Source · Select Committees · Business and Trade Committee
Recommendation 24
24
Deferred
Paragraph: 121
Require Government to announce CCS cluster projects, clarify funding, and develop robust regulation.
Recommendation
The Government’s recent confirmation of £20 billion investment over 20 years for the early development of Carbon Capture and Storage (CCS) is welcome, allowing the implementation of the initial clusters to commence. However, none of this £20 billion is reflected in the formal budget policy costings, so it is unclear how it will be raised. The Government will need to come forward promptly with clarity for projects involved in the Track 1 expansion and Track 2 clusters. We recommend that the Government announces the cluster sequencing Track-1 expansion projects as quickly as possible and provides further detail on the forward timeline for selecting the next CCS clusters that need to be operational this decade. We urge the Government to provide clarity on how the £20 billion for the early development of CCS will be funded. The Government should develop a robust regulatory regime that tests the carbon capture rates of CCS facilities and penalises failure, which in turn should drive innovation.
Government Response Summary
The government's response outlines its commitment to developing policy by 2024 to enable investment in large-scale, long-duration electricity storage (LLES) technologies. This completely deflects from the recommendations regarding Carbon Capture and Storage (CCS) cluster announcements, funding clarity, and regulatory regime development.
Paragraph Reference:
121
Government Response
Deferred
HM Government
Deferred
80. Large-scale, long-duration electricity storage (LLES) technologies, such as pumped hydro storage and liquid air energy storage, are key enablers to a secure, cost-effective and low-carbon energy system. The Government will ensure the deployment of sufficient LLES to balance the overall system by developing appropriate policy to enable investment by 2024. As next steps, the Government will evaluate different policies, their benefits, and their interactions with the energy system. The number of staff working on this policy area is commensurate with similar policies in the same state of development.