The benefits to the environment
The CCS scheme has obvious environmental benefits. By implementing the scheme in Yorkshire, it could save 10% of the UK’s CO2 emissions – equivalent to half of the emissions from the country’s domestic sector.
The benefits to Yorkshire and the Humber
· Constructing the network over 15 years could generate approximately £1.8 billion in gross value added (GVA) and support up to 55,000 jobs
· The operations phase could produce £126 million of additional GVA and support up to 2,400 jobs per year
· The net benefits for Yorkshire and Humber from the first 25 years of network operation could be £31 billion, modeled on a carbon price in the European Union Emissions Trading Scheme of €35 per tonne.
Companies from the engineering and chemicals sectors in the region will have the opportunity to develop the skills, products and services required to construct, operate and maintain the network, and export this know-how to an emerging global CCS market ultimately worth many billions per year. The retention of thousands of jobs in Yorkshire and Humber related to fossil fuel based power generation, steelmaking and other energy intensive industries will help build and maintain a thriving economy within Yorkshire and Humber.
‘Let’s make Humberside lead the world in Carbon Capture and Storage’
David Cameron, PM
The benefits to your organisation – Power stations and heavy industry
An established regional CCS network would not only enable your organisation to cut emissions and help meet your carbon allowances, but also secure your resource and energy supply chain, until cost-effective low carbon alternatives are introduced.
There are also considerable economic benefits to being at the centre of a local CCS hub. The development of a CCS network would send a strong message to national and international investors and make it easier to attract investment for new projects and product development.
The benefits to your organisation – The supply chain
A full regional CCS network is expected to cost at least £2bn in the construction phase alone, this is a significant opportunity for your organisation if you are in one of the industries below:
Working on one of the first CCS networks in Europe, your organisation would also have a clear advantage over the competition for future projects. This would leave you perfectly placed to exploit a global low carbon technology and environmental sector currently worth $700 billion. There is an opportunity to strengthen your position in the supply chain through joining our online CCS Supply Chain Network.
Becoming a member will enable you and your organisation to:
- keep up to date with our programme and CCS in Yorkshire and Humber through our blogs and the regularly updated news section
- create an online profile and use it to promote the work you and your organisation do by sharing your successes
- build relationships with site members working in other parts of the supply chain
- see details of relevant upcoming events, and
- exchange views, information and helpful documents with other people aiming to work in this sector.
To join the network for free, register on the CO2Sense networks and then request access to the CCS Supply Chain Network.
The Challenges of CCS
CCS is expensive – the technology and expertise has not been applied on this scale before, so prices are high, and will require additional funding from EU along with government support.
The projects that are being established in Yorkshire and the Humber are the first of thier kind. It is the first to propose a CCS system that involves many seperate commericial bodies and uses an integrated system to collect their carbon emissions. The CCS technology is, in itself, well understood, but has not been developed on this scale. This project will need to demonstrate the capability of CCS to operate at the extent of the development planned for the region.
A third challenge comes from the lack of financial value for abated CO2 emissions. The only market mechanism to support industrial CO2 abatement is the European Union Emissions Trading Scheme (EU-ETS). The price of CO2 is currently around €14 per tonne, and is estimated by Deutsche Bank and McKinsey to rise to €30-50 per tonne by 2015. However, the current costs of capturing transporting and storing CO2 are of the order of €60-90 per tonne, falling to €30-45 per tonne by 2030, as the market matures. The consequences are that transporting carbon will, for the near future at least, cost more than it would to emit it.