Latest news with #CCUS
The Guardian
11 hours ago
- Business
- The Guardian
Reeves promised oil industry ‘quid pro quo' over windfall tax in private meeting
The chancellor, Rachel Reeves, told a fossil fuel company the industry would receive a 'quid pro quo' in return for higher taxes on its windfall profits, it can be revealed. In a meeting with the Norwegian state energy company Equinor on 27 August, Reeves suggested that the government's carbon capture, usage and storage (CCUS) subsidies were a payoff for oil firms being hit with a higher tax rate. Minutes of the meeting obtained by DeSmog and seen by the Guardian state that Equinor's CEO, Anders Opedal, raised concerns over the energy profits levy – also known as the 'windfall tax' – and 'its impact on the value' of Equinor's UK portfolio. In response, Reeves said that raising the windfall tax from 35% to 38% was a 'manifesto commitment', but stated that 'Equinor should recognise the quid pro quo – the funds raised enable government investment in CCUS etc'. CCUS is the controversial practice of trapping the emissions produced by fossil fuel plants before they enter the atmosphere. Many scientific experts have suggested the technology is not economically viable. It is accused of being a favourite climate 'solution' of the fossil fuel industry since it allows for the continued extraction of oil and gas. The Labour government announced in October it would provide £22bn in subsidies to CCUS projects over 25 years after an increase in lobbying by the fossil fuel industry. The Green party co-leader, Carla Denyer, said Reeves and the Labour government had been 'caught out making promises in a secret exchange deal which goes against the interests of the British people'. The MP for Bristol Central added: 'In public, they claim to be taxing fossil fuel giants more fairly by raising the windfall tax, but behind closed doors they are giving back with dodgy deals to allow the fossil fuel corporates to continue with business as usual under the guise of CCUS – an expensive distraction and largely unproven technology.' Equinor is one of the main companies investing in the UK's CCUS sector. In December, the government signed deals with Equinor, BP and TotalEnergies to develop carbon capture facilities in Teesside. This will involve the development of the Net Zero Teesside power plant, which will be 25% owned by Equinor and aims to be the world's first gas-fired power station featuring CCUS. Earlier this year, Equinor was forced to retract a claim that it stores 1m tonnes of carbon dioxide annually at its flagship carbon capture project in the North Sea. Equinor has not captured 1m tonnes of CO2 per year at the site since 2001, and only captured a 10th of that figure in 2023. Equinor made a $28.7bn (£21.2bn) post-tax profit in 2022 after Russia's invasion of Ukraine triggered higher oil and gas prices – a figure that stood at $8.8bn in 2024. Tessa Khan, the executive director of the campaign group Uplift, said: 'Oil companies like Equinor have held sway over successive UK governments, for years shaping policies to benefit their bottom line and slowing down climate action. This Labour government must stand up to them and put our needs – for affordable clean energy and a safe climate that we can pass on to our children – ahead of their insatiable need to profit.' The House of Commons' public accounts committee, which scrutinises government spending decisions, released a report in February describing the UK's £22bn CCUS subsidies as 'risky'. The report noted that the government has downgraded its ambitions for CCUS storage, scrapping its previous commitment of storing 20 to 30m tonnes annually by 2030. It also highlighted that the UK's new CCUS projects do not allow the government to share any potential profits, or for local consumers to benefit from lower energy bills. The committee also reported that producing liquid natural gas, which will be used in the UK's CCUS projects, leaks more greenhouse gases into the atmosphere than previously thought. 'This could undermine the rationale for pursuing certain schemes,' the report said. After being sued by the environmental consultant Andrew Boswell over the Net Zero Teesside scheme, the previous Conservative government admitted it had not taken into account the plant's full potential emissions, which Boswell estimated could reach more than 20.3m tonnes of carbon dioxide equivalent during its lifetime. In summer 2024, a judge rejected Boswell's case, which argued that officials did not fully explore the environmental impacts of the scheme before approving it. The government also won the appeal in May. Sign up to First Edition Our morning email breaks down the key stories of the day, telling you what's happening and why it matters after newsletter promotion