Companies join forces on carbon capture and storage
Environmental Finance, 16 March 2006 - Thirteen companies have come to together to form an association to promote carbon capture and storage (CCS) technology with a call for a clearer steer from government.
"We need a clear regulatory and fiscal framework going forward to justify CCS to shareholders,"said Lord Ron Oxburgh, former chairman of Shell Transport and Trading and the president of the Carbon Capture & Storage Association (CCSA), at the organisation's launch in London on Monday
The CCSA aims to promote technology for permanently storing carbon dioxide (CO2) underground. Its members will work with the UK government to resolve regulatory issues that might delay the deployment of technology and to help develop the fiscal and legislative conditions to allow for early demonstration CCS projects.
said Gardiner Hill, CCSA chairman and BP's manager for environmental technology.
"Fossil fuels are going to continue to be the major source of power for the foreseeable future,"
"This technology has the additional advantage of providing a 'win-win' for the environment and energy security, when the circumstances are right for the CO2 to be used for enhanced oil and gas recovery,"he added.
CCS involves collecting CO2 from large industrial and energy-related sources, and storing it – usually in geological formations such as oil or gas fields – so that it cannot escape to the atmosphere and contribute to global warming.
The founding members of the association are: Air Products, Alstom, AMEC, BP, ConocoPhillips, E.ON UK, Mitsui Babcock, Progressive Energy, Schlumberger, Scottish & Southern Energy and Shell.
They were joined at the official launch by energy companies RWE and Chevron, according to Jeff Chapman, CCSA chief executive-designate.