While still in its early stages, CCUS technology would enable plant operators to capture emissions from their facilities, which are then usually buried.
Many operators are enthusiastic about the technology as it would enable facilities to avoid any charges brought against them through the Emissions Trading Scheme, which could apply a charge per tonne of carbon emitted. Some estimates said this could be as high as £400.
Applying CCUS successfully would also enable companies to meet their net-zero targets and appear more attractive to investors. If EfW plants could capture and use any emissions from plants they could also potentially benefit from the sale of any carbon credits.
In the budget document, the government said: “This unprecedented level of funding for the sector will unlock private investment and job creation across the UK, particularly on the East Coast and in the North West of England and North Wales. It will also kick-start the delivery of subsequent phases of this new sustainable industry in the UK, taking advantage of the country’s natural comparative advantage in CCUS.”
Budget
The funding was first mooted earlier this week and confirmed in the budget.
Energy recovery provider Encyclis said the announcement of significant further investment in CCUS is “a key step in the realisation of the UK’s net-zero ambition”.
The company, formerly known as Covanta Europe, is aiming to be among the first in the UK to integrate carbon capture into an operational facility. It is developing plans for a CCS plant to support its EfW facility at the Protos energy innovation hub in Cheshire, a joint venture with Biffa.
Encyclis CEO Owen Michaelson said: “Plans for a CCS plant at our Protos energy recovery facility, which will capture upwards of 380,000 tonnes of CO2 per year, are now well developed. This investment will stimulate further collaboration across the supply chain, ultimately enabling us all to get behind the UK carbon network, which will have a multiplier effect on economic growth and job creation.
“Whilst Encyclis is leading the way with one of the UK’s first ERF CCS projects, success will be shared by all stakeholders when practical barriers to the delivery of carbon capture are resolved and the concept is proven at scale. This will attract the private investment required to deliver our net-zero ambitions.”
‘Essential’
John Scanlon, chief executive of Suez recycling and recovery UK, said CCUS is vital for EfW because it is able to “permanently” remove carbon from the cycle.
He said: “Developing carbon capture for energy-from-waste is essential if we are to reduce the climate impact of managing the UK’s residual waste, helping businesses and local authorities to reduce the carbon footprint of their operations. What is more, unlike conventional fossil fuel power stations, because around 50% of the carbon in residual waste is biogenic, carbon capture from energy-from-waste permanently removes carbon from the cycle, which is vital to achieving the UK’s net zero goal.
“At SUEZ we are leading the way with our project to capture the carbon from two of our Tees Valley energy-from-waste facilities. Located adjacent to the East Coast Cluster pipeline and operating to high levels of availability and efficiency, our facilities are well placed to be some of the first projects to capture carbon in the East Coast Cluster area, and although disappointed the project wasn’t included in the round of funding announced last August, we have continued to press ahead with a planning application whilst waiting to see what further support may be available.”
‘Kick-start’
Enfinium, which has five EfW plants in its portfolio, also welcomed the announcement saying it will “kick-start” the development of a world-leading system in the UK.
Mike Maudsley, CEO of leading UK energy-from-waste operator Enfinium, said: “When combined with CCS technology, energy from waste facilities have the potential to permanently remove and store millions of tonnes of carbon dioxide from the atmosphere – offsetting emissions in other hard-to-decarbonise industries. We stand ready to work with the UK Government to accelerate the roll-out of these facilities in the coming years, supporting green growth and the Net Zero agenda.”
Shortlist
A shortlist of projects for the first phase of CCUS deployment will be announced later this month. Further projects will be able to enter a selection process for Track 1 expansion launching this year, and 2 additional clusters will be selected through a Track 2 process, “with details announced shortly”.
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