Teesside And Humber Carbon Capture Partnership Awarded £73m Funding

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Teesside And Humber Carbon Capture Partnership Awarded £73m Funding

Teesside And Humber Carbon Capture Partnership Awarded £73m Funding

Two projects to facilitate carbon capture in the North Sea have been awarded more than £73m of government funding, the Built Environment Networking website reports. The funding is part of a £1bn low-carbon capital grants scheme.

Net Zero Teesside (NZT) has partnered with Zero Carbon Humber (ZCH) to form the Northern Endurance Partnership, which aims to develop an offshore pipeline network. This would enable the permanent storage of captured carbon dioxide emissions deep underground.

NZT is a consortium of oil companies, led by BP. It will receive £52m to accelerate the development of onshore and offshore low-carbon and hydrogen infrastructure. The scheme will lead to the construction of a flexible gas-fired power station with carbon capture, utilisation and storage capabilities at Teesside.

ZCH is to receive £21m, and will develop H2H Saltend, which will be one of the world’s first at-scale low carbon hydrogen production plants. It will also develop a hydrogen pipeline network throughout the Humber, which will enable the capture of CO2 emissions and a switch to low carbon hydrogen.

Martin Cook, Senior Vice President for Business Development for National Grid Ventures, a partner in ZCH and NEP, said that the awards would help to decarbonise the UK’s largest industrial heartland, and help to stimulate economic growth in the region. If successful, the projects will support the decarbonisation of up to 50% of the UK’s industrial emissions.

 He added: “Teesside and the Humber offer the potential for a unique mix of technologies and scale to achieve net zero, delivering significant value for money. National Grid will use our knowledge and experience of gas and electricity transmission infrastructure [. . .] to deliver the infrastructure required to enable industry to achieve deep decarbonisation.”

NZT is forecast to enable an annual gross benefit of up to £450m during construction, and support up to 5,500 jobs. It aims to launch a ‘green economy’ in the north east, through driving economic growth, creating new jobs, and supporting and safeguarding existing jobs.  

Meanwhile, Humber is the UK’s most carbon intensive industrial cluster, producing 12.4 tonnes a year. ZCH aims to preserve jobs by enabling the energy intensive industries of the Yorkshire and Humber region to keep operating, while they decarbonise to meet the UK’s demanding emissions targets.

Currently, 20% of the Humber region’s economic value comes from energy intensive industries, such as steel. The area generates £18bn for the UK economy each year, and supports 360,000 jobs. A large proportion of these are in industries such as refining, petrochemicals, manufacturing, and power generation.

It is estimated that while 37% of the C02 emissions from the UK’s six largest industrial clusters comes from the Humber, 10 million tonnes of C02 could be captured by at least two UK clusters by 2030.

The Humber region has ambitions to create a ‘hydrogen economy’ which is a low-carbon fuel that can be used in power, transport, heating, and as a form of short-term energy storage. CZH proposes to offer low carbon hydrogen production at scale, via the H2H Saltend site, and various other sites along the pipeline route.

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