UK government invests billions in carbon capture

The United Kingdom has had a big week from a decarbonisation perspective. While the Ratcliffe power station, the country's last coal-fired plant, was shut down on Monday, the British government announced a long-discussed plan on Friday: massive investment in CCS (Carbon Capture & Storage) technology.The news was reported by Reuters, citing a statement by the British government.

We reported here that the United Kingdom aims to become a major European hub for storing captured carbon dioxide. The government's latest steps only reinforce this commitment. The country will not only “clean up” its industry, but also create thousands of new jobs and attract private investors.

In practical terms, this means the government will allocate up to 21.7 billion pounds (equivalent to 657 billion crowns) over the next 25 years to make the United Kingdom a leader in two growing global sectors. In addition to CCS, the investment also covers the hydrogen sector.

As for CCS technology, the investment will go primarily to two projects. The first is the East Coast Cluster in Teesside; the second is HyNet North West in Merseyside. Once fully operational, the two projects are expected to capture a combined 8.5 million tonnes of CO2 a year, equivalent to the emissions of 4 million cars.

Gas-fired power plant with CCS and CO2 capture in industry

Teesside is set to host the first fully integrated facility combining gas-fired power generation with CO2 capture. The proposed NZT (Net Zero Teesside) Power gas-fired power plant will have an electrical capacity of up to 860 MW, enough to power up to 1.3 million homes a year. The project includes secure storage beneath the North Sea.

The Merseyside project aims to capture emissions from industrial plants and store them in depleted gas fields in the Irish Sea. It is set to include CCS at a cement plant, a hydrogen production facility and a waste-to-energy plant.

“HyNet... will decarbonise one of the key energy-intensive industrial areas and also support significant economic growth in this part of the United Kingdom,”said Eni Chief Executive Claudio Descalzi.

The current government is building on the work of its predecessor, when the Conservative Party set out a vision for funding projects of this kind. Although the Conservative government indicated support for four projects, they were never fully brought to fruition. Labour has therefore selected the two projects mentioned above from the proposals under discussion and given them a long-term financial commitment.