Reducing costs while scaling carbon capture
Cost-reduction recommendations from the UK's Carbon Capture and Storage Association (CCSA) follow the Climate Change Committee’s recent carbon budget advice.
The CCSA report identifies key levers for cost reductions while scaling up the carbon capture, utilisation and storage (CCUS) sector.
The aim is to ensure value for money, while delivering economic growth for the UK, with the aim to achieve net-zero and an affordable and secure energy system.
The technology underpins decarbonisation of multiple UK sectors including clean power generation, low-carbon fuel production, industrial decarbonisation and carbon removals.
Levers include accelerate learnings from first-mover projects, delivering economies of scale and maximising the use of infrastructure, growing UK supply chains, and promoting industry collaboration to reduce costs.
The UK Government has already established the first of two CCUS clusters, with the CCSA wanting the momentum to continue to deliver the next projects to realise a critical mass.
The Driving cost reductions and value for money report calls for three further key recommendations for the government:
- Refine the approach to future funding allocation
- Accelerate delivery of comprehensive carbon markets both in the UK and internationally
- Leverage public finance through GB Energy and National Wealth Fund
Mark Sommerfeld, UK CCSA Director, says, 'Getting spades in the ground for the first CCUS clusters will provide other projects with important lessons and work towards strengthening the value chain. This is critical as we work to achieve economies of scale that will foster innovation and promote collaboration in contracting and supply chains.
'In doing so, we will be able to realise efficiencies and strengthen investor confidence in the industry, ultimately lowering the cost of delivering and operating CCUS across the UK’s industrial heartlands.'
The report follows the UK Climate Change Committee's advice for the Seventh Carbon Budget and a report from The Public Accounts Committee (PAC), which suggested that the UK Government had not assessed the likely impact on consumer energy bills of the CCUS programme.
