Guidance

30 July 2021 update: Phase-1 eligible clusters and Phase-2 timeline

Updated 1 November 2021

Phase-1 eligible clusters

In order for clusters to proceed into the assessment stage of Phase-1 of the cluster sequencing process, each cluster was subject to an eligibility review. To pass this eligibility review, the cluster had to show that it met the 3 eligibility criteria set out in the Phase-1 guidance:

  • credibly demonstrate that it can be operational by 2030
  • it is located within the UK
  • it meets the definition of a CCUS cluster, which we define as a transport and storage (T&S) network and an associated first phase of at least two CO₂ capture projects. A T&S network is defined as a set of onshore pipelines, offshore pipelines and an associated offshore storage facility. The pipelines must be capable of transporting CO₂ to the storage site (for example a saline aquifer or depleted oil and gas field) that must be able to store this CO₂ safely and permanently

Government received submissions from 5 clusters as part of the Phase-1 submission process:

  • DelpHYnus
  • East Coast Cluster
  • Hynet
  • Scottish Cluster
  • V Net Zero

Having conducted the eligibility review of these submissions, all 5 clusters meet the eligibility criteria as set out in the Phase-1 documentation.

We expect to announce Track-1 clusters from 25 October 2021.

Phase-2 timeline update

Reflecting the latest information, including the data received in Phase-1 submissions, government will amend the CCUS phases to a sequential approach. We are now planning for the launch of Phase-2 to be made in parallel with, or soon after, the Track-1 cluster announcement.

A shift to a sequential approach will help to address concerns over nugatory effort of Phase-2 applicants which may have resulted from the previously proposed overlay approach. It may also allow potential applicants to consider the update on Power and Industrial CCUS business models which will be published prior to or alongside the call for Phase-2 projects and allow Hydrogen stakeholders time to respond to the forthcoming business model consultation. We do not expect this timing change to impact our ability to bring forward at least 2 clusters by the mid-2020s.

We will look to provide more information on the revised Phase-2 timeline in due course.