Part two

Following on from our previous article, PWCL’s Deputy Project Manager Ryan Barnett delves even deeper into the chalenges, barriers and possible solutions to carbon capture, usage and storage adoption from an EfW perspective...

The UK ETS Expansion: A New Frontier for Energy-from-Waste

Expanding the Scope 

The UK Emissions Trading Scheme (UK ETS) is a cornerstone of the UK’s climate policy, designed to reduce greenhouse gas emissions through a cap-and-trade system. The recent proposal to expand the UK ETS to include the waste sector, specifically Energy-from-Waste and waste incineration, has introduced uncertainties and confusion among stakeholders.

Alongside this, there are also concerns that this inclusion could lead to unintended consequences, such as increased diversion of waste to landfills or waste export, undermining the environmental benefits of the scheme, and complicating waste management strategies.

Defining the Boundaries 

The expansion of the UK ETS to the waste sector involves defining which activities and facilities will be included, setting thresholds for inclusion, and determining exemptions. 

The proposed monitoring, reporting, and verification (MRV) period from 2026 to 2028 requires waste facilities to monitor and report their emissions without the obligation to purchase allowances. 

This transitional phase has raised questions about the accuracy and feasibility of MRV processes; the lack of clear guidance on how waste facilities can achieve emissions reductions and the potential impact on heat networks adds to the confusion.

Economic and Environmental Impacts 

The inclusion of waste incineration in the UK ETS could lead to increased operational costs for waste management companies, potentially affecting waste disposal fees and leading to higher costs for households and businesses. 

The lack of clarity on the final implementation details and potential adjustments to the ETS cap for waste incineration facilities has created uncertainty for investors, potentially hindering investment in new waste management technologies and infrastructure.

Sequestration Methodologies: Challenges and Opportunities

Problems with Sequestration 

Sequestration methodologies, particularly geological sequestration, face several challenges aside from the obvious inaccessibility to industry and being a tool to prop-up enhanced oil recovery for the fossil fuel industry. 

Ensuring the long-term safety and integrity of storage sites is crucial to prevent CO₂ leaks. This requires detailed geological assessments and continuous monitoring, which can be technically demanding and costly. 

Additionally, there are uncertainties in quantifying storage potential and the risks associated with transporting supercritical CO₂.

Importance of Sequestration in Concrete 

Concrete offers a unique opportunity for carbon sequestration. 

The carbonation process, where CO₂ reacts with calcium compounds in concrete to form calcium carbonate, allows concrete to act as a natural carbon sink. This not only helps mitigate the carbon emissions associated with cement production but also enhances the durability and structural performance of concrete. 

Laboratory experiments have shown that this process can achieve a CO₂ sequestration efficiency of up to 45%, meaning nearly half of the CO₂ injected during concrete manufacturing is captured and stored. 

However, it’s important to note that over half of the carbon is still released into the atmosphere. 

Utilising this process can significantly reduce the overall carbon footprint of construction projects, but further innovations are needed to capture more of the remaining emissions, especially if carbon sequestration into concrete will be an acceptable methodology eligible for UK ETS permits.

Incentivising North Sea Gas Wells 

The North Sea’s vast storage capacity for CO₂ presents a significant opportunity for large-scale sequestration. However, to fully realize this potential, the government needs to provide incentives for the development and operation of these storage sites. This could include financial support, tax incentives, and streamlined regulatory processes to attract investment and ensure the long-term viability of these projects. It needs to be accessible to all sizes of EfW facilities if the cap-and-trade system is to be implemented, especially as smaller, localised facilities are being preferred over the large-scale regional plants of the past…

Revenue streams, prices & logistics

Finding Revenue Streams 

One of the significant challenges in the CCUS industry is finding viable revenue streams for captured CO₂. 

For the EfW sector, if companies cannot access the cluster network, they face difficulties in monetising the captured carbon. 

The market for CO₂ is limited, with only a few commercial uses such as in carbonated beverages, greenhouses, or abattoirs. These markets are small compared to the volume of CO₂ that needs to be captured to make a significant impact on climate change, and are mostly inaccessible to the Energy-from-Waste industry.

