Teesside Collective has been developing a financial support mechanism to kickstart an Industrial Carbon Capture and Storage (CCS) network in the UK. This project would transform the Teesside economy, which could act as a pilot area in the UK as part of the Government’s Industrial Strategy.
The final report– produced by Pöyry Management Consulting in partnership with Teesside Collective – outlines how near-term investment in CCS can be a cost-effective, attractive proposition for both Government and energy-intensive industry.
The report was published on Teesside Collective’s website on 7 February. You will be able to view copies of the report in advance of the webinar.
We were delighted to welcome Sarah Tennison from Tees Valley Combined Authority back onto the webinar programme. Sarah was joined by Phil Hare and Stuart Murray from Pöyry Management Consulting, to take us through the detail of the model and business case for Industrial CCS.
This webinar offered a rare opportunity to speak directly with these project developers and understand more about their proposed financial support mechanism.
Webinar Series: Public engagement, education and outreach for CCS. Part 4: Is there a cost-effective way of making Industrial CCS a reality?
Webinar Series: Public engagement, education and outreach for carbon
capture and storage
Part 4: Is there a cost-effective way of making Industrial CCS a reality?
Tuesday 14th February 2017
Responsible for the transition to a Low Carbon
Economy in one of the most industrialised and
energy intensive locations in the UK.
Manages Teesside Collective, a consortium of
leading industries with a shared vision: to
establish Teesside as the go-to location for
future clean industrial development by creating
the UK’s first Carbon Capture and Storage
equipped industrial zone
Technology and Innovation Manager, Tees Valley Combined Authority
10 years at Pöyry consulting on CCS, advising on a range of
CCS development projects in Europe, North America and
Specialist in the economics of CCS
Managed Pöyry’s work with the UK CCS Cost Reduction
Task Force in 2012/13, and more recently with The Crown
Estate examining the barriers to CCS deployment, as well
as modelling of CCS development pathways for the Energy
Technologies Institute and Committee on Climate Change.
Background in energy market economics, and power market
modelling for asset valuations – advising a range of clients
including major international utilities, Multilateral
Development Banks, government departments and the
Prime Minister’s Office in the UK.
Principal, London office, Pöyry Management Consulting
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What is Teesside Collective?
Teesside Collective is a cluster of leading energy intensive companies working together to build one of Europe’s first CCS
equipped industrial zones, helping to retain the UK’s industrial base, attract new investment and jobs, and meet the UK’s
climate change targets.
The group is made up of five large industrial companies:
– BOC – UK’s largest hydrogen plant
– CF Fertilisers – UK’s largest ammonia plant – 35% of UK fertilisers
– Lotte Chemical UK – PET for 15bn plastic bottles
– SABIC – UK’s largest cracker – upgrading to run on US shale gas
– Sembcorp – industrial utilities – in planning for 850MW CCGT
Teesside Collective is coordinated by Tees Valley Combined Authority and backed by the North East Process Industry Cluster
“CCS on industrial plants is going to be a
critical part of the global effort to prevent
serious climate change. Teesside is in the
right place, at the right time, to get ahead of
Sir David King, UK’s Special Representative
for Climate Change
“The sustainability of the PET we buy is of
paramount importance to us. Suppliers who
account for their emissions in a credible way
will present a fundamentally more attractive
proposition in relation to their rivals.”
