Guidance

UK carbon capture, usage and storage

How the government supports the development of carbon capture, usage and storage (CCUS) in the UK and internationally.

The government’s new approach to CCUS

In October 2017, the government announced its new approach to carbon capture, usage and storage in the Clean Growth Strategy.

The new approach is designed to enable the UK to become a global technology leader for CCUS and ensure that government has the option of deploying CCUS at scale during the 2030s, subject to costs coming down sufficiently.

To progress this ambition, the government has set out action under 3 themes:

  • Re-affirming our commitment to deploying CCUS in the UK subject to cost reduction
  • International collaboration on CCUS
  • CCUS innovation

Re-affirming our commitment to deploying CCUS in the UK subject to cost reduction

CCUS has the potential to decarbonise the economy and maximise economic opportunities for the UK. However, it is currently expensive and cost reductions are necessary to be able to deploy CCUS cost effectively in the UK, providing value for money for both the taxpayer and consumers.

Through the Clean Growth Strategy the government has set out a programme of work that will be undertaken to establish the additional steps that are required to meet the ambition of having the option to deploy CCUS at scale during the 2030s, subject to cost reduction. In delivering this work, government will work collaboratively with the CCUS industry, including existing projects.

CCUS Cost Challenge Taskforce

Government has established a CCUS Cost Challenge Taskforce to provide advice on the steps needed to reduce the cost of deploying CCUS in the UK. The Taskforce is expected to deliver its plan to government in summer 2018.

Further details on the Taskforce will be published on this website in due course.

Deployment pathway for CCUS

Following the advice of the CCUS Cost Challenge Taskforce, the government will set out a deployment pathway for CCUS by the end of 2018. The deployment pathway will set out the steps needed to meet the government’s ambition of deploying CCUS at scale during the 2030s, subject to costs coming down sufficiently. This will include looking at the options for permanent storage of carbon dioxide in the UK, as well as elsewhere, via international shipping.

Review of delivery and investment models for CCUS

The government will review the delivery and investment models for CCUS in the UK to understand how the barriers to cost effective deployment can be reduced, and how the private and public sectors can work together to deliver the government’s ambition for CCUS.

The review will consider the models required to:

  • Deploy carbon dioxide capture in the industrial sector
  • Deploy carbon dioxide capture in the power sector
  • Establish the infrastructure required to transport and store carbon dioxide

Further details on the review of delivery and investment models for CCUS will be published on this website later this year.

To inform this review, BEIS commissioned Pale Blue Dot Energy Limited to conduct a study, ‘CO2 transport and storage: Review of business models (Phase 1)’. The study draws upon case studies from both CCS and non-CCS infrastructure projects to identify key challenges which might constrain the development of carbon dioxide (CO2) transport and storage infrastructure and discusses the range of possible business models that could be employed to overcome these barriers to deployment.

CO2 transportation and storage business models (Phase 1): summary report

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CO2 transportation and storage business models: appendix

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Test the development of CCUS industrial decarbonisation clusters

Government will work with the ongoing initiatives in Teesside, Merseyside and Grangemouth to test the potential for development of CCUS industrial decarbonisation clusters.

Ministerial-led CCUS Council

The government has established a new CCUS Council with senior representatives from across the CCUS sector to review progress and priorities on CCUS. The Council is chaired by the Minister of State for Climate Change and Industry.

The CCUS Council is the primary forum for engaging the CCUS sector on CCUS. It replaces the CCS Development Forum.

Further details on the Council will be published here in due course.

International collaboration on CCUS

Through the Clean Growth Strategy the government has committed to convene and lead a new international working group to drive down the cost and accelerate deployment of CCUS, including by:

  • participating in Mission Innovation and its Carbon Capture Challenge and working closely with private sector led initiatives such as the Oil and Gas Climate Initiative

  • developing closer collaborative working with countries such as Norway, the United States, Canada and Australia, including joint working on innovation and carbon dioxide transport and storage solutions and working multilaterally through the Carbon Sequestration Leadership Forum and the North Sea Basin Taskforce

  • continuing to be a global leader in CCUS investments through the UK’s £60 million international CCS programme which has been running since 2012, by investing a further £10 million in the programme. This will further strengthen international action on CCUS and draw on technical expertise

  • organising an international Global Carbon Capture Usage and Storage Conference in 2018 with international partners

CCUS Innovation

CCUS research, development (R&D) and innovation will play an important role in reducing the costs of CCUS, by developing cheaper and more efficient technologies and components, exploring new applications and supporting innovations that reduce the cost of transporting and storing carbon dioxide.

Since 2011 the government has invested over £130 million R&D and innovation support to develop CCUS in the UK.

