Teesside Collective blueprint for industrial CCS in the UK

Jul 01 2015

Teesside Collective in the UK has published a viable end-to-end plan for Europe’s first Industrial Carbon Capture and Storage network.

The initial plan would be to cut a quarter of Teesside’s annual CO2 emissions from 2024, with expansion by the 2030s resulting in a potential 15m tonnes of CO2 a year stored, new industries and 2,600 new jobs in the Tees Valley.

Funded by the Department of Energy and Climate Change, the Teesside Collective blueprint comprises a series of documents including:

- A report commissioned from Pale Blue Dot on the technical and commercial basis for establishing an Industrial CCS network in Teesside. This concludes that the cost of setting up the network and running it over a 20 year life to store 56m tonnes of carbon dioxide is equivalent to £95 per tonne of CO2 stored at today’s prices.

- Proposals from Societe Generale on how a financial support mechanism could work to best bring on investment in the shared infrastructure while ensuring value for money to the taxpayer.

- A series of engineering studies developed by Amec Foster Wheeler setting out in detail how capture would work on the four different industrial processes and what would be required to collect, transport and store the CO2 under the North Sea. The project would leverage the UK’s wider investment in CCS by using an extension to one of the sub-sea stores being considered by CCS projects in the power sector.

- Independent research by Cambridge Econometrics estimating the benefits to jobs and economic activity likely to result from pursuing Teesside Collective.

The blueprint sets out a structured plan for implementing a CCS Network:

In an initial phase, four ‘anchor’ companies at the front of the queue to be involved are steel producer SSI UK, fertiliser producer GrowHow, polyester resin producer Lotte Chemical UK and hydrogen producer BOC. A network, which could be operational by 2024, would see 2.8m tonnes of CO2 a year – a quarter of Teesside’s emissions – stored permanently under the North Sea.  The project would support 1,200 jobs during construction and help retain 5,900 in these companies and their supply chains.

Subsequently the network would be expansed, and other industries already in Teesside would later be able to plug into the network, as would new plants attracted to the area by the infrastructure. Assuming modest additional upfront investment in larger pipelines, up to 15m tonnes of CO2 a year could be being stored by 2035.  New investment attracted by the infrastructure could create an additional 2,600 jobs in Tees Valley, £2billion Gross Value Added (GVA) and £1.2billion in extra exports by 2035.

Speaking at the Westminster launch, Lord Bourne, Energy and Climate Change Minister, said:

“We have a comprehensive programme of work in place to promote carbon capture and storage and globally the UK is independently recognised as having one of the best policy environments for the development of CCS. What Teesside Collective is doing goes hand in hand with this Government’s ambition to upskill the workforce and support thousands of jobs in the North.”

Stephen Catchpole, Managing Director of Tees Valley Unlimited, said:

“This is not just a blueprint for a prosperous Tees Valley, it is a blueprint that has the potential to change both the UK and European industrial landscape and its impact on the environment.”

Matthew Bell, Chief Executive of the Committee on Climate Change, said:

“Delivering low cost infrastructure to capture and store carbon is critical to meeting the UK’s 2050 target.  By building on infrastructure that is already planned this project is a valuable step on the critical path to meeting that target. It’s needed in the 2020s, so work needs to start now.”

Michelle Hubert, Head of Energy and Climate Change at CBI, said:

“For many industries, CCS will be the only long-term way to cut carbon and stay competitive in a low-carbon economy. The report published by the Teesside Collective is a critical step forward for industrial CCS, signalling a prosperous future for the UK’s energy-intensive industries.”

Luke Warren, Chief Executive of the Carbon Capture and Storage Association, said:

“The new Government must turn its attention to developing an enabling framework to deliver a second phase of CCS projects. This second phase will be crucial in realising cost-competitive CCS in the 2020s and must include the creation of an industrial CCS investment mechanism.”

Teesside Collective

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