Carbon Capture, Usage and Storage

Public Accounts Committee Closed Inquiry
Opened: 31 Oct 2024 Closed: 3 Apr 2025 Parliament page
Carbon Capture, Utilisation and Storage (CCUS) technology involves the capturing of CO2 emissions and their permanent storage underground. In 2021, the Government set out an ambition in its Net Zero Strategy for four CCUS clusters capturing 20 to 30 million tonnes of carbon per annum by 2030. The Department for … Read more
11 Recommendations
15 Conclusions
1 Report
1 Oral session
3 Letters
1 Event
Activity timeline 7 events
6 May
2025
Report published
7 Feb
2025
Report published
27 Jan
2025
Correspondence
20 Jan
2025
Correspondence
19 Dec
2024
Correspondence
12 Dec
2024
Oral evidence
12 Dec
2024
Formal meeting (oral evidence session) · The Grimond Room, Portcullis House
Oral evidence sessions 1 session
12 Dec 2024
View on parliament.uk
Ashley Ibbett · Department for Business, Energy and Industrial Strategy Jeremy Pocklington CB · Ministry of Defence Paro Konar · Department for Energy Security and Net Zero Steve Field · HM Treasury
Title HC No. Published Items Response
8th Report - Carbon Capture, Usage and Storage HC 351 7 Feb 2025 26 Responded
Recommendations & Conclusions
6 results
Clear
10 Conclusion Acknowledged
8th Report - Carbon Capture, Usage…
Department established specific business models for Track 1 CCUS projects to allocate risks effectively
The Department established business models on which to base its support for each of the projects in the programme’s Track 1.28 These models set out how costs and risks are distributed between the government and the project.29 The Department told … Read more
Government Response
The Department for Energy Security and Net Zero has created business models that provide the minimum subsidy required to support the projects, keeps the allocation of costs and risks under review with the aim of reducing subsidy over the long-term.
HM Treasury
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11 Conclusion Acknowledged
8th Report - Carbon Capture, Usage…
Department aims to shift financial risk from government to self-sustaining CCUS market by 2035
Looking to the future, the Department told us it wants to move the balance of risk away from the government as the market for CCUS evolves.33 The Department’s current assessment is that, because projects are first–of–a– kind, there is an … Read more
Government Response
The Department for Energy Security and Net Zero has created business models that provide the minimum subsidy required to support the projects, keeps the allocation of costs and risks under review with the aim of reducing subsidy over the long-term.
HM Treasury
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14 Conclusion Acknowledged
8th Report - Carbon Capture, Usage…
Uncertainty remains regarding precise consumer/taxpayer funding balance for the £22 billion CCUS programme
The Department told us it expects around three quarters of the allocation of financial support of almost £22 billion will be from levies on consumers (such as those using power generated by the Net Zero Teesside project).46 The remaining 25% … Read more
Government Response
The department continuously assesses the affordability and value for money of government support for CCUS as part of key policy and decision-making processes, working with HM Treasury to assess benefits, taxpayer affordability, and energy bill impacts.
HM Treasury
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17 Conclusion Acknowledged
8th Report - Carbon Capture, Usage…
Climate Change Committee deems CCUS essential for UK net zero targets, with ambitious 2030 goals
The Department began developing its current approach to CCUS in 2018, following two previous failures.58 The Climate Change Committee, which advises government on how best to meet its decarbonisation goals, considers CCUS to be essential for the UK to meet … Read more
Government Response
The government provides background information on CCUS technologies and the UK's approach to achieving net zero, but doesn't directly address the specific ambitions for the CCUS programme mentioned in the conclusion.
HM Treasury
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18 Conclusion Acknowledged
8th Report - Carbon Capture, Usage…
Department made slow progress and scaled back initial carbon capture ambitions
However, the Department has made slow progress in getting the first tranche of projects running. It had initially hoped to sign contracts with the first carbon capture projects in the second quarter of 2022, but this has been repeatedly pushed … Read more
Government Response
The government provides background information on CCUS technologies and the UK's approach to achieving net zero, but doesn't directly address the specific delays and scaling down of ambitions mentioned in the conclusion.
HM Treasury
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19 Conclusion Acknowledged
8th Report - Carbon Capture, Usage…
2030 carbon capture and storage targets deemed unachievable by the Department
In the latter part of 2024, the Department successfully concluded negotiations with two of the Track 1 projects. In December 2024, the Department announced it had signed contracts with the first two projects at East Coast Cluster: Net Zero Teesside … Read more
Government Response
The government provides background information on CCUS technologies and the UK's approach to achieving net zero, but doesn't directly address the specific negotiation successes and the revised target mentioned in the conclusion.
HM Treasury
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Government Response AI assessment · 26 of 11 classified
Accepted 16
Acknowledged 6
Not Addressed 4
Total 11 recs + 15 conclusions
Correspondence 3 letters
27 Jan 2025 To committee Letter from the Permanent Secretary of the Department for Energy Security and Net Zero relating to a response on contingent liabilities on Carbon Capture projects, 21 January 2025
Parliament page
20 Jan 2025 To committee Letter from the Permanent Secretary of the Department for Energy Security and Net Zero relating to contingent liabilities on Carbon Capture projects, 14 January 2025
Parliament page
19 Dec 2024 From committee Letter to the Permanent Secretary of the Department of Energy, Security and Net Zero relating to contingent liabilities on Carbon Capture projects - following the Committee's inquiry on 12 December 2024, 19 December2024
Parliament page