Notice

CCUS: December 2023 statement

Published 20 December 2023

Today the Department for Energy Security and Net Zero is announcing a series of updates which demonstrates our commitment to Carbon Capture Usage and Storage (CCUS) and sets out a long-term vision for the CCUS Sector. These updates include:

• Launch of the Track-1 Expansion process in HyNet. Following the agreement of Heads of Terms with the CO₂ Transport and Storage Company (T&SCo) in October, we are delighted to begin a process to further expand the HyNet cluster to deliver more jobs and more investment into the North-West and Wales.
  
  
• The agreement of Heads of Terms with the T&SCo in the East Coast Cluster (ECC). This month we reached agreement on the key commercial principles through the Heads of Terms with the East Coast Cluster T&SCo, The Northern Endurance Partnership. This marks a significant milestone which improves our confidence in delivery and demonstrates our commitment to delivering jobs and investment in the North-East. We remain committed to the expansion of the East Coast, including the Humber, subject to matters such as affordability and value for money, and welcome the submission of Northern Endurance Partnership’s proposed storage appraisal plan for expansion through the new Bunter Closure Stores. We will now consider the best timing for launching an expansion process from 2024, based on an assessment of store readiness beginning in the New Year.
  
  
• In early 2024 HMG will ask Track-2 clusters to submit plans for assessment of an ‘anchor phase’ of initial capture projects provisionally targeting deployment from 2028-29, subject to technical feasibility, affordability and value for money. To provide context for the anchors, HMG will also request that T&SCos provide a provisional cluster expansion plan for a ‘buildout phase’ of network and storage expansion to enable additional projects. Capture projects wishing to connect to Acorn and Viking clusters pre-2030 may consider engaging with the T&SCos directly if they have not already done so.
  
  
• A long-term vision for the sector. We are today publishing a vision for the UK CCUS sector in the 2030s that will raise investor confidence and cement the UK as a global leader in developing a thriving market in CCUS.

This is a further step forward in driving jobs and growth in our industrial heartlands as we deliver on our net zero commitments and sits alongside the announcement in the Autumn Statement to establish the £960 million Green Industries Growth Accelerator to accelerate advanced manufacturing in key net zero sectors, including CCUS.  GIGA is expected to support long term jobs in the supply chain, drive economic growth and bolster UK exports, while removing bottlenecks from the supply chain.

Coming after the unprecedented £20 billion announced for CCUS and the selection of the first 8 projects in March, and the largest piece of energy legislation in UK history in October, it is clear CCUS is a priority for this government and we are progressing at pace.

Energy Security Secretary Claire Coutinho said:

Thanks to the UK’s geology, skills and infrastructure, we are in a unique position to lead the way on carbon capture technologies.

That is why we’re making one of the biggest funding commitments in Europe on carbon capture that will cut emissions from our atmosphere, while unlocking investment, creating tens of thousands of jobs and growing the UK economy.