Rachel Reeves issues fresh backing for £13bn Humber carbon capture scheme
A power company at the heart of £13bn carbon capture plans for The Humber say they are “encouraged” by Rachel Reeves’s reiterating her support for regional decarbonisation plans in her Labour party conference speech this week.
The Chancellor told the conference in Liverpool that her fiscal rule changes support investment in a variety of sectors, including carbon capture and storage (CCS) “on The Humber and on Teesside, in Aberdeenshire and right here on Merseyside”.
It follows the Government announcing earlier this year it was providing development funding to the so-called Viking CCS scheme on The Humber, which seeks to capture 15 million tonnes of CO2 from industrial businesses in the region by 2035.
It is intended a 34-mile underground pipeline would be created to transport CO2, connecting up to an existing pipeline so it can then be piped under the sea for storage. The construction process is expected to support up to 20,000 jobs at its peak and is forecast to generate £13bn of private investment.
Power company VPI is one of the firms involved in the Viking project.
Jonathan Briggs, VPI's Director of Development and Delivery, said: "We're encouraged by the Chancellor's continued support for carbon capture and storage on the Humber. VPI is ready to proceed. We have the planning consent and the environmental permits in place.
"To deliver the supply chain and jobs benefits faster, we now need a green light from government to formally choose us as one of the first companies emitting CO2 to have this captured, transported and stored as part of Viking CCS. The quicker the government chooses us the quicker we can bring investment and new jobs to The Humber."
The company hopes to be formally recognised as an anchor emitter for the Viking scheme by April, with the co-funding of next stage development costs also being agreed by that point.
VPI has also been granted the first environmental permit in the UK for its selected amine capture technology, in what it has described as “a major step towards decarbonising the country’s most carbon-intensive industrial cluster”.
The Environment Agency has approved Shell’s patented Cansolv system for use on its Immingham Combined Heat and Power Plant, which sits at the heart of The Humber’s refining and energy cluster.
VPI has also secured planning permission from North Lincolnshire Council for the carbon capture retrofit, which will future-proof existing heat and power supply, ensuring it is far cheaper than building a new decarbonised plant from scratch.
Mr Briggs said: “As the government aims to develop the UK's carbon capture and storage industry, projected to contribute around £30 billion to GDP by 2050, selecting the right projects in the right locations is crucial, especially during times of fiscal restraint.
“The permit and planning permission reflect VPI's dedication to ensuring our project meets one of the key criteria for making CCS a success – delivering the project swiftly and establishing the Humber as a central hub for this emerging industry. We have completed all the necessary preparations at this stage.”