New report recommends urgent action to develop the UK’s CCUS supply chain

assets/files/images/03_03_22/1040352_shutterstock_2060416034_90360.jpg

A new report has been published by the Nuclear AMRC part of the High Value Manufacturing Catapult, on behalf of the Supply Chain Woking Group of the CCUS Council.

The report “CCUS supply chain intervention strategy,” is the first key output from the CCUS Council Supply Chain Working Group, Chaired by Dame Judith Hackitt.

The report concludes that there is a significant opportunity to increase UK manufactured content in the Carbon Capture, Utilisation and Storage sector, contributing to economic growth and creating export opportunities – whilst at the same time helping to achieve the UK’s transition to net zero. It draws on existing market research and adds new analysis on the UK manufacturing supply chain’s capability and readiness to support this rapidly growing market.

With targeted development, UK manufacturers can supply all parts of a carbon capture plant. However, the UK needs to act quickly to establish its capability, competence and capacity in domestic projects if we are to drive down costs and compete in the much larger global market.

To ensure the CCUS supply chain is ready to support CCUS deployment to meet Government targets for 2035 and beyond, the report recommends the establishment of a Fit For CCUS (F4CCUS) programme, which would “strategically develop existing manufacturing businesses to match to CCUS sector requirements”.

Dame Judith Hackitt, Chair of the CCUS Council Supply Chain Working Group and Chair of MakeUK, said: “This report clearly shows the scale of opportunity for UK manufacturing in the supply chain for CCUS but if we are to make the most of it we must act quickly to raise awareness and build capability and capacity. We need clear signals from Government to create confidence and this can be done by backing the proposal to establish a Fit 4 CCUS programme. We need to turn this great potential into a reality creating jobs and driving towards our Net Zero goals”

James Smith CBE, Co-chair of the CCUS Council, said: “We need an ambitious vision for a low carbon industrial revolution, creating tens of thousands of skilled, satisfying and well-paid jobs throughout the UK. Time is of the essence to grasp this unique chance to be world leaders in crucial low carbon technologies."

Ruth Herbert, Chief Executive of the CCSA, said: “We are entering a critical period for CCUS development and deployment and it is vital that the UK supply chain stands ready to deliver. The recommendations in today’s report build on the CCSA’s report on the same subject, setting out further details on how the UK can maximise on the significant economic opportunities that a strong CCUS industry represents.

The UK has unique advantages, skills and expertise – in both CCUS and hydrogen, with benefits estimated at 120,000 annual jobs and £8 billion a year GVA over the period 2024–31. With the first CCUS clusters due to come online this decade, there is not a moment to lose if we are to ensure the necessary roll-out of CCUS in line with net zero”.

Recommendations 

To realise the benefits of this opportunity, we recommend the following five key actions: 

1. Building on the example developed by this study, develop an inventory and schedule of key components for a pipeline of carbon capture projects deploying different technologies at varying scales. In addition to new capture technologies, blue hydrogen, pipelines, CO2 usage and selected storage technologies should be scheduled. This is a prerequisite for further support work. 

2. Following selection of specific sub-sectors requiring development or improvement interventions, launch a new supplier development programme based on the proven Fit For Nuclear model. 

3. Increase the competitiveness of UK industry with improved and new production processes. Reduced cycle time, component reliability and safety, enhanced quality and life cycle assessment of supply chains can be important areas of competitiveness and are subject to well-understood analysis and improvement exercises. The HVM Catapult has a wealth of manufacturing process improvement ability to improve competitiveness. 

4. Prepare and execute a CCUS-wide supply chain analysis programme. The desktop analysis in this report was funded by HVM Catapult, but a full programme requires industry and government support with substantial funding. A short-term pilot exercise would be of considerable value. 

5. Decide on the scope of the exercise to support CCUS enabled plant – should this look across all energy sectors, or stay focused on CCUS? The government should advise on whether a new national hub or facility focusing on supply chain intervention is appropriate

Add a Comment

No messages on this article yet

Editorial: +44 (0)1892 536363
Publisher: +44 (0)208 440 0372
Subscribe FREE to the weekly E-newsletter