Teesside Collective is a cluster of leading energy-intensive companies working together to build one of Europe’s first CCS equipped industrial zones, helping to retain the United Kingdom’s (UK’s) industrial base, attract new investment and meet the UK’s climate change targets.
The group is made up of five large industrial companies in the region:
- BOC – UK’s largest hydrogen plant
- CF Fertilisers – UK’s largest ammonia plant producing fertiliser
- Lotte Chemical UK – produces polyethylene terephthalate (PET) for 15 billion recyclable plastic bottles every year
- Sembcorp – provides industrial utilities for the UK’s largest integrated industrial site and is currently planning a large-scale Combined Cycle Gas Turbine (CCGT) Plant
- SABIC – the UK’s largest cracker which is being upgraded to run on US shale gas
Teesside Collective is coordinated by the Tees Valley Combined Authority and backed by the North East of England Process Industry Cluster. Additional industrial companies in the region are in the pipeline to join the Collective should the UK Government provide confidence around a long term policy framework for CCS.
LOCATION: The United Kingdom
CO2 capture source: Various industrial sources in Tees Valley, North East England
CO2 storage site: Two offshore North Sea area options have been evaluated
INDUSTRY (FEEDSTOCK): Various
OVERALL PROJECT LIFECYCLE STAGE: Evaluate
CO2 CAPTURE CAPACITY VOLUME: Initial phase of up to 11 million tonnes over 15 years (or an annual average capture rate of approximately 0.8 million tonnes per annum, Mtpa), long term target of up to 10 Mtpa
CAPTURE TYPE / METHOD: Various, depending on processes but including amine absorption for post-combustion capture plus process by-product CO2
NEW BUILD OR RETROFIT: Retrofit (the project proposal involves modifications to existing plants to capture CO2 streams)
CO2 CAPTURE START DATE: mid-2020’s
PRIMARY STORAGE OPTION: Dedicated geological storage - offshore deep saline formations
Potential locations include saline formations in the Bunter Sandstone in the southern North Sea and the Captain Sandstone offshore the northeast coast of Scotland. These were considered as part of the UK power generation CCS programme and have both completed Front End Engineering Design (FEED).
STORAGE FORMATION AND DEPTH: Under evaluation
TRANSPORTATION TYPE: Pipeline (onshore to offshore); a possibility exists to develop an import/export CO2 terminal to import CO2 from European sources and inject such into the pipeline network
TRANSPORTATION DISTANCE TO STORAGE SITE (LENGTH OF PIPELINE): Dependent on storage site location. Approximately 16 kilometres / 10 miles of onshore pipeline; approximately 150 kilometres / 93 miles offshore for the southern North Sea storage option and over 400 kilometres / 248 miles for the northeast option.
The Teesside Collective is a cluster of leading energy-intensive companies that are working together to build one of Europe’s first CCS equipped industrial zones; it offers a cost-effective opportunity for the UK to remove CO2 emissions from several key process and chemical plants.
With one of the highest concentrations of industry in the UK, and located on the coastline close to highly-prospective North Sea carbon storage sites, Teesside in Tees Valley is an ideal setting to develop the first CCS network in the UK. Teesside has the most integrated industrial cluster in the UK, creating economies of scale that make CCS a low-cost option. Carbon dioxide is already captured by some plants in Teesside and sold for commercial use. Supportive infrastructure and skills are already in place in Teesside, and scoping studies have indicated the Teesside Collective can be technically and economically viable.
Carbon dioxide would be captured initially using conventional available technologies from the industrial cluster in Teesside using a shared onshore pipeline network. Some CO2 is already separated as part of an industrial process (for example, in fertiliser production). The captured CO2 would be compressed to dense phase at each location and then piped to an offshore storage location.
The primary storage option under consideration is saline formations in the Bunter Sandstone in the southern North Sea. The Captain Sandstone formation in the northern North Sea is also under consideration.
Scoping work on the project has been funded by the UK Government and by industrial company contributions.
The Teesside Collective plan to progress the project includes the following key elements:
- Begin with a first phase of CO2 capture and storage of approximately 11 million tonnes of CO2 over 15 years. Once the network is proven, this could expand to CO2 capture and storage of approximately 10 million tonnes of CO2 per annum as power stations and more industrial companies join the network.
- The first phase would cost around £110 million to construct and around £29 million per year to operate, including a transport and storage fee
- The first phase could repay up to £31 million per year to the Government in carbon saving income
- Take advantage of cost-reduction opportunities during the Concept Definition (or Front End Engineering Design (FEED) stage) by choosing one of the two well-characterised UK competition storage sites, using best available technology and maximising shared infrastructure
- The first phase could be capturing and storing CO2 by the mid-2020’s.
The Teesside Collective has indicated that UK government support in developing a suitable CO2 store and in funding FEED studies for the first phase are important elements in project progression.
The Teesside Collective can be a template development model for similar networks in other regions of the UK (and in other parts of the world). In addition to allowing the UK to meet its carbon targets at least cost, investment in industrial CCS facilities can be a ‘strategic asset’ – stimulating investment in low carbon products, electricity, fuels and heat, and driving clean growth.
Key project milestones:
December 2014: Launch of Teesside Collective initiative building on earlier PICCSI (Process Industry CCS Initiative) grouping in the Tees Valley
March 2015: Completion of early engineering studies of capture and transmission networks
July 2015: Launch of the Teesside Collective Industrial CCS Blueprint, including:
- Engineering costs for three industrial plants as a starting point, including transport and storage of the CO2
- An economic impact assessment of industrial CCS in Teesside, indicating significant employment creation during construction and operation
March 2016: SABIC and Sembcorp join the consortium
May 2016: Agreement on a further £300,000 funding for Teesside Collective from the former UK Department of Energy and Climate Change (DECC)
February 2017: Publication of Teesside Collective’s recommended finance model for industrial CCS, based on funding from the UK Department of Business, Energy and Industrial Strategy (BEIS), including:
- A business case for an initial CCS hub in Teesside
- A proposed funding mechanism for industrial CCS across the UK