Examination of Witnesses (Question Numbers
220-221)
MR MIKE
O'BRIEN MP, MR
SIMON TOOLE
AND MR
JIM CAMPBELL
25 MARCH 2009
Q220 Mr Anderson: We are all interested
in seeing CCS become a success, but we have been advised by those
involved in the industry that what they need is a clear licensing
regime because at the moment they are not quite sure what they
can and cannot do. Can you help them with this? What have you
done so far?
Mr O'Brien: We want to ensure
that for carbon capture and storage there is a clear licensing
regime and that they are able to get a licence to carry out carbon
capture and storage. As we develop our commercial capacity to
do that that will need to happen. As you know, at the moment we
do not have a project here or indeed anywhere in the world which
is of a substantial commercial nature involving carbon capture
and storage. What we want to do is put in place a regime which
will enable carbon capture and storage to take place, issue licences
to enable it to take place, ensure that it is properly inspected,
that it is safe and that we have a system which will encourage
the development of an industry in the future. I believe that in
20 years' time we will see a worldwide industry involving carbon
capture and storage. We know the science is good. The commercial
potential of it is yet to be assessed. If we can get it right,
because it will deal with some of the problems we have around
coal, which is important not just in the UK but important in much
of the developing world, oil and gas and deal with some of the
issues around global warming, the potential for a massive industry
to develop 20 years' time from now around carbon capture and storage
is great. I am certainly very optimistic that it will happen,
but in order to ensure it develops properly in the UK we need
to have the legal base and the creation of a licensing system
and we want in due course to consult on how we are going to create
that.
Q221 Mr Anderson: I am not sure I
have understood you correctly. Are you saying we have got to get
the demonstration project up and running first or would the licensing
regime come first? The advice we are getting is that people could
be getting on with the work but the licensing regime is not there
to help them.
Mr Toole: There is a licensing
regime coming into place early next year, but the Crown Estate
is already preparing and will have the power from 6 April this
year to start issuing leases for the areas. If your concern is
that people who want to get hold of an area on which to do studies
and work on carbon capture and storage are being frustrated by
the licensing regime, we have been working very closely with the
Crown Estate and very shortly they will be able to get into a
dialogue with the Crown Estate to get hold of the territory that
they might wish to use.
Chairman: Thank you for your attendance
and your evidence. We appreciate the time you have given us.
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