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New Carbon Capture and Storage study outlines key opportunities for Scotland

Around 70 million tonnes of CO2 per year could be captured, transported and stored offshore in Scotland by 2040, through the formation of a Carbon Capture and Storage (CCS) infrastructure network and an estimated £4.5 billion of capital investment.

This is just one of the findings from the study, CO2 Transport Options for Scotland, completed by Scottish Enterprise today (28 September 2011), which highlights that early investment in infrastructure could place Scotland at the forefront of the development of a global CO2 storage industry of the future.

The report sets out three scenarios for the development of CCS infrastructure covering the periods up to 2020, 2030, and 2040. It shows the potential to develop infrastructure and networks over this period to capture, transport and store CO2, not just from within Scotland but also from the North of England and from continental Europe, possibly by shipping.

The study also highlights the potential of creating a CCS hub, based around Peterhead Harbour and the St Fergus Gas terminal, from where carbon could be transported to depleted oil and gas fields and naturally occurring saline aquifers.

Developed through discussions with industry and key partners, the study concludes that there is significant opportunity for the use of captured CO2 in enhanced oil recovery (EOR) in the North Sea, which could mean additional oil production taking place.

Energy Minister Fergus Ewing said, “Scotland’s capacity to store carbon is the largest in the European Union and we are working to create thousands of new low carbon jobs in the sector. This important report underlines our natural resources and decades of experience in the North Sea, and will help build our ongoing case to establish Scotland as Europe’s carbon storage hub.”

Scottish Enterprise oil and gas, thermal generation and CCS director, David Rennie, said, “Carbon Capture and Storage offers huge opportunities for Scotland’s economy. It has already been estimated that Scotland could account for about half of the European Union’s offshore storage potential. This report shows that there is the potential to store significant amounts of carbon in the North Sea, not just from Scotland but also from other parts of the UK and Europe.

“While the short-term focus is on supporting and encouraging demonstration projects, this report highlights the potential to build upon these and develop a true CCS cluster which could bring significant economic benefits to Scotland as well as making a significant contribution to carbon reduction targets. Of course, none of this can happen without significant investment from the public and private sectors. There is therefore a need to bring greater certainty around the incentives and support mechanisms from the UK government that will need to be put in place to encourage the development of CCS, which could be a significant future economic sector for Scotland.”

“With the skills, infrastructure and experience gained from 40 years of Scotland’s world leading oil and gas sector alongside strong governmental support, Scotland is well placed to play a leading role in the delivery of CCS going forward.”

Scottish Enterprise is planning to undertake more detailed work around how this network vision might be achieved, including detailed costings and an assessment of sources of possible investment and other potential challenges.

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