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Select Committee · Public Accounts Committee

Carbon Capture, Usage and Storage

Status: Closed Opened: 31 Oct 2024 Closed: 3 Apr 2025 11 recommendations 15 conclusions 1 report

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 Energy Security and Net Zero …

Clear

Reports

1 report
Title HC No. Published Items Response
8th Report - Carbon Capture, Usage and Storage HC 351 7 Feb 2025 26 Responded

Recommendations & Conclusions

4 items
7 Conclusion 8th Report - Carbon Capture, Usage and … Not Addressed

Department and Treasury agree CCUS funding limits but recognise substantial contingent liabilities

A major factor in the failure of the second CCUS competition was the lack of agreement between the Department and HM Treasury on funding limits.15 The Department told us that this time it had agreed an affordability envelope with HM Treasury which has developed as the projects have matured.16 HM …

Government response. The government's response provides a general introduction to the CCUS programme, previous attempts to launch CCUS, the current approach, funding announcements and signed contracts with the first two projects. It does not directly address the conclusion about the Department and …
HM Treasury
13 Conclusion 8th Report - Carbon Capture, Usage and … Not Addressed

Government announced £21.7 billion funding for the first five Track 1 CCUS projects

In early October 2024, the government announced £21.7 billion of funding, over 25 years, to support the first five projects in Track 1 of its CCUS programme.43 In early December 2024, the Department signed contracts with two projects in the East Coast Cluster – a power project (Net Zero Teesside) …

Government response. The government's response provides a general introduction to the CCUS programme, previous attempts to launch CCUS, the current approach, funding announcements and signed contracts with the first two projects. It does not directly address the conclusion about the funding announcement …
HM Treasury
15 Conclusion 8th Report - Carbon Capture, Usage and … Not Addressed

Department and Treasury acknowledge further funding required for later CCUS programme stages

The Department and HM Treasury have acknowledged that further funding will be required for the programme’s later stages, such as Track 1 expansion and Track 2 (which includes two more clusters).51 The Department told us that it is in “detailed discussion and dialogue with the projects involved in the core …

Government response. The government responds to a different recommendation (3) than the conclusion being made (15).
HM Treasury
20 Conclusion 8th Report - Carbon Capture, Usage and … Not Addressed

Value for money assessments do not fully mitigate unsuitable carbon capture project risks

When selecting which clusters to proceed with and which projects to select within each cluster, the Department assessed value for money against five criteria: deliverability; economic benefits; costs; carbon savings; and learning. Once the shortlist of Track 1 projects had been reached, the Department conducted a full value for money …

Government response. The government responds to a different recommendation (4a) than the conclusion being made (20).
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
12 Dec 2024 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 View ↗

Correspondence

3 letters
DateDirectionTitle
27 Jan 2025 To cttee Letter from the Permanent Secretary of the Department for Energy Security and N…
20 Jan 2025 To cttee Letter from the Permanent Secretary of the Department for Energy Security and N…
19 Dec 2024 From cttee Letter to the Permanent Secretary of the Department of Energy, Security and Net…