A financially viable means of getting Industrial Carbon Capture and Storage (CCS) off the ground is to be studied by consultants working for Teesside Collective, the cluster of energy-intensive industries announced today.
Pöyry Management Consulting has been commissioned to refine and develop the Hybrid Incentive Model for an Industrial CCS network in Teesside, as well as recommend a regulatory regime to manage the system. The investment mechanism was one of the financing options presented in Teesside Collective’s Blueprint for Industrial Carbon Capture and Storage in the UK, published in 2015. Funded by Government, this work will take account of existing documented work on Industrial CCS financing, storage and regulation.
Teesside Collective is working to establish one of Europe’s first clean industrial zones. Its financing work comes as the Government formulates its policy on decarbonisation in the light of November’s cancellation of funding for CCS in the power sector. It also follows the September publication of a policy review by Lord Oxburgh’s Parliamentary Advisory Committee, which found that energy-intensive industries represent some of the cheapest available carbon abatement in the UK economy. Lord Oxburgh’s report recommended the development of CCS hubs for the economic regeneration of Britain’s industrial centres, and that CCS infrastructure should initially be state-owned and financed.
Neil Kenley, Director of Business Investment at Tees Valley Combined Authority, said:
“CCS uses proven technologies, being used around the world – its main challenge is financing. Teesside Collective’s Hybrid Incentive Model for Industrial CCS is intended to kick-start investment in shared infrastructure. We are determined to make this a reality and achieve lowest cost decarbonisation for the UK.”
Phil Hare, Director, Pöyry Management Consulting, said:
“Pöyry Management Consulting has deep commercial experience in CCS as well as regulation and policymaking, and we are looking forward to working on such an important project with Teesside Collective. As part of the UK CCS Cost Reduction Task Force, Pöyry has been front and centre in the aim to reduce the cost of the technology and help the UK meet its climate targets.”
The financial mechanism work follows a separate contract to design a first-of-a-kind carbon capture plant which could decarbonise the soft drink bottle supply chain in Teesside, as well as a demonstration centre on the Wilton site to provide a base for bringing carbon capture and utilisation technology to market.
Notes for editors
- Teesside Collective is being led by Tees Valley Combined Authority and the Tees Valley Local Enterprise Partnership, working with major employers in Teesside including Lotte Chemical, BOC, CF Fertilisers, Sembcorp Utilities UK and 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.
- Pöyry is an international consulting and engineering company. We serve clients globally across the energy and industrial sectors and locally in our core markets. We deliver strategic advisory and engineering services, underpinned by strong project implementation capability and expertise. Our focus sectors are power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation, water and real estate sectors. Pöyry has an extensive local office network employing over 5,000 experts.Pöyry Management Consulting is the leading advisor to the world’s capital and resource intensive industries. Clients choose us for the sharpness of our insight, deep industry expertise and proven track record – because results count. poyry.com
- Priorities for Teesside Collective now include:
- Building the body of evidence that CCS technologies are viable, through trials and studies.
- Presenting a robust solution to the finance challenge.
- Working with BEIS and HMT on Government policy supportive of industrial CCS policy.
- Growing the membership of Teesside Collective further with new industrial members.
- Strengthening links with other East Coast industrial clusters with shared interests.
- The full Teesside Collective Blueprint is available from teessidecollective.co.uk.
- 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/.
- 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 different. 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.
- Teesside’s concentration of industrial emitters and proximity to potential storage sites under the North Sea mean the area is industrially and geographically suited to be the starting place for large-scale industrial decarbonisation in the UK. It 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.
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