Government funding to reduce carbon emissions from UK industry
Phase 1 focuses on initial scoping study for an engineering supplier to work on BEIS’ behalf with potential host sites, carbon dioxide users and technology suppliers to produce site-specific cost estimates for deploying CCU at UK industrial sites.
Across government, Innovate UK, Research Councils, and BEIS expect to invest around £162 million in industrial research and innovation, including Carbon Capture, Use and Storage (CCUS).
As part of this commitment, within the BEIS Energy Innovation Programme, BEIS expects to invest around £100 million in low carbon industrial innovation to reduce the risks and costs of accelerating the roll out of low carbon technologies which will enable UK industry to remain competitive.
Call for CCUS Innovation
In June BEIS will open a £15 million Call for CCUS Innovation to offer grant funding for innovation projects that lead to significant reduction in the cost of capturing and sequestering carbon dioxide. Funding for up to 28 months will be available to 31 March 2021, and BEIS will consider grants of up to £5 million for a single project.
The Call will be guided by the findings of the report of the Mission Innovation Carbon Capture, Utilization, and Storage Experts' Workshop held in Houston last year.
Hydrogen Supply Competition
Low carbon hydrogen could play an important role for decarbonising industry, power, heat and transport. However, for a market to grow, potential users (in any application) need to be confident in supply of sufficient amounts of low carbon hydrogen at competitive price.
The £20 million Hydrogen Supply programme aims to accelerate the development of a low carbon bulk hydrogen supply solutions for industry, power, buildings and transport at a technology readiness level (TRL) between 4 to 7, which could result in lower capital or operating costs when compared to Steam Methane Reformer with Carbon Capture & Storage (SMR+CCS), or improve the capture rates at a comparable cost.
To support innovation in energy efficient technologies, the government will be investing up to £9.2 million for an Industrial Energy Efficiency Accelerator, to be delivered over the next 4 years.
This Accelerator will seek industry-specific solutions which are close to commercialisation by leveraging private sector investment and strengthening UK supply chains to reduce energy costs for UK industry. After a competitive process, the Carbon Trust has been awarded the contract to help BEIS deliver this programme. The Carbon Trust has been holding events to engage with both industry and their suppliers, and the competition is now open to applications.
We have recently committed £560,000 to 2 successful projects in the first round of the Industrial Energy Efficiency Accelerator (IEEA). The IEEA aims to broaden the range of technologies available for industrial energy efficiency, bringing down the cost for decarbonisation. More information on the companies that have successfully bid for these projects will appear shortly.
Industrial fuel switching to low carbon alternatives
The Clean Grwoth Strategy highlights the need for industry to begin to switch from fossil fuel use to low carbon fuels such as biomass, hydrogen and clean electricity. Beyond 2030, the switch to low carbon fuels for industry will need to substantially increase in scale. Government has launched the first phase of an innovation competition which has been allocated up to £20 million which focuses on market engagement and potential scope for fuel switching in industry. The competition aims to stimulate early investment in fuel switching processes and technologies, so that a range of technologies are available by 2030 and beyond.
Element Energy successfully bid for the first phase which aims to understand the potential for industry to operate on low carbon fuels and the innovation required to enable this to happen, a report detailing Element Energy's findings will be published in the autumn.
Carbon Capture and Utilisation (CCU) Demonstration
As part of the government's Clean Growth Strategy BEIS will be allocating up to £20 million to design and construct carbon capture and utilisation (CCU) demonstration projects. This programme will encourage industrial sites to capture carbon dioxide which could then be used in industrial applications. This would help to enable a pathway for learning and development of capture technologies at an intermediate scale, reducing the costs and risks. The programme will be run in 3 phases:
Phase 1 focuses on initial scoping study for an engineering supplier to work on BEIS' behalf with potential host sites, carbon dioxide users and technology suppliers to produce site-specific cost estimates for deploying CCU at UK industrial sites.
2 reports on carbon dioxide utilisation that were prepared by Ecofys and the Royal Society are also available.