CCUS priorities in first 100 days of the new government

The Carbon Capture & Storage Association (CCSA), the leading association accelerating the development and deployment of CCUS, recommends five immediate steps that the Government needs to take in their first 100 days in office to ensure the successful development of CCUS in the UK.

The five immediate steps are:

1. Secure Final Investment Decisions (FIDs) for Track-1 Clusters in the Cluster Sequencing Programme by September
2. Publish a delivery roadmap for Track-1 expansion and Track-2 clusters
3. Clarity on revenue support envelopes
4. Allocate Green Industries Growth Accelerator (GIGA) to the supply chain
5. Continue to make progress on market mechanisms that will reduce direct subsidies and drive widespread deployment

By undertaking the above five steps in the first 100 days of Government, the UK can achieve first mover advantage in the global CCUS race, create a new industry, decarbonise British businesses, protect and create jobs, and attract inward investment.

Download the full CCUS priorities in the first 100 days of the new government document here.

17 July 2024, London – The Carbon Capture & Storage Association (CCSA) welcomes important legislation in the King’s Speech that enables progress on deploying carbon capture and storage projects across the UK; helping to support a low carbon economy and fostering economic growth.

The introduction of Bills to establish GB Energy, set up the National Wealth Fund (which has already committed £1bn to accelerate the deployment of carbon capture projects), future-proof The Crown Estate, and enact reforms to planning and skills, are all important to the development of the UK Carbon Capture, Utilisation and Storage (CCUS) industry.

The development of GB Energy, one of the Labour Party’s flagship election promises, is key in supporting the development of low-carbon energy technologies, including CCUS and low carbon hydrogen.

Reforms to The Crown Estate and planning system, the creation of a new skills body – ‘Skills England’ – and the announcement of funding support for the Sustainable Aviation Fuel industry, will ensure we have the right planning framework in place for a successful CCUS industry. This will provide investors with confidence that the UK is a safe place to invest and do business.

Since being elected, important policy decisions from the new Government have bolstered investor confidence in the UK’s low-carbon energy infrastructure. With the legislative agenda for the next Parliamentary session clearly focused on energy security and growth, the Government has an exciting opportunity to decarbonise British industry through delivering low-carbon infrastructure projects, including CCUS and hydrogen production.

The CCUS industry is on the cusp of deploying these projects at scale across industrial heartlands, and accelerating the Programme could secure almost £30bn in private sector investment by 2030, deliver 70,000 new jobs and protect 77,000 more in existing carbon-intensive industries.

Key legislation:

• Great British Energy Bill – to establish the framework for Labour’s energy and climate policies, and the creation of GB Energy.
• National Wealth Fund Bill – to create a National Wealth Fund, unlocking £7.3bn to deliver growth and drive a greener economy, as well as mobilise additional private sector investment.
• Sustainable Aviation Fuel (SAF) Bill – to establish a revenue support mechanism for SAF producers who are looking to invest in the UK.
• The Crown Estate Bill – to modernise The Crown Estate by removing outdated restrictions and widening its investment and borrowing powers.
• Planning and Infrastructure Bill – to make improvements at a local planning level and support the development of critical infrastructure.
• Skills England Bill – to create ‘Skills England’, a new body to lead an assessment of England’s skills landscape and ensure skills can meet demand to deliver net zero and drive growth.
• Budget Responsibility Bill – to ensure all significant tax and spending announcements are subject to independent assessment by the Office for Budget Responsibility.
• English Devolution Bill – to enhance the powers of local leaders and devolved administrations over strategic planning and growth strategies.

The CCSA is urging the Government to maintain momentum on the CCUS Cluster Sequencing Programme to ensure the UK remains a global leader in this vital technology.

Ruth Herbert, Chief Executive of the CCSA said:

“The King’s Speech is a key indicator of the Government’s priorities, and we are pleased to see low carbon energy and the net zero economy at the heart of its legislative agenda.

“This is an ambitious program of legislation, and we look forward to working with the Government and MPs from across Parliament to ensure that these important bills are brought into law and support the UK’s journey to a clean, fit-for-the-future energy system that creates jobs and grows our economy.”

“With the Prime Minister stating that he wants to take the brakes off Britain, we need to see this ambition applied to CCUS projects, where there is up to £30bn of private investment waiting to be deployed across the UK’s industrial regions. The Government has a window of opportunity to secure Final Investment Decisions on Track-1 CCUS clusters in the North-West and North-East of England by September – infrastructure that will deliver industrial decarbonisation, clean hydrogen and flexible low carbon power.  We have a very exciting opportunity here in the UK to deliver the world’s first large scale integrated CCUS clusters. With investors watching closely, it is vital that these projects are given the go-ahead immediately”

“The industry also needs clarity on project selection for the expansion of the first two clusters and the development of Track-2 clusters in Scotland and South Humber. This will enable employers that need CCUS operational by 2030 to continue with their planned investments, securing jobs and economic growth where it is most needed.”

