Two projects in the North of England aimed at sequestering carbon and producing hydrogen have won the full-throated support of the UK government and a pledge for nearly £22 billion over the next 25 years.
By Richard Barker, development director at Peel NRE
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As the new Labour government outlines plans for publicly owned carbon capture projects, Peel NRE development director Richard Barker looks at the role of the technology in reaching net zero and how plans are progressing on the ground.
The policy brains behind the UK’s carbon capture, utilisation and storage (CCUS) clusters have hailed progress towards ambitions to make Great Britain a world leader in the technology despite deep concerns about delays in the projects.
The UK is considering delaying support for some carbon capture projects until after this year as costs rise for the fledgling technology that’s critical to the country’s climate goals.
Eni has unveiled new details of infrastructure and timings for its Liverpool Bay carbon storage scheme, including a newbuild platform at the Douglas complex.
“What we’re finding now are new businesses and new opportunities are saying ‘if you can do these hydrogen plans, we will come and locate to the region’. That’s a new dynamic we didn’t have a year ago.”
A new report finds that the UK’s carbon capture and storage (CCS) capacity is likely to fall short of 2030 targets and complains of ‘disproportionate’ support for blue hydrogen schemes over electricity generation.
Eni has reached an agreement in principle with the UK Government over the regulatory framework which will govern its HyNet carbon capture and storage (CCS) project in the UK.
Blue hydrogen is around half the price of green, he noted, after normalising for incentives and penalties. “The models show then that green hydrogen takes over, at around a decade out.”
KBR is to take on engineering design work for a second hydrogen plant at the Stanlow complex, as operator Vertex is rolled into Essar’s hydrogen business.
Chief executive of Wood (LON:WG), Ken Gilmartin, says that his firm's growth in carbon capture comes from picking work that allows its “subject matter experts shine.”
Essar Oil UK has announced plans to build a £360 million carbon capture plant at its Stanlow refinery, as part of wider plans to decarbonise the north west of England.
Harbour Energy and Eni are set to invest more than £8 billion in the UK over the next four years, as the sector continues to bat away calls for a windfall tax on energy profits.