The UK Government has announced its ambition to invest up to £1 billion to support the establishment of Carbon Capture, Usage, and storage (CCUS) in at least two industrial clusters by the mid-2020s, and four by 2030 at the latest.
The Government has published the UK’s first official Carbon Capture, Usage, and storage (CCUS) framework which it says will play a pivotal role in helping developers establish successful CCUS projects in Britain and stimulating private sector investment.
CCUS is an emissions reduction technology to prevent large amounts of carbon dioxide (CO2) from being released into the atmosphere. The Government says the technology has the potential to deliver a stronger, greener UK by “levelling up industrial heartlands”, supporting clean growth and providing new economic opportunities for UK-based companies globally.
The Government has also published the Dispatchable Power Agreement (DPA) – what it describes as the UK’s first official CCUS business model and contract for industry. It claims this signal to industry will help to establish a thriving CCUS industry in the UK, such as those set to be based in North West England and North Wales, and Teesside and Humber.
Businesses need to know that the UK is the best place for carbon capture investment.
The contracts will define important UK business models, such as CO2 capture rates and testing requirements, the Government says, so industry and investors have a “solid policy framework” to base their business and investment decisions upon.
These projects can provide non-weather dependant, low carbon and flexible generation capacity in periods when lower cost renewables or nuclear generation are insufficient to satisfy demand, the Government says.
The first phase of the assessment has now been completed with HyNet cluster in North West England and North Wales, and the East Coast Cluster in the Teesside and Humber selected as the starting point for a “new carbon capture industry”, which the Government says could support up to 50,000 jobs in the UK in 2030.
Investment in CCUS creates the potential for between 8000 – 23,000 new energy jobs in connected activities related to the North Sea Transition Deal such as CO2 processing, transport and storage, the Government says.
Today we are giving one of our biggest signals to date, and showing that the UK’s CCUS industry is open for business.
Commentating on the announcements, Climate and Energy Minister Graham Stuart, said: “Businesses need to know that the UK is the best place for carbon capture investment. Today (15 November) we are giving one of our biggest signals to date, and showing that the UK’s CCUS industry is open for business.
“The North West cluster will play a pivotal role in securing the long-term competitiveness of the UK’s industrial heartlands, helping to ensure the carbon dioxide emitted by heavy industry is locked away and locally-produced green energy is generated instead.
“Today’s visibility of the Power CCUS business model contract will provide industry and private investors with a solid business foundation that can be developed across the North West, kicking off the development of world-leading CCUS projects.”
