Teesside Collective Reports: Blueprint for Industrial CCS in the UK

In July 2015, with support from the former Department of Energy and Climate Change (DECC) and the former Department for Business Innovation and Skills (BIS), as well as advice from leading engineering and financial consultants,  Teesside Collective produced a technically viable, end-to-end blueprint for a shared industrial CCS network in the UK. This set out the economic and environmental benefits the project could bring to Tees Valley and the wider UK.

The suite of reports included in the Teesside Collective blueprint are available to view below.

View our leaflet with highlights here: Teesside Collective – Blueprint for Carbon Capture and Storage in the UK

Executive summary

Please see a high-level summary of Teesside Collective’s Blueprint reports here.

Business case

Pale Blue Dot Energy (PBDE) was engaged by Teesside Collective as architect of the business case, with input from Amec Foster Wheeler. This report presents the business case for CCS, based on the Teesside Collective ICCS project.

  • The project could be operational from 2024, seven years after the financial support mechanism is sufficiently visible to developers
  • 8MT/yr of CO2 would be aggregated from SSI, GrowHow, BOC and Lotte Chemical industrial plants injected into a saline aquifer store in the Southern North Sea
  • 57MT CO2 would be captured and exported over 20 years
  • The cost is £95/tonne of CO2 or £1.5 billion of financial support

For further detail, please see the full report here.

Since this report was published, SSI has subsequently closed down – therefore, the figures in the business case have changed. Please note that this report has not been updated to reflect these changes.

 Investment mechanism design

The Blueprint makes it clear that there are no technical challenges to building a carbon capture and storage network on Teesside – the challenges are all commercial.

Societe Generale was engaged by Teesside Collective to identify potential incentive mechanisms to financially support the implementation of Industrial Carbon Capture and Storage (ICCS) on Teesside. It recommended that the following four potential investment mechanisms are more fully investigated for further development, to facilitate the implementation of ICCS in the future.

  • Option 1 – Emitter Contract for Difference (CfD)
    • Payment to an emitter based on a strike price against a reference price, linked to the prevailing market price of the allowances (certificates) under the EU-ETS. This price would be based on the cost of capture and a proportion of the cost of storage.
  • Option 2 – Storage-driven Model
    • Two-part payment to a CO2 store based on (i) availability of the transport and storage infrastructure; and (ii) a usage fee per tonne of CO2 transported and stored. This would allow the store to buy CO2 from the emitter, generating a revenue stream for an emitter to develop a carbon capture business case.
  • Option 3 – Hybrid Incentive Model
    • Payment to the store in order to provide storage capacity and a separate payment to the emitter based upon an emitter CfD, similar to Option 1.
  • Option 4 – Integrated Hub Model
    • The transport and storage infrastructure is paid for by a power CCS project with a power CfD, and an ICCS project would connect at marginal cost.

For further detail, please see the full report here.

Economic impact report

Cambridge Econometrics was commissioned to assess the likely economic impacts of developing a CCS network in the Tees Valley.

The economic analysis shows that developing a CCS network in the Tees Valley could support over:

  • 1,000 direct and indirect short-term jobs in the UK during the four-year construction period (2021-2024 inclusive)
  • A further 350 long-term jobs, directly and indirectly associated with the operation and maintenance of the CCS network
  • 2,400 jobs directly safeguarded and a further 3,500 in the supply chains

The development of the CCS network itself would lead to an annual increase of around £85m in GVA in the UK over 2021-2024. This includes:

  • £30m annual increase in direct value added to the region
  • A further £20m annual increase in direct value added to the rest of the UK
  • An additional £35m increase in value added in the UK due to indirect effects

For further detail, please see the full report here.

 Engineering and design reports

Amec Foster Wheeler led Teesside Collective’s engineering activit, examining five elements: process, capture, gather, transport and store.

The four industrial emitters involved provided a range of challenges in capturing CO2. No insuperable engineering or technology issues were identified which would prevent the design and construction of an industrial capture network using existing technology. This could be operational by 2024.

For further detail please see the full reports below: