« Previous | Contents | Next »
Listen
The way forward
Scotland has the potential to become a significant player in the CCS industry both in its practical application, using its significant offshore resource, and in the development of exportable technology and skills. However, having examined
- the levels of funding required
- the levels of risk
- the regulatory structures
- and potential business models
the study has concluded that CCS will not commence without significant Government support and initial funding, similar to that required to develop low carbon wind and marine technologies. This strategic study has identified key initiatives that need to be acted upon to move CCS forward in Scotland.
1. There is a need for more detailed evaluation of Scotland's offshore storage sites. Saline aquifers represent the major CO 2 storage opportunity. For these to be the basis of viable CCS projects there is a need for detailed mapping and evaluation of specific saline aquifers, akin to that undertaken by the oil industry assessing hydrocarbon prospects prior to exploratory drilling. Early assessment will greatly speed-up the development of viable CCS projects.
2. If CCS projects are to make progress in the short term, there is a need for direct Government assistance to support R&D activity, which can prove the availability of storage in offshore saline aquifers and gas fields. If sufficient storage capacity offshore Scotland is proven, then EU-sized transport and storage industries can develop. In the medium term, income support estimated at £100 M/year is required per project to construct and operate the number of large projects envisaged in the UK and the EU. This will reduce if the carbon market price reaches stability at a commercially attractive level, and make CCS a long-term profitable option.
3. New alliances of businesses are needed to deliver CCS as early demonstration projects will face uncertainties of cost, technical operation and income. These first demonstrator projects are essential to start a process of learning, improvement, and cost reduction. No UKCCS will develop until these demonstrators are implemented and evaluated.
4. At high oil prices CO 2- EOR may lower the overall level of support required for early CCS demonstration projects, provide incentives for industry development and add volume to Scotland's hydrocarbon reserves. Projects to assess the viability of CO 2- EOR in specific oil fields or clusters of oil fields could therefore be important.
5. A CCS transport infrastructure is essential to connect sources with stores. Subject to suitability, existing pipeline networks may be exploited to varying degrees within the context of early pilot operations through to industrial scale demonstration projects.
6. Political and public support is crucial for progressing CCS. Public investment is likely to be required, initially at least, to ensure that the infrastructures are established and the private sector receives sufficient incentive to establish demonstration projects and to develop the technologies. To reduce the financial uncertainty to acceptable levels, additional monetary support is needed, as is given to renewable power generation.
7. The successful development of CCS in Scotland requires an assessment of the existing diverse skills base to identify where we need to build expertise. Academia and industry, working with the Scottish Government, can then address these issues.
8. Initiate an environmental assessment that will engage the relevant agencies and allow early consideration of the environmental issues associated with the deployment of CCS.
Aerial view of Longannet Power Station. Courtesy of ScottishPower.
« Previous | Contents | Next »