The CCSA argue that the Carbon Capture, Utilisation and Storage (CCUS) industry has the potential to attract £30bn in private investment by 2030 for the UK, with a pipeline of projects that will help capture around 94 million tonnes per annum (mtpa) worth of CO2 by 2035 and create 70,000 new skilled jobs in the UK’s industrial heartlands. The report believes that the UK is in a unique position due its geological advantages and strong domestic capabilities for capture technology.
To achieve the UK’s goal of capturing 20-30 mtpa by 2030 urgent private investment is required as otherwise it risks being left behind by the EU and the US in allocating significant resources to CCUS. According to the document, investor confidence requires two elements:
- Following through on existing commitments in a timely manner
- Clarity on how future commitments will be funded
An example of where this is needed for the CCSA is the government’s Cluster Sequencing Programme, which has been underway for two years and resulted in eight capture projects but to support investor confidence the process should be concluded as promptly as possible and demonstrate that the UK is serious about moving forward with CCUS.
The report does worry that given the long lead times for such projects to develop, the UK’s lack of annual funding commitments to CCUS could become a problem for investors’ confidence. It is estimated that £2.3bn of annual revenue support per year will be needed. The CCSA urges the government to use all the policy levers it has to achieve a self-sustaining CCUS economy in the 2030s, alongside the development of accreditation for low carbon product standards.
The full report can be found at the following link: Final_CCSA_Spring-Budget-Submission-Report-2024.pdf