Carbon Capture and Storage – A Roadmap for Scotland
the Scottish Government is ensuring that Scotland will have an influence) will be crucial in driving forward development during this demonstration phase. Scotland is well-positioned to benefit from UK support and EU finding for these projects thereafter.
The UK government proposals are for 4 demonstration projects. Others, such as the UK Coal Forum and the ACCAT, have suggested that more will be required given the need to prove technology on a large commercial scale. The European Commission has now revised downward their initial plan of 12 - 15 projects to 8 projects in line with the projected funding available.
We want to see at least one demonstration project in Scotland in this period, and preferably two. As stated previously we are supportive of the current proposals at Longannet as part of the UK competition but we also want to see other demonstration projects being developed in Scotland, and there are a number of strong candidates for future development.
While collection of the proposed CCS Levy is a reserved matter, aspects of its allocation touch on devolved matters and will require close working between the UK and Scottish governments to decide the best criteria and mechanism for allocation of the funds. We of course recognise that deployment on this scale will require significant progress in a number of other areas, such as storage capacity and regulation as well as finance.
While funding of the initial demonstration projects will be through the levy, there is a role for funding opportunities from other sources including Scottish Enterprise and Scottish Government. Scottish Enterprise has already funded some research and development activity to assist the development of CCS. There is a recognition that funding opportunities to assist the development of this sector will continue to be required and Scottish Enterprise is currently considering how this can best be delivered, as part of a new strategic alliance approach (see page 27).
In addition, the Scottish Government has announced that it is prepared to assist the development of CCS through additional funding over the next few years. Decisions on how and where this money will be spent will be announced over the next few months although the focus is likely to be on assisting continued activity in research and development and leveraging European funds.
There are a number of transport options in relation to carbon dioxide. Ship transport may be appropriate for some storage areas in the relative short term if pipelines are not available or the store capacity has not been proven. However, if CCS is to move to a commercial scale and, in particular, if we are to develop a hub or cluster approach then development of transport networks need to be