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 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 100 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 such as power, industry, waste, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please contact Joe Butler-Trewin on 07908 141 067/ joe.butler-trewin@ccsassociation.org

[End]

[London, 10 July 2024] – The Carbon Capture and Storage Association (CCSA) has welcomed the appointment of Chris Stark to head the Government’s new ‘Mission Control’ team, tasked with delivering clean power by 2030 by “breaking down barriers and accelerating progress on energy projects”.

The Mission Control for Clean Power will focus on four key strands of activity:
• Setting and tracking the overall approach to delivering 2030 across the energy system
• Real-time monitoring of progress on UK infrastructure projects critical to 2030
• Acting as an innovation centre by encouraging discussion among experts
• Serving as a convener for the Mission Control approach across government and with industry

The body will be led by Chris Stark, the former Chief Executive of the Climate Change Committee (CCC). Stark will bring together a team of industry experts and government officials as part of ‘Mission Control’ to troubleshoot, negotiate and clear the way for energy projects with “laser focus.”

Mission Control is set to will work with energy companies, the regulator (Ofgem), National Grid and the Energy System Operator to identify and remove obstacles in the delivery of the clean energy mission.

To make the UK a clean energy superpower, carbon capture and storage has a key role to play. The rollout of power carbon capture, utilisation and storage (CCUS) is important for the development of the future energy system. It provides low carbon power generation, enabling more renewables on the system, enhancing energy security.

Ruth Herbert, Chief Executive of the CCSA, said:

“This decision demonstrates that the Government understands the urgency needed to deliver net zero at pace.”

“Carbon capture and storage (CCS) is an essential component of any pathway to net zero power by 2030. We want to see the laser-focus of the mission control applied to the delivery of CCUS Clusters, which are essential to reduce our power and industrial emissions, support jobs and grow our economy.

“Chris Stark is the right person for the job and has a wealth of experience on climate and energy, and understands the urgency required from his time at the CCC – we very much look forward to working closely with him to accelerate the pace on CCUS.

Olivia Powis, UK Director of the CCSA, said:

“The energy sector is at the heart of the UK’s transition to net zero emissions, and we welcome this strong signal from the Government that it is taking the responsibility of delivering projects seriously.

“We look forward to working with Chris and his team as we make progress in deploying CCUS projects. One of the first priorities for Mission Control should be supporting the signing of Final Investment Decisions for Track-1 CCUS clusters in the North West and North East, which will deliver 860MW of flexible low carbon power and over 850MW of low carbon hydrogen production by 2030”.

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 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 100 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 such as power, industry, waste, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors. 
   
For media enquiries please contact Joe Butler-Trewin on 07908 141 067/ joe.butler-trewin@ccsassociation.org
 
[End]

Today Clarksons, supported by the Carbon Capture & Storage Association (CCSA), publish a report on “Updated Costs for CO₂ Ship Transport”. This study was scoped and led by Clarksons, with peer review provided through the CCSA’s Non-Pipeline Transport working group.

The primary purpose of the report is to provide guidance on the likely cost of transportation of liquefied CO₂ by ship, given current price conditions (at time of publishing), and to build on CCSA’s previous publication ‘Achieving a European market for CO₂ transport by ship’ on the crucial role of shipping for CCUS in Europe. The report provides a useful benchmark on the expected costs of multiple aspects of the shipping value chain and supports an increase of knowledge throughout the CCUS sector with its publication.

With shipping transportation an essential component of the future CO₂ transport system and an integral enabler for the deployment of many dispersed and cross-border CCS projects, it is essential to explore the potential cost and opportunities of this developing market.

The report focuses on a number of example trade routes within Northwest Europe, selected only to give a broad comparison of different possible costings, and should not be considered as any indication of market development. Ship transport is expected to benefit a large number of clusters and projects beyond those routes described in the report.

Whilst no study can replicate the results which might be obtained in an established market where the infrastructure is in place, cost factors are known, and firm shipping requirements can be placed into the market; the results of this study give a theoretical but near realistic estimate. The report provides helpful insights into the different parameters which can affect the cost of CO₂ transportation by ship and demonstrates that shipping CO₂ is a viable option for multiple clusters and routes across Europe, including but not limited to those included in the study.

Read the full report here.
Visit the Clarksons website here.
Clarksons can be contacted at CO₂@clarksons.com