The UK oil and gas industry has called on the government to help unlock funding so five carbon capture, usage and storage (CCUS) projects can all move into front-end engineering and design by the end of next year.

Lobby group Oil & Gas UK (OGUK) said on Tuesday “urgent action” is needed to support the schemes, which it argues will be “fundamental” to the UK’s efforts to achieve net zero carbon emissions by 2050.

One of the sources the cash that should be made available from is the new £315 million ($410 million) Industrial Energy Transformation Fund (IETF), designed to help energy-intensive industries cut carbon emissions. Another is the Industrial Strategy Challenge Fund.

“For too long the UK has been contemplating CCUS. Development of this technology at scale is a fundamental requirement if the UK is to meet its net-zero obligations,” OGUK said as it launched its second annual Energy Transition Outlook Report in Aberdeen.

Five so-called “cluster CCUS projects”, aimed at decarbonising clusters of industrial users in specific areas, are being planned in the UK. These are on Humberside in north-east England, the Acorn project in north-east Scotland, the HyNet project in the north-west of England, a project in South Wales and the Net Zero Teesside project, which is backed by BP, Eni, Equinor, Occidental Petroleum, Shell and Total.

“Five industrial clusters have emerged which will rely on material CCUS projects. Urgent action is now needed to support their trail-blazing efforts to decarbonize industrial activity in the UK,” OGUK said.

“Unlocking funding for FEED is key to getting these CCUS projects moving The government must move quickly to support these cluster projects via the ISCF and IETF such that FEED on all five projects has commenced by the fourth quarter 2020.”

The report authors also warned that the oil and gas sector will need to earn its position in the changing energy world, with rapid action required to ensure the sector cuts its own emissions and transforms over the next 30 years while continuing to meet as much of the UK’s oil and gas needs from domestic resources.

Low Carbon

UK industry calls for cash to unlock carbon capture schemes