Boswell, who leads the Scrap Carbon Capture campaign, called Reeves's Equinor meeting 'an outrageous spectacle'. He said: 'She begs Norway's oil colossus to tax its huge profits, and then gifts it with far more in return – many billions over decades for climate-wrecking CCUS.' Equinor and Shell have formed a joint venture to become the UK's largest North Sea fossil fuel producer. In November, the government admitted it had unlawfully approved the development of the UK's largest untapped oilfield, Rosebank, which is operated by Equinor, by not taking into account the climate effects of the combustion of oil and gas to be extracted from the field. Equinor intends to reapply for approval to develop the field. The Labour government has been steadfast in its support for the UK achieving net zero emissions by 2050, with Keir Starmer having said 'homegrown clean energy' is 'in the DNA' of his administration. The Climate Change Committee stated in its 2025 appraisal of the government's net zero policies that the UK needs to scale up its CCUS capacity to 73m tonnes-a-year by 2050 to help meet its climate commitments. 'Investment in carbon capture and storage is a gamble on unproven technology,' said Lily-Rose Ellis, a campaigner at Greenpeace UK. 'All it does is give oil and gas giants carte blanche to continue causing planet-destroying emissions in the hopes that one day they might be able to capture the carbon and store it for all of eternity. Public money should be spent on renewables, which guarantee to lower emissions, bring bills down and boost the economy with new jobs.' A spokesperson for Equinor said: 'Equinor has been a reliable energy partner to the UK for over 40 years, providing a stable supply of oil and gas, developing the UK's offshore wind industry, and pioneering solutions to decarbonise the UK economy, including carbon capture and storage. 'Using our experience of decarbonising energy production in Norway, including safely storing carbon emissions under the North Sea for over 25 years, we are supporting the UK to develop its own homegrown energy transition.' A government spokesperson said: 'We are delivering first-of-a-kind carbon capture projects in the UK, supporting thousands of jobs across the country, reigniting industrial heartlands and tackling the climate crisis. Money raised from changes to the energy profits levy made at autumn budget last year support the transition to clean energy, enhance energy security and independence, provide sustainable jobs for the future, and help protect electricity bills against future price shocks.'
France 24
2 days ago
- Business
- France 24
UK startup looks to cut shipping's carbon emissions
For two celebrated young designers, it is the beginning of a journey aimed at helping the maritime sector decarbonise. "We're simulating what happens on a ship," Alisha Fredriksson told AFP of the technology she developed alongside her friend Roujia Wen. The women, both aged in their early thirties, met at university and have since founded the company Seabound. Its work on "ocean-ready carbon capture" has seen the friends shortlisted for this year's Young Inventor Prize, which rewards technology contributing to sustainable development goals put forward by the United Nations. Winning the award on Wednesday "would be an extra boost to the team... a validation that the world cares about the shipping industry and its decarbonisation journey", said Fredriksson. Shipping accounts for three percent of global emissions, while the International Maritime Organization (IMO) recently voted in favour of a pricing system to help tackle excess carbon. At Seabound's miniature courtyard factory, Fredriksson showed off the prototype, which is fitted with a generator. "We're burning fuel, and that creates CO2," she explained, as exhaust gas was routed through a complex system of pipes into various containers. The carbon pollution was captured by lime pebbles, while the other elements were released into the atmosphere. The white-coloured lime acts "like a sponge", said chemical engineer Glexer Corrales, wearing a navy laboratory coat as he tested the quality of the granular-like substance that "is readily available" and "cheap". Once absorbed, the carbon was transformed into limestone through a chemical process. Seabound claims that minimal customisation is necessary for its system to work across many types of vessel. Shipping transformation Technology for carbon capture, utilisation and storage (CCUS) has so far been used primarily on land by heavy industry, for example in the production of cement, glass and steel. Potential safety risks of using CCUS at sea have yet to be set out by the IMO. And for the process to be truly beneficial, the amount of carbon captured "must be greater than the carbon produced" through