Industrial carbon capture & storage network powers ahead with addition of Sembcorp

  • Industrial energy and water services provider Sembcorp Utilities UK joins leading industrial Carbon Capture and Storage scheme.
  • Project team strengthened with appointment of Belinda Perriman as Commercialisation Manager.

Teesside Collective today announced the addition of a major industrial player to the group of companies working to create Europe’s first Carbon Capture and Storage (CCS) equipped industrial zone.

Sembcorp Utilities UK, which provides energy and water services to customers at the Wilton International site on Teesside, has become the latest member of the project, alongside BOC, Lotte Chemical UK and GrowHow. The first phase of the scheme could be up and running by 2024.

The news comes at an opportune time for Teesside Collective which published its ‘Blueprint for Industrial CCS in the UK’ in July, receiving widespread support among industry, environmental groups and in government. The loss in October of the SSI steelworks in Redcar, previously part of the project, was sad news for the local community. Today’s news demonstrates the resilience of Teesside Collective and the group’s determination to move forward.

Sembcorp Utilities UK is the power provider at the Wilton International site serving major companies in the petrochemical, chemical and biofuels sectors. The company employs around 160 people at Wilton and has spent around £200 million improving and developing existing and new assets at the site. The company also owns much of the industrial development land at the site. Sembcorp’s current operations on Teesside emit around 400,000 tonnes of carbon dioxide a year.

Scott Taylor, Assistant Vice President, Business Development, Sembcorp Utilities UK, said:

“We are delighted to increase our commitment to the Teesside Collective by formally joining the consortium.  A large scale carbon capture and storage initiative would make a step change in emissions reductions and could act as a magnet to further investment in the area.”

Teesside Collective is also pleased to announce the appointment of Belinda Perriman as Commercialisation Manager, bringing significant experience of CCS and major project development to the team. Belinda was previously the Shell lead on the Peterhead CCS Project in the early (pre-FEED) stages of the project. She will be working to bring on board other energy intensive plants in Teesside and with government departments and in Europe to secure support to take the project forward.

Belinda Perriman said:

“Teesside Collective is exactly that, a collective. We welcome Sembcorp as an important new partner in the drive to dramatically reduce emissions from Teesside whist supporting their contribution to the UK economy. We will continue to develop CCS options, both for Teesside and with an eye on encouraging future industrial CCS clusters in the UK.”

“I’m looking forward to harnessing the growing support in Teesside and at the national level to realise the project’s significant potential for the UK’s industrial and environmental goals.”

Neil Kenley, Director of Business Investment at Tees Valley Unlimited, said:

“Tees Valley has been hit hard by the closure of the SSI plant in Redcar. But it’s great to see Teesside Collective powering ahead with the addition of Sembcorp. The company’s commitment to the area is well known and I hope further plants will follow their example.

“Belinda Perriman’s expertise will strengthen our ability to build the commercial partnerships we need with industry and funders. Her strategic vision and experience of CCS and major projects are going to be invaluable.”

Notes for editors

 

  1. Teesside Collective is being led by Tees Valley Unlimited (TVU), the Local Enterprise Partnership which is working with major employers in Teesside including Lotte Chemical, BOC, GrowHow and now Sembcorp Utilities UK. All face stiff competition internationally and the prospect of escalating carbon permit prices in the future. They are joined by National Grid and NEPIC, which represents the Teesside process industry.
  2. The full Teesside Collective Blueprint is available from teessidecollective.co.uk.
  3. Teesside Collective has produced a short film, “Teesside 2030”, exploring the economic and industrial benefits the scheme would have, from the perspective of the 2030s. It is available at teessidecollective.co.uk/project/teesside-in-2030/.
  4. CCS is a group of proven technologies that can capture, transport and permanently store up to 90% of the CO₂ emissions produced by burning fossil fuels, preventing them from entering the atmosphere. To date, the focus in the UK has been on commercialising CCS for electricity generation. Teesside Collective is an important departure. Its premise is that a range of industries would be able to capture their emissions, plug them into a shared pipeline network, and send them for permanent storage under the North Sea.
  5. Teesside Collective had initial scoping funding from DECC and has made all data and reports publically available. Whilst further developed than other UK industrial hub, it is working collaboratively with industrial areas elsewhere in the UK and on the Continent. Discussions with the Government about next steps are ongoing.
  6. CCS in Teesside would have far reaching benefits in terms of maintaining and growing the industrial base and workforce in the Tees Valley and the wider UK. It would also contribute to the significant cuts in emissions required to reduce UK carbon emissions by 80% by 2050.
  7. Belinda Perriman has substantial experience in the CCS industry having been the Shell lead on the Peterhead CCS Project during the pre-FEED phase. Prior to this, Belinda led a variety of Shell projects, such as Exploration and Production (E&P) acquisitions and asset swaps and as a Vice President of Shell Capital, financing E&P start-ups.
  8. Media enquiries: Contact Mike Thomas on 020 7593 4000 or mike.thomas@madano.com