Notice

Cluster sequencing Phase-2: Track-1 project negotiation list, March 2023

Updated 30 March 2023

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This publication is available at https://www.gov.uk/government/publications/cluster-sequencing-phase-2-eligible-projects-power-ccus-hydrogen-and-icc/cluster-sequencing-phase-2-track-1-project-negotiation-list-march-2023

Following the selection of HyNet and East Coast Cluster as Track-1 CCUS clusters in November 2021, and the publication of the shortlist of power CCUS, industrial carbon capture (ICC), waste and CCUS-enabled hydrogen projects in August 2022, the Department for Energy Security and Net Zero has selected 8 projects to proceed to negotiations for support through the relevant Business Models.

The 8 projects represent a range of innovative CCUS technologies that have the potential to:

  • accelerate our decarbonisation ambitions
  • realise economic benefits across North Wales, North-West England, and the East Coast of England
  • kick start the hydrogen economy
  • put us on a path to decarbonising our power system by 2035, while maintaining security of supply

Projects and cluster scenarios were assessed on deliverability, value for money and affordability, and their overall contribution across sector ambitions and to sectoral diversity, as well as strategic considerations, such as energy security.

This list does not represent the extent of our ambition. We will launch a process later this year to enable further expansion of the Track-1 clusters, beyond the initial deployment, identifying and selecting projects for HyNet and East Coast Cluster – including the Humber – and their associated stores as they become viable, to be operational by 2030. We will work to identify projects that could be potential alternatives to any of the initial Track- 1 projects, if any are unable to agree contracts within the criteria and timelines required. The government will continuously monitor the value for money offered by the Track-1 Project Negotiation List, to ensure only the best and most cost-effective projects reach FID.

In addition, we are launching Track-2 to identify 2 additional clusters contributing to our ambition to capture 20-30 Mt CO2 per year across the economy by 2030.

We are also announcing the conclusion of the power BECCS project assessment process. Both projects which made submissions, Drax Power Ltd and Lynemouth Power Ltd, met the minimum criteria for deliverability by 2027. These projects have not been selected for deployment in Track-1 but the department will engage further with these projects following the assessment outcome. Track-1 is not the extent of our ambition and the government remains committed to achieving 5Mtpa of engineered greenhouse gas removals by 2030.

We will be in touch with all projects included in the August 2022 shortlist and the BECCS project assessment process to provide further feedback on this decision and to let them know about next steps.

The projects that form the Track-1 Project Negotiation List are:

East Coast Cluster

  • Net Zero Teesside Power
  • bpH2Teesside
  • Teesside Hydrogen CO2 Capture

HyNet Cluster

  • Hanson Padeswood Cement Works Carbon Capture and Storage Project
  • Viridor Runcorn Industrial CCS
  • Protos Energy Recovery Facility
  • Buxton Lime Net Zero
  • HyNet Hydrogen Production Plant 1 (HPP1)
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