Commenting on the announcement in today’s Budget that the Government is expanding the number of Carbon Capture and Storage (CCS) demonstration projects from one to between two and four, National Grid Chief Executive Steve Holliday said:

“CCS has the potential to bring about a massive reduction in the UK’s carbon dioxide emissions, and at the same time play a big part in keeping our energy supplies secure.  We welcome the commitment the Government is showing in this area by potentially quadrupling the number of demonstration projects.

“The next step for Government is to focus on how the carbon dioxide will get from the power stations to the offshore storage fields.  CCS clusters – power stations in the same area sharing a pipeline network – make simple common sense compared to the wasteful alternative of each power station building their own separate pipeline.

“National Grid is keen to deploy its gas pipeline expertise in this area, but it needs the right regulatory framework.  If Government get that right, it will be a big boost to the viability of CCS.”

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The UK has some of the best opportunities for Carbon Capture and Storage (CCS) in Europe, with power stations and other heavy industry close to the North Sea oil and gas fields that, when depleted, could provide storage for their carbon dioxide emissions.  CCS networks in Scotland, Humberside, Teesside and the South of England could together result in a reduction of over 100 million tonnes of carbon dioxide per year, equivalent to taking 50 million cars off the road.

Alongside this substantial reduction in emissions, CCS would also bring benefits to security of supply from allowing coal to remain part of a future diverse low carbon energy mix. Coal generation, with its flexible output, could play a valuable role in meeting the UK’s future energy requirements alongside a large proportion of intermittent wind generation and large but inflexible nuclear generators.

National Grid’s press release on the Ofgem industry consultation on the potential for future reuse of some natural gas pipelines in Scotland for carbon dioxide transportation as North Sea supplies decline is available at http://www.nationalgrid.com/uk/Media+Centre/PressReleases/2009/080409.htm.

National Grid
National Grid is an international electricity and gas company and one of the largest investor-owned energy companies in the world. We play a vital role in delivering gas and electricity to millions of people across Great Britain and northeastern US in an efficient, reliable and safe manner. We believe the power of action can play a major role in safeguarding our global environment for future generations and tackling the effects of climate change, providing all our customers with the highest standards of service through network investment and through our talented, diverse workforce.

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