Government Strategy and Approach
56. Over the last three years the DTI has published
three reports on Clean Coal Technology and Carbon Capture and
Storage. They were:
Review of the Feasibility of Carbon Dioxide Capture
and Storage in the UK (September 2003)[103];
Implementing a Demonstration of Enhanced Oil
Recovery Using CO2 in the North Sea (May 2004)[104];
Carbon Abatement Technologies (CAT) Strategy
for Fossil Fuel Use (June 2005).[105]
57. The CAT Strategy stated that fossil fuels would
be a major source of energy for decades to come and, if the UK
was to meet its climate change targets, it would have to be used
much more cleanly than at present. It further acknowledged that
technologies to make fossil fuels more environmentally acceptable
needed to be developed and brought to market. Government support
was also necessary to enable carbon capture and storage to become
commercially viable.[106]
58. Clean coal technologies are currently promoted
as part of the UK Government's Carbon Abatement Technologies Strategy,
published in June 2005. The Government has committed to spending
just over £50 million between 2002 and 2008 to help emerging
renewable and low carbon technologies.[107]
Brian Morris from the DTI, explained that since 1999 the DTI had
allocated about £13.5 million on about 45 R&D projects
related to clean coal technology. Under the new technology strategy
arrangements within the DTI, there was also a share of roughly
£20 million which could be allocated to some sustainable
fossil technologies.[108]
59. Brian Morris told us that "in June Malcolm
Wicks MP announced a carbon abatement technology strategy which
sees how we should be developing these technologies over the next
20 or so years…In fact he was also at that time able to announce
the £25 million that we have been given by the Treasury.
That sets our framework in developing clean fossil technologies
up to 2020 and just beyond. The aim is really working through
more efficient technologies - using the coal more efficiently,
therefore less emissions - biomass through to carbon capture storage,
where there is huge potential for large cuts in carbon emissions".[109]
60. However, ScottishPower told the House of Commons
Science and Technology Committee that the "£25 million
committed to funding demonstration projects was "small relative
to the funding already committed by the US Government".[110]
Our meetings in Chicago with U.S. coal experts supported that
conclusion. For example, on our visit to the US, we found that
in 2003 U.S. invested $1.8 million into research into the feasibility
of capturing CO2 from
power plants. A further $50 million had been invested in 2005,
with a third phase of funding promised for 2010.[111]
In its Report, the Commons Science and Technology Committee concluded
that that the piecemeal allocation of funding suggests a worrying
lack of strategic vision in UK Government decision making.[112]
61. Representatives of the Welsh coal industry expressed
similar concerns about the level of funding. Phil White, Marketing
Director of Tower Colliery told us that the amount of money allocated
to clean coal technology through DTI programmes was "minimal".[113]
He expressed further concern that while new technologies were
"advancing in most other countries throughout the world",
he had not seen "any DTI clean coal technology programme
which has moved on from where we set them out ten or 15 years
ago".[114] He
argued that the only advance had been "FGD being installed
on a number of our coal-fired power stations in the UK".[115]
He concluded that :
"We have not got much of a coal industry
to turn up our production but we could produce more coal in three,
five or ten years' time from where we are today. To do that we
need also to understand the type of technology which is going
to be suitable and the cleanest technology and the type of technology
which provide the jobs and the employment. I think it is fair
to say that, as an industry, we are very disappointed at the lack
of moving forward with further research in this clean coal technology".[116]
WELSH ASSEMBLY GOVERNMENT
62. As part of their Energy Route Map, the Welsh
Assembly Government has identified clean coal as a key priority.[117]
It told us that clean coal technologies could greatly assist in
fulfilling the Welsh Assembly Government's sustainable development
duties. Andrew Davies AM, Minister for Enterprise, Innovation
and Networks, added that pursuing those opportunities at the research,
demonstration and full commercial levels needed to be a high priority
and declared that he would welcome the development of demonstration
projects in Wales".[118]
63. Our inquiry has found widespread support for
the Welsh Assembly Government's objective to establish Wales as
an attractive location for coal/carbon capture and storage initiatives.
The Countryside Council for Wales told us that the development
of carbon capture and storage technology within Wales could, in
the long term, provide major economic and environmental benefits.
The Council argued that "the sooner the technology and feasibility
of this is explored and developed the better".[119]
64. Those sentiments were echoed by Andrew Davies
AM of the Welsh Assembly Government, who expressed his frustration
that "Wales has hundreds of years of coal reserves, we feel
very strongly that clean coal has a role to play in that. Maybe,
if as much investment had been made in developing clean coal technology
as has occurred in gas, we would be in a much better position
in Wales when dealing with the challenges faced by energy production".[120]
65. We are disappointed at the low levels of DTI
funding into the research and development of clean coal technologies.
We are concerned that the Government's lack of foresight is compromising
Wales' potential to be a world leader in clean coal technologies,
and is frustrating the potential to revive a rich and experienced
indigenous coal industry in Wales. Furthermore, we endorse the
Science and Technology Committee's view that the piecemeal allocation
of funding suggests a worrying lack of strategic vision in Government
decision making, in contrast to the clear vision and commitment
to coal given by the United States Government.
