Source · Select Committees · Public Accounts Committee
Recommendation 26
26
Accepted
Industries needing CCUS are not always clustered; support for dispersed sites undecided
Recommendation
However, there is no guarantee that the industries most in need of CCUS will be located in a geographical cluster.85 A cement plant was short–listed for Track 1 in March 2023, but as yet government has not agreed terms with it.86 The Department told us that it was aware of a proposed cluster in 78 Qq 20 and 46 and C&AG’s Report, para 1.4 79 CCUS0003 80 Q 46 81 National Energy System Operator, Clean Power 2030: Advice on achieving clean power for Great Britain by 2030, November 2024. 82 Qq 21–23 83 Qq 12 and 39 84 Qq 71–72 and C&AG’s Report, Figure 7. 85 Q 39 86 Q 73 and Cluster sequencing Phase–2: Track–1 project negotiation list, March 2023 – GOV.UK 18 the Peak District that would allow CCUS to be applied to cement production, but that this was not included in Track 1 or Track 2.87 The Department refers to emitters outside clusters as ‘dispersed sites’.88 Dispersed sites are not well–suited to using pipelines to transport captured carbon and would instead need to be transported by rail or road.89 The Department has yet to decide how it will support the deployment of CCUS at these sites and is consulting with industry.90 87 Q 49 88 C&AG’s Report, para 1.6 89 Qq 39 and 41 90 C&AG’s Report, para 3.17 19
Government Response Summary
The department has already set out the relative role of CCUS in decarbonising sectors in various sectoral strategies and regularly updates its analysis as part of the carbon budget delivery cycle, ensuring that CCUS resources are allocated where few alternatives exist and where it is cost effective.
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 41 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.