Abby L. Harvey
GHG Monitor
7/3/2014
Scotland may be in the perfect position to become a major player in the future of carbon capture and storage for the United Kingdom, according to a new industry study released last week by Element Energy. The study notes the large storage capacity off the coast of Scotland in the central North Sea, an existing pipeline infrastructure and two CCS projects in early stages of development as assets that will benefit Scotland as CCS continues to progress. Further, the study finds that should Scotland develop these assets, the country could stand to gain £7 billion annually and up to 2,000 jobs.
A combination of factors onshore and offshore are aligned well for Scotland, the report says. “Offshore, Scotland has an abundance of geological storage under the Central North Sea, including numerous depleted hydrocarbon fields, large saline aquifers and numerous hydrocarbon fields reaching end of life which offer opportunities for [carbon dioxide] storage or storage combined with CO2 [enhanced oil recovery],” the report says. “Onshore, Scotland has numerous capture opportunities onshore from new or existing power and industrial sources. There are multiple opportunities to link these sources with storage and CO2-EOR through pipelines (existing or new, onshore and offshore) and/or shipping. There is already strong stakeholder support and experience for CCS, as well as supply chain capabilities across CCS and CO2-EOR. Taken together, Scotland and the Central North Sea provide a compelling base for investment in CCS.”
Ongoing Projects Should Be Developed
The report finds that two Scottish CCS projects could feasibly be operational by the end of the decade. Shell U.K.’s Peterhead CCS project is currently in the front-end engineering design phase of development which is expected to last through 2015. The project would capture up to 10 million tonnes of CO2 and store it offshore in the depleted Goldeneye gas reservoir. The other project, Summit Power’s Captain Clean Energy Project, would be a new 570MW, fully abated coal Integrated Gasification Combined Cycle (pre-combustion) project in Grangemouth, Scotland with offshore storage. This project, expected to be completed by 2017, would capture and store 90 percent of the plant’s CO2 emissions.
These plants should be a focus for Scotland through their development and operation as they have the potential to further CCS expansion in the U.K. the report says. “A technical review, based on publicly available data, has demonstrated that both the Shell/SSE Peterhead-Goldeneye and Summit Power’s Captain Clean Energy projects are feasible. These projects involve experienced teams, the most mature technologies available, and locations that minimize risks and costs. They are therefore likely to provide good value for money either as part of the U.K. Government’s CCS commercialization program, or through a contract agreed under Electricity Market Reform. Importantly, both these projects are ready for investment and pave the way for large scale / low cost roll-out of CCS in the U.K.,” the report says.
Offshore Storage Potential Vast
According to the report, the offshore storage capacity of the central North Sea is estimated to be roughly 40 gigatons, more than enough to meet the U.K.’s storage needs up to 2050 while also leaving enough capacity for the storage demand from other North Sea countries. St. Fergus, Scotland stands in a good location to act as a hub for offshore storage, the report says. “The geographic proximity of St. Fergus gas terminal, close to storage potential, existing pipeline infrastructure connecting St. Fergus with Peterhead and potential capture sites in the Forth [estuary], compression infrastructure and relevant skills base, makes this a natural shoreline hub for CO2 pipeline infrastructure in Scotland.”
Development of a CCS network from Scotland could take many forms, according to the report. “Different philosophies could guide the expansion of a CCS network. At one extreme, infrastructure could evolve incrementally or ‘organically,’ where storage capacity grows from existing anchor stores as demand increases. At the other extreme, infrastructure could be master-planned at basin level with high integration in mind to maximize EOR potential or least system cost,” the report says.
Economic Potential Significant
Whether advancement of CCS is aggressive or cautious, Scotland stands to gain a boost of roughly £3.5-£7 billion annually, as well as new jobs, according to the report. “Investment in CCS in the period to 2050 will result in direct, indirect and induced economic value to the Scottish economy. A high level analysis suggests the investment in CO2 compression, pipelines, storage and EOR infrastructure corresponding to an aggressive scenario would lead to a direct GVA boost to Scotland of ca. £7 billion, excluding revenues (or taxes) from CO2-EOR,” the report says. “The associated number of direct, indirect and induced jobs in Scotland associated with infrastructure would rise to a peak of 2000 in the 2040s, with a cumulative 44,000 person years of employment. This excludes jobs created or preserved associated with CO2 generation or capture, or otherwise preserved in the oil industry through extended life of North Sea oil and gas industry.” Even in the case of cautious advancement of CCS, should St. Fergus become a hub for offshore storage, Scotland could still reach the numbers presented in the study’s aggressive CCS development model, according to the report.
