Final report for One North East And NEPIC 21/12/10 - The Carbon ...
Final report for One North East And NEPIC 21/12/10 - The Carbon ...
Final report for One North East And NEPIC 21/12/10 - The Carbon ...
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
<strong>The</strong> case <strong>for</strong> a Tees CCS network<strong>Final</strong> ReportThis is a systemic issue that affects all CCS networks in the UK and Europe and so canbest be dealt with at the level of European and national Government.In addition the <strong>North</strong> <strong>East</strong> region specifically faces additional barriers:Lack of credible independent examination of CO 2 storage optionsInsufficient organisation of stakeholdersDiversity of CO 2 sources implies cross-industry coordination will be needed todevelop an optimum common CO 2 entry specification <strong>for</strong> any pipeline.Whilst not a barrier per se, improved public or political awareness and support <strong>for</strong>deployment of CCS in the <strong>North</strong> <strong>East</strong> or by large industrial or gas power sector CO 2emitters could increase the likelihood that optimal choices become available in a timelymanner.7.2 Recommended actions to deliver a <strong>North</strong> <strong>East</strong> CCS networkAssuming stakeholders agree that CCS offers genuine opportunities to protect the <strong>North</strong><strong>East</strong> economy from the threat of higher carbon prices and regulation, then considerableactivity on the part of many stakeholders is required to remove the barriers to deploymentof CCS infrastructure in the <strong>North</strong> <strong>East</strong>.Many of these barriers are common to other places where CCS deployment is beingconsidered. <strong>The</strong>re are already a number of multi-stakeholder organisations examiningenergy, climate and CCS issues nationally and internationally. <strong>The</strong> UK Government andsome of the companies in the <strong>North</strong> <strong>East</strong> are already involved in these activities and thereis no requirement to duplicate this activity.<strong>The</strong>re is however a real opportunity <strong>for</strong> ONE 95 /<strong>NEPIC</strong> stakeholders to protect value at riskin existing businesses in the Tees Valley and create new business opportunities bycontributing in a coherent manner to policy development on CCS development,demonstration and deployment, including broader energy, industrial and climate policies.Recommendation <strong>One</strong> – Improve organisation of stakeholders in a <strong>North</strong> <strong>East</strong> CCSnetwork.Recognising that regional partnerships in Scotland, Yorkshire, Rotterdam 96 , and <strong>North</strong>ernNetherlands, have been efficient in monitoring, influencing and directing CCStechnologies, markets and regulations to the benefit of their regional stakeholders, this<strong>report</strong> recommends that <strong>One</strong> <strong>North</strong> <strong>East</strong> (and successor organisations) and <strong>The</strong> <strong>North</strong><strong>East</strong> Process Industries Cluster should seek to establish an appropriate organisationalstructure to monitor, influence and direct regional CCS deployment most efficiently. <strong>The</strong>recently <strong>for</strong>med PICCSI group represents an excellent start in this process.<strong>One</strong> option to achieve this is to ensure the Tees Valley becomes a Low <strong>Carbon</strong> EconomicArea <strong>for</strong> CCS. 97 Within this structure, the proposed level of organisation could be a „<strong>North</strong><strong>East</strong> CCS Task Force‟ and should ideally include:95 Or alternative strategic <strong>North</strong> <strong>East</strong> economic partnership or successor body.96 See <strong>for</strong> example http://www.rotterdamclimateinitiative.nl and http://microsites.ccsnetwork.eu/rotterdamroad97 This could provide a means of bringing together <strong>for</strong>mally diver stakeholders that could impact the timing,likelihood and amount of investment ( including BIS, DECC (primarily the Office <strong>for</strong> CCS but also the oil and gasdivision), HM Treasury, <strong>The</strong> Crown Estate, environmental NGOs, local population, European Commission,Ofgem, HSE, fuel suppliers, offshore industry and potential financiers).66