Scunthorpe Telegraph reported that millions of tonnes of gas discharged from the TATA Steel works in Scunthorpe could soon be dumped in the North Sea via a pipeline.
Talks have already been held between the steelworks and National Grid over building the proposed GBP 5 billion pipeline from Stainforth, near Thorne, to a yet to be identified coastal location.
The pipeline carrying carbon dioxide could run for up to 90 kilometers and the Scunthorpe works, which emits more than 5 million tonnes of the gas a year, could feed into an extended network.
Although CO2 exists naturally from the Earth's environment, commercial CO2 is usually derived from the byproducts of industrial processes and is classed as a greenhouse gas which damages the environment. The proposed pipeline could throw a lifeline to TATA Steel over the Government's plans to introduce a new floor tax for carbon emissions from 2013.
Dr Karl Ulrich Kohler CEO of TATA insists the tax will undermine the competitiveness of the business against its European rivals.
Next month National Grid experts will complete their studies on the proposed route corridor and then decide on their preferred options.
An environmental impact assessment will be completed by the summer of next year, ready for planning applications to be submitted sometime in 2013-14. The scale and nature of the proposals means that the applications for the project will be determined by the government.
A National Grid spokeswoman said that "The company is exploring the options to support a carbon capture, transportation and storage project in the Yorkshire and Humber region. This would involve capturing carbon dioxide emissions at source, transporting them via a pipeline to a suitable storage site in the North Sea and storing them permanently with natural porous rock formations beneath the sea bed."
He added that "The Yorkshire and Humber Region is an ideal location for a CCS scheme. It is home to a significant number of power stations and industrial facilities which collectively produce around 60 million tonnes of CO2 annually, equivalent to about half of the total UK domestic emissions. By connecting these plants to a CCS pipeline, tens of millions of tonnes of CO2 could potentially be captured each year."
Ms Rachel Cox spokeswoman of TATA Steel said that "We are looking closely at carbon capture technology and the benefits this could have on manufacturing sites like the Scunthorpe steelworks. We have discussed the plans to develop a CO2 pipeline for businesses in the Humber region. TATA Steel is continually exploring new ways to reduce and where possible prevent emissions as well as introducing sustainable practices across the business."
Other major emitters of carbon dioxide which could feed into the proposed pipeline include Lindsey Oil Refinery and Keadby and Killingholme power stations. National Grid later confirmed it had been in discussion with a number of companies, including TATA Steel in Scunthorpe, regarding the possibility of connecting to a carbon dioxide pipeline in the future.
