Power giant Drax has welcomed the Viking carbon capture and storage announcement as an additional pathway for its huge plans to wipe out emissions.
The company’s green switch from coal to biomass would be complete with the abatement technology, with a multi-billion pound scheme being readied for both the huge plant on the Humber’s doorstep and new builds across the Atlantic.
And while it stands as the western anchor for the separate Zero Carbon Humber project - a dual pipeline set to carry hydrogen to aid a switch from natural gas for industrial sites while also transporting off the CO2 - the pipeline corridor taking in Drax, SSE’s Keadby power cluster and Scunthorpe steelworks, brushes by the Immingham zone at the heart of Viking.
Read more: Government takes carbon capture and storage forward on the Humber
Will Gardiner, Drax Group chief executive, said: “We welcome the Government’s decision to designate Viking as a Track Two carbon capture utilisation and storage cluster. Progressing a CO2 transport and storage network in the Humber represents a significant step toward helping the region meet its net zero ambitions and ensuring that it remains a source of high-skilled jobs and energy security for decades to come.
“The announcement shows the importance of CCUS to the Humber and, along with the East Coast Cluster, creates an additional pathway to support our plans for bioenergy with carbon capture and storage at Drax Power Station. We are currently engaged in formal discussions with the º£½ÇÊÓÆµ Government on this project and hope to invest billions in its development and deploy this critical, carbon removals technology by 2030.”
Zero Carbon Humber is still being progressed under a potential Track One expansion, with the Teesside element of the East Coast Cluster storage facility having been granted forerunner status back in March.
Equinor is a key partner in that, with major plans for hydrogen production at Saltend.
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The government announcement on the latest sequencing, which opens the door to front end engineering and design and discussions with the government over the terms of the economic licences, ahead of final investment decisions, has been welcomed by key stakeholders.
Henri Murison, chief executive of the Northern Powerhouse Partnership, said: “This is excellent news for the northern economy and will be a huge boost for net zero when realised in full.
“We’re pleased to see the government engaging with northern businesses on this mission. The private sector has ambitious plans to decarbonise the Humber and create thousands of well-paid, green jobs - all we need is certainty.
“This is vital for delivering new technologies such as bioenergy with carbon capture and storage (BECCS) as well as protecting huge numbers of jobs at businesses such as Phillips 66 and British Steel.”
The CBI has a Humber pilot focused on the green agenda.
Tom Thackray, CBI decarbonisation director, said:“Carbon capture and storage represents a multi-billion pound economic opportunity for the º£½ÇÊÓÆµ and is crucial to decarbonising our industrial base. The º£½ÇÊÓÆµ has assets and expertise in CCUS that other countries would struggle to match. The backing of the Acorn and Viking clusters is an important step for the industry that will crowd in huge amounts of private sector investment – now we need to get on with delivery.
“While businesses back a rapid transition to clean power and heating, the recent energy crisis has underlined the importance of security and affordability as well. Oil and gas will form an important part of the º£½ÇÊÓÆµ’s energy system for many years to come, with the North Sea Transition Deal providing an effective blueprint for managing our domestic resources while bringing forward investment in clean technologies.”
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Richard Gwilliam, chair of the Humber Energy Board, and º£½ÇÊÓÆµ BECCS programme director for Drax, said: “This is welcome news for the region. It is a vital first step in the creation of a large-scale solution, something that is critical for the Humber to meet Net Zero.”
Viking centres on the constituency of Cleethorpes and Immingham MP Martin Vickers.
He said: "Today’s announcement that the Viking Carbon Capture and Storage project is confirmed as one of the Government recognised clusters is good news for northern Lincolnshire and the wider Humber region with a potential for thousands of jobs both direct and in the supply chain."
Potential future user RWE has also welcomed the news. It is behind plans for a new Humber Bank power plant, while also eyeing up use for its existing Staythorpe Power Station near Newark. Tom Glover, RWE’s º£½ÇÊÓÆµ chair, said: “RWE is delighted that Viking CCS has been awarded Track Two status for the Government’s cluster sequencing process. RWE is a long-term cluster partner of Viking CCS and is developing two projects that could use this facility, providing firm, secure and flexible low carbon power generation to support our transition to a net zero economy.”
Ruth Herbert, chief executive at the Carbon Capture Storage Association, has called for further clarity while welcoming the step too. She said: “We are pleased to see the º£½ÇÊÓÆµ Government pushing ahead with its CCUS deployment programme and selecting the next two CCUS clusters, as time is running out to meet 2030 targets. This CO2 infrastructure is critical to safeguarding the º£½ÇÊÓÆµ’s supply chain security, enabling local industries to continue to thrive whilst reducing their emissions as we transition to a net zero economy.
“It is therefore vital that the Government urgently sets out clarity on the process and timeline for selecting carbon capture sites within these ‘Track Two’ clusters and within the previously announced Track One cluster expansion. Billions of pounds of investment is waiting to be deployed to decarbonise these industrial regions, but firm plans are required to secure it.
There are a number of other clusters under development across the country, which is why last year we asked government for visibility of the longer-term CCUS deployment plan. Collectively, CCUS clusters could protect 77,000 current jobs and create a further 70,000 jobs across the º£½ÇÊÓÆµ. Government’s forthcoming vision for the º£½ÇÊÓÆµ CCUS sector needs to be published as soon as possible, to avoid investment flight in those regions that have not been selected today.”