Memorandum submitted by the Carbon Capture
& Storage Association
The Carbon Capture & Storage Association
(CCSA) exists to represent the interests of its members in the
business of capture and geological storage of carbon dioxide (CCS)
as a means of abating atmospheric emissions of carbon dioxide
and potentially, as a means of enhancing the production of fossil
hydrocarbons. From its base in London the Carbon Capture &
Storage Association brings together specialist companies in manufacturing
and processing, power generation, engineering and contracting,
oil, gas and minerals as well as a wide range of support services
to the energy sector such as law, banking, consultancy and project
management. The Association is a model for cross-sectoral cooperation
in business development and its existence has been welcomed by
government. The Association was launched on 13 March with 11 founder
members and to date has 28 members.
I would like to refer to paragraphs 12-13 and
52-55 of Chapter 3 of "Tomorrow's Climate, Today's Challenge"
relating to electricity generation and carbon abatement technologies
and I would like to make the following points:
1. In electricity generation investments
are made that retain the impact of the investment over a very
long period, say 30 years and more.
2. There is likely to be a number of power
plants decommissioned over the next ten years amounting to a total
of 12 GW before 2015 and that capacity is most likely to be replaced
with fossil fuel plants. It is important not to embed high emission
generation capacity in the system for the coming decades. Therefore,
new fossil fuel power plants should be at least "capture-ready"
but preferably have Carbon Capture & Storage from the outset.
By 2015, the CCSA believes that at least 40 Mt CO2
pa could be abated from power and industrial sources by 2015.
3. The cost of such plant is competitive
in relation to other low carbon methods of power generation.
4. The flexibility of fossil fuel power
generation with CCS means that variable demands for power can
be met whilst accommodating intermittent and inflexible supplies
from other sources thus maintaining reliable and secure supply
whilst minimising GHG emissions.
5. There are no substantial technical barriers
to the implementation of projects now, only policy and regulatory
barriers.
6. Providing policies that incentivise CCS
and regulations that give confidence to investors as well as other
stakeholders are introduced quite soon then several large projects
that are currently under development could go forward to completion
during the period up to 2010.
7. As an act of faith in forthcoming policy
and in response to policy signals there are already six power
projects proposed in the UK that are fossil fuel based with CCS.
One of them is gas based with a generation capacity of 475 MW
and could be in service by 2010. Five projects are coal based
with a combined capacity of almost 4 GW and about half of that
capacity could be in service at about the same time. It is possible
there are other projects under development under strict commercial
confidence.
8. HM Treasury has recently consulted on
barriers to commercial deployment of CCS and I am submitting the
CCSA response to HMT alongside this document.
9. If the UK is going to embark on a path
to reduce emissions by over 60% by 2050 it is essential to plan
now and take into account the decommissioning programme above
as an opportunity, otherwise it may become an obstacle.
10. The CCSA welcomed the publication of
the House of Commons Science & Technology Committee report
"Meeting UK Energy Needs: The role of Carbon Capture &
Storage". A number of our members were called to give evidence.
We would be delighted to support the Environmental Audit Committee
in a similar manner.
May 2006
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