New Report Recommends Urgent Action to Develop the UK’s CCUS Supply Chain

A new report has today been published by the Nuclear AMRC part of the High Value Manufacturing Catapult, on behalf of the Supply Chain Woking Group of the CCUS Council.

The report “CCUS supply chain intervention strategy,” is the first key output from the CCUS Council Supply Chain Working Group, Chaired by Dame Judith Hackitt. Today’s report concludes that there is a significant opportunity to increase UK manufactured content in the Carbon Capture, Utilisation and Storage sector, contributing to economic growth and creating export opportunities – whilst at the same time helping to achieve the UK’s transition to net zero. It draws on existing market research and adds new analysis on the UK manufacturing supply chain’s capability and readiness to support this rapidly growing market.

With targeted development, UK manufacturers can supply all parts of a carbon capture plant. However, the UK needs to act quickly to establish its capability, competence and capacity in domestic projects if we are to drive down costs and compete in the much larger global market. To ensure the CCUS supply chain is ready to support CCUS deployment to meet Government targets for 2035 and beyond, the report recommends the establishment of a Fit For CCUS (F4CCUS) programme, which would “strategically develop existing manufacturing businesses to match to CCUS sector requirements”.

Energy and Climate Change Minister Greg Hands said:

“I welcome this report which outlines the opportunities presented by CCUS technologies for supply chain companies, creating economic growth and export potential, while helping achieve the UK’s commitment to net zero.”

Dame Judith Hackitt, Chair of the CCUS Council Supply Chain Working Group and Chair of MakeUK, said:

“This report clearly shows the scale of opportunity for UK manufacturing in the supply chain for CCUS but if we are to make the most of it we must act quickly to raise awareness and build capability and capacity. We need clear signals from Government to create confidence and this can be done by backing the proposal to establish a Fit 4 CCUS programme. We need to turn this great potential into a reality creating jobs and driving towards our Net Zero goals”

James Smith CBE, Co-chair of the CCUS Council, said:

“We need an ambitious vision for a low carbon industrial revolution, creating tens of thousands of skilled, satisfying and well-paid jobs throughout the UK. Time is of the essence to grasp this unique chance to be world leaders in crucial low carbon technologies.”

Ruth Herbert, Chief Executive of the CCSA, said:

“We are entering a critical period for CCUS deployment and the recommendations in today’s report build on the CCSA’s report “Supply Chain Excellence for CCUS”, setting out further details on how the UK can maximise the significant economic opportunities that a strong CCUS industry represents. The UK has unique advantages, skills and expertise – in both CCUS and hydrogen – and as the first CCUS clusters move ahead, there is not a moment to lose if the UK supply chain is to capture its share of this vital net zero industry”.

Andrew Storer, Chief Executive of the Nuclear AMRC, said:

“We are delighted to have been asked to lead this piece of work on behalf of the CCUS Council. If we are to exploit domestic and international opportunities, we must act now to ensure the UK supply chain is fit and ready to deliver for the national developments. We really hope the results can inspire a coherent overall approach to CCUS supply chain initiatives, ensuring the UK delivers CCUS to help achieve Net Zero and provide significant economic impact in key regions in the UK. Therefore, we recommend launching the F4CCUS programme to enable the UK supply chain to seize the opportunity”,

The report can be downloaded below.

COP26 – Keeping The Momentum Going, by Ruth Herbert CCSA CEO

Welcome to the Carbon Capture and Storage Association’s (CCSA) new blog – where we will post stories, reviews and opinions on a variety of current CCUS topics in the UK, Europe and internationally.

I joined as CEO of the CCSA in October 2021, and it has been a busy few months to say the least!  In October 2021, on my second day in post, the UK Government announced the first CCUS projects that will be taken forward under Track1 of the CCUS Cluster Sequencing process, namely the HyNet North West cluster and the East Coast Cluster, with the Scottish Cluster announced as a reserve cluster.

