1 INTRODUCTION
1. Climate change and energy policy are demanding
ever more attention, both in the UK and abroad. The two-pronged
challenge facing the UK Government was articulated by the Prime
Minister Tony Blair in his keynote speech to the 2005 Labour Party
Conference:
"Global warming is too serious for the world
any longer to ignore its danger or split into opposing factions
on it.
And for how much longer can countries like ours
allow the security of our energy supply to be dependent on some
of the most unstable parts of the world?"[1]
The Government's other priority of guaranteeing the
affordability of energy is, in part, a function of security of
supply. These UK concerns are set against an international backdrop
of burgeoning consumption of fossil fuels in countries such as
India and China. The rapid growth in carbon dioxide (CO2)
emissions forecast from these countries imparts a sense of urgency
to efforts to develop solutions which can mitigate CO2
emissions without impeding economic growth.
2. We decided to launch an inquiry into Carbon Capture
and Storage (CCS) to examine the potential for these technologies
to make a significant contribution to both meeting the Government's
objectives of reducing domestic CO2 emissions and securing
energy supply, and to reducing emissions associated with fossil
fuel combustion in China and India. We announced our inquiry into
CCS on 21 July 2005, inviting evidence on the following points:
- The viability of CCS as a carbon
abatement technology for the UK, in terms of:
- The current state of R&D
in, and deployment of, CCS technologies;
- Projected timescales for producing market-ready,
scalable technologies;
- Cost;
- Geophysical feasibility; and
- Other obstacles or constraints.
- The UK Government's role in funding CCS R&D
and providing incentives for technology transfer and industrial
R&D in CCS technology.[2]
3. In the course of this inquiry we held three oral
evidence sessions, during which we heard from:
- Officials from the Department
of Trade and Industry (DTI), HM Treasury and the Department for
Environment, Food and Rural Affairs (DEFRA);
- The British Geological Survey;
- The UK Carbon Capture and Storage Consortium;
- Air Products Plc, BP Plc, E.ON UK Plc and Alstom
Power;
- Friends of the Earth, Green Alliance and Greenpeace;
and
- Minister for Energy, Malcolm Wicks.
4. The transcripts of these sessions are published
with this Report, together with the 40 written submissions received
in response to our call for evidence and requests for supplementary
information. In addition, a private seminar with CCS experts was
held at the outset of the inquiry. We undertook visits to E.ON
UK's Ratcliffe power station, the British Geological Survey's
offices in Keyworth and BP's offices in Sunbury. We are grateful
to all those who have contributed to this inquiry and assisted
in the visit arrangements. We would also like to place on record
our thanks to our specialist advisers: Professor Stuart Haszeldine,
Professor of Geology at the University of Edinburgh and the UK
Energy Research Centre, and Dr Paul Freund, one of the convening
lead authors of the Intergovernmental Panel on Climate Change
Special Report on CCS.
1 See http://news.bbc.co.uk/1/hi/uk_politics/4287370.stm Back
2
Press notice 4 of Session 2005-06 Back
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