UK products, such as clean steel, clean cement and clean hydrogen, and attract inward investment through our offer of a clear route to decarbonisation for heavy industries. As one of the first movers on CCUS, there is also a huge opportunity to exploit our world-leading skills and plentiful offshore storage capacity to offer decarbonisation services to Europe.

Providing there is more clarity on greenhouse gas removals and non-pipeline transport, the work on business models looks set to deliver a viable investment framework. What is now required to unlock that investment, and further develop the CCUS project pipeline, is a UK Government commitment to a steady build-out rate through a multi-year programme of contract allocation rounds, similar to the 2013 Electricity Market Reform (EMR) Delivery Plan that enabled the scale up and cost reduction seen in offshore wind over the last decade.

I believe by bringing together the CCUS industry, UK Government and other stakeholders we can make this vision a reality. By implementing the actions set out in the CCUS Delivery Plan 2035 we can play a leading role in combating the climate emergency and give our industrial regions the opportunity to lead the green industrial revolution.

The time to deliver CCUS is now.

 

For more information, read the full ‘CCUS Delivery Plan 2035’, watch the ‘Delivery Plan Animation’ and for further insight be sure to watch an overview discussion of the report from the CCUS APPG chaired by Alex Cunningham MP which is available on demand on our website.

 

 

 

COP26 – Keeping The Momentum Going, by Ruth Herbert CCSA CEO

Posted on: February 15th, 2022 by ccsaEditor

Welcome to the Carbon Capture and Storage Association’s (CCSA) new blog – where we will post stories, reviews and opinions on a variety of current CCUS topics in the UK, Europe and internationally.

I joined as CEO of the CCSA in October 2021, and it has been a busy few months to say the least!  In October 2021, on my second day in post, the UK Government announced the first CCUS projects that will be taken forward under Track1 of the CCUS Cluster Sequencing process, namely the HyNet North West cluster and the East Coast Cluster, with the Scottish Cluster announced as a reserve cluster.

On the same day, the UK Government published the Net Zero Strategy – which set out a new target for CCUS of 20 – 30 Mt carbon dioxide to be captured and stored each year by 2030. This is a three-fold increase of ambition from the Ten Point Plan target of 10 Mt per year, agreed less than a year before. No sooner had we had a chance to digest this news before it was time to travel to Glasgow for COP26. The last COP I attended was COP15 in Copenhagen in 2009, whilst Head of International CCUS at DECC.  Whilst COP15 was a similar event in terms of number of people attending, it could not have been more different with regard to CCUS. At COP15, CCUS did not receive much attention, whereas COP26 saw CCUS rising up the agenda, driven by the need to consider how to achieve Net Zero across the global economy.

In terms of events, the CCSA was involved in seven CCUS side events, including an official UNFCCC broadcast event with our COP26 Partners; IEA GHG, University of Texas at Austin, International CCS Knowledge Centre and Bellona.  This level of exposure was unprecedented, with some 32 CCUS events taking place over the course of the two weeks.

Inside the negotiating rooms where the real action was, progress was made on several key areas –finalisation of the rules for Article 6 of the Paris Agreement, creating the framework for a global carbon market; the Glasgow Climate Pact commitment to phase down unabated coal power; and the pledge to mobilise $500bn by 2025 to help developing countries adapt to climate effects, as well as the commitment to update Nationally Determined Contributions (NDC) again by the end of 2022. The agreement on Article 6 rules makes the Paris Agreement fully operative and the wording implies that the global carbon market will be technology neutral, meaning it should be applicable to both CCUS and carbon dioxide removal (CDR) technologies.  As always, the devil will be in the detail, and we will have to wait to see the further recommendations requested by the Parties on Article 6 definitions, to understand how the framework will be applied.

Three months on, I’m keen to see the UK government maintain the positive momentum of COP26 and keep the pressure on countries to consider the important role CCUS and CDR technologies can play in realising Nationally Determined Contributions, creating an environment for these technologies to flourish and therefore get us on track to reach net zero goals and limit global warming to 1.5°C.

For more insights on COP26 be sure to watch our webinar ‘CCUS reflections from COP26 and international CCUS developments’ with fellow panellists Tim Dixon (IEAGHG) and Guloren Turan (GCCSI) available on demand on our website.