- CCUS Vision sets out plans for a new competitive market in carbon capture, utilization and storage (CCUS) by 2035: to unlock investment and drive economic growth, adding £5 billion to the economy by 2050
- Long-term decisions to achieve this include outlining a timeline to establish a new CCUS market and use competition to reduce costs for the industry
- Potential to store carbon equivalent to taking 6 million cars off the road and generating 50,000 jobs by 2030.
Green boost for UK economy as Energy Secretary sets out plan to turn UK into global market for carbon capture, utilization and storage.
The plan – called the CCUS Vision: sets out how the UK will move from early projects backed by government support to becoming a competitive market in this area by 2035, meaning UK companies will compete to build carbon capture facilities and sell their services to the world.
This is expected to boost the economy by £5 billion a year by 2050, making the UK a pioneer in this technology while meeting its net zero commitments in a reasonable way that eases the financial burden. of taxpayers.
Carbon capture works by capturing carbon dioxide (CO2) before it reaches the atmosphere and store it safely underground, filling the gaps left by oil and gas extraction. The UK has a strategic advantage compared to other countries thanks to its unique geology, skills and infrastructure as an island nation. It also offers enough space under the North Sea to hold up to 78 billion tonnes of CO2.
This is the last step to develop CCUS technologies - whose objective is to store between 20 and 30 million tons of CO2 per year by 2030 and support 50,000 jobs by 2030, backed by up to £20 billion of investment.
It comes as the Department launches the process for more businesses to connect and expand the HyNet cluster across the North West and Wales, bringing more jobs and investment to the region.
Energy Security Secretary Claire Coutinho said:
Thanks to the UK's geology, skills and infrastructure, we are uniquely positioned to lead the way in carbon capture technologies.
That's why we are making one of the largest funding commitments in Europe for carbon capture that will reduce emissions from our atmosphere, while unlocking investment, creating tens of thousands of jobs and growing the UK economy. .
Minister for Energy Efficiency and Green Finance, Lord Callanan, said:
We need pragmatic responses to the carbon challenge, and with our infrastructure, skills and geology, the UK is in first position to harness revolutionary carbon capture and storage technology.
Today we publish a plan to create a world-leading carbon capture industry in the UK, so we have a competitive market in this exciting new technology by the middle of the next decade.
Backed by an unprecedented £20 billion of investment, this is also a critical milestone on our path to net zero that will boost economic growth, unlock investment and create tens of thousands of jobs in our industrial hubs.
Ruth Herbert, chief executive of the Carbon Capture and Storage Association, said:
We welcome the CCUS Vision published today, setting out long-term strategy for the UK CCUS The industry will be able to store more than 50 million tonnes per year by 2035 to support the decarbonisation of domestic industries and take advantage of export opportunities.
it's great to see CO2 Transport by ship, road and rail will be enabled from 2025, which will also support cross-border transport in the longer term. CO2 transportation solutions.
Hedvig Ljungerud, Chief Strategy Officer at NSTA, said:
The energy transition and the path to net zero cannot succeed without carbon storage. As a regulator, we welcome today's announcement and look forward to supporting this growing industry as it benefits the UK economy and the fight against climate change.
He CCUS Vision: the plan to create a competitive company. CCUS market by 2035 – includes measures to achieve this goal, including:
- move to competitive allocation process for carbon capture projects from 2027 to accelerate UK construction CCUS sector
- creating the conditions for projects that cannot transport CO2 by pipeline to enter the market from 2025, using other forms of transport such as ship, road and rail
- establish an industry-led working group to identify and adopt solutions to reduce the cost of capture CO2
Earlier this year, two further carbon capture pools were announced, bringing the total to four carbon capture pools in the UK to support the government's ambition to decarbonise industry and energy: HyNet in the North West of England, East Coast Cluster on Teesside and the Humber, Acorn in Scotland and Viking on the Humber.
These will build truly integrated energy hubs that make the most of the UK's established infrastructure and play a key role in the country's measured and pragmatic approach to achieving net zero.
The UK Government has also today announced significant progress towards compliance with these carbon capture pools in UK industrial centres. This includes:
- agree initial commercial terms with Northern Endurance Partnership (Nep) around Teesside and the Humber, paving the way for the expansion of that group. The government will now consider the best time to start an expansion process from 2024 based on an assessment of stores' readiness in the New Year.
- and, having announced the locations of the third and fourth CCUS groups in the summer, the government today announces a faster process to establish those groups and identify suitable capture projects
Luciano Vasques, CEO of Eni UK, said:
We see strong demand for CCS from businesses across the UK, so today's announcement is a welcome step forward. We hope to provide transport and storage on HyNet to a wider range of businesses in the North West of England and North Wales, helping them reduce CO2 emissions, protect local jobs and boost the region's industrial competitiveness.
Chris Daykin, CEO, Nep saying:
Today's announcements mark another positive milestone in the development of the East Coast Cluster and the UK. CCUS industry.
Agreeing key business principles through the Heads of Terms is a crucial step in decarbonising the North East region and generating jobs. We look forward to the launch of the expansion process from 2024 and agree that HMG's selection of projects should be tailored to the available transportation and storage capacity, so that projects and stores are developed at the same time. pace and with an equivalent level of maturity.
We thank the UK Government for its continued support as we work to complete the final agreements in the coming months, which will allow Nep make the Final Investment Decision in September 2024.
Notes to editors
Also released today are updates on the business models for the elimination of greenhouse gases (GGR) And power BECCS (Bioenergy with Carbon Capture Storage). GGR Technologies will be important in achieving net zero – balancing residual emissions from hard-to-decarbonize sectors while providing new economic opportunities.
Gustavo Baquero, Executive Vice President of Strategy, Business Development and Energy Transition at Harbor Energy, said:
Today's announcement marks another important step forward for CCS projects such as Viking CCS and Acorn and the development of the UK's carbon capture and storage industry, which is critical to achieving the energy transition. It is important that momentum is maintained and the selection of anchor emitters for individual groups is allocated as quickly as possible, allowing companies like Harbor to make vital investment decisions to help the UK meet its emissions reduction targets. legally binding emissions.
Louise Kingham, bp UK country director and senior vice president for Europe, said:
We welcome the UK Government's announcement CCUS Vision, which sets out a bold plan to make the UK a world leader in carbon capture, utilization and storage, as well as the positive developments announced for both Track 1 and Track 2. CCUS clusters. CCUS has an important role to play in helping the UK meet its net zero emissions targets and bp is committed to continuing to progress its projects and help ensure this vital industry can realize its significant potential.
Mike Tholen, director of policy and sustainability at OEUK, said:
We end 2023 with a vision of where we want to go, a plan for how to get there and projects already underway that could create 50,000 jobs in the UK in the coming years.
The UK is on the brink of a transformation that will allow us to provide carbon capture and storage facilities to industry here and help our European neighbours. This is good news for tackling climate change and boosting the UK economy.
David Parkin, project director at Progressive Energy, said:
We very much welcome the Government's announcement on the expansion of HyNet Track 1. This will provide further opportunities for industrial decarbonisation in the North West region, whilst optimizing value for money for the taxpayer by maximizing the use of HyNet assets .
More broadly, the CCUS Vision helps set a roadmap for the long-term expansion of carbon storage, enabling a much wider range of industries across the region to decarbonise and open up storage opportunities across the Irish Sea.
This will allow vital industries, such as the cement and lime sector in the Peak District, to decarbonise through CCS in the medium term.
