BEUS wants to identify carbon capture and storage (CCUS) clusters by August that may be eligible for government support for deployment by the mid 2020s and allow for a final investment decision in the first half of 2022. It is consulting with industry on the sequencing for those clusters and ‘Track 2’ groups that would be deployed in the mid 2030s.
BEIS says that Cluster Plans would need to set out a transport and storage network proposal and an associated first phase of potential carbon capture projects that could connect to the network. This would enable government to evaluate which locations have the potential to offer the best value for money proposition, in the round, across the different components of the CCUS chain.
This first phase of capture projects would need to consist of at least two projects and can be any combination of power, industrial capture, and hydrogen.
The consultation closes on 10 March and then clusters have until July to submit cluster plans.
When the eligible Phase 1 clusters are announced in August, other projects that can connect to the eligible clusters will be able to submit details, along with clusters aiming for Phase two deployment. BEIS said it would continue to engage with Phase 2 clusters and publish an allocation process for their funding in October.
A consultation on CCUS business models is due for publication in Q2.
BEIS lists CCUS as key for
- Transforming industries into zero carbon global leaders, and attracting investment in new industrial facilities. It notes that manufacturing and refining accounts for 16% of UK emissions.
- Allowing for thermal generating stations that can deliver non-weather- dependent low carbon electricity to balance renewables, maintain security of supply and minimise system costs.
- Allow for hydrogen production using methane reformation and biomass gasification.
- Allow for greenhouse gas removal such as direct air carbon capture
The government’s £1B CCUS Infrastructure Fund is expected to support the deployment of two clusters by the mid-2020s, with another two clusters to be created by 2030.
See the full consultation here
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