Yorkshire and Humber designated as Low Carbon Economic Area for CCS

17/03/2010

CCS Grant Awarded to Ferrybridge

Yorkshire and Humber has been designated a Low Carbon Economic Area (LCEA) for Carbon Capture and Storage (CCS) as part of Government plans to transform the UK into a low-carbon economy.

This comes following today’s announcement by Energy and Climate Change Secretary, Ed Miliband, that £6.3 million will be awarded to Scottish and Southern Energy’s 100 tonne per day capture pilot project at Ferrybridge, which will stimulate CCS development within the region.

Last year Powerfuel Power Ltd and National Grid secured a £165m grant from the European Commission, with the support of Yorkshire Forward.  This will progress the development by Powerfuel of a 900WM coal gasification plant with full CCS at Hatfield, Doncaster and the design by National Grid of a region wide CO2 transportation pipeline system alongside an assessment of offshore storage locations.

It is estimated that construction of a CO2 transport network serving all of the major emitters in the region could bring 55,000 jobs and £2bn investment.  It could also play a key role in helping the UK meet its climate change targets – preventing around 60 Million tonnes of CO2 from entering the atmosphere annually.

Tom Riordan, Chief Executive at Yorkshire Forward said: “We welcome today’s announcement which is a vote on confidence in Yorkshire and Humber’s CCS capabilities. As a region we are ideally placed to become a world-renowned CCS location on the basis of the unique geographic and industrial assets, with the UK’s largest cluster of industrial CO2 emissions with proximity to major CO2 stores. These assets leave us well placed to demonstrate and rapidly deploy CCS on a scale that can be matched by few others worldwide.”

The LCEA will be led by Yorkshire Forward and will deliver a programme of projects focused on the development of CCS and relevant supporting infrastructure, with industry and academic partners.

The proposed delivery programme will consist of work to:

  • Support Powerfuel Power Ltd and National Grid to ensure wider regional and UK benefit is obtained from the European funding;
  • Support future applications for competition funding from DECC and EU recognising that the Yorkshire & Humber region is one of the best places in the world to deploy CCS technology on an economic scale
  • Work with industry and Government to develop the strategic case for co-orientated investment in CCS and CO2 transport infrastructure in the region;
  • Ensure effective sharing information with other UK regions and counterparts across the European Union;
  • Support technology development and innovation through existing and new initiatives;
  • Promote supply chain opportunities;
  • Ensure that the skills required to develop and deploy CCS are available at all levels; and 
  • Contribute to fostering public understanding of CCS.

Through the LCEA the region can play a leading role in building a network across the UK to spread best practice and forge links between businesses and research institutions to develop effective supply chains.  The new Centre for Low Carbon Futures (CLCF), a joint initiative of Yorkshire Forward and the region's universities, is harnessing the research power of leading universities both to develop clean technologies and help in the reduction of carbon emissions.

The LCEA will build on existing collaborations with North West Development Agency and ONE North East on carbon abatement technology and create close links with East Midlands Development Agency which has strong industrial and intellectual assets. 

The new status is a reflection of Yorkshire and Humber’s core strengths; therefore it should encourage and enable a greater return on investment. It will raise the awareness of the work that Yorkshire Forward and CO2Sense are doing to promote the development of a CCS network and highlight the opportunities that CCS can present for businesses.

Rosie Winterton, Minister for Yorkshire and The Humber, said: "Today is an extremely important day for the economy of Yorkshire and The Humber.  Our region has been designated the UK's first Low Carbon Economic Area for Carbon Capture and Storage - technologies with the potential to cut CO2 emissions from fossil-fuel power generation as well as from our energy intensive industries.
 
"In addition, the Government's £80 million investment in Sheffield Forgemasters will enable it to supply the civil nuclear power industry and other markets and to compete globally in this lucrative sector.
 
"Both these announcements position Yorkshire and The Humber as a world leader in the development and production of the type of energy needed in a low carbon economy and will mean more jobs and further investment in our region."

The Government is seeking to develop other sectors with LCEAs in offshore wind, advanced manufacturing, biorenewables and nuclear which is also being led by Yorkshire Forward and the North West Regional Development Agency.

LCEAs were introduced in the Government’s Low Carbon Industrial Strategy in July 2009 to help create jobs and promote economic growth. All regions have particular sets of challenges and capabilities, and the LCEAs aim to accelerate low-carbon economic activity in areas where specific geographic and industrial assets give a region clear strengths.

Notes to editors:

Yorkshire Forward

  • Yorkshire Forward is the Regional Development Agency behind the economic regeneration of Yorkshire and Humber. It aims to make a positive difference by investing in jobs, improving towns and cities, and in supporting businesses throughout the region. 
  • Yorkshire Forward’s investment across the region is maximised by attracting European Regional Development Funding. 
  • For further information, images or to arrange an interview, please contact Laura Scholey, Press Manager on 0113 3949540 or email laura.scholey@yorkshire-forward.com