The steel industry will need to find a wide range of option to reduce emissions in the coming years if it is to avoid punitive costs. However, it does not always have to do so alone. Sometimes collaborating with existing projects may be a viable alternative to implementing an entirelyseparate scheme from scratch. One potential area for collaboration, if it is proved succesful, is in carbon capture and storage.
SBB 15 July Tata Steel Scunthorpe is in discussions to connect to a carbon capture and storage project in northern England, it confirms to Steel Business Briefing. Pending funding, this could significantly reduce the plant’s carbon dioxide emissions and the resulting costs.
The UK’s National Grid has begun consultations on a £5bn pipeline project to transport CO2 from the Don Valley power plant project to a storage site in the North Sea. The pipeline is planned for completion in 2015.
It is now also talking to other power plants and industrial sites in the Yorkshire & Humber region, including Tata Steel Scunthorpe, which together account for some 60m t/y of CO2 emissions.
The goal would be to develop a pipeline network in order that other facilities could feed their emissions into the main pipeline, the National Grid tells SBB. However, each facility would have to first receive funding, most likely from the European NER300 funding programme (New Entrants’ Reserve of 300m credits), it adds.
Tata Steel is looking at how carbon capture and storage and how this could benefit plants such as Scunthorpe, it tells SBB. It could now apply for the second round of NER300 funding, although no decisions have yet been taken, it points out. Applications may open next year once first round applications are decided, Jan Lucas, managing director of PNO Consultants Germany, tells SBB.
However, the exact amount of funding available is uncertain as the fund consists of the 300m carbon credits rather than a cash amount, warns Lucas. These have to be sold before the exact cash value of the fund is known.