Source · Select Committees · Public Accounts Committee
8th Report - Carbon Capture, Usage and Storage
Public Accounts Committee
HC 351
Published 7 February 2025
Conclusions (4)
7
Conclusion
Not Addressed
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 Summary
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 agreeing on funding limits.
13
Conclusion
Not Addressed
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 Summary
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 for Track 1 projects.
15
Conclusion
Not Addressed
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 Summary
The government responds to a different recommendation (3) than the conclusion being made (15).
20
Conclusion
Not Addressed
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 Summary
The government responds to a different recommendation (4a) than the conclusion being made (20).