Update to industry on conclusion of the CCUS Cluster Sequencing Track-2 expression of interest
Updated 20 December 2023
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This publication is available at https://www.gov.uk/government/publications/cluster-sequencing-for-carbon-capture-usage-and-storage-ccus-track-2/update-to-industry-on-conclusion-of-the-ccus-cluster-sequencing-track-2-expression-of-interest
The UK government is committed to further development of carbon capture, usage and storage (CCUS) through the Track-2 process which will establish 2 new clusters.
On 30 March 2023, the Department for Energy Security and Net Zero launched a 4-week expression of interest (EoI) process for transport and storage (T&S) systems that believed they met the eligibility criteria set out in the CCUS Track-2 guidance document.
Following a review of EoI applications against the Track-2 eligibility criteria, government has concluded that Acorn and Viking T&S systems, due to their maturity, remain best placed to deliver our objectives for Track-2, at this stage, subject to final decisions, due diligence, consenting, subsidy control, affordability and value for money assessments. We will therefore commence engagement, assessment of delivery plans and due diligence with Acorn and Viking T&S systems. Government will set out the process by which capture projects for Track-2 will be selected to meet the stated ambitions in due course. We also reserve the right to re-engage with T&S systems that submitted an EoI should any significant delivery challenges arise with Acorn and Viking T&S systems.
In making this decision, we align with the Review of Net Zero chaired by Chris Skidmore MP, which included a recommendation that government should take a pragmatic approach to cluster selection by allowing the most advanced clusters to progress more quickly.
We recognise the importance of providing further certainty for industry and we will work with other T&S systems on future opportunities through the government’s CCUS programme. Later this year, we will publish a vision for the UK CCUS sector, setting out how CCUS will support our net zero ambitions, to raise confidence and improve visibility for investors. Engagement with industry about future plans will continue, and extensive meetings are being held today as part of that.
Acorn also retains its status as Track-1 reserve cluster and government reserves the right to enter into accelerated negotiations with Acorn in the event that one of the named Track-1 clusters encounters significant delivery challenges.