Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Acknowledged
2030 carbon capture and storage targets deemed unachievable by the Department
Conclusion
In the latter part of 2024, the Department successfully concluded negotiations with two of the Track 1 projects. In December 2024, the Department announced it had signed contracts with the first two projects at East Coast Cluster: Net Zero Teesside (a gas–fired power station with 58 C&AG’s Report, para 1.5 and Figure 2 59 C&AG’s Report, para 1.8 60 C&AG’s Report, para 1.7; HM Government, Net Zero Strategy: Build Back Greener, October 2021, pages 21 and 28. 61 C&AG’s Report, para 2.15 62 C&AG’s Report, para 2.8 – 2.10 15 CCUS); and Northern Endurance Partnership (the transport and storage company for the East Coast Cluster).63 Shortly before our evidence session, the Department stated that it no longer considered its target of capturing 20–30 mtpa of CO2 for 2030 achievable.64 The Department told us it will set out its revised ambitions for the future of CCUS in its Carbon Budget Delivery Plan, due for publication in spring 2025.65 Challenging assumptions
Government Response Summary
The government provides background information on CCUS technologies and the UK's approach to achieving net zero, but doesn't directly address the specific negotiation successes and the revised target mentioned in the conclusion.
Government Response
Acknowledged
HM Government
Acknowledged
Introduction from the Committee Carbon capture, usage and storage (CCUS) technologies capture carbon before it is released into the atmosphere and store it permanently underground. They can be applied to a range of industrial applications, such as power generation and cement production. The government sees CCUS as essential to the UK achieving net zero by 2050. Previous governments have attempted to launch CCUS in the UK twice before, but these projects were cancelled in 2011 and 2016. The current approach, launched in 2018, aims to establish CCUS in geographical clusters. The government set a target of capturing and storing 20–30 million tonnes of carbon per year by 2030. In December 2024, it concluded that this target was not achievable. It has not yet set revised goals. The Department for Energy Security and Net Zero (the Department) is responsible for the CCUS programme. In October 2021, it announced that the first two clusters to receive government support (Track 1) would be HyNet, covering Merseyside and north Wales, and East Coast, covering Teesside and Humberside. HM Treasury announced up to £20.0 billion of funding in March 2023 to support the early deployment of CCUS. In October 2024 it increased the funding to £21.7 billion over 25 years to cover the first five projects. At the same time, the Department recognized contingent liabilities with a maximum value of £34 billion to cover the risks it is underwriting for the programme. In December 2024, the Department announced it had signed contracts with the first two projects at East Coast Cluster which it expects to begin operations in 2028.