Phase 1 CCUS Cluster Rollout - Potential Wider-Economy Impacts, Responses and Trade-offs

Turner, Karen and Katris, Antonios and Alabi, Oluwafisayo and Calvillo, Christian and Stewart, Jamie and Corbett, Hannah and Race, Julia (2022) Phase 1 CCUS Cluster Rollout - Potential Wider-Economy Impacts, Responses and Trade-offs. University of Strathclyde, Glasgow. (https://doi.org/10.17868/79477)

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Abstract

In October 2021 the UK Government announced decisions on Phase 1 of the UK Cluster Sequencing for Carbon Capture, Usage and Storage (CCUS) Deployment, with supported activity initially focussed in the Hynet and East Coast industrial clusters in the north of England. This policy briefing revisits the findings of CEP’s 2021 research on 'Moving Early on Carbon Capture and Storage', which used economy-wide scenario simulation analyses to understand the wider economy impacts of differing types of policy choices and economic conditions both for the delivery of industrial carbon capture and for introducing a new transport and storage sector to sequester captured emissions.1 Here we focus on considering how the Phase 1 cluster sequencing decisions may impact the outcomes and insights of this earlier research. Our initial results suggest that the relatively substantial levels of investment spending required within the next 3 years to enable deployment of the Hynet and East Coast CCUS clusters by 2025 may ultimately enable 'green growth', but with disruptive near-term wider economy impacts in challenging labour supply conditions.

ORCID iDs

Turner, Karen, Katris, Antonios ORCID logoORCID: https://orcid.org/0000-0001-9352-2307, Alabi, Oluwafisayo ORCID logoORCID: https://orcid.org/0000-0002-3560-5929, Calvillo, Christian ORCID logoORCID: https://orcid.org/0000-0002-5495-6601, Stewart, Jamie, Corbett, Hannah and Race, Julia ORCID logoORCID: https://orcid.org/0000-0002-1567-3617;
CORE (COnnecting REpositories)