|Photo by Paul Teysen on Unsplash|
The report, produced for the CCSA by analysts at Cambridge Econometrics and Afry, considers two scenarios for delivering CCUS in the 2020s: the first being the UK Government’s Ten Point Plan to capture 10 million tonnes (Mt) of CO2 a year by 2030 before scaling up in the 2030s; and the Climate Change Committee’s (CCC) Net Zero pathway in the Sixth Carbon Budget to capture 22 Mt of CO2 a year by 2030 before more than tripling capacity in the 2030s.
The report also looks at funding requirements to deploy CCUS under the two scenarios by 2030 – which range from £1.2 billion under the Ten Point Plan to £2.6bn under the CCC scenario. The authors also point out that delivering CCUS by the mid-2020s would give the UK a head start in global deployment, potentially bringing yet more jobs and other economic benefits.
Professor Stuart Haszeldine, SCCS Director, said:
I welcome this economic impact analysis by two very well-established consultancies, using conventional methods. No magical thinking is needed, but rather sustained political support and policy action by the Westminster and Scottish governments is required to continue driving the North Sea basin transition offshore and onshore.
The biggest risk is under-ambition and the UK must not be timid. Norway and the Netherlands are showing us that there is potential for a new industry similar in size to the oil and gas sector in 2010. Our analysis shows that the UK Ten Point Plan is an absolute minimum and the CCC proposal is still modest.
To meet European needs for CO2 storage, the North Sea basin should be looking at 25 injection boreholes operating by 2025 on the pathway to Net Zero 2050. That could create three times, and eventually ten times, the number of jobs projected here. The UK Government needs to create a storage mandate, which would make CCS profitable rather than subsidised. This report describes initial steps which can deliver that.
The report, Economic Analysis of UK CCUS: A report to Carbon Capture and Storage Association, is available on request from the CCSA. The executive summary can be downloaded here.
Read Energy Voice's coverage of today's report launch.