A Low Carbon

Future for the Tees

Valley

Mark Lewis

October 2015

Why worry?

Can we do it?

What are others doing?

What is UK doing?

What is Teesside doing?

What more could we do?

MUIR GLACIER NOW: By 2005, Muir Glacier had retreated more than 31 miles. Although this

picture was taken from the same location as the early black-and-white photograph, the glacier is

completely out of view.

UK contribution

2Degrees means global level of emissions in 2050 of

around 20-24 gigatonnes CO2e

A 50% reduction in emissions as against recent levels.

Projected global population in 2050 of around 9 billion,

Per capita emissions averaging around 2 tonnes CO2e.

Emissions of 2 tCO2e/capita in the UK = emissions

reduction target of 80% in 2050 relative to 1990.

Lord Oxburgh of Liverpool, former Shell chairman:"The government has no room for complacency if it wants to deliver effective

decarbonisation at low cost. The Prime Minister has promised leadership in talks on

a new UN climate agreement, but leadership comes from what you do, not what

you say.

"Ministers need to come forward very soon with coherent policies on energy

efficiency, low-carbon transport, renewable heat and renewable electricity,

otherwise the UK will fall behind other nations and lose its moral authority on the

international stage."

Why worry?

Can we do it?

What are others doing

What is UK doing?

What is Teesside doing?

What more could we do?

“The UK can implement an

affordable 35-year transition to a low

carbon energy system (1-2% of GDP)

by refining, commercialising and

integrating known but currently

underdeveloped solutions.”

ETI

Cement Manufacture

Around 7-8MtCO2 is being

captured annually from

CCS in industry. Where

CCS is not cost-effective,

industrial emitters

increase the mix of

biomass in their energy

supply. Other industrial

users purchase hydrogen

Within heavy goods vehicles

(HGVs), liquid fuel remains

the dominant solution in the

medium term. In later

decades

more advanced gas-fuelled

hybrid vehicles become

increasingly competitive

By 2050 heat pumps and

district heating provide

the bulk of heat supply,

supplemented by direct

electric heating, with gas

relegated to a backup role

By 2050 the

capacity from

nuclear,

CCS and

renewables

is reasonably

balanced

Decarbonisation has to be balanced

against two other priorities:

minimising disruption to lifestyles

and facilitating economic growth.

These priorities create a focus on

solutions that are likely to be cheaper

from an overall systems perspective

Failure to develop CCS in time

contributes to the decline of UK

industry. Offshoring industrial

activity

increases exposure to the higher

emissions embedded in imports

UK-based

refineries are

likely to shut

as petrol/diesel

use drops away,

but imports of

refined fuels

will still be

required e.g.

aviation fuels

In some locations the

local gas distribution

grid is decommissioned

entirely. Electric heating

becomes increasingly

important as a source of

back-up supply by 2050

Renewables

grow to

account for

the majority

of electricity

generation

In this scenario, affordable

carbon abatement is a priority,

but it is viewed through a

broader lens of sustainability

and social values

Why worry?

Can we do it?

What are others doing ?

What is UK doing?

What is Teesside doing?

What more could we do?

“We believe we as a country

can be a trailblazer for a new

age of renewable energy

sources. ...We can be the

first major industrialised

country that achieves the

transition to renewable

energy with all the

opportunities – for exports,

development, technology,

jobs – it carries with it.”

“We believe we as a country

can be a trailblazer for a new

age of renewable energy

sources. ...We can be the

first major industrialised

country that achieves the

transition to renewable

energy with all the

opportunities – for exports,

development, technology,

jobs – it carries with it.”

Angela Merkel

Die Energiewende

Transforming an energy system

Germany's government laid out its energy reform plans in 2010, looking

40 years ahead. The plan requires a radical overhaul of Germany's

electricity generation, heating systems, and energy efficiency standards.

The economics and environment ministries declared the Energiewende

would make Germany"one of the most energy-efficient and greenest

economies in the world while enjoying competitive energy prices and a

high level of prosperity."

Renewables in Germany

Emissions Cap-and-trade

•Capping emissions: The largest carbon polluters are

allocated, or buy, a pre-set number of “allowances” allowing

them to emit GHGs.

•Driving decarbonisation: The total cap diminishes

progressively over time.

