CCS plays a vital role in mitigating the effects of climate change, and its application to process and manufacturing industries requires bold first-mover partnerships with a sensible allocation of risk – like with any investment decision. Certain considerations can help ease the transition to ICCS.
Yesterday’s news regarding the withdrawal of the £1 billion capital subsidy by a government who only six months ago were firmly committed to CCS as part of their election manifesto was a shock for many people across the energy industry. It was not announced as part of the 2015 spending review, but was part of the collateral damage of budget cuts at DECC which was quietly announced to the UK Stock Exchange at 3pm through a short statement of 56 words – equivalent to just three tweets.
Todays news that Drax have withdrawn from the White Rose CCS project because of “critical reversals” in government support raises inevitable questions about the future of CCS in the UK. Whilst both the Shell/ SSE Peterhead project and the Capture Power White Rose project are approaching the end of their FEED programmes, the news about Drax has highlighted that there is still some distance to go to reach Final Investment Decision (FID) on these projects. If these projects fail to go ahead, there are significant implications for CCS and UK carbon reduction efforts. This paper highlights the importance of successfully delivering these two projects.
CCS has a key role to play for both industrial and power emissions reductions and Scotland is well placed to establish CCS infrastructure to enable the development of low carbon industry.
The UK is committed to Carbon Capture and Storage (CCS) as a key part of its carbon reduction efforts. There has been a long history of early stage CCS projects in the UK, but converting these into operational projects has proved a challenge.