CCUS industry welcomes Committee on Climate Change report and challenges the Government to raise its ambition

The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture Utilisation and Storage (CCUS) industry in the UK, has welcomed the publication of the Committee on Climate Change’s net zero report.

This follows news in March confirming the formation of the CCUS Advisory Group which will work with Government to develop an investment framework necessary to deliver the first CCUS projects in the 2020s. In April the BEIS Select Committee’s report on CCUS also called for the Government to raise its ambition, calling for three clusters to be developed by 2025.

Luke Warren, Chief Executive of the CCSA, said:

“As the Committee has emphasised in this report, CCUS is a necessity, not an option, if we are to achieve net zero emissions by 2050. The Government’s current plan to develop one CCUS facility by 2025, with an option to deploy at scale in the 2030s, is not consistent with this ambition. We therefore look forward to working with the Government as it responds to this challenge, by cementing CCUS as an essential pillar of its net zero strategy.”

Paul Davies, Chair of the CCUS Advisory Group said:

“The CCC has identified that all options for achieving net-zero emissions in the UK require a significant role for CCS. They have understood that the deployment and development of appropriate business models is needed to bring in sustained significant investment from the private sector. This requires long-term policies and a stable commercial structure attractive to investors; precisely what the CCUS Advisory Group is designing with Government. This will give industry and Government the ability to invest in CCUS at scale, realising the ambitions of the IPCC, BEIS Select Committee and the CCC. With these commercial structures in place; the time to invest is now.”

• Energy and Clean Growth Minister Claire Perry welcomes new partnership between industry and Government
• New CCUS Advisory Group will bring together experts to help develop the CCUS market in the UK

Claire Perry has today welcomed the formation of a new CCUS Advisory Group which will include industry, finance and policy experts to help deliver the Government’s CCUS Action Plan published in November.

Government and industry are working together to develop the cost structures, risk sharing arrangements and the necessary market mechanisms that will create the stable investment framework necessary to deliver the first CCUS projects by the mid-2020s. The Group will make policy recommendations backed up with detailed modelling and evidence to support their conclusions.

This follows several positive Government announcements made at the end of last year. In November the Government published their CCUS Action Plan which committed to delivering the first CCUS project by the mid 2020s. A few weeks later Claire Perry confirmed that £170 million would go towards developing the world’s first net zero cluster of heavy industry by 2040, with CCUS expected to play a key role.

Speaking at the CCUS Council today, Energy and Clean Growth Minister Claire Perry said:

“The UK will continue to thrive as a world leader in clean growth technologies like carbon capture through our ambitious modern Industrial Strategy. The new advisory group will help ensure that we take full advantage of the potential of this emerging industry, with a view to deploying the first CCUS facility in the UK from the mid-2020s.”

Paul Davies, Chair of the CCUS Advisory Group said:

“Forming the CCUS Advisory Group is a great step forward, as the public and private sectors will now work together to develop a detailed commercial framework to underpin CCUS delivery in the UK. This is a key crucial initiative necessary to ensure the first projects are operational by the mid-2020s”.

Luke Warren, Chief Executive of the Carbon Capture and Storage Association said:

“2019 needs to be the year of action on CCUS if we are to commission the first projects by the mid-2020s and deploy at scale in the 2030s. In the year when the Government will consider how to achieve net zero emissions, all the evidence points to CCUS being essential if we are to have any hope of reaching the goals of the Paris Agreement. The establishment of this new Advisory Group shows that Government and industry are prepared to work together to make this happen, and the CCSA looks forward to supporting the Government’s ambition of becoming a world leader in this crucial technology.”

• Government publishes much anticipated action plan on CCUS Deployment
• Industry welcomes Government recognition that action is needed now to develop the first project by the mid-2020s

Today the Government have confirmed that the first carbon capture usage and storage (CCUS) project in the UK could be operational by the mid 2020s as part of a new Action Plan announced at the world’s first international CCUS Summit.

The Carbon Capture and Storage Association (CCSA), the trade body for the CCUS industry in the UK, has welcomed the news. If deployed at scale in the UK, CCUS technology could boost regional growth in our industrial heartlands, create a world-leading green industry and drive deeper decarbonisation across the UK economy, in particular in the harder to reach sectors like heavy industry, heat and transport.

Luke Warren, Chief Executive of the CCSA, said:

“These are exciting times for those developing CCUS in the UK, and this announcement represents an essential step forward for this vital industry.

If we are to have any hope of meeting our existing climate change targets, let alone achieving net zero emissions, we must support the commercialisation of CCUS today. The Government’s announcement in Edinburgh recognises the need for urgent action, with a commendable commitment to develop the first project by the mid-2020s as a first step towards having the ability to deploy CCUS at scale.

The Government have today stepped up and shown global leadership by committing to this ambitious and deliverable action plan. We look forward to working with Government over the next year on how to deliver a number of regional CCUS clusters that will be needed to achieve commercial scale deployment.”

• Trade body CEO calls for commitment to develop at least two regional Carbon Capture, Utilisation & Storage (CCUS) clusters
• Parliamentary Committee told that action now could make the UK a global pioneer in CCUS technology
• Government CCUS Deployment Pathway due to be published imminently

Today, industry experts urged the Government to commit to a clear, deliverable and ambitious deployment pathway for CCUS this year, in order to capitalise on the UK’s potential to lead the way in delivering this crucial technology at scale.

MPs from the Business Energy and Industrial Strategy (BEIS) Select Committee were told that failure to act now could sacrifice a prime opportunity for the UK economy and would make it near impossible for the country to hit its existing climate targets.

