The REA has responded to the BEIS consultation on the development of a Greenhouse Gas Removal (GGR) Business Model, supporting carbon capture projects not covered by other Power BECCS or Industrial Carbon Capture Business Models.
In response, the REA states:
- The Government should initially develop a contractual arrangement based on a Negative Emission Payment (NEP), to help facilitate price discovery of a realistic negative emission reference price, before then moving to a CfD GGR contract.
- the Government should take an active role in developing its own negative emissions accreditation, based on developments in academia, voluntary carbon markets and in further consultation with industry.
- Suggest that the GGR Business Model must be considered a broad support mechanism for a wide set of technologies. Selection criteria should therefore not be based solely on competitive prices as different technologies will be at different stages of development.
- Contract lengths should be based on bilateral discussions initially, recognising different technology CAPEX and OPEX.
- That Power BECCS projects that are below the eligibility criteria for the current cluster sequencing allocation process be allowed to also apply to the GGR Business Model
- Biochar should also be included in the GGR Business model and encourage the government to set out an industry engagement process to enable this to happen.
- That the Power BECCS Business model should work in conjunction with other existing support mechanisms such as the power CfD, the RO, FiTs and RTFO.
Thank you to the members who provided feedback on this response.