August 2023 – February 2024
This project will strengthen understanding of the cost and price impacts of different carbon capture approaches and their impacts for industry decarbonisation and competitiveness and the wider economy. Across the UK’s industrial clusters, there are different plans on how to implement CCUS, particularly in relation to the carbon capture component and where/when it will take place. For example, pre-combustion, replacing current fuels such as natural gas with zero carbon alternatives, or after the production process, using current fuels. This will have implications on the equipment (capital) requirements and inputs from different sectors and different carbon capture approaches could lead to varying cost and price impacts and have implications for industries’ competitiveness in domestic and international markets. Focusing on the Scottish Chemical industry the project will identify the trade-offs emerging from the choice between approaches and the key considerations for policymakers in further designing the CCUS business model and policy support mechanisms.