Liquefying Carbon - Price and Logistics 

Even if a suitable off-take agreement was found, liquefying CO₂ to create a sellable product presents its own set of challenges. 

The process involves compressing and cooling the gas, which requires significant energy and infrastructure investment. Transporting liquefied CO₂ also poses logistical difficulties, including maintaining the necessary low temperatures and high pressures during transit. Finding liquid gas delivery vehicles that can haul the liquid carbon is another challenge, as these specialised vehicles are not widely available. 

Additionally, the volume of carbon captured would necessitate dozens of collections per day, leading to increased emissions from the delivery process. The costs associated with these processes can be prohibitive, making it difficult to establish a profitable business model without substantial government support or subsidies.

Conclusion

The deployment of carbon capture technologies in the UK and the expansion of the UK Emissions Trading Scheme (UK ETS) into the waste sector are critical components of the UK’s climate strategy. 

However, both initiatives face significant complexities and uncertainties that need to be addressed through coordinated efforts, clear regulatory frameworks, and stakeholder engagement. 

For the EfW industry, overcoming these challenges is not just a matter of economic viability but also a moral obligation. As stewards of the environment, we have a duty to implement technologies that reduce our carbon footprint, contribute to a cleaner planet, and quite frankly, stop the skies from catching fire and consigning millions of floral and faunal species to the history books. 

Unfortunately, this mission is often hindered by insufficient government support and regulatory barriers, which no amount of goodwill could ever hope to overcome.

To truly pave the way for a sustainable and low-carbon future, it is imperative that the government provides the necessary incentives and clear guidelines to facilitate the adoption of CCUS technologies. 

Addressing the economic and logistical challenges of monetising captured carbon will be crucial for the long-term success of CCUS initiatives. However, the market for captured CO₂ is currently limited, with few commercial uses that are mostly inaccessible to the EfW industry. 

This market saturation poses a significant challenge, as the volume of CO₂ that needs to be captured to make a significant impact on climate change far exceeds the current demand.

Moreover, the cost of fitting or retrofitting CCUS technologies to individual projects can be substantial. 

The decision to implement CCUS technologies must always consider whether it is a worthwhile endeavour, as not only will high initial capital expenditure need to be raised, but also the ongoing operational and maintenance expenses can further compound the hurdles the financial model would need to overcome, even if there were a more accessible market or financial incentives for the captured carbon. 

CCUS is crucial for achieving Net-Zero targets, especially in hard-to-abate sectors, but the high costs and market uncertainties can make it a challenging investment. Each project must be evaluated on a case-by-case basis, considering factors such as the specific CO₂ source, the scale of emissions, offtake agreements for a carbon sink, and the availability of infrastructure for CO₂ transport and storage. 

Without improved clarity on these costs and a supportive regulatory environment, the development of CCUS projects will likely falter, and capital may not flow freely.

By overcoming these challenges and providing the necessary incentives, we can fulfil our moral responsibility to protect the environment for future generations. It is not just a matter of policy or economics; it is a matter of survival. We must act now to ensure that our efforts to clean the planet are not in vain. Renewable energy technologies are the primary method to achieving Net-Zero targets and a healthier environment. 

For PWCL projects, this means that we are struggling to find a suitable offtake for the captured carbon, and the price of the technology is often currently too much to justify without it adding to the project's financial model. 

The logistics and spatial requirements of CCUS can also pose issues as we are often limited in area, and the scale of carbon captured would make it costly to transport at the present time. 

 EfW plants play a vital role in ensuring that waste does not end up in landfills or get shipped to poorer regions, which would negatively impact their carbon footprint and contribute to greenhouse gas emissions. 

EfW plants help manage waste sustainably by converting it into energy, thereby reducing the volume of waste and the associated emissions, whilst also reducing the current grid dependency on fossil fuel generation. The time for half-measures and empty promises is over. 

We must demand bold action and unwavering commitment from our leaders. The future of our planet depends on it.