The government is continuing this support by committing to spend up to £100 million from the BEIS Energy Innovation Programme to support industry and CCUS innovation and deployment in the UK.

Carbon Capture and Utilisation Demonstration

The government will make up to £20 million available from the Energy Innovation Programme for a Carbon Capture and Utilisation (CCU) demonstration programme to invest in new innovative technologies that capture and utilise carbon dioxide.

This programme will encourage industrial sites to capture carbon dioxide which could then be used in industrial applications. This would help to enable a pathway for learning and development of capture technologies at an intermediate scale, reducing the costs and risks.

Read more about the CCU demonstration programme

Novel capture technologies

The government will also support next generation capture technologies, with an aim to lower the cost of capture compared to the current best performing technologies.

Accelerating CCS Technologies European Research Area Network (ERA-NET)

The UK is participating in the ERA-NET scheme to accelerate CCS technologies (ACT) along with 8 other European countries - Germany, Greece, Netherlands, Norway, Romania, Spain, Switzerland and Turkey. Together these countries have provided €25.34 million to support a first call for collaborative projects to accelerate the deployment of CCUS within Europe. The European Commission has added a further €11.26 million in co-funding, giving a total of €36.6 million in support.

Within the €36.6 million, BEIS has committed £4.4 million, matched with a further £2.2 million in co-funding from the European Commission, to support UK participation in 5 collaborative projects with European partners.

Further details on future CCUS innovation programmes will be made available in 2018.

CCS Commercialisation competition

The government took the decision to close the CCS Competition, which ran from April 2012 to January 2016 following confirmation from both bidders that they will not proceed with their respective projects in the absence of government capital funding support.

CCS knowledge sharing

The government is committed to sharing the knowledge from UK CCUS projects and to learning from other projects around the world to help accelerate CCUS cost reduction, as well as sharing information from the reports it commissions. This information is beneficial to academia and the CCUS industry, as well as raising the public profile of CCUS.

Knowledge from White Rose and Peterhead CCS projects

Under the 2013 / 2014 Front End Engineering and Design (FEED) contracts, the Peterhead and White Rose CCS projects delivered 86 reports. Under FEED, the completed reports are defined as Key Knowledge Deliverables (KKDs). The reports will enable both the Peterhead and White Rose projects to share the knowledge and learning acquired on their respective CCS projects.

The Key Knowledge Deliverables from the White Rose and Peterhead FEED studies cover aspects of delivering a large scale commercial CCS project, including: commercial and financing arrangements; programme and risk management; consents and permitting; technical design, engineering and integration; health and safety; and lessons learnt.

Peterhead and White Rose Key Knowledge Deliverables

Knowledge from Kingsnorth and Longannet CCS projects.

Since 2011 the government has made available substantial amounts of information from the engineering and design studies (known as FEED) of previous CCS projects funded by the government.

Kingsnorth FEED

Longannet FEED

CCS Cost Reduction Task Force

The task force was set up in spring 2012 to advise the government and industry on the steps needed to reduce the cost of CCS, so it can compete with other low carbon technologies in the 2020s. The CCS Cost Reduction Task Force published their final report in May 2013.

Read more about the CCS Cost Reduction Task Force.

Commissioned CCS Reports

CO2 Storage Liabilities in the North Sea - An Assessment of Risks and Financial Consequences

UK Canada Joint Statement on Carbon Capture and Storage CCS

Regulatory regime

The Energy Act 2008 provides for a licensing regime that governs the offshore storage of carbon dioxide. The regime applies to storage in the offshore area comprising both UK territorial sea and beyond designated as a gas importation and storage zone (GISZ) under section 1(5) of the Act.

The Secretary of State for Business, Energy and Industrial Strategy is the licensing authority for offshore storage except within the territorial sea adjacent to Scotland, for which Scottish ministers authorise. The required forms and guidance documents are listed in the Carbon storage licensing guide.

In December 2010 the government consulted on implementing the Third Party Access Provisions of the CCS Directive and called for evidence on long term development of CCS infrastructure. This consultation, together with the regulations and guidance is published on the GOV.UK website.

Published 22 January 2013
Last updated 30 January 2018 + show all updates
  1. Content updated and new Pale Blue Dots reports published
  2. Link to Consultation on a proposed amendment to the Contracts for Difference (Definition of Eligible Generator) Regulations added to page.
  3. Update to CCS projects awarded grants under Phase 4 of the Energy Entrepreneurs Fund.
  4. On the 9 December the Secretary of State Edward Davey announced his intention to award a contract and funding for a FEED study to the White Rose Project .
  5. Information added on the New Entrants Reserve (NER 300) European funding programme
  6. First published.