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Policy Exchange says UK ’missing CCS opportunity’
Projects / Policy, June 16 2008 (Carbon Capture Journal)
- Think tank Policy Exchange argues that the UK is in a unique position to lead the world in developing CCS, but the reluctance shown by the current Government in backing the fledgling industry financially has seen our notional advantage slip.
The report suggests that with a proper incentive system the UK can not only go a long way towards solving its own emissions problems but also provide practical assistance to those in the developing world.
The UK is in an excellent position to develop a CCS industry, the report says, with world leading experts, an established engineering base and a selection of potential storage sites.
UK industries could build several clean gas and coal power plants, not just a single demonstration project, if some of the new income from the sale of carbon credits was used to subsidise the first developments of a new generation of cleaner power plants.
The UK Government should also ensure a new generation of fossil fuel power stations will be built ready to retrofit CCS when the technology becomes commercially viable. However, attempts to define how stations could be built ready to retrofit have been non-existent or clumsy, the report says.
"Without adequate safeguards there is a real danger that the UK will not be ready for CCS when it comes and we shall be locked into another generation of high emissions."
Policy Exchange proposes emissions standards on all new power stations that would eliminate coal without CCS and gradually tighten to ensure all power stations are fitted with CCS by 2020.
The report also suggests commercial incentives could be achieved by giving the carbon saved via CCS a carbon price of the same level given to other low carbon sources of energy, such as wind.
This could be done by any of three methods:
1) creating a Decarbonised Renewable Obligation Certificate band granting CCS the same level of support as onshore wind or offshore wind;
2) introducing a feed-in tariff to provide a guaranteed higher price for clean CCS electricity;
3) using the EU Emission Trading Scheme allowances to reward CO2 stored.
"Without such price support, the Development and Deployment of CCS in the UK is not commercially viable, and cannot exist in the UK electricity market system."
Joint author of the report, Professor Stuart Haszeldine of the University of Edinburgh, said, "The climate message is clear: the UK and the World cannot continue to burn fossil fuels and release CO2. Either we can stop burning, or we can fit CCS; neither is happening."
"CCS is planned to become part of a multi-billion pound world market. Now is the time to be practical: to encourage and join up these new businesses in the UK. But the industry is currently way ahead of Government."
"An electricity market is needed which enables this new industry to see a fair price for decarbonised electricity, take risks, grow rapidly, and build not one, but a suite of clean power plants in the UK."
"If Government takes heed and acts now we can ensure that CCS does not become just another missed UK opportunity. The UK was first to industrialise and now can be first to decarbonise."
