Added Value of a CCS Cluster for Yorkshire and Humber

1. Added Value of a CCS Cluster for Yorkshire and Humber Stephen Brown Director of Carbon Capture and Storage Conference of the Regions Workshop Rotterdam 1st July 2010

3. Why Yorkshire and Humber? • 60Mt of CO2 emissions from single point sources • Range of sectors – not just coal-fired power generation • Located in a relatively small geographic area • Adjacent coastline to southern North Sea gas fields • Considerable industry interest • Opportunity to gain a world lead for the region

5. Why Develop a Cluster ? • Exploit existing industrial infrastructure • Fuel/material supply • Grid connection • Pipeline wayleaves • Offshore assets • Enable rapid development and deployment • Mitigate price/volume risk in CO2 transport • Intuitively cost effective and efficient • Attract new investment • But – requires oversized pipelines in early years

6. Cluster Opportunity • Ferrybridge to Theddlethorpe picking up all large emitters • CO2 up to 125 bar but below critical temperature • Tree structure more appropriate • Phased development from 2011 to 2030 • Opportunity to reuse some existing gas infrastructure • Target two clusters of gas fields for storage • CAPEX +£2bn; 55,000 construction jobs; £30bn GVA • 8.6Gt CO2 storage - beyond 2050 • Regional network more cost effective for each emitter than individual ‘source to store’ projects

8. Initiating a Pipeline by 2015- schematic routings • Two integrated phases, £643m • Two separate phases, £896m • 11 years ‘no regrets’ of initial overcapacity

9. Additional Opportunities • Shipping terminal for CO2 import/export • Storage risk mitigation for NER300 projects • EOR • Parallel hydrogen infrastructure • Test bed for technology development • UGC • CO2 mineralisation • Attract and OEM?

10. Thank You