Urgent Call for Clarity: UK CCS Developers Seek Government Support Before Christmas
Key Ideas
- CCS developers outside of the track-1 process in the UK are urging the government for certainty and clear signals of support before Christmas to ensure progress.
- The industry body, Carbon Capture and Storage Association, emphasizes the need for regular funding rounds for CCS projects to meet climate targets and attract investment.
- The UK is seen as a promising opportunity for international investors in the CCS sector, but clarity and support are crucial to maintain the sector's momentum and competitiveness.
- Lessons from the offshore wind sector suggest that establishing a framework for annual CCS allocation rounds and developing local supply chain capabilities are vital for the industry's growth.
The Carbon Capture and Storage Association (CCSA) in the UK is calling on the government to provide certainty and clear signals of support to CCS developers outside the track-1 process before Christmas. With only two projects allocated significant funding so far, the industry body stresses the need for regular funding rounds akin to the Contracts for Difference scheme. This comes in light of the delayed progress caused by the recent election year. The CCS sector in the UK aims to capture and store 20 to 30 million tonnes of CO2 by 2030 to meet targets. The mood within the industry is positive, with the UK attracting attention from international investors. However, the industry highlights the importance of maintaining pace and providing forward visibility of opportunities. Investors are making global-level decisions, and the UK's regulatory framework and business models need to support their interests. Lessons from offshore wind development suggest the need for a structured approach with annual allocation rounds and local content development. Addressing carbon pricing, cross-border transport barriers, and maximizing CO2 storage potential can further enhance investor sentiment and market opportunities. The CCS industry in the UK emphasizes the urgency in overcoming regulatory and legislative barriers to establish a European-wide CO2 storage market, safeguarding the country's advantageous position.
Topics
Blue Hydrogen
Investment
Energy Sector
Government Support
Funding Rounds
Climate Targets
International Investors
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