Carbon capture is ‘vital’ to transition

Holyrood’s energy minister said Scotland is “potentially the best-placed country in Europe” to deliver carbon capture utilisation and storage (CCUS) on a commercial scale.

In his keynote address at the Society of Petroleum Engineers Aberdeen Section’s virtual CCUS Conference 2020, Paul Wheelhouse said the Scottish Government has “resolute support” for the technology and recognises the key role it has to play in reducing carbon emissions.

According to the International Energy Agency, CCUS could reduce global carbon dioxide emissions by 19%, and without it the cost of efforts to battle climate change could increase by 70%.

The UK and Scottish governments have moved in recent years to encourage development of the technology domestically.

In June, Holy rood announced it had set up a £62 million Energy Transition Fund to help the energy sector recover from Covid-19 and the oil price crash, and to suppor t diversification over the next five years.

The Scottish Government has a legally binding target of net zero carbon-dioxide emissions by 2045.

Mr Wheelhouse said: “Scotland already has the expertise and transferable skills to kick- start what could become an important new industry, essential to supporting our energ y transition.

“There’s an opportunity that’s presented with being an early mover in CCS, coupled with our vast storage assets, and we hope Scotland can support and cap i ta l ise on decarbonisation across Europe.

“Securing a significant proportion of the carbon storage element of the emerging European CO

2 management market will provide opportunities and employment through the supply chain,” he said.

“The Scottish Government this year commissioned an economic impact assessment that will develop our estimates of job creation and understanding of the potential economic impacts.

“It’s therefore clear that, coupled with our existing oil and gas capabilities, our ready supply chain and strategically important industrial clusters, Scotland is potentially the best-placed country in Europe to realise CCUS on a commercial scale.

“It is clearly a vital component of our energy transition.”

He urged the industry to “seize the opportunity” presented by the Acorn project in Aberdeenshire. The flagship development at the St Fergus Gas Terminal near Peterhead, being run by energy consultant Pale Blue Dot, is split into two elements concentrating on CCUS and hydrogen development.

Mr Wheelhouse said: “The project is considered the most advanced CCS project in the UK and is expected to be operational by the mid- 2020s. That being the case, we have to seize that opportunity for Scotland.

“Acorn plans to import CO for storage via shipping 2 from 2026, which will provide opportunities to suppo r t th e decarbonisation plans of our European neighbours.

“The project is perfectly located next to key infrastructure assets and also has options for lowcarbon hydrogen production.

“The successful development of carbon capture, transportation and storage facilities could also open up further complementary activity, including direct air capture, bio energy and CO utilisation.” 2

KEYNOTE SPEAKER: Energy Minister Paul Wheelhouse highlighted the role of CCUS. Picture by Sandy McCook.