Question

To ask the Secretary of State for Energy and Climate Change, if she will develop a carbon capture and storage strategy for energy intensive industries.

The provision of ring-fenced capital support for Carbon Capture and Storage (CCS) was judged against other Government funding priorities as part of the Spending Review. Government has not taken the Spending Review decision lightly. The Government continues to view CCS as having a potential role in the long-term decarbonisation of the UK’s power and industrial sectors. Neither CCS Competition project proposed to capture CO2 from energy intensive industries.

The detailed design and implementation of CCS policy changes have yet to be determined. The Industrial 2050 Decarbonisation and Energy Efficiency Roadmaps reports published in March 2015 identified a potential role for industrial CCS technologies in decarbonising the steel, oil refining, chemicals and cement sectors. DECC and BIS continue to engage with the energy intensive industries and academics to develop decarbonisation Action Plans by the end of 2016 as the second phase of this process.

The Government remains committed to working with energy intensive industries including those in the Northern Powerhouse area. DECC provided £1million funding to Tees Valley Unlimited as part of the 2013 City Deal agreement to undertake an Industrial CCS feasibility study based on the chemicals and steel industry in the Teesside cluster and we continue to support that work. The devolution deal for Tees Valley, published in October this year, also included a commitment to explore how it can continue to develop its industrial CCS proposals.