Carbon Capture and Storage – A Roadmap for Scotland
stored there, in depleted hydrocarbon reservoirs and saline aquifers13. We also assume that suitable storage sites are identified and available.
While the focus is on power generation and coal stations initially, CCS will need to be developed in other areas, not only in other thermal generation types such as gas but also for other industrial processes such as the production of cement and iron and steel. That is why a hub approach, seeking to look at the potential of developing networks based around large scale emitters, possibly on a wide geographical basis, will be an important future priority. In addition there should be a focus on usage of existing infrastructure such as pipelines if this is technically possible. This has an implication for decommissioning activity and it will be important to consider what options for CCS might be available before any such activity gets underway.
Sharing of knowledge and learning from early demonstration projects should be encouraged wherever possible, especially when public funding of demonstration projects is involved.
Some areas will be taken forward by government (regulatory framework and financing of early projects for example) while others will be driven largely by the private sector, such as development of future projects and supply chain opportunities, with help from the public sector as appropriate.
In terms of financing, funding for demonstration projects will initially need to come largely from public sources. In time, a business model for CCS should emerge when the technology is deemed viable and when the costs of CCS implementation fall, or the carbon price under the ETS rises, to the point that investment by the private sector is forthcoming. However it is clear that the relatively early stage of the technology, along with current uncertainties around issues such as carbon prices and liabilities, means that public sector support will be required to help incentivise demonstration projects.
As well as finance, the main factors that will encourage the development of CCS include the creation of a supportive regulatory and commercial environment that drives investment, political support and appropriate incentives along with public acceptance of CCS as a technology. This roadmap, along with the study and other documents makes an important contribution to providing government, industry and others with an indication of key milestones to allow us to work together and focus on the key steps.
In order for our ambitions to be realised then we believe that the following needs to happen by 2020 in order to allow large scale deployment:
13 The Scottish Government do not rule out onshore storage, which is permitted by the EU Directive, but believe there is a far greater likelihood of public support for offshore storage.