Source · Select Committees · Public Accounts Committee
Recommendation 24
24
Accepted
Alternative pathways exist for power sector decarbonisation without relying on CCUS technology
Recommendation
In other sectors, there are viable methods to decarbonise that do not require CCUS. For example, the Department told us that CCUS could play a particularly important role in power generation.80 However, there are other ways that the UK could decarbonise the power sector. A recent report by the National Energy System Operator (NESO) identified an alternative pathway to achieving clean power by 2030 that involved “no new dispatchable power from hydrogen or gas with CCS”.81 The Department told us that it would shortly be publishing an action plan in response to the NESO report and noted that the report identified the pathway with new dispatchable power as offering lower overall costs.82
Government Response Summary
The government agreed to set out its rationale for supporting CCUS in each sector where it could be applied, including considering whether alternative approaches could be more cost effective, referencing various sectoral strategies and analysis. Separately, an independent review will consider how Greenhouse Gas Removals (GGRs) can assist the UK in meeting the government’s net zero targets and ensuring security of supply, out to 2050.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: To date, the Department has done little to ensure that government support for CCUS is directed to the sectors or locations where it will be essential for achieving net zero. 5. PAC recommendation: The Department should set out its rationale for supporting CCUS in each sector where it could be applied, including considering whether alternative approaches could be more cost effective. 5.1 The government agrees with the Committee’s recommendation. Recommendation implemented 5.2 In various sectoral strategies the department sets out the relative role of CCUS in decarbonising a given sector, including in the Net Zero Strategy, Industrial Decarbonisation Strategy, Clean Power 2030 Action Plan and the report on Future Opportunities for Electrification to Decarbonise UK Industry. It also takes into account analysis by the Climate Change Committee and organisations such as the Intergovernmental Panel on Climate Change (IPCC). The department sets out its rationale for supporting CCUS in each sector, as highlighted in these documents. 5.3 The department is committed to ensuring that it meets the government’s net zero targets in a way that protects consumers and taxpayers alike. Costs of decarbonising using CCUS are compared with alternative approaches to achieving net zero; the department is ensuring that CCUS resources are allocated to those sectors where currently few alternatives exist for achieving net zero and where it is cost effective to do so. The department regularly updates its analysis as part of the carbon budget delivery cycle. 5.4 The analysis to date has indicated that the projects selected, as part of the HyNet and East Coast Clusters, are consistent with allocating resources to those sectors with few alternatives for achieving net zero. 5.5 Separately, on 10 February 2025, government announced an independent review to consider how Greenhouse Gas Removals (GGRs), including large-scale Power BECCS and Direct Air Capture with Carbon Storage (DACCS), can assist the UK in meeting the government’s net zero targets and ensuring security of supply, out to 2050. Further details of the review will be shared in due course.