Source · Select Committees · Public Accounts Committee
8th Report - Carbon Capture, Usage and Storage
Public Accounts Committee
HC 351
Published 7 February 2025
Government response
Treasury minutes: Government response to the Committee of Public Accounts on the Eighth report from Session 2024-25 · published 6 May 2025
Recommendations & Conclusions
7
Conclusion
Not Addressed
Department and Treasury agree CCUS funding limits but recognise substantial contingent liabilities
Conclusion
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 …
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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.
HM Treasury
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13
Conclusion
Not Addressed
Government announced £21.7 billion funding for the first five Track 1 CCUS projects
Conclusion
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 …
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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.
HM Treasury
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15
Conclusion
Not Addressed
Department and Treasury acknowledge further funding required for later CCUS programme stages
Conclusion
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 …
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Government Response Summary
The government responds to a different recommendation (3) than the conclusion being made (15).
HM Treasury
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20
Conclusion
Not Addressed
Value for money assessments do not fully mitigate unsuitable carbon capture project risks
Conclusion
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 …
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Government Response Summary
The government responds to a different recommendation (4a) than the conclusion being made (20).
HM Treasury
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