The cost-effective development of industrial carbon capture and storage (CCS) is to be explored on behalf of CCS scheme Teesside Collective.
Consultant Pöyry Management Consulting has been commissioned to refine and develop the Hybrid Incentive Model – a financing option for an industrial CCS network in Teesside – as well as recommend a regulatory regime to manage the system.
The investment mechanism was one of the financing options presented in Teesside Collective’s Blueprint for Industrial Carbon Capture and Storage in the UK, published in 2015.
Funded by government, this work will take account of existing documented work on industrial CCS financing, storage and regulation.
Teesside Collective is working to establish one of Europe’s first clean industrial zones. Its financing work comes as the government formulates its policy on decarbonisation in light of last November’s cancellation of funding for CCS in the power sector.
“CCS uses proven technologies, being used around the world – its main challenge is financing,” said Tees Valley Combined Authority’s director of business investment Neil Kenley.
“Teesside Collective’s Hybrid Incentive Model for industrial CCS is intended to kick-start investment in shared infrastructure. We are determined to make this a reality and achieve lowest cost decarbonisation for the UK.”
Pöyry Management Consulting director Phil Hare added: “Pöyry Management Consulting has deep commercial experience in CCS as well as regulation and policymaking, and we are looking forward to working on such an important project with Teesside Collective.
“As part of the UK CCS Cost Reduction Task Force, Pöyry has been front and centre in the aim to reduce the cost of the technology and help the UK meet its climate targets.”
Teesside Collective priorities
- Building the body of evidence that carbon capture and storage (CCS) technologies are viable, through trials and studies
- Presenting a robust solution to the finance challenge
- Working with the Department for Business, Energy and Industrial Strategy and the Treasury on government policy in support of industrial CCS policy
- Growing the membership of Teesside Collective further with new industrial members
- Strengthening links with other east coast industrial clusters with shared interests.