Carbon capture usage and storage: third time lucky? Contents
Annex: Notes from visit to Teesside industry cluster
The Teesside Cluster has grown from the Teesside Collective group of energy intensive industrial emitters. This group alone make up over 20% of the UK’s industrial emissions. We took a tour of the ammonia and carbon capture facilities at CF Fertilisers in Billingham, and the Wilton International manufacturing site, including Sembcorp power station, in Redcar. We also met with stakeholders from across the cluster. These included: BOC Linde, CF Fertilisers, Lotte Chemicals, North East of England Process Industry Cluster (NEPIC), Redcar and Cleveland Borough Council, SABIC, Sembcorp, South Tees Development Corporation, Tees Valley Combined Authority, and Tees Valley Local Enterprise Partnership.
- plans and ambitions to develop CCUS in Teesside, including the potential of CCUS to increase the cluster’s attractiveness to investors and to enable industrial diversification;
- efforts already undertaken to reduce the environmental footprint of Teesside businesses, and the criticality of CCUS to enable further environmental improvements and to extend the lifetime of heavy industry;
- the interdependency of businesses in the cluster, which is seen as a benefit by investors, but could become a vulnerability in the event of deindustrialisation;
- competition with the Rotterdam industry cluster, the substantial support that the Dutch Government is providing to CCUS, and barriers to implementing CCUS in the UK without policy support;
- the increasing foreign ownership of industrial facilities, and ramifications of associated business mobility for future investment in UK clusters and jobs;
- growing scepticism of foreign investors and parent companies regarding the UK’s commitment to CCUS;
- the potential for R&D collaboration with universities, and the need for deployment to further progress in CCUS technology;
- the impacts of Brexit on investment and operations;
- the effects of the carbon price support on industrial emitters;
- concerns that selecting new CCUS projects via a third competition may be counter-productive.