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CO2Sense CCS Reaction: Govt decision could delay CCS into next parliament

October 30th, 2012 | 1:51 pm

Today (Tuesday 30th October), the Government announced that the White Rose Project in Selby, Yorkshire has been shortlisted to receive billions of pounds of funding for a national Carbon Capture Storage (CCS) commercialisation programme.

Research commissioned by the Yorkshire and Humber CCS Cluster Steering group shows that if their bid for investment is successful, the White Rose Project, which is owned by Drax Power Ltd, Alstom and BOC , could deliver £530m and 3500 jobs to the UK economy.

Commenting on the news, Dr Stephen Brown, director at CO2Sense, the low-carbon expert consultancy that leads the Yorkshire and Humber CCS Cluster Steering group, says:

“We welcome the news that the Government has recognised Yorkshire as a strong base for CCS.  The economic and environmental benefits of the White Rose Project are clear and we are pleased that it is still a strong contender for funding. The transition to a low-carbon economy is essential for the UK’s recovery and if this bid successful, the economic benefits will be wide-spread and felt across the UK’s supply chain.”

“However, the decision not to short-list the Don Valley Power Project is a shock, given that it is the top ranked project in a parallel process run by the European Commission. It suggests the Government’s intent to push any major financial commitment to CCS into the next Parliament.”

Dr Brown’s comments reflect the surprise of many in the CCS industry that 2Co Energy’s Don Valley Power Project has missed out on the shortlist. The project was ranked number one in Europe and projected to reach financial close in 2014, delivering 2500 jobs and hundreds of millions is economic benefits between 2014 and 2019. Funding the project would have placed the UK at the forefront of a global industry, but the effect of today’s decision is that the UK has missed out on an opportunity to build the most advanced CCS plant in the world in the next few years.

ENDS

For more information please contact Hayley Johnson on 0113 237 8410 or email Hayley.Johnson@CO2Sense.co.uk

Notes to Editors

About the report: the national, regional and local economic benefits of the Yorkshire and Humber Carbon Capture Storage Cluster.

This report was commissioned by CO2Sense on behalf of the Yorkshire and Humber CCS Cluster Steering group, comprised of National Grid, 2Co Energy, Drax, General Electric, Amec and Tata Steel.

To view the report’s executive summary please click here

About the White Rose Project

Based in Selby, this project will be constructed on the existing Drax site and will use an Oxyfuel process that combusts coal in a mixture of oxygen and CO2, allowing efficient capture of CO2. The CO2 will then be transported to storage through the national grid pipeline.

In terms of economic benefits, it is projected that the White Rose Project and CO2 Pipeline combined will generate:

-          £530m additional GVA

-          3500 jobs

About the Don Valley Project

This is a new coal fired power plant under development by 2co Energy. The process used by the plant will convert coal to a mixture of combustible gases. This allows the capture of CO2, which will then be transported to storage through the national grid pipeline. The intention of 2Co energy is to then use the CO2 for enhanced oil recovery (EOR) in mature North Sea oil fields. It was anticipated that this would recover up to £100 million additional barrels of oil, which would provide a significant strategic advantage to the UK in terms of oil supply and a boost to the Government’s fiscal position with increased tax revenue received from the escalation in production.

It was projected that investment in the Don Valley project could have delivered an additional:

-          £725m GVA

-          2500 jobs

About CO2Sense

CO2Sense is the not-for-profit low-carbon expert company that leads the Yorkshire and Humber Carbon Capture Storage (CCS) Steering Group.

We work with some of the UK’s largest companies to develop new ways of cutting greenhouse gas emissions.

We also help organisations to generate both free energy and an income by developing renewable electricity and heating installations. Because we’re not trying to sell a particular type of renewable energy, we make sure that organisations install the technologies that will deliver the best possible return for their investment.

We help companies that sell environmental products to develop their business. We find new markets for their products, and we help them to get the right product accreditation to make sure that their customers can buy from them with confidence.

We can also help organisations to get capital investment to help with the costs of installing new renewable energy and other low-carbon installations.

We help organisations to find real cost savings by developing low-carbon strategies, which give no-nonsense, clear direction to reduce energy and water use, to produce less waste and to use fewer raw materials.

CO2Sense is part-funded by the European Regional Development Fund (ERDF)

To find out more, visit www.co2sense.co.uk

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