Letter to Downing St
PM urged to back Scottish carbon capture cluster
Sir Ian Wood: standout location
A group of business leaders have written to the Prime Minister urging him to back a Scottish cluster bid for a carbon capture and storage facility.
They argue that Scotland is the most cost-effective place to begin CCS in the UK given the capacity for CO2 storage in the North Sea and the existing oil and gas infrastructure available to repurpose for CO2 transport and storage.
In a letter to Boris Johnson they highlight the potential to use North Sea fields to store emissions associated with hard-to-decarbonise industries and to help unlock the potential of clean energy sources such as hydrogen.
Signatories to the letter are oil veteran Sir Ian Wood and Maggie McGinlay (Aberdeen-based Energy Transition Zone), Martin Gilbert and Colette Cohen (chairman of the Net Zero Zone), Sara Thiam (SCDI), Louise Macdonald (IoD), Tracy Black (CBI), Liz Cameron (Scottish Chambers) and Jennifer Craw (Opportunity North East).
“Scotland is the most cost-effective place to begin CCS in the UK given the capacity for CO2 storage in the North Sea and the existing oil and gas infrastructure available to repurpose for CO2 transport and storage,” states the group.
“There is also a huge opportunity for UK and Scottish oil and gas firms, domestic supply chain companies and our wider economy to harness the skills and expertise of our current workforces to create many sustainable jobs.”
Sir Ian added: “Scotland is, quite simply, the standout location for the cluster. It is hugely encouraging to have Scotland’s business community uniting behind the bid and we urge the UK Government to approve it as a priority.”
In November the UK Government committed to deploy Carbon Capture, Usage and Storage in two industrial clusters by the mid-2020s, and a further two by 2030.
The Scottish cluster faces competition from projects in the North East and North West of England and South Wales.
The Government has said it will announce the result of the first phase application process from 25 October.
The Scottish plan under consideration focuses on the Acorn CCS scheme, led by Storegga, which is expected to involve storing emissions from across central Scotland in the Goldeneye reservoir.
It has secured backing from Australian investment bank Macquarie, Singapore sovereign wealth fund GIC and Japanese industrial giant Mitsui.
In April Royal Dutch Shell and private equity-backed Harbour Energy became equal partners in the Acorn project with Storrega.