Humber carbon capture project could benefit from Scottish scheme's struggles
The potential collapse of Scotland’s carbon capture and storage project could push the Government to fast track similar plans in the Humber, The Yorkshire Post understands.
Lead developer Storegga announced this week that it will sell its interest in the Acorn CCS site in St Fergus, Aberdeenshire, with a spokesperson saying “a new long-term owner would be better placed to take the project forward”.
In the June Spending Review, Chancellor Rachel Reeves pledged to back both the Scottish scheme and the Viking CCS project in the Humber.
This would see carbon dioxide emissions taken from Immingham 34 miles to Theddlethorpe in the Lincolnshire coast, where they would be transported into huge tanks beneath the North Sea.
The fledgling technology is touted as an alternative to releasing carbon into the atmosphere, and is seen as essential to the UK reaching net zero by 2050.
The proposals in Aberdeenshire and Immingham have formed “track two” of the CCS projects, with plans in Merseyside and Teesside getting £22bn in funding on “track one”.
Businesses say they have £15bn ready to invest in the Humber if the Government provides adequate support to get CCS off the ground.
With Acorn now appearing to be in difficulty, sources indicated that the Viking project could be pushed forward.
The site is being run by Harbour Energy and has its two anchor emitters ready - VPI, the company behind electricity and steam generation for the Humber’s two large oil refineries, and Phillips 66, one of the crude oil refineries.
The “Energy Estuary” generates 20 per cent of the UK’s total electricity, creates one-third of its refinery products and is the location for the importation of around one-fifth of all gas into the country. It is also the largest emitter of carbon dioxide in Britain.
The Viking project received a boost as Climate Change Minister Katie White told The Yorkshire Post’s Great Northern Conference that “it is looking pretty positive”.
The Leeds North West MP said after being made minister in September, she asked for a briefing on the CCS proposals.
“Things are happening, it is moving and it was a lot further on than I expected, it was a lot more positive.
“Not only is it good for us, but also geologically we’re in a really good position to do this.
“When we've moved industries, we haven't done a very good job in the past of transitioning. So we don't want to have that again.
“There is so much going on in Yorkshire, and that's why I'm incredibly excited and proud.”
Graeme Davies, head of Harbour Energy's CCS team, said: “We welcome the Ministers’ positive comments. Viking CCS demonstrates how high value jobs and economic growth can be created and secured in the Humber region.
“Given positive support from the Chancellor in the summer spending review, we can see a route to a final investment decision in the next few years.”
Jonathan Briggs, director of Humber Zero at VPI, added “It was great to hear the support for CCS from the Climate Change Minister at The Great Northern Conference, as she recognised the enormous economic value that vital energy infrastructure developments could bring to the Humber region.
“We are looking to commit more than £1.5bn of private investment to retrofit carbon capture technology to our existing plant, creating 1,500 jobs during construction with high-value operational and maintenance roles once operational.
“A significant amount of that work will be delivered by British companies, ensuring the benefits remain close to home.”
Jonathan Oxley, chair of the Humber Energy Board, added: “All CCS projects in this region need to be given confidence and line-of-sight to final investment decision this Parliament, which requires the Government to make key decisions regarding selecting associated capture projects over the coming year.”