66. Brian Morris of the DTI, was aware of activity
on clean coal technology in Wales but was unable to cite any specific
examples because "with all these projects, Wales and England
and Scotland are all taken as one".[121]
Malcolm Wicks MP, told us "we have £35 million for a
carbon abatement programme which will be sponsoring a number of
quite small-scale projects to develop this kind of technology.
There are now one or two commercial plans to exploit clean coal
technology in this country.[122]
67. Phil White, Marketing Director of Tower Colliery
expressed his frustration at the Government's lukewarm approach
to clean coal technology. He said "while we have been sitting
back in the UK, with a lead 20 years ago, we have sat back for
20 years, every other country which has got an interest with its
own indigenous resource of coal is pushing forward on clean coal
technology".[123]
68. We share our witnesses' frustration at the Government's
laissez-faire approach to the development of clean coal technology
in Wales. Wales has considerable indigenous supplies of coal,
which, if accessed through clean coal technology could provide
a major indigenous clean and secure energy source. Urgent action
is required now to ensure the future of clean coal in Wales and
we look to the Government to provide that leadership.
69. The Department of Trade and Industry needs to
prove, through a more urgent and pro-active approach, that clean
coal technologies have a major role to play in the United Kingdom's
future energy mix.
53 Ev 342 Back
54
Ev 98 Back
55
Visit to the United States, Annex 1. Back
56
Ev 342 Back
57
Ev 183 Back
58
Q 871 Back
59
Q 871 Back
60
Ev 183 Back
61
Ev 344 Back
62
Ev 343 Back
63
Ev 184 Back
64
Ev 197 Back
65
Q 871 Back
66
Ev 197 Back
67
Q 484 Back
68
Ev 49 Back
69
Post note 253, Parliamentary Office of Science and Technology. Back
70
Post note 253, Parliamentary Office of Science and Technology. Back
71
First Report from Science and Technology Committee, Meeting
the UK Energy and Climate Needs: The Role of Carbon Capture and
Storage, HC 576-1 of Session 2005-06, p. 8 Back
72
Post note 253, Parliamentary Office of Science and Technology. Back
73
Visit to the United States, Annex 1. Back
74
Post note 253, Parliamentary Office of Science and Technology Back
75
Ev 98 Back
76
Ev 244 Back
77
Postnote 253, Parliamentary Office of Science and Technology. Back
78
See Section 8 of Report Back
79
Carbon Abatement Technologies (CAT) Strategy for Fossil Fuel Use
(June 2005) Back
80
Postnote 253, Parliamentary Office of Science and Technology. Back
81
Post note 253, Parliamentary Office of Science and Technology. Back
82
Carbon Abatement Technologies (CAT) Strategy for Fossil Fuel Use
(June 2005). Back
83
A detailed technical appraisal of CCS technology can be found
in the Intergovernmental Panel on Cilmate Change (IPCC) Special
Report on Carbon Dioxide Capture and Storage, Autumn 2005. www.ipcc.ch/activity/srccs/index.htm Back
84
Carbon Abatement Technologies (CAT) Strategy for Fossil Fuel Use
(June 2005). Back
85
Visit to the United States,
Annex 1. Back
86
Visit to the United States, Annex 1. See also www.isgs.uruc.edu Back
87
Visit to the United States, Annex 1. See also www.isgs.uruc.edu Back
88
Q 59 Back
89
Ev 98 Back
90
Q 514 Back
91
EV 128 Back
92
Ev 174 Back
93
Ev 196 Back
94
Q 507 Back
95
www.rwenpower.com/cr/docs/powerstations/Aberthaw.asp Back
96
Ev 98 Back
97
Visit to South Wales, Annex 3. Back
98
Ev 241 Back
99
Q 492 Back
100
Q 492 Back
101
Q 506 Back
102
Q 506 Back
103
DTI, Review of the Feasibility of Carbon Capture and Storage
in the UK, Cleaner Fossil Fuels Programme, September 2003. Back
104
DTI, Implementing a Demonstration of Enhanced Oil Recovery
Using CO2 in the North Sea, Cleaner Fossil Fuels Programme,
May 2004. Back
105
DTI, A Strategy for Developing Carbon Abatement Technologies
for Fossil Fuel Use, Carbon Abatement Technologies Programme,
June 2005. Back
106
HoC Science and Technology Committee, First Report of Session
2005-06. Meeting the UK Energy and Climate Needs: The Role
of Carbon Capture and Storage, HC 576-1, p. 13. Back
107
Ev 5 Back
108
Q 55 Back
109
Q 58 Back
110
HoC Science and Technology Committee, First Report of Session
2005-06. Meeting the UK Energy and Climate Needs: The Role
of Carbon Capture and Storage, HC 576-1, p29. Back
111
Visit to the United States, Annex 1. Back
112
HoC Science and Technology Committee, First Report of Session
2005-06. Meeting the UK Energy and Climate Needs: The Role
of Carbon Capture and Storage, HC 576-1, p29. Back
113
Q 511 Back
114
Q 510 Back
115
Q 510 Back
116
Q 510 Back
117
Welsh Assembly Government Energy Route Map, www.wales.gov.uk Back
118
Ev 197 Back
119
Ev 285 Back
120
Q 726 Back
121
Q 56 Back
122
Q 882 Back
123
Q 507 Back