•Trading allowances: Companies that emit less than the

volume of allowances they hold may sell the allowances they

saved to companies who have emitted too much.

•Enhancing flexibility: Companies can bring “credits”

generated in international mitigation projects to “offset” some

of their emissions under the cap.

Why worry?

Can we do it?

What are others doing ?

What is UK doing?

What is Teesside doing?

What more could we do?

UK Policy

• to develop affordable and secure sources of energy

supply which also reduce greenhouse gas (GHG)

emissions

• to integrate future demand and energy supply into

a flexible, secure and resilient energy system

• to reduce GHG emissions at point of use.

Why worry?

Can we do it?

What are others doing ?

What is UK doing?

What is Teesside doing?

What more could we do?

Why is Teesside a Low Carbon

target?

Low Carbon

Transition

1

Resource

& Energy

Symbiosis2

Renewables

•Biomass

•Wind

•PV

•Nuclear

3

CCS& U

4

Unconven-

tional

Feedstocks

5

H2

Economy

6 Finance

&

Marketing

Video

Hydrogen for

Transport

Energy Storage

Gas

Worlds Largest Electrolyser

Low Carbon Energy in the Tees Valley

Anaerobic

Digestion

>3,000 billion tonnes (possibly as much as 23,000 billion tonnes of coal plus

more than 13,000 tcf of shale gas)

UK Coal Resource

UCG – underground coal

gasification

Biomass / Coal

Gasification

Syngas

Boiler

Power Gen

Steam&Power

Gas turbine

Combined Cycle

IC Engine

Fuel Cells

Refinery

Hydrotreating

Transportation

fuels

Fuel cells

Chemicals

Fertilizers

Hydrogen

Fischer-

Tropsch

Methanol

Ethanol

Formaldehyde Methyl Acetate Acetic Acid

DME

Ethylene

Propylene

Acetic Anhydride VAM

PVA

Ketene

Diketene & Derivatives

Acetiv Esters

Gasoline

Polyolefins

Oxy Chemicals

Wax

Diesel/

Kerosene

Gasoline Naphtha

Syngas Applications & Synergy For

Chemical/Process Industry

2nd generationbiofuel

Heat and Power application

(Bio)refineries

MTBE

Gas-to-Liquid Fuel

Gas-to-Chemicals

Energy from Waste - gasification

Heat Networks

Industrial Symbiosis – Kalundborg Denmark

Coal

INNOVATION CENTRES - CPI, NIBF, ADDC, TTC

(Supporting Advanced Technologies in the Tees Valley)

Existing Investment (CPI)

WATER MANAGEMENT

(Supporting Advanced Technologies in the Tees Valley)

Existing Investment (NWL)

GASIFICATION PLANTS

Planned/Potential Plants

Syngas

BIOREFINERY

Bio based Processing

Potential Investment

Renewable Fuel

ELECTRICITY

GENERATION

PLANT

Planned ProjectsElectricity GRID/ Industrial

Networks

Existing or Potential

Infrastructure

IGCC

GASIFICATION

Potential Investment

WASTE REFINERY

DEPOLYMERISATION PLANT

Plastics

Metals, Glass

Recycling & Reuse

CRACKER

Existing Investment

CO2

CCS

Potential Investment

Underground Storage

EOR

Biodiesel PLANT

Existing Investment

Bio Ethanol

Existing Investment

COMBUSTION PLANT

Existing Investment

Integrated Petrochemicals/Metals/Bio resources/Energy Cluster:

Ethane

Vegetable Oils e.g. Rape Seed, UCO, Tallow

High Starch Wheat/Maize

Chemicals/Materials

(inc from bio based recovery)

Woody Biomass - Various Local, UK

Waste Feedstock - Various Local, Imported

UCG

Potential Investment

Other FermentationProducts

Co/By productse.g. Animal feed

Iron/Steel

Existing Investment

AD Energy

Existing Investment

Gas

Process Plants

Existing/Future

Investment

Renewables –

wind, Solar

Heat

Feedstock ProductsKey

Gas grid

Residuals

Heat

Why worry?

Can we do it?

What are others doing ?

What is UK doing?

What is Teesside doing?

What more could we do?

What else?

Waste Hierachy

Behaviours

Thank You