UK CCS Policies, Industrial CCS, Jane Lumb (BIS Department for Business Innovation and Skills) UK/Norway/Canada Meeting 18/19 March 2015

1. UK CCS policies,
focusing on industrial CCS
Jane Lumb
ICCS policy lead, BIS

2. UK CCS policies
• 1st phase
– Power CCS commercialisation programme
– Research and Development
– Storage appraisal
• 2nd phase
– Next steps on power
– ICCS
• Focus on ICCS
– TES
– Teesside City Deal
– Next steps
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3. Power CCS
Commercialisation
Programme
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Heat Strategy and Policy
• £1bn / $1.7bn capital
funding
• Operational support
through CfDs
Construction and commissioning
Turn of
2013/4
Q1
2016 2016 - 2020
Winter
2012
April
2012
March
2013

4. White Rose
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Heat Strategy and Policy
• A 340MW post-combustion capture
retrofitted to part of an existing CCGT at
Peterhead, Scotland
• Capturing around 85% of the carbon
dioxide emissions, ~ 1 million tonnes of
CO2 per year
• Stored in a depleted gas field under the
North Sea
• An oxyfuel capture project at a proposed
new 448MW supercritical coal-fired power
station on the Drax site in North Yorkshire,
England
• Capturing around 90% of all carbon
dioxide emissions, ~ 2 million tonnes of
CO2 per year
• Stored in natural porous rock formations
under the North Sea
Peterhead

5. R&D and innovation
• £125M on around 100 projects
– Whole system
– Capture
– Utilisation
– Conversion and generation
– Transport and storage
• Storage appraisal project
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6. Next phase
• Power projects coming
forward without capital
funding from
Government
• Support for power
projects through CfDs
• Developing policy to
support ICCS
• Working to strengthen
the business case
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Heat Strategy and Policy

7. INDUSTRIAL CCS
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8. Why Industrial CCS (ICCS)?
• Only substantial option to decarbonise:
– Iron and steel
– Refineries
– Chemicals
– Cement
• Carbon pricing of emissions expect to continue so for these
4 sectors ICCS key to:
– industrial competitiveness
– jobs and growth
– countering carbon leakage
8
Climate
Change
The
Economy

9. Techno-Economic Study 2014
– Key Questions
• Technologies for ICCS
• Technology Readiness
• Costs
• CCU
• Retrofit only
• Process emissions focus
• Capture only
• Route to capture by 2025
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Heat Strategy and Policy

10. 52 Industrial CO2 sources
Legend
Sector:
Iron and Steel
Refineries
Cement
Chemicals
Emissions (t CO2/yr):
100,000
1,000,000
6,000,000
Southern
North Sea
storage
East
Irish
Sea
storage
Central North Sea
Storage
10 Heat Strategy and Policy

11. MACC curve of capture technologies
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12. • Commercial requirements
• Knowledge gaps
• Site integration
• Operational risks
• Policy, regulatory and long term investment
certainty
• Infrastructure availability (transport and storage)
• Energy costs
12 Heat Strategy and Policy
Barriers to deployment

13. Techno-economic study outputs
By 2025:
• Ammonia & Hydrogen – high purity already
• Iron and Steel – possible on blast furnace power stations
• Refineries and chemical crackers - unlikely to see any
deployment
• Cement - capture possible if using mature technologies but
unlikely – 2nd gen better suited.
• Second generation bolt-on technologies such as 2nd gen
amines, calcium looping offer significant long-term cost
reduction potential
• Very limited CCU except EOR thought to be commercial
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14. Teesside City Deal
• Policy to delivery economic growth through cities’
own priorities – Teesside prioritised CCS
• Studies to be completed in 2015:
• Capture options and cost estimates for 4
industrial sites
• Investment mechanism
• Business cases
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15. Techno-Economic Study - Key Questions
1. What are the most relevant technologies for industrial
CCS in the UK chemical, iron and steel, refining and
cement sectors, which can be implemented by ca. 2025?
a) What do they cost?
b) What are the barriers?
c) What technology development, especially piloting, is
required to deliver these?
2. How could CO2 utilisation facilitate capture from
industry?
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Heat Strategy and Policy

16. Other ICCS developments
• Policy Scoping Document
– Workshops in London and Teesside in November 2014
• Industrial decarbonisation and energy efficiency workshops
for 8 most energy intensive industries
• ETUC industrial regions work in Aire Valley
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17. • TVU will publish pre-FEED, investment mechanism and
business case work
• NER400
• Policy development in collaboration with industry and
academia
• Questions
– How much will FEED studies cost?
– What 2nd generation technology innovation projects
may come forward?
– What funding mechanisms might work?
– How to bring forward transport and storage?
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Heat Strategy and Policy
Next Steps

18. Any questions?
Jane Lumb
Jane.Lumb@bis.gsi.gov.uk