Carbon capture, usage and storage (CCUS): offshore decommissioning regime for CO2 transport and storage
Download the full outcome
Detail of outcome
23 June 2023: Update to government response published
The update document provides greater detail on aspects of the decommissioning regime, in particular:
- the treatment of onshore decommissioning costs
- the allocation of the shortfall and windfall risks
- the government’s consolidated proposals for repurposing assets in all circumstances
- the expectations around holding arrangements for decommissioning funds
It also clarifies the government’s position on specific design features of the decommissioning regime, including:
- the process for estimating the decommissioning liability
- the treatment of decommissioning funds for shared infrastructure assets
- the approach to investing capital that has been built in decommissioning funds
17 January 2022: Government response published
Where we have confirmed our policy position in the government response, we will amend the existing legislation in order to implement the policy when Parliamentary time allows.
As also set out in the response, there are a number of design elements of the decommissioning regime which we will continue to develop. We aim to finalise these over 2022 and publish an updated policy position in spring 2023.
Detail of feedback received
We received 20 responses to the consultation, predominantly from industry and trade associations. The Scottish Government and the Northern Ireland Executive also provided responses.
Respondents showed broad support for the majority of the items raised. We will use this new insight to develop the CCUS decommissioning regime in the coming months.
Original consultation
Consultation description
The government expects carbon capture, usage and storage (CCUS) to play an essential role in meeting our net zero target and supporting the low carbon transformation of the UK’s industrial base. The 2020 Ten point plan included a commitment to deploy CCUS in 2 industrial clusters by the mid-2020s and a further 2 clusters by 2030, with an ambition to capture 10 MtCO₂ per year by 2030.
Existing UK legislation is clear that when an offshore CCUS storage site is closed, the installations and injection facilities must be removed when decommissioned. In addition, all other items of equipment, infrastructure and materials that have been installed or drilled are expected to be entirely removed for disposal onshore in accordance with our aim to achieve a clear seabed.
This consultation sets out and seeks views on our proposals for establishing a funded decommissioning regime for CCUS which aims to achieve this outcome and ensures the Polluter Pays Principle is met, while also encouraging investment in the sector to meet the government’s wider objectives.
This consultation will be of interest to:
- industry, particularly in CCUS-enabled industrial regions such as South Wales, Scotland, the North West, the North East and Humberside
- investors and developers involved in potential CCUS projects
- environmental and offshore regulatory authorities
- NGOs and other organisations with an interest in climate and energy
See the BEIS consultation privacy notice.
Please do not send responses by post to the department at the moment as we may not be able to access them.
Documents
Last updated 23 June 2023 + show all updates
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We have published an update to the government response to this consultation which provides greater detail on aspects of the decommissioning regime.
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Government response published.
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First published.