On the same day, the UK Government published the Net Zero Strategy – which set out a new target for CCUS of 20 – 30 Mt carbon dioxide to be captured and stored each year by 2030. This is a three-fold increase of ambition from the Ten Point Plan target of 10 Mt per year, agreed less than a year before. No sooner had we had a chance to digest this news before it was time to travel to Glasgow for COP26. The last COP I attended was COP15 in Copenhagen in 2009, whilst Head of International CCUS at DECC.  Whilst COP15 was a similar event in terms of number of people attending, it could not have been more different with regard to CCUS. At COP15, CCUS did not receive much attention, whereas COP26 saw CCUS rising up the agenda, driven by the need to consider how to achieve Net Zero across the global economy.

In terms of events, the CCSA was involved in seven CCUS side events, including an official UNFCCC broadcast event with our COP26 Partners; IEA GHG, University of Texas at Austin, International CCS Knowledge Centre and Bellona.  This level of exposure was unprecedented, with some 32 CCUS events taking place over the course of the two weeks.

Inside the negotiating rooms where the real action was, progress was made on several key areas –finalisation of the rules for Article 6 of the Paris Agreement, creating the framework for a global carbon market; the Glasgow Climate Pact commitment to phase down unabated coal power; and the pledge to mobilise $500bn by 2025 to help developing countries adapt to climate effects, as well as the commitment to update Nationally Determined Contributions (NDC) again by the end of 2022. The agreement on Article 6 rules makes the Paris Agreement fully operative and the wording implies that the global carbon market will be technology neutral, meaning it should be applicable to both CCUS and carbon dioxide removal (CDR) technologies.  As always, the devil will be in the detail, and we will have to wait to see the further recommendations requested by the Parties on Article 6 definitions, to understand how the framework will be applied.

Three months on, I’m keen to see the UK government maintain the positive momentum of COP26 and keep the pressure on countries to consider the important role CCUS and CDR technologies can play in realising Nationally Determined Contributions, creating an environment for these technologies to flourish and therefore get us on track to reach net zero goals and limit global warming to 1.5°C.

For more insights on COP26 be sure to watch our webinar ‘CCUS reflections from COP26 and international CCUS developments’ with fellow panellists Tim Dixon (IEAGHG) and Guloren Turan (GCCSI) available on demand on our website.

Significant Milestone for Net Zero as UK Announces First CCUS Clusters

19th October 2021, London – The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in the UK, welcomes today’s announcement of the first successful CCUS clusters that will be taken forward following the Government’s Cluster Sequencing competition.

The successful clusters are:

The East Coast Cluster – a collaboration between Zero Carbon Humber, Net Zero Teesside and Northern Endurance Partnership, deploying CCUS across Humber and Teesside.
HyNet North West – a CCUS and hydrogen energy project which will deliver low carbon hydrogen and CCUS in the North West of England and North Wales.

In addition, the Scottish Cluster – which is centred around the Acorn CCS project based in the North East of Scotland – was announced as a reserve cluster.

Ruth Herbert, Chief Executive of the CCSA said:

“The UK has today taken a significant step towards meeting its net zero target, by selecting the first projects that will start capturing and storing carbon dioxide in the mid-2020s. These first clusters will showcase the breadth of applications for CCUS; including industrial decarbonisation, clean hydrogen production and greenhouse gas removal – and will make a significant contribution to regional growth and levelling up in some of the UK’s key industrial heartlands.

It is now absolutely critical that the industry has clarity over the long-term rollout of CCUS. If we are to achieve our climate goals, and the Climate Change Committee’s target of capturing 22 million tonnes of CO2 per year by 2030, the industry and wider supply chain need a clear line of sight to the future delivery of CCUS across the country. The CCSA looks forward to working with Government to bring forward the next phases of clusters.

Ahead of next week’s Spending Review, we are calling for the Government to introduce a delivery plan for CCUS – setting annual spending budgets over the next decade to give the industry certainty to invest in projects now. As the UK prepares to host COP26 in November, we believe this commitment will send a strong signal that the UK is serious about meeting the Paris Agreement and becoming a global leader in this crucial planet-saving technology.”

