Could Carbon Capture being coming to Teesside?

The UK could have its first project to capture and store carbon emissions from power or industrial plants by the mid-2020s, under new Government plans.

An action plan will help develop the UK's first scheme to capture emissions from power stations and heavy industry and use the carbon dioxide for processes such as making concrete or store it underground to cut climate pollution, ministers have announced.

The first project could be up and running in Teesside as early as the mid-2020s, with an overarching ambition to roll out the technology at scale by the 2030s, if costs can be brought down.

Tees Valley Mayor Ben Houchen said: “This is the project we’ve been talking about for quite some time. It has taken a while, but I hope the people of the Tees Valley will be pleased with what we’re announcing today.

“This multi-billion pound energy project will pave the way for our region to become the clean energy powerhouse of the UK, creating and safeguarding thousands of jobs.

“We have got some of the biggest companies in the world choosing Teesside to develop this ground-breaking technology – a world first which will also support the development of our huge processing and chemicals industry.”

Tees Valley chemical and process industries contribute almost £1billion to the economy each year and support a workforce of more than 7,600 people. Average wages in the Tees Valley chemical sector are also 23% higher than the national sector average.

Mayor Houchen, who is also the Chairman of the South Tees Development Corporation, has worked with OGCI and the UK Government for over a year to press the case for the location of the power plant and CCUS.

Mayor Houchen added: “This is a project of national significance, and once developed will create thousands of jobs and even more in our local supply chain.

“Due to the sheer size and scale of this multi-billion pound energy plant, it won’t happen overnight. But to be selected out of 50 business models by this major international consortium is a clear vote of confidence in our local economy and our skilled workforce. Let there be no doubt: we’re ready to deliver this monumental project.

Experts have said that carbon capture usage and storage (CCUS) is key to cutting greenhouse gas emissions to tackle climate change, particularly from industrial processes where other options are limited.

The Government's Advisory Committee on Climate Change has called for the development of CCUS, warning it would be highly challenging'' and much more expensive for the UK's legal target to cut emissions by 80% by 2050 without it.

But ministers axed a £1 billion four-year competition to develop carbon capture and storage on power stations in late 2015, citing the cost of the technology.

The new action plan commits the Government to setting out next year how to develop the UK's first CCUS facility, and invest #20 million in supporting construction of technology at industrial sites across the UK as part of a #45 million commitment to innovation.

It will also mean £315 million investment in cutting carbon emissions from industrial sites, including the potential to use CCUS.

Redcar MP Anna Turley has welcomed the news:

“This is an exciting investment for Teesside and exactly the kind of modern, green industry we have huge potential to take a lead on. The fact the consortium has chosen Teesside for a world-leading innovative project is a huge vote of confidence in the skills and infrastructure of our area, and I pay tribute to all members of the combined authority and the development corporation who have worked hard to promote our area’s case.

“This is obviously the very early stages of a big project, and the land ownership issues obviously still need to be resolved before this project can progress fully. The onus is now on politicians and officials, locally and in government, to provide the support and confidence needed to bring this to fruition.

“CCUS in particular is a technology with huge potential for Teesside, especially with the infrastructure for storing under the North Sea, but one which has not yet been developed at scale around the world. When I questioned the clean energy minister on this last week, she was reluctant to make any commitments on how government will support development but the private sector are looking to government to make the costs viable.

“I will continue to do my part to press government and to support this project which will be great for jobs and growth on Teesside and which will help our country meet its climate change goals.

And work will begin with the Oil and Gas Authority, industry and the Crown Estate and Crown Estate Scotland to identify existing oil and gas infrastructure which could be transformed for CCUS projects.

The announcement comes at a world-first summit on the technology in Edinburgh, jointly hosted by the UK with the International Energy Agency, and attended by political and business leaders from around the world.

Energy and Clean Growth Minister Claire Perry said: Today, at this seminal summit, the UK is setting a world-leading ambition for developing and deploying carbon capture and storage technology to cut emissions.

It shows how determined all countries are to unlock the potential of this game-changing technology that representatives from across the globe are gathered here today in Edinburgh.

The time is now to seize this challenge to tackle climate change while kick starting an entirely new industry.''

Commenting today on the announcement that Redcar will be home to the Clean Gas Project led by the consortium OGCI Climate Investments, are BP, ENI, Equinor, Oxy, Shell and Total, Alex Cunningham, Labour MP for Stockton North and Chair of the All Party Parliamentary Group on Carbon Capture and Storage said:

“This is tremendously good news for the Tees Valley and the kind of project we’ve been campaigning for in Parliament. It’s testament to the hard work of the Teesside Collective and the Tees local Councils who have been working towards this goal for several years.

“At long last the Government, which axed a billion pound grant for the White Rose and Peterhead projects several years ago, have accepted the arguments that it needed to get behind Teesside and make CCUS happen.

“Today’s decision could be transformational for our area – and provide industry, ground down by high carbon taxes, with a way of cutting their costs and making their businesses more cost effective. This must then lead to more investment – not just from existing companies but new ones who can benefit from carbon capture and bring the jobs bonanza we need.

“We know it is early days yet and there are many details to be sorted out – including what specific support the Government is actually giving – but I look forward to more news soon.

“I, alongside my Tees colleagues, will continue to hold the Government to account to ensure they deliver on the promises made to our people and don’t walk away from the Tees project as they walked away from the others.

The announcement comes after Drax power station in North Yorkshire has begun a pilot project with Leeds-based C-Capture to capture carbon from its biomass energy plant, which burns wood pellets to create electricity