SCOTLAND TO BENEFIT FROM CARBON CAPTURE

A report has set out the potential economic benefits of adopting Carbon Capture, Utilisation and Storage (CCUS) in Scotland and highlights how the technology, infrastructure, and skills available could make a significant contribution to the Scottish economy.

Scottish Enterprise and the Scottish Government commissioned Element Energy to lead the ‘CCUS economics impacts study – delivering a roadmap for growth and emissions reductions for Scotland’ 

It considers infrastructure, skills, and technology to inform future investment and policy decisions.

The study explores four potential scenarios (core, soft start, ambition, and carbon management) and various factors such as the industrial uptake of CCUS, the use of hydrogen within key sectors, as well as the potential for a carbon management economy and export opportunities.

Key findings include:

• CCUS could make a significant contribution to Scottish GDP through a mix of lowering costs towards net zero and CO2 emissions, as well as skills retention, increased economic output and jobs through deployment of CCUS projects.
• 10 to 22 million tonnes of CO2 could be stored annually in Scotland by 2045.
• CCUS can play an important role towards Scottish Net Zero 2045 targets providing a carbon management economy, where CCUS is used not only to abate Scottish emissions, but also help other regions.
• Scotland can benefit from a wealth of legacy oil and gas infrastructure to kick-start Scottish CCUS value chains reusing otherwise obsolete assets.
• St Fergus brings opportunities for CCUS deployment though the development of Peterhead CCGT power station and Acorn Hydrogen.
• The growth of a CCUS supply chain would support a just transition for Scotland.
• Scotland already has the vital skills, expertise, and capability to build a CCUS supply chain.

The study benefited from engagement with Scottish stakeholders and input from decarbonisation projects in Scotland such as the Acorn project, the Scottish Cluster, and NECCUS – a partnership of industry, academia, and government.

Scottish Enterprise will utilise the findings of the study alongside additional work as part of its national programme activity on the hydrogen economy.

A report from the Scottish Cluster in July outlined that by deploying CCUS, hydrogen and Direct Air Capture technologies in Scotland an average of 15,100 jobs could be supported between 2022-2050.

Head of low carbon transition at Scottish Enterprise Andy McDonald (pictured) said: “The findings of this economic impact study show the potential for an economy that manages carbon, decarbonises energy intensive industries whilst also providing export opportunities. 

“Not only that but the report highlights the resultant benefits for businesses in Scotland and global emissions worldwide.

“It is important that we consider all scenarios carefully and creatively to ensure a just transition from the infrastructure and skills in oil and gas that will in turn fuel future Scottish CCUS projects.

“As the report outlines, with projects across Scotland, there are opportunities to create jobs, lower the cost of reaching net zero and boost economic activity.”