the energy use incurred in installing the system, including on land, IMO official Camille Bourgeon told AFP. This objective was largely achieved during an initial test in 2023, when Seabound's system captured 78 percent of CO2 emitted aboard a ship run by Lomar Labs. From 2028, all ships will be required to use a less carbon-intensive fuel, the IMO recently ruled, while a penalty of $380 will be imposed for each tonne of CO2 emitted beyond allowances permitted by the UN shipping body. The IMO move has created "a big tailwind for our system", said Fredriksson, whose company aims to charge $150 for each tonne of captured CO2, before selling it on to companies requiring it for the production of certain types of fuel. © 2025 AFP
Int'l Business Times
2 days ago
- Business
- Int'l Business Times
UK Startup Looks To Cut Shipping's Carbon Emissions
In a small London workshop, a prototype mimics the process of capturing carbon emissions from a cargo ship's engine. For two celebrated young designers, it is the beginning of a journey aimed at helping the maritime sector decarbonise. "We're simulating what happens on a ship," Alisha Fredriksson told AFP of the technology she developed alongside her friend Roujia Wen. The women, both aged in their early thirties, met at university and have since founded the company Seabound. Its work on "ocean-ready carbon capture" has seen the friends shortlisted for this year's Young Inventor Prize, which rewards technology contributing to sustainable development goals put forward by the United Nations. Winning the award on Wednesday "would be an extra boost to the team... a validation that the world cares about the shipping industry and its decarbonisation journey", said Fredriksson. Shipping accounts for three percent of global emissions, while the International Maritime Organization (IMO) recently voted in favour of a pricing system to help tackle excess carbon. At Seabound's miniature courtyard factory, Fredriksson showed off the prototype, which is fitted with a generator. "We're burning fuel, and that creates CO2," she explained, as exhaust gas was routed through a complex system of pipes into various containers. The carbon pollution was captured by lime pebbles, while the other elements were released into the atmosphere. The white-coloured lime acts "like a sponge", said chemical engineer Glexer Corrales, wearing a navy laboratory coat as he tested the quality of the granular-like substance that "is readily available" and "cheap". Once absorbed, the carbon was transformed into limestone through a chemical process. Seabound claims that minimal customisation is necessary for its system to work across many types of vessel. Technology for carbon capture, utilisation and storage (CCUS) has so far been used primarily on land by heavy industry, for example in the production of cement, glass and steel. Potential safety risks of using CCUS at sea have yet to be set out by the IMO. And for the process to be truly beneficial, the amount of carbon captured "must be greater than the carbon produced" through the energy use incurred in installing the system, including on land, IMO official Camille Bourgeon told AFP. This objective was largely achieved during an initial test in 2023, when Seabound's system captured 78 percent of CO2 emitted aboard a ship run by Lomar Labs. From 2028, all ships will be required to use a less carbon-intensive fuel, the IMO recently ruled, while a penalty of $380 will be imposed for each tonne of CO2 emitted beyond allowances permitted by the UN shipping body. The IMO move has created "a big tailwind for our system", said Fredriksson, whose company aims to charge $150 for each tonne of captured CO2, before selling it on to companies requiring it for the production of certain types of fuel. Seabound plans also to recycle the limestone. Shipping accounts for three percent of global emissions AFP From 2028, all ships will be required to use a less carbon-intensive fuel, the IMO recently ruled AFP Technology for carbon capture, utilisation and storage has so far been used primarily on land by heavy industry AFP
Time of India
2 days ago
- Business
- Time of India
What needs to be done to promote development of ccus technologies in India
