• Ofgem is to publish a consultation document regarding National Grid’s proposed change of use of some Scottish feeders from natural gas to carbon dioxide transportation, from 2013.
• The consultation process is expected to last six weeks from the date of publishing the document to the Ofgem website. There are expected to be subsequent stages to this consultation – this initial stage is to gauge the industry reaction and form a platform for further debate.
• National Grid is pursuing this line of enquiry in response to various requests from external parties pursuing an interest in Carbon Capture and Storage (CCS). It is exploring CCS elsewhere in the UK, and the possibility of re-using other assets may be explored in future but would be dependent upon security of supply.
• The Scottish feeders could potentially be available for carbon dioxide transportation due to the changing shape of gas supplies to the UK, and specifically the forecast reduction in total supplies to the St Fergus terminal.
• National Grid’s view is that gas supplies to St Fergus are unlikely to be constrained and that the remaining infrastructure should be capable of transporting future gas volumes.
• National Grid believes that CCS could be a key tool to meeting Climate Change targets whilst ensuring security of supply and a diverse energy mix going forwards. It is keen to progress this new technology and recognises that the next step towards commercial deployment is end-to-end process demonstration at scale.
• The re-use of assets would ensure a far smaller carbon footprint is left by a demonstrative project, than the laying of a new pipeline. It could also reduce the cost and time involved in providing a carbon dioxide transportation solution.
• Scotland has an advantageous proximity of emitters to storage sites in the North Sea, which make it an ideal location to demonstrate CCS.
• Transporting carbon dioxide via pipelines is an established technology, with approximately 5,600km of long-distance carbon dioxide pipelines around the world. The majority are in the US and Canada and are used for CO2-Enhanced Oil Recovery (EOR)*.
• The oldest pipeline is the 1972 Canyon Reef pipeline, which carries five million tonnes of carbon dioxide annually from gas processing plants in Texas. The largest pipeline is the Cortez pipeline, which can transport over 30 million tonnes of carbon dioxide annually over a distance of more than 800km.
• The safety record of carbon dioxide pipelines up to 2006 showed carbon dioxide has a lower rate of leakage per kilometre compared to gas pipelines, with no recorded injuries.
• External monitoring for leaks and visual inspections can mitigate risks. Use of Pipeline Inspection Gauges, known as “PIGS”, or distributed fibre optic sensors, can detect potential leakage from damage, corrosion or the failure of valves or welds.
• National Grid would not transport carbon dioxide or without a fully integrated monitoring and operating plan. This plan and its application by National Grid would have to conform to HSE and other industry guidelines, and provide sufficient assurance and transparency. These measures would seek to ensure any carbon dioxide pipeline is as safe, secure and reliable as the existing natural gas one.
• National Grid considers the economics of a carbon dioxide abatement cluster to be far more realistic than a series of point-to-point arrangements. This proposal, however, is considered a key step in working towards full commercial deployment of CCS and the emergence of a new network.

* CO2-EOR is the process of using carbon dioxide to increase production from oilfields, and is currently adopted in the US using naturally-occurring carbon dioxide. The gas is injected into the reservoir at high pressure and can result in an increase in yield of up to 20 per cent of the oil originally in place.