- The REA has welcomed today’s published vision for a competitive market in Carbon Capture, Usage and Storage (CCUS) by 2035
- The new CCUS Vision will look to move to a competitive allocation process for carbon capture projects from 2027
- REA also welcomes launch of the Track-1 Expansion for the first CCS cluster, which will bring forward essential bioenergy with carbon capture and storage (BECCS) projects
The UK Government announced today a new plan for Carbon Capture, Usage and Storage. The plan – named the CCUS Vision – sets out how the UK will transition from early projects backed by government support to become a competitive market in this area by 2035, meaning UK companies will compete to build carbon capture facilities and sell their services to the world.
The Vision includes measures to move to a competitive allocation process for carbon capture projects from 2027 to speed up the building of the UK’s CCUS sector; create the conditions for projects that cannot transport CO2 by pipeline to enter the market from 2025 onwards, using other forms of transport such as ship, road and rail; and establish a working group led by industry to identify and adopt solutions to reduce the cost of capturing CO2.
Accompanying the announcement, the Government also launched their call for applications for projects wanting to take part in the Track-1 HyNet cluster by 2030, known as the ‘Track-1 Expansion’. Significantly, eligibility for this cluster will allow bioenergy with carbon capture to apply at a range of sizes, providing a route to market for the delivery of negative emissions. Uniquely these projects will see carbon actively removed from the atmosphere while also producing low carbon power. Negative emissions are recognised as being critical to net zero delivery.
Mark Sommerfeld, Deputy Director of Policy at the REA (Association for Renewable Energy and Clean Technology) said:
“The government’s new vision for Carbon Capture and Storage is a strong and positive statement that, if successfully delivered, will enable private investment, new jobs, and drive down costs to create a viable and highly commercial sector by 2035.
Most significantly, the launch of the of allocation process for expanding the UK’s first carbon capture and storage cluster will now bring forward essential bioenergy with carbon capture and storage (BECCS) projects. These are unique in their ability to produce both low carbon power and deliver carbon removals, creating negative emissions. All scientific net zero scenarios, such as those from the Climate Change Committee, emphasise that engineered removals will be needed and that BECCS will play a critical role alongside high levels of renewable power generation. As such, today’s announcement helps to push the sector forward and put the UK back in a position of global leadership on this critical net zero technology.”