Recommendation 10

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 us that it had separate business models for transport and storage, and then for different types of emitter, such as power.30 It told us that its approach enabled it to bring in investors which were suitable for different parts of the programme and to allocate risks more effectively.31 The Department also told us that the business models have been designed so a project is only paid once it is capturing carbon which is then stored. 32