Andy Lane, MD of Northern Endurance Partnership, said:

“Today is a significant milestone on our country’s journey to net zero emissions by 2050. We are delighted that the East Coast Cluster has been selected and we will look forward to delivering our project, removing up to 50% of the UK’s industrial cluster CO2 emissions, creating tens of thousands of jobs and establishing the UK as a leader in the energy transition”.

David Parkin, Project Director for HyNet said:

“We are delighted that HyNet has been selected to progress within Track 1 of the industrial decarbonisation Cluster Sequencing process.

HyNet is led by the demand from organisations and stakeholders across the North West of England and North Wales, who all want to reduce carbon emissions to Net Zero.

Carbon capture and storage is fundamental to decarbonising our industrial sector, and that is what HyNet delivers, safeguarding existing jobs across the region and creating around 6,000 new employment opportunities to support the levelling up of the UK.  HyNet also kickstarts the Hydrogen economy.

As one of the first industrial decarbonisation clusters, we will establish the blueprint to decarbonise our industry and position the UK as a low carbon global leader.”

Nick Cooper (CEO of Storegga) on behalf of the Scottish Cluster said:

“Whilst we are disappointed of the outcome of the sequencing bid, we remain convinced of the potential and significant advantages of the Scottish Cluster and are committed to the development of CCS to support decarbonisation of UK industry and power. We have been very clear that all of the current clusters need to be operating to meet UK net zero targets and will be seeking support to progress as soon as possible. The Scottish Cluster has been selected as a reserve project and we will continue engaging with Government to progress its development and planning. The Acorn project will play a significant role in achieving UK Net Zero and will be developed.”

 

ENDS

 

Notes to Editors

On the 19th October, the Government announced the results of the first phase of the CCUS cluster sequencing competition. The statement by the Minister for Energy, Clean Growth and Climate Change, Greg Hands, can be found here.

For media enquiries please contact Judith Shapiro on 07719763133 or email ju************@************on.org

To find out more about the Carbon Capture Storage Association (CCSA) please visit the CCSA website at http://www.ccsassociation.org/.

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution that the Climate Change Committee has assessed as being vital to meeting the UK’s statutory Net Zero target. 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 to taking the carbon out of industrial processes, CCUS enables additional greenhouse gas removal from the atmosphere, through sustainable bioenergy and CCS (BECCS) and Direct Air Capture with Storage (DACS).

The UK is fortunate to have advanced CCUS project proposals in all of the major industrial regions; including Humber, Teesside, Merseyside, Scotland and South Wales. These projects demonstrate the breadth of applications and industries for which CCUS provides a vital net zero solution.

If you would like more information on CCUS please get in touch using the above details.

Secretary of State Highlights Importance of CCUS at CCUS 2021 Conference

13th October 2021, London – Speaking once again at the CCUS 2021 annual conference, the Secretary of State Kwasi Kwarteng gave a keynote speech to the Carbon Capture Utilisation and Storage industry, emphasising the vital role that Carbon Capture, Utilisation and Storage (CCUS) will play in delivering the UK’s net zero target.

The CCUS industry is just days away from the Government announcing which clusters will be the first to move towards deployment in the UK. CCUS is essential if we are to decarbonise our industries, achieve net zero and deliver jobs and economic growth in our industrial heartlands – making a significant contribution to levelling up. The UK has the skills, assets and opportunity to lead the world in the CCUS space.

Business and Energy Secretary Kwasi Kwarteng said:

“Carbon Capture, Usage and Storage will be an essential part of our toolkit as we seek to attract new private capital into the UK to decarbonise our economy.

“It was fantastic to speak at the Carbon Capture Storage Association conference to highlight the opportunity available to the UK to gain a competitive advantage in developing home-grown, green technologies, such as CCUS, as we look to build back better for a cleaner future.”

Olivia Powis, Head of UK Office at the CCSA, said:

“This year’s CCSA conference brings together the industry just before the Government announce the UK’s first successful CCUS projects that will start capturing and storing carbon dioxide in the mid 2020s.

We are delighted that the Secretary of State continues his strong support for CCUS in what is undoubtedly the most exciting period for this crucial technology, as the industry comes to fruition”.

