25 April 2022
Storegga, the UK’s leading independent decarbonisation developer, is calling on the government to accelerate the development of a climate repair industry in the UK to create wealth and support regions affected acutely by the cost-of-living crisis.
Responding to the Department for Business, Energy & Industrial Strategy’s (BEIS) consultation on the development of the UK Emissions Trading Scheme (ETS) Storegga says that including Direct Air Capture and storage (DACS), alongside other Greenhouse Gas Removals (GGR) technologies, in the ETS is essential to meet the UK’s net-zero commitments and progress long-term climate repair but would also bring significant economic benefits.
For example, supporting the development of Europe’s first DACS plant of the scale planned in Aberdeen could support up to 3,500 construction and operational jobs in the surrounding areas.
Including GGRs in the ETS scheme will be the market signal needed to trigger the start of a new DACS market in the UK and support early adopters willing and able to pay a higher price for permanent CO2 removal today. By investing in this technology now and creating a high-quality carbon removal credit system, the UK ETS will create a long-term market for a sector that is crucial to tackling climate change.
DACS provides a high quality and measurable way to permanently eliminate CO2 emissions from the atmosphere. It could make up 50% (2.5 M/T CO2 per year) of the UK government’s target to deploy at least 5 M/T per year of engineered CO2 removals by 2030 in its net-zero strategy.
DACS also provides a path to removing CO2 emissions from the past, making it a tool to support not only net-zero targets, but also ambitions to achieve net negative emissions and full climate restoration. However the ETS scheme must be developed to ensure fossil fuels are reduced on the demand side and avoid DACS being used as a ‘get out of jail free’ card for emitters.
Storegga is developing the UK’s first DACS plant in partnership with leading DAC provider Carbon Engineering. Given the right market framework, this is expected to be operational in the Scottish Cluster in 2026. Storegga has signed MoUs with companies such as Virgin Atlantic and Mitsui to be customers of this high integrity, truly permanent removal of CO2, and has received interest from industries such as consultancy, education, sport, aviation, banking, technology and real estate.
Sanjay Parekh, Head of Direct Air Capture at Storegga said:
“Creating a climate repair industry in the UK will create wealth and support regions affected acutely by the cost-of-living crisis. Championing the development of Europe’s first direct air capture and storage plant of the scale planned in Aberdeenshire could support thousands of jobs in a region which needs a long-term plan to transition jobs away from Oil & Gas, while also delivering 20% of the Government’s carbon removal target in an efficient and cost-effective way.
“At the same time, direct air capture and storage provides an opportunity for climate justice. Western nations – who have been responsible for most historical pollution – can start to redress the balance and in time remove CO2 from historic emissions. It is fairer for the historically big polluters and countries that can afford it to start tackling CO2 removal.”
For further information please contact:
Dentons Global Advisers
Jennifer Walmsley, Fern Duncan, Leah Dudley +44 20 7664 5086
Notes to Editors:
Storegga Limited is an independent, UK-based decarbonisation development business. It develops early stage carbon capture and storage, hydrogen, and other subsurface renewable projects in the UK and internationally to contribute to achieving net zero targets. The company employs approximately 80 people in the UK, US and Singapore, with its head office in London.
Storegga is a private company backed by GIC, Mitsui & Co., Ltd., M&G Investments, Macquarie Group and Snam.
Storegga is the lead developer of the Acorn Carbon Capture and Storage and Hydrogen project in Aberdeen, Scotland. The Acorn Project will provide critical backbone infrastructure for the Scottish Cluster. The Scottish Cluster unites communities, industries and businesses to deliver CCS, hydrogen and other low carbon technologies, supporting Scotland, the UK and Europe to meet net zero goals.