SABIC joins growing clean industry network

  • Teesside Collective expands to include petrochemicals manufacturer SABIC
  • DECC confirms continued funding for wider scope of work

Teesside Collective today announced the addition of a major industrial player to the group of companies working to decarbonise the UK’s industrial base. SABIC, which manufactures petrochemicals on Teesside, has become the latest member of the project, alongside BOC, Lotte Chemical UK, CF Fertilisers and Sembcorp Utilities UK, Tees Valley Unlimited and NEPIC.

SABIC is one of the world’s largest makers of chemicals, fertilisers and plastics and has operations at Wilton, near Redcar, and North Tees. It is a leading employer in the Teesside area, employing around 600 staff and an additional 400 contractors. The Teesside operations emit around 1.25 million tonnes of carbon dioxide a year.

SABIC brings to Teesside Collective expertise gained from operating the world’s largest carbon dioxide (CO2) utilisation plant in Saudi Arabia, which currently compresses around 1,500 tonnes of raw CO2 per day from the company’s glycol plants to make urea and methanol.

John Bruijnooge, Site Director of SABIC’s Teesside operations, said: “We are excited to join Teesside Collective. It’s a leading green growth initiative in the UK aimed at attracting further investment to the region and reducing industrial carbon emissions. SABIC’s recent work on carbon re-use in Saudi Arabia has shown us first-hand the feasibility of Teesside Collective’s vision and the benefits that realising income streams can bring.”

SABIC joins at an important time for the project, following the Department of Energy and Climate Change’s confirmation of further funding for Teesside Collective’s work. The new funding will allow the cluster to scope out how Carbon Capture and Storage, carbon usage, hydrogen production and other technologies could reduce carbon emissions from industrial processes.

Teesside Collective published a Blueprint for Industrial Carbon Capture and Storage in the UK in July, based on DECC’s initial round of funding, which received widespread support among industry, environmental groups and in Government.

Teesside Collective is also able to play a significant role in the development of a low carbon Northern Powerhouse.

Neil Kenley, Director of Business Investment at Tees Valley Combined Authority, said: “SABIC is the second new industrial partner to join Teesside Collective in the last six months. This demonstrates the positive direction and growing support behind our work to decarbonise UK industry. We are determined to drive forward with our vision of a sustainable and prosperous future for the UK, based on the advantages and cost-effectiveness of collaboration with other similar clusters up and down the East Coast.”

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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, CF Fertilisers, Sembcorp Utilities UK and now SABIC. All face stiff competition internationally and the prospect of escalating carbon permit prices in the future. These organisations are all members of NEPIC, the industrial cluster also active in the Collective.
  2. Priorities for Teesside Collective now include:
    • To update ‘Blueprint for Industrial CCS’ in the context of East Coast clusters, the Northern Powerhouse initiative and the Government’s plans to support new gas-fired power stations.
    • To scope out opportunities for direct income streams, including the development of the hydrogen economy, opening the way to decarbonise domestic as well as industrial heat, rail and road transport; and converting CO2 into commercially viable products such as bio-oils, chemicals, fertilisers and fuels.
    • Ensure cost-effective storage options and pipeline transmission infrastructure are retained against future developments.
  1. SABIC is one of the world’s top petrochemicals companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and advanced thermoplastics, glycols, methanol, and fertilizers – and one of the largest producers of steel in the Middle East. For more information see www.sabic.com.
  2. The full Teesside Collective Blueprint is available from www.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 www.teessidecollective.co.uk/project/teesside-in-2030/.
  4. CCS is a group of proven technologies that can capture, transport and permanently store over 90% of the CO₂ emissions produced by burning fossil fuels, preventing them from entering the atmosphere and causing climate change. The focus in the UK has previously been on commercialising CCS for electricity generation. Teesside Collective is an important broadening. Its premise is that a range of industries, potentially including power, would be able to capture their emissions, putting them into a shared pipeline network, from where they are available for utilisation, transformation or storage under the North Sea.
  5. Decarbonising industry on 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.
  6. Media enquiries: Contact Kira Scharwey on 020 7593 4000 or kira.scharwey@madano.com