New Carbon Capture Supply Chain Strategy calls for coordinated action from UK Government and industry to create a new homegrown industry and support tens of thousands of jobs
The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in Europe, is today launching a CCUS Supply Chain Strategy which sets out a number of actions to deliver a successful CCUS industry that has the potential to safeguard 77,000 existing jobs in heavy industries such as steel and cement, while creating 70,000 new jobs in the green economy.
The CCSA has launched the strategy jointly with the CCUS Council Supply Chain Working Group, chaired by Make UK Chairman Lord Hutton. The working group advises ministers on deploying and scaling up carbon capture technology.
In order to achieve a target of 50% UK content in the manufacturing, goods and services underpinning new carbon capture and storage technology the Supply Chain Strategy sets out three key actions for Government and industry during the early phase of subsidised deployment:
- A clear timetable for when and where government support will be allocated to capture projects to drive confidence and raise the profile of the sector,
- Flexibility in bilateral negotiations on cost and delivery dates where there is an opportunity to secure higher UK content; and
- Targeted financial support for building capacity and transitioning existing supply chain businesses to serve the CCUS programme
Today’s strategy includes a Good Practice Guidance document for industry which, provided the above actions are met, sets out a pathway for delivering the UK content ambition. This guidance is aimed at supporting developers and contractors to build local supply chains by improving planning and engagement at an early stage and throughout the procurement process.
The guidance document covers six key areas of focus:
- Target an increasing volume of local manufacturers and businesses to build and operate CCUS clusters.
- Promote the introduction of homegrown technology.
- Enhance the quantity and quality of local jobs created or protected.
- Drive investment in skills and training to support CCUS.
- Encourage transparency in the supply chain process.
- Create wider economic benefits to the UK from investing in CCUS.
The CCSA is also today submitting a paper on CCUS skills into the Green Jobs Delivery Group, which was convened by the Government to support the creation of almost half a million green jobs by 2030. The “CCSA Workforce & Skills Position Paper” sets out the strong linkages between developing the CCUS supply chain and skills and highlights the need for urgent action to coordinate the skills requirements across the entire low carbon economy.
Ruth Herbert, Chief Executive at the CCSA, said:
“The report published today at our President’s Reception emphasises the massive opportunity that CCUS represents for the UK. Our strategy concludes that developing a UK CCUS supply chain, together with skills and training programmes, is urgently needed to decarbonise our heavy industries and protect jobs in regions such as Yorkshire & Humber, Wales, the North-West of England and the North-East of Scotland.
“The prize is significant – the opportunity for the UK to access a multi-billion-pound global supply chain market for CCUS equipment, goods and services, as well as the creation of over 70,000 new UK jobs whilst safeguarding up to 77,000 jobs in carbon-intensive industries at risk of being relocated abroad.
“This strategy requires Government to target investment on manufacturing yards which have the potential to supply high value items to the CCUS industry and will be delivering multiple large strategic infrastructure developments over the next decade. From the industry’s side, by following the guidance we aim to improve the transparency of the procurement process and ensure that local supply chain engagement is prioritised from early on in the development cycle.”
Lord Callanan, Parliamentary Under Secretary of State (Minister for Energy Efficiency and Green Finance), said:
“A successful UK supply chain is key to sustaining existing, and creating new, high-skill, high-value green jobs and supporting growth in industrial clusters.
“To achieve this, industry and government must work together and today’s new report from the Carbon Capture and Storage Association is a crucial step forward to harnessing the full potential of Britain’s CCUS industry.”
Lord Hutton, Chair of Make UK and Chair of the CCUS Council Supply Chain Working Group, said:
“It’s encouraging to see the CCUS industry take the lead in developing supply chain guidance and if projects follow this guidance, together with Government providing strong support, then a reliable, high quality and secure domestic supply chain can be achieved.”