Recommendation 5

HM Government Accepted

Between 2004 and 2021 the UK Government has invested over £346 million into CCUS Research, Development and Deployment (RD&D). This funding has ensured the UK remains at the forefront of CCUS Research and Innovation. Developing the skills, knowledge, and technology to allow the UK to deploy CCUS domestically and export its expertise around the world. In 2020 the UK Government confirmed Advanced CCUS and Greenhouse Gas Removal (GGR) innovation would be two of the ten priority areas of the £1 billion Net Zero Innovation Portfolio (NZIP). Specifically within the five-year NZIP (2021–2025), the following funding is being provided: • £100 million has been invested by the UK Government (£70m from NZIP and £30 from NERC) into research and development of demonstration plants for GGR and Direct Air Capture (DAC) technologies. This is to support the ultimate deployment of First of a Kind commercial GGR facilities in the UK and develop the expertise and technology for potential export. • £30 million has been allocated to the Hydrogen Bioenergy with Carbon Capture and Storage (BECCS) Innovation Programme to support technologies which can produce hydrogen from biogenic feedstocks and be combined with carbon capture to deliver negative greenhouse gas emissions. In 2022, Phase 1 of the programme supported 22 projects (£5m total) to scope and develop a feasible prototype demonstration project to be run in Phase 2. Phase 2 (£25m total) is aimed at selecting the most promising projects from Phase 1 and support their physical demonstration from 2023–2025. • £20 million of funding has been allocated to CCUS Innovation 2.0 to develop and demonstrate next generation CCUS technology in the UK that can significantly reduce the cost of deploying CCUS. Previous innovation funding by BEIS (and its predecessor DECC) have been critical in the development of 8 Rivers’ Allam-Fetvedt Cycle, Carbon Clean’s CycloneCC technology and C-Capture’s award winning non- amine solvent. • £5 million of funding has allowed UK universities and companies to work with their European and International partners in the Third Call of the international Accelerating CCS Technologies (ACT-3) programme. As a founding member of the international ACT programme, the UK has joined the first three ACT calls that in total have funded over €96 million of collaborative CCUS innovation projects.