The UK has one third of Europe’s carbon dioxide storage capacity, and as much as the rest of the EU combined – creating a potentially significant market opportunity to ‘sell’ storage space. It also has the considerable assets, infrastructure and skills needed to become Europe’s leader in developing the technology.

Deployment of CCUS would also benefit important regional economies, preserving and creating jobs in our industrial heartlands. Five areas have been identified as being particularly suited to becoming CCUS clusters; Teesside, Yorkshire & the Humber, the North West, Scotland & South Wales.

The Government is due to publish its CCUS Deployment Pathway imminently, possibly within weeks. In order for the UK’s potential to be realised, industry has called on the Government to commit to developing at least two regional CCUS clusters as recommended by the CCUS Cost Challenge Taskforce.

Luke Warren, Chief Executive of the Carbon Capture and Storage Association, said:

“Despite an impressive reduction in our power sector emissions over the past decade, the UK stands at a climate change crossroads. In order to have any hope of meeting our existing climate change targets, we need to drive deeper decarbonisation in heating, transport and heavy industry.

“CCUS, and its suite of enabling technologies, can decarbonise these harder to reach sectors, whilst at the same time ensuring our industrial heartlands remain competitive for decades to come.

“The UK wind industry is a perfect example of what can be achieved with commitment, a strong supportive framework and collaboration between industry and Government. If the Government now does its bit by committing to develop at least two regional CCUS clusters, this industry could become another success story, positioning the UK as a leader in a significant global market.”

The Carbon Capture Usage and Storage (CCUS) Taskforce today presents its report to Government, setting out its recommendations on how the UK can bring forward CCUS and deliver on its ambition of becoming a world leader in this crucial technology. The report sets out the enormous opportunity and value that CCUS delivers across the UK economy and emphasises the need for urgency to enable CCUS to fulfil its role in achieving the lowest-cost route to meeting the UK’s statutory climate change targets.

The overall conclusion of the Taskforce, which was chaired by Charlotte Morgan, Energy and Infrastructure partner at Linklaters, is that CCUS meets the three commitments set out in the Clean Growth Strategy; reducing emissions in the most cost-effective way, maximising innovation and making the UK a global technology leader. The UK is uniquely placed to grasp the CCUS opportunity, with the potential to develop a large export market delivering significant economic benefits for the UK.

The report recommends a number of key actions and messages, including:

• A minimum of two CCUS clusters (incorporating capture plants and CO₂ stores) operational from the mid-2020s.
• The development of CCUS clusters delivers value across the UK economy by enabling low-carbon industries and electricity as well as unlocking other benefits such as decarbonised hydrogen for heating, greenhouse gas removal and carbon dioxide utilisation.
• The development of a new business model for CO₂ transport and storage, separate from that which is used for the capture plant.

Dr. Luke Warren, Chief Executive of the CCSA, commented:

“After six months of intense discussions between a number of key CCUS stakeholders, the message from today’s report is clear: CCUS can already be deployed at a competitive cost, through the development of CCUS clusters in key UK regions. These clusters could support clean growth across the UK economy whilst retaining and creating high value jobs in some of the UK’s most important industries.

The Government has committed to publishing a CCUS Deployment Pathway by the end of 2018. The next five – six months therefore represent a crucial period for CCUS. It is imperative that industry and Government now work together to ensure that the recommendations set out in today’s report are taken forward and reflected in a strong and ambitious new approach to CCUS.”

The Carbon Capture and Storage Association (CCSA) welcomes the announcement from Drax that it will launch a new pilot bio-energy CO₂ Capture project at its power station in North Yorkshire. The project, which will be undertaken in partnership with Leeds University spin-out company C-Capture, will investigate a new solvent to capture emissions from the biomass flue gas at the Drax power station. Capturing CO₂ from biomass and permanently storing the CO₂ – known as bio-energy CCS or BECCS – enables the removal of carbon dioxide that is already in the atmosphere.

Dr. Luke Warren, Chief Executive of the CCSA, commented:

“Today’s announcement represents an important step forward in the development of technology that can capture and store carbon dioxide from sustainable bio-energy to deliver negative emissions.

It is clear that negative emissions are likely to be needed if we are to deliver on UK and global climate change goals.

The UK Government is currently developing a CCUS Deployment Pathway, which is due to be published by the end of this year. It will be important to ensure that BECCS is part of this pathway alongside the development of CCUS to reduce existing emissions from industry, heat, power and transport.”

In response to today’s Norwegian Government Budget announcement to allocate €29.2 million to the continued development of the large-scale industrial CCS programme, Dr Luke Warren, Chief Executive of the CCSA, commented:

“We are encouraged to see that the Norwegian Government has today moved a step closer to realising a Norwegian industrial CCS cluster.

The commitment to further studies for both the Norcem cement plant and the Klemetsrud waste-toenergy facility is globally significant – as both of these would represent world-first low-carbon industrial projects through CCS, enabling these industries to contribute to clean growth.

The Norwegian Government will also take forward the development of CCS transport and storage infrastructure on the west coast of Norway. Developing CO₂ storage assets for Europe is of vital importance to meet Paris Agreement climate targets and to decarbonise some of our most important industrial sectors.

The UK is due to publish its CCUS Deployment Pathway by the end of this year. We must ensure that this Pathway delivers a strong new approach to CCS that places the UK alongside Norway as a global leader in this vital technology and makes full use of the UK’s expertise and strategic CO₂ storage assets”.

The Norwegian Government announcement can be found here.