Asked by: Baroness Liddell of Coatdyke (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what estimate they have made of the cost of achieving their net-zero carbon target (1) with, and (2) without, carbon capture, utilisation and storage.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The independent Committee on Climate Change has estimated that the annual cost of delivering a net zero target is within the same range as the 80% target was at the time that target was set in 2008 – equivalent to 1-2% of GDP in 2050. Our own assessment of costs falls within this range. The CCC also advised that meeting our net zero emissions target by 2050 without carbon capture and storage (CCS) is likely to be more costly to achieve.[1] We believe CCS is therefore likely to play a vital role in meeting our target to reach net zero emissions by 2050.
As well as reducing emissions, CCS can play a vital role in levelling up the economy – supporting the low carbon economic transformation of our industrial regions, creating new high value jobs, providing new economic opportunities for British companies and supply chains and attracting investment from all around the world. For example, the UK could become a global leader and capture up to £10 billion of an estimated £200 billion per year global CCUS market in 2050, which could support up to 48,000 new jobs[2].
[2] https://www.gov.uk/government/publications/energy-innovation-needs-assessments
Asked by: Baroness Liddell of Coatdyke (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government how much funding will be required to develop the infrastructure necessary for carbon capture, utilisation and storage in the 2020s in order to meet their net-zero carbon target.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
We are committed to deploying carbon capture and storage (CCS) this decade as we work towards Net Zero by 2050 and see an opportunity for the UK to become a global leader in CCS.
That’s why we announced a new CCS Infrastructure Fund which will enhance long-term competitiveness of UK’s industrial regions by providing at least £800 million to establish CCS in at least two UK clusters, one by the mid-2020s and another by 2030, contributing to our net zero targets and levelling up the economy.
In parallel, we are investing over £40 million between 2016 and 2021 in CCUS innovation, which includes £4.2 million funding for Tata Chemicals to construct a carbon capture and utilisation (CCU) plant. When operational in early 2021 the plant will capture and use approximately 40,000 tonnes of CO2 each year to produce sodium bicarbonate and soda ash that can be used in high-end products such as haemodialysis equipment. Through the £24 million BEIS Call for CCUS Innovation, we are funding HyNet, project Acorn, OGCI Climate Investments and Drax/C-Capture to develop their CCUS deployment projects.
In addition, UKRI announced the allocation of the first phase of funding for the Industrial Decarbonisation Challenge earlier this month, which we expect CCUS to play an important role in.
Asked by: Baroness Liddell of Coatdyke (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government whether the funding set out in the Conservative Manifesto to support energy intensive industries to use to low carbon technologies is new and additional funding for industrial decarbonisation.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
The Government has committed an overall package of over £2 billion to help industry on the path to Net Zero. Within this, the Industrial Energy Transformation Fund was announced in November 2018 as a £315 million scheme to provide industry, including energy intensive industries, with support for energy efficiency and decarbonisation projects. This scheme is on track to launch in Spring 2020.
The 2020 Budget announced measures that reflect Conservative Manifesto commitments and build on existing policies. For example, it included a new £800m Carbon Capture and Storage (CCS) Infrastructure Fund to establish CCS in at least two sites, one in the 2020s and another by 2030. Other manifesto commitments to support industrial decarbonisation will be considered in the upcoming Spending Review.
Asked by: Baroness Liddell of Coatdyke (Labour - Life peer)
Question to the Department for Business, Energy and Industrial Strategy:
To ask Her Majesty's Government what assessment they have made of the potential use of (1) carbon capture, (2) carbon storage, and (3) hydrogen, to decarbonise (a) heating, (b) transport, and (c) heavy industry.
Answered by Lord Callanan - Parliamentary Under Secretary of State (Department for Energy Security and Net Zero)
Carbon Capture, Usage and Storage (CCUS) and hydrogen are likely to play an essential role in helping the UK achieve net zero by 2050. For example, our analysis suggests that around 270TWh of hydrogen could be needed across the economy by 2050, which could increase considerably depending on application across heat and transport sectors. Low carbon hydrogen could be produced through gas reformation with CCUS, electrolysis, or biomass gasification. The precise split of this across end uses will depend on a variety of factors including cost, availability and technical application.