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The UK government advises on carbon capture, use and storage projects.




The UK’s Department of Business, Energy and Industry Strategy (BEIS) has initiated consultations on Carbon Capture Use and Storage (CCUS) to determine the order of project clusters.

The government has outlined a two-step process for allocating support to the CCUS program and a proposed timeline for the process. In this consultation, the details of the proposed one-step cluster sequencing process, including potential evaluation criteria and how these criteria can be applied, as well as potential approaches for assigning specific supports, the direction of movement for the second stage of the process. It covers. Projects within a cluster.

Stacey Collins, an energy law expert at Out-Law’s law firm Pinsent Masons, said the consultation promised distribution in support of the government’s 10-point plan for the Green Industrial Revolution and an energy white paper released at the end of 2020. Of the CCUS cluster.

“With regards to CCUS for power, industry, and hydrogen, momentum remains, and it is encouraging that the government adheres to the schedule set to move forward with the CCUS business model in December,” Collins said.

“Currently there are many carbon capture clusters established in the UK, and projects are being developed in preparation for moving from an early stage to batch. It remains to be seen whether the two-step and step-by-step process established by the government will be the actual distribution path chosen after consultation, but in any case, it is an exciting time to be active in the UK CCUS market,” Collins said.

BEIS said in Phase 1 that the two CCUS clusters will be temporarily named to track one of the rollout processes with support for deployment in the mid-2020s. The proposed timetable is that Phase 1 of the program will begin in April 2021 and end in October 2021.

Phase 1 begins with the Eligibility Phase and selects a cluster plan for eligibility based on three criteria. Only eligible clusters go into the evaluation phase, where plans are evaluated against 5 weighted criteria and the 2 best performing clusters are ordered on track 1.

According to the consultation document (47 pages / 514 KB PDF), no funds will be allocated at the end of Phase 1, and all decisions are provisional and completely reversible. Projects located in the top two clusters will have the first opportunity to negotiate with the government.

In phase 2, the government decides on individual projects within the cluster locations identified in phase 1 to receive support. Phase 2 is expected to begin in August 2021.

The two-step process is set up differently for each CCUS application (transport and storage, power, industrial and hydrogen). Any CCUS project that can be connected to a cluster location is suitable for Phase 2 as well as those included in the Phase 1 plan submitted by the cluster leader.

The government expects to deploy two more clusters on track 2 of the program by 2030. He said that this is not indicative of a range of ambitions, as all clusters will have to decarbonize to reach zero net carbon emissions by 2050.

Collins said the talks will be of interest primarily to investors and developers involved in potential CCUS projects, the industrial and energy sectors, and non-governmental and other organizations interested in climate and energy. Consultation ends March 10th.

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