This week, OGCI is participating in a key international CCUS gathering in Edinburgh, Accelerating CCUS: A Global Conference to Progress CCUS.
The role of CCUS in meeting the ambition to achieve a well below 2-degree scenario has been highlighted by several recent reports. From the IEA’s 2018 World Energy Outlook, to the IPCC’s Special Report on Global Warming of 1.5˚C, and just this month with the Energy Transition Commission’s report Mission Possible, the absolute necessity and urgent need for CCUS is clear.
I believe our industry has the collective expertise, resources and motivation to play a leading role in helping CCUS realize its full potential. As an industry, we can define an aspiration, dedicate expertise, incubate and deploy technologies, and work with stakeholders to define commercial schemes, and good governance policies, while helping to unlock storage capacity.
There is a crucial need to accelerate, as well as collaborate. As key stakeholders representing governments, industries, companies, international organizations and financial institutions gather in Edinburgh, this collaboration – in particular between the public and private sector – will be key to moving CCUS forward.
Therefore, there is no better time for our fund, OGCI Climate Investments, and six strategic partners to announce today their intention to develop the UK’s first commercial full chain CCUS project in Teesside. Having officially progressed to the pre-FEED stage of development, this is a significant milestone in building the world’s first commercial full chain CCUS project and signals a renewal of the industry in the UK, which is both exciting and needed.
This Clean Gas Project is a clear demonstration of what can be made possible through public-private sector collaboration, in this case between OGCI CI, its member companies, central and local government and local industry. Outside of the UK, we are also in discussions with governments and other stakeholders in countries that hope to use CCUS as a way to reach climate goals, support jobs and unleash a new clean tech sector. The availability of capture and storage infrastructure could potentially enable a regeneration of industrial areas, by helping existing companies to preserve value and jobs as they decarbonize and attracting new clean-tech businesses to CCUS hubs. OGCI does not see CCUS as an aim in itself. It is a way to accelerate decarbonization across the economy, embedded in a circular carbon model where energy resources are used highly efficiently to reduce emissions. CCUS will be particularly important for decarbonizing carbon heavy industries such as steel and concrete, where carbon emissions are produced as part of the industrial process. CCUS complements energy efficiency, renewable energy and other aspects of a low-carbon economy, as well as natural sinks.
OGCI aspires to help realize the full potential of commercially viable, safe, environmentally responsible CCUS at scale. We are ready to play an active role in kick-starting this growth, working closely with governments, research institutions and, increasingly, other industries to de-risk CCUS and demonstrate that it has potential to be a safe and profitable business.
Jérôme Schmitt is Chairman of the OGCI Executive Committee