Government sets out next steps for CCUS Clusters
The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in Europe, welcomes the further information provided today by the UK Government regarding the first round of CCUS deployment.
The Government has today confirmed the final selection of the first carbon capture projects to be built under the CCUS Cluster Sequencing Process. These are sites that will connect to the carbon dioxide transport and storage infrastructure that will be developed through the initial “Track 1” clusters (HyNet North West and East Coast Cluster).
Successful projects will receive revenue support to cover the cost of operating with carbon capture, as well as in some cases, capital support from the Low Carbon Hydrogen Fund to cover some of the cost of installing capture equipment and connecting to the CO2 transport and storage network.
The projects selected today by the Department of Energy Security and Net Zero are:
East Coast Cluster
- Net Zero Teesside Power
- bpH2 Teesside
- Teesside Hydrogen CO2 Capture
- Hanson Padeswood Cement Works Carbon Capture and Storage Project
- Viridor Runcorn Industrial CCS
- Protos Energy Recovery Facility
- Buxton Lime Net Zero
- HyNet Hydrogen Production Plant 1 (HPP1)
These projects represent a wide variety of sectors such as dispatchable low carbon power generation, industrial process emissions (cement, lime and energy from waste) and low-carbon hydrogen production.
These projects will create thousands of jobs in the North West and Teesside.
Today the Government has also set out the forward timeline for selecting the next “Track-2” CCUS clusters to be operational by 2030, as well as further clarity regarding the Track 1 expansion process. This is essential in providing future opportunities to connect to the network for projects and clusters that have not been selected – or previously eligible to participate, giving them a route to decarbonisation.
Ruth Herbert, Chief Executive at the CCSA, said:
“We are pleased to see Government pushing ahead with the first carbon capture projects. Collectively, these projects will capture million tonnes of carbon dioxide a year and protect and create many thousands of jobs in critical sectors, delivering significant economic growth in two of the UK’s industrial regions.
However, today’s announcement will be particularly disappointing for the Humber region which emits more CO2 than any region in the UK – projects based there urgently need clarity, alongside other unsuccessful projects. Government must therefore set out the process for further projects to be added to the first two clusters. This will give an important route to market for the remaining shortlisted – and new – projects in vital industrial sectors, where CCUS is the only option for achieving net zero, as well as clarity for those developing greenhouse gas removal technologies such as direct air capture and bioenergy with CCS. Companies have spent significant sums of money to develop proposals and they will need reassurance that this investment is not lost.
We welcome the launch of the process for the next two CCUS clusters, but now need to see a clear forward timeline. In addition, as per Chris Skidmore’s recommendation, we need to see a deployment plan for the whole of the UK, as all industrial regions need to decarbonise or risk seeing continued offshoring of our supply chain. Our member companies all around the country are investing in decarbonisation projects to meet the Government’s ambition of capturing 20-30 million tonnes of carbon dioxide by 2030, but this investment could go overseas to the US or Europe in the absence of a clear UK plan.”
David Parkin, HyNet Project Director at Progressive Energy said:
“We are absolutely delighted that five HyNet partners have been successful in receiving the go-ahead from Government today, enabling the project to move into construction in 2024. Together within the HyNet cluster, these projects will remove just under 3 million tonnes of carbon dioxide each year – supporting the UK’s net zero target.
HyNet is at the forefront of the UK’s new British carbon capture sector – leading the way in the development of the infrastructure, skills and the supply chain.
The North-West supports the most manufacturing jobs of any UK region. HyNet will enable the region to retain high value roles, secure 6,000 new jobs, attract inward investment and cultivate a supply chain across the region. It will also give industry the ability to produce the environmentally friendly products that consumers are increasingly demanding.
This is good news for the UK’s fight against climate change, good news for the North West and North Wales region, and good news for British industry and the economy.”
Andy Lane, Managing Director of the Northern Endurance Partnership, said:
“Congratulations to the projects that have been selected today, and thank you to the team at DESNZ for maintaining the momentum in this process. It is important to stress that the projects selected today are just the start of our ambition to expand carbon capture and storage to serve projects across the entire Teesside and Humber regions. The Northern Endurance Partnership is investing to develop a wide portfolio of CO2 storage sites which will more than double the CO2 storage capacity of the cluster to around 10 million tonnes per year by 2030 – ready to serve the East Coast Cluster expansion projects”.
Nick Cooper, CEO at Storegga said:
“We welcome Government’s recognition of Acorn as one of two projects already seen as best able to meet the Track 2 eligibility criteria and ready to deliver on the Government’s objectives for Track 2. We support the Government’s drive to move this forward as quickly as possible now, in order to reach the target of 20-30Mt CO2 captured and stored pa by 2030. Acorn, as the Reserve Cluster, remains ready to step up as soon as the Government asks us to do so.”