To achieve its goal of Net Zero by 2070, India needs to not only accelerate the deployment of commercially viable technologies but also take timely steps to support R&D and development of emerging technologies having high relevance for it. In view of the abundant coal reserves and high dependence on coal for its domestically produced energy supply, CCUS(Carbon Capture Utilisation and Sequestration) technologies present high potential for its journey to 2070 goal. In FY 2024, coal supplied 79 per cent of domestically produced energy. Even after 50 years since the first CCUS project started in the world, the progress and contribution of CCUS to reduction of global emissions has been negligible and far less than the expectations. Operational projects capture only about 42 million tonnes per annum which is 0.1 per cent of global anthropogenic emissions. However, IEA says that achieving Net Zero at global level would not be possible without CCUS technologies. It estimates that 6.2 giga tonnes of gas would be the required annual capacity of CCUS projects by 2050. Capture technologies have matured and pipeline transport of captured CO2 has been proven commercially. Progress on utilisation of captured gas will be critical. However, in view of the very large quantities to be required to be captured, the sequestration ( storing the captured gas in oceanic or geological formations) will be the mainstay as the world expands deployment of CCUS. A number of countries have put in place policy framework and incentives to support its growth. In India, a few pilot scale projects have been taken up by CPSEs and some private companies. The efforts of DST and CSIR in R&D of capture and conversion of CO2 in green products have reached the 'test bed' stage. NITI Aayog has come out in 2022 with a comprehensive study recommending the policy framework and deployment mechanism of CCUS. Further action is required without any delay. First step would be to nominate a lead Ministry. Though applications of CCUS will fall in the jurisdiction of several Ministries, It is recommended that either the Ministry of Heavy Industry or Ministry of Coal should lead it for obvious reasons. A national mission is needed with participation of all concerned Ministries and institutions. Recommended national policy framework should come out with specific national targets with priority amongst the sectors for development. Applications in hard-to-abate industrial sectors should be given the highest priority as emissions from the same are projected to grow rapidly in our journey to Vikshit Bharat by 2047. Cost of capture in ₹per tonne is also lower in these sectors than the coal based power plants. Currently the cost of capture is around ₹400 per tonne in gasification projects, ₹2000 to 3000 for cement and steel plants but about ₹3200 for coal power plants . CCUS technologies may have definite relevance for the power sector also in the long term. There are more cost effective technologies available for its decarbonisation in the next two decades. CCUS technologies may emerge important for the power sector in the decade of 2060s if grid operations require support of base load generation and inertia from coal power plants in the scenario of less than projected expansion of nuclear power plants. CCUS will come handy to run legacy coal plants for meeting the peak demand. The policy should also address the concerns associated with any new technology , with due attention to the liability against the project proponents arising from uncertainties in transport and storage. As India has limited availability of concessional finance to support its energy transition, it will be appropriate to take up three to four Hub and Cluster mode projects to achieve the objectives of shared cost of transport and storage infrastructure and regulatory sandboxes in various types of geographies. Such hubs need to be aligned with the hubs being developed in the National Green Hydrogen Mission as green hydrogen is a critical input to produce green products from the captured carbon dioxide. To effectively address the high perceived risk of any new technology, the project implementation in such hubs should be anchored in SPVs set up in PPP mode. Each cluster should have projects in multiple sectors like steel, refinery, cement and coal based power plants. The grant support should be in part capex support upfront and balance per tonne of captured gas to ensure actual outcomes and successful demonstration. CCUS projects can also be supported through carbon credits by expediting the roll out of the Carbon Credit Trading Scheme. To tap this potential, CCTS framework should notify trajectory of emission intensity reduction targets for 10-15 years to facilitate investment decisions. Preferential procurement of green products from 'utilisation' of captured gas will be a necessary intervention. It will also be necessary to set up a dedicated national institute , like we have for solar and wind, which can act as a repository of all the knowledge and updated information on identified geological formations for sequestration. Lastly, we must also assess and communicate to the policy makers the job creation potential in the full CCUS value chain to give it a rightful place in the green growth perspective of India. (The author is former Union Power Secretary of India and is currently Partner with The Lantau Group)
