The widespread application of carbon capture and storage (CCS) technology on industrial processes such as steel, chemical and cement manufacturing, is increasingly recognised as a key priority for tackling CO2 emissions from these vital energy intensive industries. The Teesside Collective is a cluster of leading industries based in the North East England who are collaborating to create Europe’s first Carbon Capture and Storage (CCS) equipped industrial zone. Teesside Collective is not a traditional CCS project. Its focus is on capturing and storing emissions from chemical, steel and process industries – not the power sector. In 2013 the UK Department of Energy and Climate Change provided £1m to undertake initial engineering, help develop a business case for deploying industrial CCS in the Teesside area, and to make recommendations for a funding mechanism to incentivise the creation of industrial CCS clusters. We are privileged to have Sarah Tennison, Low Carbon Economy Manager from The Teesside Collective join us for this Webinar. Sarah will introduce the Teesside Collective and talk about the project findings to date. The industrial CCS initiative being scoped by Teesside Collective is hoping to make both an environmental and economic case for the development of this technology– stimulating economic benefits for the local area and beyond.

1. The UK’s first industrial CCS cluster – Introducing
the Teesside Collective
Webinar - Friday 24 April 2015, 1700 AEST

2. Sarah Tennison
 Responsible for the transition to a Low Carbon
Economy in one of the most industrialised and energy
intensive locations in the UK.
 Negotiated the Tees Valley City Deal with the UK
government
 The City Deal has funded the work to create an
Industrial CCS network in Teesside.
 Sarah is now managing the development of this
network through Teesside Collective.
www.teesidecollective.co.uk
Low Carbon Manager – Tees Valley Unlimited

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4. Developing an industrial CCS network in
Teesside
Sarah Tennison
@Teescollective
www.teessidecollective.co.uk
info@teescollective.co.uk

5. Why ICCS and Why Teesside?

7. Over £3bn investment over
last 5 years

8. What would we achieve?
• Future-proof local industries from rising costs of CO2
• Grow our workforce
• Create a magnet for inward investment
• Be a template for other industrial regions
• Be a national industrial asset
• Cost effectively reduce CO2 emissions by 5million tonnes a year by early
2020s
• Play a crucial part in the UK meeting its 2050 80% emission reduction targets
• Enable UK industries to meet increasing demands for sustainable products

9. Who are Teesside Collective?
Multinational companies based in Teesside aiming to
create Europe’s first CCS equipped industrial zone
BOC Largest steam methane reformer in UK
Growhow Largest UK ammonia fertiliser
producer
SSI Europe’s second largest blast furnace
Lotte produces PET for 15bn drinks bottles
per year
National Grid Store developer
TVU Local Government
NEPIC Cluster representative
“CCS on industrial plants is going to be a
critical part of the global effort to prevent
serious climate change. Teesside is in the right
place, at the right time, to get ahead of the
curve.”
Sir David King, UK’s Special Representative
for Climate Change
“A CCS network in Teesside is a critical step,
giving a shot in the arm to British industry’s
long-term future.”
Dianne Sharp, North East Director, CBI

10. What will Teesside Collective
do?
Use the £1million received from UK’s Department for Energy and Climate Change to:
1. Engineer and cost a solution to capture CO2 from 4 industrial plants, onshore transport network, offshore
transport network, and identify a store
2. Develop the Business Case for an industrial CCS network
3. Propose a solution to ‘how can Industrial CCS be funded?’
We have:
 Commissioned Pale Blue Dot, Amec Foster Wheeler, and Societie Generale
 Completed the Engineering
 Developed the draft Business Case
 Developed the draft funding models
 Commissioned the economic impact assessment
Project will be launched by July 2015 – as much information as possible will be public

