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05 Feb 2025

Developing the Carbon Capture Sector in the UK: A Strategic Path Forward

TL Luigi Crolla Crabon Capture web

Introduction

Carbon capture, utilisation, and storage (CCUS) is a critical technology in the fight against climate change. It involves capturing carbon dioxide (CO₂) emissions from industrial processes and power generation, transporting it, and storing it underground to prevent it from entering the atmosphere. It is generally regarded as a transitional low-carbon solution, as new renewable energy processes such as renewable hydrogen (green hydrogen), are further developed.

The United Kingdom (UK) has been at the forefront of developing and implementing CCUS technologies, recognising their importance in achieving net-zero emissions by 2050. Kent is playing an active role in this area by leading and supporting key CCUS projects here in the UK and abroad.

Strategic Steps to Develop the CCUS Industry

Technology-Neutral Approach

A technology-neutral approach provides contractor and client alike with the ability to evaluate technology's strengths and weaknesses in different settings, and then allow the best solution to be implemented. The approach is beneficial as it:

  • Encourages innovation: Businesses can experiment with different technologies to find the most efficient solutions.
  • Prevents obsolescence: Regulations do not become outdated as technology advances.
  • Promotes competition: No single technology or provider is given an unfair advantage.

Policy Support and Incentives

The UK government could continue to build up strong policy support and financial incentives to attract private investment in CCUS. This includes extending funding programmes, offering tax incentives, and creating a favourable regulatory environment. An example is implementing a Carbon Takeback Obligation, which requires fossil fuel suppliers to store a rising percentage of their CO₂ emissions, which could create a self-sustaining storage market.

Fostering Technological Innovation

Continued research and development in carbon capture technologies is essential. UK government organisations could support pilot projects and demonstration plants to test and refine next-generation capture methods. Collaboration between government, academic institutions, industry, and international partners can drive innovation and reduce costs.

Strengthening Regulatory Frameworks

The UK can establish clear and comprehensive regulatory frameworks for CCUS. This includes setting standards for CO₂ storage, monitoring, and verification. Ensuring long-term liability and addressing potential environmental impacts is critical for building investor and public confidence.

Engaging with the Public

Effective communication and community engagement is vital for gaining public support for CCUS projects. The government and industry working together can keep building the case with the public about the benefits of carbon capture and address any concerns. Transparent and inclusive decision-making processes can help build trust and acceptance.

Accelerating Infrastructure Development

There are years of lessons learnt and experience from the oil and gas industry, where thousands of miles of carbon dioxide pipeline infrastructure have been built, which can be transferred over to CCUS projects. Areas of expertise such as flow assurance, phase management and safety regulations can be called upon. The United States of America has approximately 4,000 miles of high-pressure carbon dioxide pipelines. The UK can gain insights and knowledge from this as they prepare to build approximately 40 miles of carbon dioxide pipeline for the HyNet project. Public-private partnerships can play a crucial role in sharing the financial burden and ensuring timely project completion.

Standardisation of the Supply Chain

Standardising the supply chain involves creating uniform processes, specifications, and technologies across all stages of the supply chain. This leads to several benefits, such as improved efficiencies, reduced costs, reliability and enhanced collaboration among all stakeholders. However, supply chain challenges can still arise, such as:

  • Material scarcity: Shortages of raw materials can disrupt production.
  • Lack of visibility: Difficulty in tracking goods and processes across the supply chain.
  • Freight prices: Fluctuating transportation costs can impact overall expenses.
  • Restructuring: Adapting to new market conditions or regulations.
  • Complex demand forecasting: Predicting customer demand accurately.
  • Environmental and social impacts: Meeting sustainability and ethical standards.

Addressing these challenges often requires a combination of technological innovation, strategic planning, and robust risk management.

The Global Effect

The geographical location influences the viability of a CCUS project. Some regions are well suited to carbon dioxide storage while others require some form of transportation such as ships. The UK has ideal storage options in the form of depleted reservoirs and existing offshore production platform infrastructure that can all be repurposed. However, other countries lacking this infrastructure would require large investment costs for pipelines and shipping.

The LNG and LPG market can provide some insight on how this infrastructure and shipping system could be developed and operated, providing technical steer on optimum processing parameters.

Conclusion

Carbon capture, utilisation, and storage are essential components of the UK's strategy to achieve net-zero emissions by 2050. While significant progress has been made, several challenges must be addressed to bring CCUS to full-scale deployment. By enhancing policy support, accelerating infrastructure development, fostering technological innovation, strengthening regulatory frameworks, and engaging with the public, the UK can lead the way in carbon capture and contribute to global climate goals.

For further information on Kent's role in CCUS, please refer to our projects: https://bit.ly/411gz4e

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