Jonathan Briggs, Chair of the CCSA, said:

“The profile and attendance at this week’s CCUS 2021 conference is testament to how far CCUS has climbed up the agenda over the past few years. CCUS is now recognised as an absolutely critical part of the net zero transition – reaching into sectors such as industry, hydrogen, power, utilisation and greenhouse gas removal”.

During day 1 of the CCUS 2021 conference (12th October), the CCSA also launched a new CCUS animation, to increase public awareness and understanding and highlight the value of CCUS in delivering net zero across the economy.

 

ENDS

The CCSA launched its new CCUS animation on the 12th October. The animation can be found here.

For media enquiries please contact Judith Shapiro on 07719763133 or email ju************@************on.org.

To find out more about the Carbon Capture Storage Association (CCSA) please visit the CCSA website at https://www.ccsassociation.org/.

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 unlocks a key method of greenhouse gas removal, through sustainable bioenergy and CCS (BECCS) and Direct Air Capture (DAC).

The UK is fortunate to have advanced CCUS project proposals in all of the major industrial regions; including Humber, Teesside, Merseyside, Scotland and South Wales. These projects demonstrate the breadth of applications and industries for which CCUS provides a vital net zero solution.

If you would like more information on CCUS please get in touch using the above details.

CCSA joins UK Energy Supply Chain Taskforce  

The Carbon Capture & Storage Association is delighted to join the new UK Energy Supply Chain (UKESC) taskforce, co-chaired by DIT Minister for Exports Graham Stuart and BEIS Energy Minister Anne-Marie Trevelyan. 

In a move which underpins the crucial role that the UK’s energy supply chain will play in helping the UK government to achieve their 2050 net zero ambitions, UKESC has been developed to help ensure that UK companies can more readily transition to the green economy.  

Key to this will be to nurture the key technologies, skills and capacity that we already have across thousands of businesses, and to identify and support the rapid growth of competitive new capabilities to meet future energy needs.  

This will allow expertise across the broad spectrum of energy technologies to be developed in the UK and then be exported widely to global markets, to help deliver the global drive to decarbonisation.  

Olivia Powis, Head of UK Office at the CCSA, said: “CCUS will form an important part of the future energy supply chain and due to geographical advantages and world-leading skills and expertise, the UK has a unique opportunity to become a global leader in the development of CCUS. By working together across the energy industry we have the opportunity to create a strong UK supply chain, providing significant domestic jobs and growth. 

This will boost the UK’s prosperity and make a significant contribution to the Government’s levelling up agenda, whilst at the same time creating important export opportunities for UK companies in a global market estimated to be worth several hundreds of billions of pounds by 2050”. 

The taskforce will be technology-agnostic and will cover all energy sectors and all areas of the UK, recognising the work that is already moving at pace across the country, and will work in support of levelling up, building back better and existing sector deals.  

It will provide a more amplified voice for the entirety of the UK energy supply chain, to help ensure their challenges, needs and opportunities are more directly incorporated into policy thinking.   

Commenting on UKESC, and his role as co-chair, Graham Stuart, Minister for Exports, Department for International Trade said: “The UK is leading the world in reducing emissions and charting a route to net zero. As well as being the right thing to do, being a world leader gives us the chance to develop the technologies and industrial capability in the UK which can then be exported elsewhere.  

“The taskforce will be a joint enterprise between industry and government which will guide policy making so that as many jobs and businesses as possible are created in the UK. Domestic delivery and international sales are intertwined – and we will do everything we can to deliver both.”  

Energy Minister and co-chair of the UK Energy Supply Chain Taskforce, Anne-Marie Trevelyan said: “It is vital that we work hand in hand with industry as we build back greener to ensure UK companies can play their part in meeting our ambitious climate commitments. I am looking forward to engaging with our energy supply chain through this Taskforce. 

“Working with industry will also guarantee we have a skills base fit for the future with jobs on the ground right across the country for generations to come. The government’s commitment to levelling up every corner of the UK and supporting key government policies like the North Sea Transition Deal will be central to the work of the UK Energy Supply Chain Taskforce.” 

