Amec Foster Wheeler plc and Societe Générale Corporate & Investment Banking have been appointed by Tees Valley Unlimited (TVU) to support the development of ground-breaking Carbon Capture and Storage (CCS) technology on Teesside.
TVU is leading the Teesside Industrial CCS Network, bringing together process industry companies from across the region, with the aim of transforming Teesside into a hub for new Industrial CCS technology. The project’s anchor schemes – the SSI steel works, the Growhow ammonia plant, the BOC industrial gases provider and the Lotte PET facility – have the potential to capture around 7 million tonnes of carbon dioxide (CO2) per year.
TVU Managing Director, Stephen Catchpole said:
“CCS will be a game changer for vital industries like those here in Teesside which are major emitters but also major employers. The technology will be a crucial part of decarbonising the UK economy, whilst also maintaining a strong industrial base, jobs and competitiveness.
“There’s real momentum behind this project now, and the appointments of Amec Foster Wheeler and Societe Générale are crucial to building its credibility and taking it forward to the next stage of development.”
Engineering and project management company, Amec Foster Wheeler has been appointed to undertake engineering design and cost estimating for this project. This will involve providing designs for the technology to be deployed at each anchor site and designing the road and offshore infrastructure needed for the transportation of CO2 once it has been captured.
Alastair Rennie, Project Director, Amec Foster Wheeler said:
“The prospect of industrial CCS in Teesside will put the North East on the map for getting to grips with the challenge of climate change in a way that is compatible with economic growth and new business opportunities. It will be a test bed for other industrial areas at home and abroad.
“To make it a reality we need to get the technology and infrastructure design right and Amec Foster Wheeler is excited to be joining the project team making the case for Teesside.”
Financial services specialist, Societe Générale will provide expert advice to ensure that the project is financially viable and competitive. On behalf of industry, TVU has seized the initiative by tasking Societe Générale with designing an investment mechanism specifically designed for industrial CCS. Investment mechanisms, such as Contracts for Difference are already established for low-carbon energy generation projects, such as wind and solar, but not currently for industry.
Allan Baker, Global Head of Power Advisory & Project Finance at Societe Générale Corporate & Investment Banking said:
“Industrial CCS has the potential to dramatically lower greenhouse gas emissions for industries that have an important place in the Tees Valley economy.
“Bringing on the necessary investment and ensuring that industry can fully benefit calls for a credible investment mechanism. Societe Générale is looking forward to bringing its expertise to bear on the