11. SSI - Europe’s second largest Blast
Furnace
Total site emits 7.1million tonnes of CO2 per year
After optioneering 3 concepts selected for further
study:
1. Post combustion capture on the flue gas from new
power station fueled by blast furnace gas –
1.6million tonnes captured
2. Pre-combustion capture from entire blast furnace
gas – 2.1million tonnes captured
3. Pre-combustion capture from excess blast furnace
gas and BOS gas – carbon converted to H2 and CO2 in
shift reaction – 2.2million tonnes captured

12. Growhow – 35% of UK’s
fertilisers
Produces CO2 as part of process, sells to
Greenhouses and Drinks industry
Average of 375,000 tonnes of CO2 per year
New 100barg compression plant required (2 x
50tonne/hr compressors)
Proven technology from existing suppliers
No operation or integration issues identified

13. BOC Linde - UK’s largest Steam
Methane Reformer
305,000 tonnes of CO2 captured
Conventional Amine Process on flue gas
from SMR
No significant impact on the hydrogen
plant
Significant power consumption – 5.9MW
ReformerCCP
Core
Plant
PSA
CCP Utilities

14. Lotte - Produces enough PET for
15billion drinks bottles every year
50,000 tonnes of CO2 captured
Amine capture solution selected
Pre-designed amine units available –
American – no European pricing available
90% CO2 captured
New
Plant

15. Onshore network
5 and 15million tonnes per year capacity pipe
studied
100 barg from capture units with specified CO2,
transport at dense phase
Constraints identified to generate route:
 Environmental
 NG NTS Feeder
 Populations
 Access to suitable shore landing
 Rail and road crossings

16. Initial spine and extensions

17. Booster Station to Offshore Routes
Booster
Station
Cleveland
Golf
Club
SSI
CCS
Hot
Metal
Line

18. Offshore route
Two destinations:
National Grid’s 5/42 / Bunter
 154km
 3 pipeline crossings, 3 communication
crossings, 3 electrical transmission cable
crossings, submarine exercise area.
 5mt/yr = 18in. 15mt/yr = 24in
Goldeneye / Captain
 433km
 4 pipeline crossings
 5mt/yr = 20in. 15mt/yr = 30in

19. Funding mechanism
• Without a funding mechanism, such as the low carbon power sector has, Industrial CCS will not
happen
• Costs cannot be passed on to consumers
• EU ETS certificates are not bankable
• Industrial companies can close – long term financing unavailable
• Clustering important to minimise individual credit risk and decrease infrastructure costs
• Taking the Transportation and Storage out of project to reduce risk and make project more
bankable – Regulated Asset Base, Capital Grant
• NER400 opportunity, especially for Transport and Storage for clusters
• A funding mechanism is possible and will be presented in June

20. ICCS Timetable and Key Risks
Critical Path Risks
Ability to attract Pre-FID finance before funding mechanism in
place
Government timetable for implementing a funding mechanism
Storage – speculative FID on additional storage sites
Teesside Collective
2015 – 2016: Scope Pre-FID work and identify Pre-FID funding
2016 – 2019: Undertake Pre-FID work - permitting and
consenting, FEED, initial engineering, agree
finance structure, agree ownership structure,
agree storage tariff
2019 – 2021: Bid for NER 400 for and apply for UK
Government’s ICCS funding mechanism
Early 2020’s: Reach FID, let EPC contracts, start operations
Storage Operators (who ???)
2015 – 2018: Secure funding to develop follow on storage sites
to FID including storage appraisal, storage permit,
agreement of financial securities and liabilities
UK Government
2015 – 2016: Identify funding for Industrial CCS Pre-FID work
and storage development
2015 – 2019: Agree ICCS funding mechanism, agree budget,
and obtain legislation change
2019 – 2021: Agree Member State NER400 projects and
match funding principles
EU
2015: Agree with Member states to/not-to sell
additional 300m EUA allowances
2016 – 18 Agree eligibility for 300m allowance fund
2015 – 19 Agree eligibility for NER400 and method for pre-
selection of projects before allowances sold
2020+ Process NER400 applications

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