The secretariat will be provided by the Energy Industries Council (EIC).  

Supply chain companies in the energy sector are invited to take part in a survey to inform the taskforce about their views, needs, challenges and opportunities. Find out more and take part in the survey here: https://energyindustriescouncil.com/p/4E8P-HYR/ukesc-ccsa  

For further comment, please contact Judith Shapiro or Olivia Powis on 07979 380294. 

CCUS Supply Chain Report Showcases Major UK Opportunity

The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in the UK, has today published a report on developing the UK supply chains to deliver a successful CCUS rollout programme, in line with Net Zero.

The report “Supply Chain Excellence for CCUS” has been developed with input from sector experts from almost 50 organisations; including BEIS and the Energy Industries Council (EIC).

The report concludes that expenditure on CCUS (including hydrogen and greenhouse gas removals) could reach £41 billion by 2035, and with strategies to support domestic companies, the UK could develop a CCUS supply chain with a high proportion of UK jobs and local manufacturing of products and goods – delivering significant benefits to regional economies in the UK’s industrial heartlands.

Olivia Powis, Head of UK Office at the CCSA, said:

“Due to geographical advantages and world-leading skills and expertise, the UK has a unique opportunity to become a global leader in the development of CCUS. The next decade will be critical for CCUS deployment and by implementing the recommendations in today’s report, we have the opportunity to create a strong UK supply chain, providing significant domestic jobs and growth.

This will boost the UK’s prosperity and make a significant contribution to the Government’s levelling up agenda, whilst at the same time creating important export opportunities for UK companies in a global market estimated to be worth several hundreds of billions of pounds by 2050”.

James Smith, Co-chair of the CCUS Council, said:

“Net zero is by far the biggest infrastructure project the UK has pursued in peacetime. Successful delivery demands excellent supply chains. Excellent supply chains create major opportunities for the UK to rejuvenate and rebuild its industrial base.”

 

ENDS

Notes to Editors

The CCSA report “Supply Chain Excellence for CCUS” is published on the 22nd July and can be downloaded below.

The report sets out five key recommendations:

1. Clusters to work with industry and mobilise a cross-industry team to build on this report and develop supportive supply chain strategies for the CCUS industry.

2. Work with industry on the development of strategies for the following opportunities:

Industry to review and identify which technologies/ equipment would benefit from modularisation and standardisation and assess the potential for UK supply chains to competitively make fully modularised plant.
Project owners to promote policies and commercial constructs that can maximise the opportunities for UK engineering and design companies and support them to export project expertise in CCUS technology.
Foster a UK-based pre-combustion supply chain, from novel blue hydrogen production technology to compressors, meters and burners.
Industry to engage the UK base materials sector (e.g. steel, plastics, composites and hosing) to produce the products required by CCUS.
Government to identify opportunities to engage in the development of novel post combustion, BECCS and DACCS technologies which must be built to prevalence for the UK to meet its Net Zero target.

3. Clusters to inform and prepare UK supply chains on the equipment and services that will be required by the emerging CCUS sector to avoid future bottlenecks and provide visibility for the near-future opportunities.

4. Industry to develop strategies that focus on creating skilled, long-term jobs, a diverse workforce and levelling-up the regions.

5. Government to ensure effective delivery and coordination of UK supply chain activities.

For media enquiries please contact Judith Shapiro on 07719763133 or email ju************@************on.org

New report highlights the economic benefits of scaling up CCUS in the 2020s, and the required funding to deliver this

The Carbon Capture and Storage Association (CCSA) has today published a report written by international engineering consultancy Afry and Cambridge Econometrics on the economic impact of scaling up CCUS in the 2020s. It also looks at the funding required to deliver this and the lessons that can be learned from offshore wind deployment in the 2010s.

It explores the impact of rolling out CCUS in the 2020s under two scenarios:

The Government’s Ten Point Plan scenario to capture 10 million tonnes (Mt) of CO2 a year by 2030, before scaling up in the 2030s; and
The Climate Change Committee’s (CCC) Balanced Net Zero Pathway in the Sixth Carbon Budget to capture 22 Mt of CO2 a year by 2030, before more than tripling capacity in the 2030s.

