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Carbon capture projects could create 5,000 jobs

Demonstration projects £3 billion boost for Scottish economy

 More than 5,000 green Scottish jobs could be created through the construction and operation of three Scottish Carbon Capture and Storage (CCS) demonstration projects, Scottish Enterprise (SE) research revealed today, 18 May 2011. Announced at Scotland’s largest low carbon energy conference, All Energy, findings have been revealed from an in-depth study into the economic impact potential of the proposed CCS developments at Longannet, Peterhead and Hunterston.

The proposed facilities, if fully developed, will test and demonstrate the technical and commercial aspects of CCS technology to then allow the deployment of CCS in existing and new fossil fuel power plants to dramatically reduce Scotland’s carbon emissions.

Key findings of the study include:

  •  Up to 4,600 direct and indirect jobs during construction phase to 2020 with a further 454 operational jobs supported during the operational lifetime of the demonstration facilities.
  • Up to £2.75 billion of Gross Valued Added (GVA) for the Scottish economy during construction with an additional £535 million per annum over their operational lifetime.

 Adrian Gillespie, senior director of energy and low carbon technologies, Scottish Enterprise, said: “CCS is acknowledged as having an important role to play in supporting Scotland’s ambitious emission reduction targets, however, to become commercially viable, demonstration projects such as the three proposed Scottish projects are critical.

“The far reaching impacts revealed in this study underline the potential of carbon capture and storage, not only in long term economic and environmental terms but also in the shorter term, delivering significant immediate benefits for the Scottish economy.

“We want to see a number of CCS demonstration projects developed in Scotland and are working with our partners in industry, in the UK Government and in Europe to help make that happen. Scotland stands well placed to offer demonstration opportunities in coal, gas, new build and retrofitting to existing stations.”

First Minister Alex Salmond said: “Our capacity to store carbon emissions offshore is the largest in the European Union and greater than that of the Netherlands, Germany and Denmark combined. Only last week no fewer than 3 Scottish CCS demonstration proposals were submitted to the EU New Entrants Reserve, demonstrating the high level of ambition in Scotland. As well as the generation and carbon storage capacity that we have been endowed with by nature, we have an excellent base in science and engineering to ensure we exploit the immense potential of CCS. It is essential that the UK’s Electricity Market Reform provide a firm basis for CCS investment into the future.”

Scotland is recognised to have a competitive advantage in CCS and the potential to become a global leader in field by building on the country’s storage capacity in the North Sea, skills and supply chain strengths from the existing oil and gas sector and world leading industrial research and academic capabilities. Early adoption of CCS technology could help to safeguard the future employment for many of the 150,000 currently working in Scotland’s offshore industry.

The wider economic opportunities for the development of a CCS-based industry are considerable and a whole new industry could emerge in Scotland. It has been estimated in separate research that CCS could support up to 13,000 new jobs by 2025, including exporting Scottish based skills and technology across the world.

The three Scottish based demonstration projects are still all in the running to secure  EU funding  from the New Entrants’ Reserve programme, which has been developed to support low carbon demonstration projects across Europe.

Jobs and GVA breakdown

Longannet: up to 1546 jobs and £890 million in GVA during construction with additional £270 million per annum whilst operational

Peterhead: up to 937 jobs and £590 million in GVA during construction with additional £130 million per annum whilst operational

Hunterston: up to 2117 jobs and £1.27 billion in GVA during construction with additional £130 million per annum whilst operational

To request a copy of the economic impact assessment please contact aileen.hotchkiss@scotent.co.uk or call 0141 228 2848.

Further information on the CCS opportunity for Scotland and the economic impact assessment summary report is available HERE.

 

3 Responses to “Carbon capture projects could create 5,000 jobs”

  • Alex Bettany:

    “Scotland is recognised to have a competitive advantage in CCS and the potential to become a global leader in field by building on the country’s storage capacity in the North Sea, skills and supply chain strengths from the existing oil and gas sector and world leading industrial research and academic capabilities. Early adoption of CCS technology could help to safeguard the future employment for many of the 150,000 currently working in Scotland’s offshore industry.”

    Scotland should really make use of the underlying advantages they currently already have, as safeguarding future employment now is vital when we face such uncertain economic times. To know that jobs would be available in the offshore industry would be a massive positive for the Scottish economy.

  • Iain G Richmond:

    Alex,

    When the Nuclear industry shuts down or is shut down there is definitely going to be a requirement for back up to the intermittency of wind generation and the establishment of a secure Baseload.

    This leaves Energy generated by coal with carbon capture. It appears to be the favoured method for fossil fuel power generation in the SNP’S philosophy. However……existing CO2 capture technologies are not cost-effective when considered in the context of large power plants. Economic studies indicate that carbon capture will add over 30 percent to the cost of electricity for new integrated gasification combined cycle (IGCC) units and over 80 percent to the cost of electricity if retrofitted to existing pulverized coal (PC) units. A recent study from the National Energy Technology Laboratory (NETL) confirms that additional alternatives need to be pursued to bring the cost of carbon capture down. In addition, the net electricity produced from existing plants would be significantly reduced – often referred to as parasitic loss – since 20 to 30 percent of the power generated by the plant would have to be used to capture and compress the CO2.
    ons while others remain in the research stages. To date, there has not been a single application of CCS to large scale (> 500 MW) power stations. Since every ton of coal burned produces 3.7 tons of CO2, the sheer volume of CO2 that must be disposed of makes CCS inherently impractical and overly expensive. I don’t know how well this would go down with the consumer or industries which rely on cost effective electricity suplies to be competitive. It conceivably lead to job losses and more Scots living in fuel poverty.

    Maybe we should retain and improve the Nuclear option?

  • admin:

    Fergus Ewing, the SNP government’s energy minister, has said that the Scottish government is ‘perfectly open’ to extending the life of existing nuclear power stations’, so I don’t think we need to panic just yet.

    Not sure where you got the idea that coal plants are the SNP’s preferred option for new conventional power stations. Cockenzie is being replaced with a new 1GW Combined Cycle Gas Turbine power station.

    No-one knows whether CCS using geological sequestration is a viable option – but my guess is that it isn’t. Shell and SSE have plans to develop the technology at Peterhead power station this year – this will be the proving ground, so we should have our answer soon.

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