Alison Rothnie, Britvic Plc
ICCS is the only technology to remove CO2 from some industrial
Strategic infrastructure that can lead to competitive advantage
Key blocker is commercial – this report presents a solution
No direct follow on from Lord Oxburgh report but agree on need for
separate state backed transport and storage
Uses cost figures published in 2015 – Teesside Collective Blueprint –
recent work shows these could be reduced even further
Focus on developing hubs of power and industry and that industry
could move first
Industrial CCS is very cost
Industrial CCS would cost government £58/t including an £18/t fee
for transport and storage
Potential for government to receive up to £41/t income from carbon
Pilot CCS network in Teesside would cost £110million to build and
£29million year to operate including a Transport and Storage fee
Pilot would capture 11million tonnes over 15 years, the network
would then expand to over 7million tonnes CO2 per year
Pilot could be operational in 6 years
Start small and start cheap in an area that can expand to link power
and industry into a network
“CCS in industry represents some of the
cheapest available carbon abatement in the UK
“CCS hubs: a national infrastructure priority”
Lord Oxburgh report
18 47 58
Pre-FEED FEED to FID CAPEX grant Subtotal:
Costs per tonne to capture, transport, and store
2.4million tonnes CO2 per year from 6 plants on
INDUSTRIAL CCS BUSINESS MODELS
BUSINESS MODEL CONCEPT DISCUSSION
14 February 2017
1. Focus on regions and clusters – Teesside pursued as a
pilot with agreement to fund FEED (£15million)
2. Agreement to put in place an ICCS funding mechanism
and timeline for implementation
3. Agreement to establish a transportation and storage
company with timeline for implementation
4. Focus on the two stores in the North Sea which have
received large amounts of public funding
Please submit questions in English directly through
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• Desperate to read the report now?
• The full report and an executive
summary are both available from the
Teesside Collective website:
• Be sure to check out Teesside Collective’s
proposition document as well:
Reports/ Publications Links
Blueprint for Industrial CCS in the UK
(Teesside Collective, 2015)
This is a collection of reports that the new study
has built on and refined. The reports include:
• Investment mechanism report (Societe Generale)
• Business case (Pale Blue Dot)
• Engineering estimates (Amec Foster Wheeler/ RHI)
• Economic impact report (Cambridge Econometrics).
A Need Unsatisfied. A blueprint for enabling
investment in CO2
(The Crown Estate and Deloitte, 2016)
A collaborative study investigating the risks of offshore
CO2 storage development and identified potential
commercial models for public and private investment in
CO2 transport and offshore storage infrastructure.
Reports/ Publications Links
Future of carbon capture and storage in the
UK inquiry - publications
(House of Commons Energy and Climate
Change Committee, 2016)
The UK Government’s Energy and Climate Change
Committee held an inquiry into the near- and long-term
future of carbon capture and storage in the UK following the
cancellation of the UK CCS Commercialisation Competition.
After hearing all the evidence the ECCC left a strong set of
recommendations for the UK Government.
A strategic approach to carbon capture and
(The UK Committee on Climate Change, 2016)
The CCC’s formal response and recommendations to the
(then) UK Secretary for State for Energy and Climate on the
critical importance of CCS in the UK.
Reports/ Publications Links
Strategic UK CCS Storage Appraisal
(Energy Technologies Institute, 2016)
This project confirmed there are no major technical hurdles
to storing industrial scale CO2 offshore in the UK with sites
able to service mainland Europe as well as the UK.
The 12 month project was delivered by the ETI and funded
with up to £2.5m from the UK Department of Energy and
Climate Change (DECC). It progressed the appraisal of five
selected storage sites towards readiness for Final
Investment Decisions, de-risking these stores for potential
future storage developers.
The detailed reports from the project and the sub-surface
geological models are all publically available – links can be
found on the ETI page linked to here…
The project built on data from CO2Stored - the
UK’s CO2 storage atlas - a database which was
created from the ETI’s UK Storage Appraisal
This is now publically available and being further
developed by The Crown Estate and the British
Information on CO2Stored is available at
Reports/ Publications Links
Lessons Learned – Lessons and evidence derived
from UK CCS programmes, 2008-2015
Patrick Dixon, former Expert Chair of the Office for CCS
partnered with the CCSA and interviewed the most recent
UK CCS project developers and a number of other
companies with an interest in CCS deployment, in order to
capture important insights into the delivery challenges of
large–scale CCS projects. These are presented in ‘36-lessons
‘The Lord Oxburgh Report’ - Lowest Cost
Decarbonisation for the UK: The Critical Role of CCS.
(Report of the Parliamentary Advisory Group on CCS,
This was the Parliamentary Advisory Group report commissioned by
the UK Government to examine the role of CCS. It found that CCS is an
essential component in delivering lowest cost decarbonisation across
the whole UK economy.
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