Using Cambridge Econometrics’ E3ME model, the report looks at the economic benefits of CCUS deployment in the 2020s. The CCC scenario could see up to ten thousand new jobs created in the mid-2020s in the UK’s industrial heartlands and give the UK early mover advantage in the global CCUS race, creating export opportunities and with this, a potential 50,000 additional jobs. This level of deployment would also help to safeguard more than 50,000 jobs in iron, steel, cement, chemicals and refining – that could otherwise be at risk.

The report also maps out the annual funding requirements to deploy CCUS at the necessary scale to deliver these two scenarios by 2030 – which ranges from £1.2bn under the Ten Point Plan scenario to £2.6bn under the CCC scenario.

The renewable power sector, and in particular offshore wind, benefited in the early 2010s from long term annual funding envelopes known as the Levy Control Framework, which is set at £8.6bn for 2020/21. This long term certainty drove deployment and cost reductions in the 2010s, so there is precedent for decarbonisation spending at this level to successfully develop new industries that will be crucial for the net zero transition.

Ahead of the upcoming Comprehensive Spending Review, the report also considers what lessons can be learned from offshore wind support ten years ago in order to build a similarly successful CCUS industry in the UK today. It concludes that there is an immediate need to de-risk CCUS today, which requires visibility of a long term funding framework up to 2030 to deliver CO2 capture targets. This needs to provide an equivalent to the Levy Control Framework which provided both funding visibility and consumer protection for renewables a decade ago.

The executive summary of the report “Economic Analysis of UK CCUS” can be downloaded below.

The full report is available on request.

New forum to unlock co-location opportunities for CCUS and offshore wind

The CCSA is proud to be a founding member of a new Offshore Wind and CCUS Co-location Forum, which has been set up by The Crown Estate.

The Forum, which also includes RenewableUK, the Oil & Gas Authority (OGA), Government and Crown Estate Scotland, will “provide strategic coordination of co-location research and activity and help maximise the potential of the seabed” for offshore wind and CCUS – two industries which will be critical to achieve the UK’s net zero target.

Olivia Powis, Head of UK Office at the Carbon Capture and Storage Association (CCSA), says: “We are delighted to be part of the new Offshore Wind and CCUS Co-location Forum, bringing together two industries that will be critical to achieving net zero. As the UK prepares to host COP26 later this year, it is vital that we work together to bring forward all solutions that will be needed to solve the climate crisis.

“Offshore wind is already a UK success story and through initiatives such as this forum, we can develop the framework that will bring forward CCUS projects in line with the Climate Change Committee’s Sixth Carbon Budget – thereby creating another tremendous success story, with high UK content.”

The full press release can be found here.

Alongside the forum, a new “CCUS & Offshore Wind Overlap Study Report” has also been published. The report can be downloaded here.

Coalition for Negative Emissions launches landmark report

30 June 2021, London – The Carbon Capture and Storage Association (CCSA), the trade body for the Carbon Capture, Utilisation and Storage (CCUS) industry in the UK, welcomes the launch of the landmark report from the Coalition for Negative Emissions; “The case for Negative Emissions”.

The report sets out the important role that negative emissions must play, alongside efforts to reduce emissions, in order to reach climate goals.

In addition, the report shows that negative emissions technologies such as bioenergy with CCS (BECCS) and Direct Air Capture with Storage (DACS) are proven and ‘ready to go’ – each capable of removing a significant amount of emissions from the atmosphere and creating millions of new jobs worldwide.

The CCSA is proud to be a member of the Coalition for Negative Emissions, which includes over 20 leading companies, NGOs, investors and trade associations.

The full report and technical appendix can be found here.

The Coalition are also holding a webinar on Thursday 1 July 14:00-15:30 BST to discuss the findings of the report, in partnership with McKinsey Sustainability and as part of London Climate Action Week. Further details of the event can be found here.