Carbon Capture Usage and Storage Taskforce delivers recommendations for meeting the UK’s Clean Growth ambitions
The Carbon Capture Usage and Storage (CCUS) Cost Challenge Taskforce has delivered a strategic plan to Government for the development of CCUS in the UK to meet Government’s stated ambition of “having the option to deploy CCUS at scale during the 2030s, subject to costs coming down sufficiently”.
In the report, “Delivering Clean Growth”, the Taskforce proposes a range of measures and actions to inform a new approach to CCUS development in the UK that will enable cost reductions to be secured and the value of CCUS to the UK to be realised. By demonstrating that CCUS can deliver value across industry, the power sector, and provide decarbonisation solutions for heat and transport, the report focuses on building a long term, commercially sustainable and cost-effective CCUS industry for the UK.
The short, medium and longer term recommendations aim to bring new industrial opportunities, secure long term jobs, deliver new economic growth opportunities and secure international competitiveness through new decarbonised products and services. The Taskforce, chaired by Charlotte Morgan, Energy and Infrastructure partner at Linklaters, has identified new business models, suggested risk allocation to unlock funding, and highlighted opportunities for innovation, as well as suggesting options to support the lowest cost delivery of a potentially transformative technology.
The report recommends a number of key actions, including:
- A minimum of two CCUS clusters (incorporating capture plants and CO2 stores) operational from the mid-2020s.
- Development of a new business model for CO2 transport and storage, separate from that which is used for the capture plant.
- Government and industry to work together to develop a CCUS roadmap which should be included in the CCUS Deployment Pathway, due to be published by the end of 2018. This roadmap should set out how CCUS can be developed and deployed across a number of different sectors.
Charlotte Morgan, Energy and Infrastructure partner at Linklaters, says:
“CCUS has potential not just to support the UK’s carbon reduction commitments, but support growth, improved productivity and competitiveness in a future low carbon economy. For this to happen we must recognise the value of CCUS, and the urgency with which we must deploy it in the UK. By acting now and working with industry and governments around the world, the UK can become a global technology leader in this field.”
Linklaters is seen to be the preeminent law firm in the green energy sector. Linklaters has been involved in CCUS in the UK for a number of years having advised on CCUS projects in the previous two government run competitions. Linklaters’ leadership on the Taskforce build from leading on the Commercial and Project Finance workstream of the Green Finance Taskforce’s report, “Accelerating Green Finance”, which called on the Government to consolidate the UK’s position as a world-leading hub for green finance.