A NEW CLIMATE FOR CARBON CAPTURE
On 4th October Summit Power has released a new study showing that an East Coast Carbon Capture and Storage (CCS) network could boost the UK economy by an estimated £160 billion between now and 2060. The report provides the first, quantified societal cost benefit analysis of a UK network of CCS investments and finds that the benefits of the scheme could outweigh costs by as much as £129 billion.
Under the proposed scheme, dedicated CO2 infrastructure would link clusters of major industry and power generation in Scotland, Teesside, the Humber region, and the South East, to CO2 transport and offshore storage infrastructure in the UK Continental Shelf. Importantly, the study shows that investments along the East Coast can be managed in steady and discrete phases to ensure each step is affordable and delivers the expected benefits.
Stephen Kerr, Project Director of the Caledonia Clean Energy Project, who led the study said,
“This work reframes the understanding of how investing in infrastructure that cleans up industry, air quality, and even your gas boiler, can benefit all of us. The value to UK society is enormous: over £160 billion in added value to the economy and jobs numbers equivalent to the UK oil & gas sector. Summit Power’s Caledonia Clean Energy Project is ready to deliver at Grangemouth, at the heart of an East Coast CCS Network.
“We’ve shown that for every £1 invested in Carbon Capture, the payback to the UK economy is almost £5. In the medium term, the strategic value to the UK in offering Europe-wide CO2 storage services is undeniable, and could more than double these numbers. We’re already seeing Norway take a strategic lead in this area and its vital the UK isn’t left behind. Strong leadership and a clear approach are now required to deliver carbon capture benefits in our economy, our industries and our climate”.
The study was completed by Summit Power Caledonia, with industry and academic collaboration from Industria Mundum AG, Pale Blue Dot, Tees Valley Combined Authority and the University of Strathclyde.
Sam Gomersall, Commercial Director at Pale Blue Dot Energy said: “CCS is critical to decarbonise heat, transport, industry and power. Its diverse application to support carbon reduction is its key strength. The study shows that CCS can create significant value for the UK, in making use of the resource potential that we have in the supply chain and in CO2 storage capacity. Our Acorn Project in North East Scotland has the potential to get CCS underway by 2022”.
Ben Houchen, Tees Valley Mayor, said: “The economic and environmental benefits from carbon capture and storage are significant - and the East Coast CCS Investments Study backs this up. On Teesside, we can make progress on developing the necessary infrastructure with a small level of Government support.
“Teesside Collective is a major driver of CCS in the UK and regions like the Tees Valley will see increased industrial competitiveness and inward investment from the development of a CCS market – a ‘win’ for both Government and industry.
“I have recently-established a Mayoral Development Corporation on the South Tees industrial site overseeing an area of 4,500 acres, which includes the site of the former SSI steelworks in Redcar, and access to one of the UK’s largest deep water ports. An Industrial CCS network will act as a magnet to help drive growth and attract investment on this site, creating jobs and supporting our communities.”