Carbon capture and storage combined with fossil fuel power generation could be cost-competitive with other low-carbon energy sources in the 2020s, according to a report out today.
The findings are from the Carbon Capture and Storage Cost Reduction Task Force, which was commissioned by the Department of Energy and Climate Change, The Crown Estate and industry to look at how costs could be reduced on the next wave of projects.
By early next decade, according to the analysis by consultants Poyry, the sector should be able to generate electricity at a levelised cost approaching £100 per MWh and below that shortly afterwards.
But that cut in costs requires an investment in large offshore CO2 storage clusters, which bring together multiple emitters with large, high usage, shared pipelines; large power stations with improved capture technology; and exploitation of potential overlaps with the oil industry, such as enhanced oil recovery in some North Sea oil fields.
Reducing expenditure will also require a cut in the cost of project capital, which requires in turn a reduction in risk and that elusive improvement in investor confidence.
“The findings of this report show the great potential ahead for the industry in the UK,” says Energy Secretary Ed Davey.
Rob Hastings, director of Energy and Infrastructure at The Crown Estate adds:
“With many of the UK’s fossil fuel plants set to be decommissioned soon and with challenging EU targets for carbon reductions, its welcome news that CCS looks set to compete as a major player in the nation’s low carbon future.”
Government makes £20 million CCS award to keep UK at forefront (21-Nov)
Uncertainty over EU funding for UK carbon capture projects (13-Nov)
2Co Energy drops Don Valley CCS project after failing to secure support (1-Nov)
Four shortlisted for UK government’s £1 billion CCS competition (31-Oct)
Article source: http://www.energyefficiencynews.com/i/5566/