Source · Select Committees · Scottish Affairs Committee
Recommendation 9
9
Accepted
Paragraph: 52
Scotland and the rest of the UK will not be able to deliver on their...
Conclusion
Scotland and the rest of the UK will not be able to deliver on their net zero commitments without carbon capture and storage (CCUS): a factor that is critical to the success of the hydrogen industry in Scotland. Carbon capture and storage and hydrogen production will both be required, in conjunction with other renewables, to achieve a just transition from oil and gas.
Government Response Summary
CCUS is a priority and the government is progressing at pace with a £20 billion funding package, launching the CCUS Track-2 process and recognising the potential benefits of the Scottish cluster, to which over £40m in development funding has been allocated.
Paragraph Reference:
52
Government Response
Accepted
HM Government
Accepted
The following is a combined response to recommendations 9, 10 & 11: CCUS is a priority for the UK Government and we are progressing at pace. The £20 billion funding package announced on 15 March 2023 is unprecedented and demonstrates our strong commitment to delivering CCUS in the UK. It will put us on track to store 20-30 million tonnes of CO2 a year by 2030 whilst helping secure long-term energy security and creating skilled jobs. Our Powering Up Britain Plans, published on 30 March, continue UK leadership in securing the economic benefits of the energy transition, including through major investment in CCUS. We remain committed to helping all areas of the UK to decarbonise as we work to reach net zero emissions by 2050, and we are clear that CCUS will continue to play a key role in this process. On 30 March, we launched the CCUS Track-2 process and at this stage are seeking to identify two transport & storage (T&S) systems. We announced Acorn T&S system as one of the leading contenders for Track-2. We are testing our view that Acorn (alongside Viking) is best placed to deliver on the objectives for Track-2, by allowing other T&S systems the opportunity to express an interest (EoI) in being considered for Track-2. The EoI period closed on 28 April 2023 and we intend to provide an update on next steps for Track-2 in the summer. We recognise the potential benefits of the Scottish cluster and the role it could play in industrial decarbonisation in Scotland. The cluster has been allocated over £40m in development funding by government in recent years. The breakdown of this funding is: • £31.3m from the Industrial Decarbonisation Challenge, for onshore and offshore FEED studies; • £9.3m of innovation funding under the CCUS Innovation, Advancing CCS Technologies (ACT) and Hydrogen Supply programmes; • £250k for the development of Storegga’s ‘Dreamcatcher’ Direct Air Capture plant.