Borneo Post
3 days ago
- Business
- Borneo Post
Petronas eyes first CO2 injection date by end-2029, early 2030 in Kasawari
(From left) Faizah, Emry and Nur Ain during an exclusive CCUS Media Dialogue today during Energy Asia 2025. KUALA LUMPUR (June 17): The tentative date for the first carbon dioxide (CO2) injections for Petroliam Nasional Bhd's (Petronas) carbon capture and storage (CCUS) projects for the hard-to-abate industries is towards the end of 2029 or early 2030, subjected to the readiness of clients. According to Petronas general manager of carbon capture and storage Nor Ain Md Salleh, this timeline dependent on Petronas' clients or CO2 emitters. 'We won't be able to have it ready earlier for too long, and we await Petronas' emitters, so we need to align it. This is where we are at this conjunction in terms of the target date,' she said this during an exclusive CCUS Media Dialogue today during Energy Asia 2025. To note, Petronas has several CCUS projects with varying levels of maturity, the most advanced one being its M1 storage site in Kasawari offshore Sarawak, where Petronas will focus on storing CO2 coming from the natural gas from the field. 'The rest coming up is actually the three sites that we are developing currently to cater for the storage of the emission coming from other industries that are not oil and gas centric basically. 'We have two in Peninsular Malaysia and one in East Malaysia. Out of the two in Peninsular Malaysia, one is located at the concentrated area of our Malaysia-China Kuantan Industrial Park. 'We are trying to provide a solution for those industries if they can adopt CCS as part of their decarbonisation effort that will contribute towards the reduction and fulfilment of Malaysia national determined contribution as part of the climate effort.' Petronas head of carbon management Emry Hisham Yusoff underscored the importance for Petronas to align themselves with its customers. 'If the customer does not take up its final investment decision (FID) but we do, we become the white elephant, and nobody will use the facilities. So we have to actually, when we do our projects here, especially in Japan, we are also talking to the emitters.' Looking at the CCUS value chain, Nor Ain highlighted that storage held the most potential at the moment. 'For TotalEnergies and Mitsui, we are currently progressing with the storage side. Under the Gated Technical Assurance, we are at Gate 4. Now, we are working towards Gate 5 Investment Decision. 'In terms of the storage side, feasibility, safety and integrity, we have already achieved the maturation level. We are tying up the loose ends basically just to ensure and validate some of the legacy well integrity so that again we can minimise the risk of the leakage and the release of the seal. That is on the progress.' Nor Ain also highlighted Petronas's partnership with Japanese Consortium Parties — Japan Petroleum Exploration Co Ltd (Japex), JGC Holdings Corporation (JGC) and Kawasaki Kisen Kaisha Ltd (K-LINE) — for storage site agreement (SSA) for the M3 depleted field offshore Sarawak, Malaysia, on February 26, 2024. This SSA not only enables the feasibility studies of the CO2 storage sites starting with the M3 depleted field (M3 CCS Project), but also the planning of relevant CO2 storage site development, including onshore terminals and transportation pipelines, as well as assessment of its techno-commercial feasibility. 'Both Mitsui and the Japan consortium collaborations are engaging the emitters over in Japan and bringing them to us as part of the partners' obligation. Japan, in terms of the commitment for the decarbonisation, is much more stringent as compared to us in Malaysia. 'So that is already one of the mitigation that come naturally to us when we are offering them the CCS as one of the option.' Petronas general manager of strategy, planning & commercial, carbon management Faizah Ramlee added that the three storage sites in Malaysia has been selected by the Japanese government under the advanced CCS project as the destination for their CO2 emissions captured in their country. 'We are very pleased to continue that collaboration, and our partners are also on board to secure these emitters or customers that we will be providing solutions for. 'In addition to that, in the spirit of energy superstore, as mentioned by Petronas President last month about us offering beyond just one single product and upholding the integrated nature of our business, we are also working closely with our LNG marketers that is servicing the LNG customers who will be needing the solution for CCS as well. 'That's also the other effort to secure or engage these emitters, not only from Japan but also from South Korea and Singapore.' CCS ccus Energy Asia 2025 Petronas
