Energy UK response to Carbon Capture & Storage announcement
The government has unveiled a series of announcements about carbon capture and storage to coincide with the Cabinet visit to the Northeast of Scotland today.
Energy UK said: “Carbon capture and storage is an important technology for dealing with carbon emissions from energy and other industries. It has been discussed for years but today’s announcement brings it closer by granting the funds for the planning stage for a full scale trial. This project promotes low carbon technologies and will help provide Britain with secure, affordable and sustainable energy into the future as well as creating a continued future for the North Sea.”
Notes for Editors
- Sir Ian Wood’s review 'UKCS Maximising Recovery Review’ is available online
- The review was commissioned by Secretary of State Ed Davey in June 2013 Sir Ian Wood reported his interim findings in November 2013.
- Sir Ian Wood will Chair an Interim Advisory Panel to provide advice and a stakeholder perspective on the implementation of the Review’s recommendations.
- DECC officials are undertaking detailed planning work around establishing the new arms-length body and aim to have the new body in operation, at least in shadow form, by the Autumn 2014.
CCS Commercialisation Programme
- Peterhead and White Rose proposals are the two projects being supported under the Government’s £1 billion CCS competition.
- £1bn has been committed to the Programme, with around £100m of that funding being invested now to support the detailed planning and engineering of these two projects
- In late 2015, the projects will take final investment decisions with Government taking decisions shortly after on investing the remainder of the £1bn funding to support construction of up to two projects
- The Peterhead and White Rose projects expect to award sub-contracts to around 10 UK based companies including Technip which is establishing a CCS Centre of Excellence at its Milton Keynes office.
- With the award of the two FEED contracts, the Reserve Projects announced in March 2013 will now be deselected
- As outlined in the Government’s Response to the Cost Reduction Task Force published in October 2013, DECC is continuing discussions with CCS developers outside of the Competition on what measures they may need to take their projects forward. This includes discussions with the Captain Clean Energy Project and the Don Valley CCS Project under the FID Enabling route.
- The UK has the best offshore CO2 storage resources in Europe, estimated at around 70 billion tonnes which would be sufficient to store 100 years’ worth of current emissions from the electricity sector.
Oil and Gas Industrial Strategy
The Oil and Gas Industrial Strategy was jointly launched by government and industry in March 2013 to help secure billions of pounds of future investment and thousands of jobs for the UK’s oil and gas industry. It is working to put government and industry on the right path to ensure future decades of investment and production in the North Sea. It is also seeking to maximise economic recovery of oil and gas from the UK Continental Shelf and support a dynamic supply chain which sustains high quality jobs in the UK.