Urgent action is needed for Britain to become a leader in carbon capture and storage, according to a report out today.
It has been estimated that CCS could be worth £100billion to the country’s manufacturers between now and the middle of the century, with Aberdeen named among locations which could benefit from the new technology.
The study was produced by industry body Offshore Energies UK (OEUK) for the Department for Business, Energy and Industrial Strategy.
The report found that supply-chain companies in the North Sea oil and gas sector were in prime position to win CCS work - if action is taken by government and industry.
It identifies 13 actions, including the need for support from government through early-stage funding and additional licensing rounds.
The study found:
*The UK has most of the components necessary for a successful CCS sector - a big potential market for exports of technology and expertise; large industrial clusters; extensive gas-transport infrastructure; and a good scientific understanding of the geological requirements needed for long-term CO2 storage.
Value of CCS
*CCS could be worth £20billion to the offshore oil and gas supply chain in the next 10 years, and £100billion by 2050.
*The UK has an estimated total storage capacity of 78 gigatons, one of the largest in Europe and enough to hold two centuries worth of the UK's current emissions.
*Government should speed up Track 2 clusters and introduce additional licencing rounds for storage sites.
*The supply chain, although suitably experienced, is fragile and the UK is at risk of losing out to more attractive opportunities elsewhere in the world if it does not secure a first-mover advantage
OEUK supply chain and operations director Katy Heidenreich said: "Carbon capture and storage is going to be a key tool in our fight against climate change. It offers a huge opportunity for the UK offshore energy supply chain to help energy-intensive industries cut emissions.
"If we get this right, it could unlock £100billion of work for UK manufacturing employers by 2050. This will support UK jobs, cut emissions, boost the economy and develop skills which can be exported globally.
"Lots of progress has been made, but without urgent action the UK will miss out on the opportunity to secure a leadership position in this exciting new sector.
First-mover advantage
"Our report sets out how we will continue to work with government to seize a first-mover advantage, benefitting the economy, jobs and local communities while achieving our net-zero goals."
Developing CCS is a key feature of the North Sea Transition Deal (NSTD), a pact signed between industry and government in 2021.
As part of the commitment to delivering net zero, Westminster subsequently announced the two industrial clusters which would be the first to be up and running.
It was confirmed in October that HyNet and the East Coast cluster, based in the north-west and north-east of England respectively, were given the nod by ministers.
Meanwhile the Scottish Cluster, which includes the Acorn CCS project at St Fergus, near Peterhead, was picked as the reserve cluster.
It was a surprise decision which sparked fury north of the border.