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09.02.06: UKERC Welcomes Launch of Carbon Capture and Storage Report Ahead of Energy Review

The UK Energy Research Centre (UKERC) today welcomed the launch of the Science and Technology Committee of the House of Commons report on Meeting UK Energy and Climate Needs: The Role of Carbon Capture and Storage, recognising it as a critical topic for consideration ahead of the Government’s Energy Review.

Professor of Geology at Edinburgh University, Stuart Haszeldine, part of UKERC’s carbon capture and storage programme (CCS), said “Many UK companies, from BP and Shell, to Mitsui Babcock, Scottish and Southern Electricity, and Alstom power are poised to make very large (£400m - £800m) capital investments in new power stations, powered by coal or gas, combined with capture and storage of CO2. These investments will not occur without Government changes to give C02 a price worth capturing.”

The UK is thought to be in a position to exploit CCS as a business opportunity and a chance to show its environmental leadership.

According to Professor Haszeldine, this will be achieved with the demonstration of three CCS systems:

1. Convert old coal power stations by installing clean, efficient boilers and CO2 capture (Mitsui Babcock)
2. Build the world’s first full-sized power station to burn hydrogen made from natural methane gas and capturing the CO2 (Scottish and Southern Electricity, BP)
3. Build new clean-coal Integrated Gasification Combined Cycle (IGCC) power generation (Progressive Energy, E.ON).

In addressing some concerns on the cost of CCS, the Committee broadly concluded that the technology is not prohibitively expensive and that costs are likely to reduce by at least 30 per cent in the next ten years.

It said electricity generated by CCS-enabled power stations will be priced at about 1.1p/kilowatt per hour more than at present, and so will fall within the same wholesale price range as other low-carbon electricity fuels such as coal, gas, nuclear or onshore wind.

Professor Haszeldine went on to outline several important features of CCS for the UK:

• It offers the UK the potential to use its own coal, or imports from a diverse range of countries and the ability to stockpile coal supplies

• Gas can be burned instead of coal, or biofuels (wood pellets) can be added to coal to further reduce C02 emissions from fossil fuel

• UK proximity to and expertise in North Sea oilfields

• Potential for rapid cuts in CO2 emissions in the UK Potential for long-term storage estimated at 10,000 years

• Export potential for components, and project design CCS process can enable the manufacture of hydrogen, if needed

• Poses minimal long-term waste problems

Notes to Editors

Carbon Capture and Storage is a process which enables burning of gas or coal to generate power, followed by capture of the carbon dioxide waste gas, liquefaction and transport, and final long-term storage in rock pores deep below the sea bed.