Source · Select Committees · Business and Trade Committee
Recommendation 28
28
Deferred
Paragraph: 136
Condition BECCS taxpayer support on robust evidence of carbon neutrality and value for money.
Conclusion
Bioenergy with carbon capture and storage has yet to be commercially deployed in the UK. We have concerns about whether biomass feedstocks can be scaled up sustainably to meet domestic and global demand and whether BECCS facilities will provide value for money. To ensure sufficient oversight of sustainability standards, the UK needs to develop domestic supplies of feedstocks. We do not oppose the use of BECCS for power in principle, but future taxpayer support for BECCS must be contingent on: a) robust, transparent evidence that the full lifecycle emissions from BECCS facilities in the UK are carbon neutral within a timeframe compatible with our climate targets; and, b) detailed assessment that BECCS facilities provide value for money.
Government Response Summary
The government's response outlines plans to introduce recommended funding for community benefits from electricity transmission infrastructure and discussions on supply chain development, without addressing the committee's conditions for future taxpayer support for BECCS.
Paragraph Reference:
136
Government Response
Deferred
HM Government
Deferred
89. National Grid Electricity Systems Operator (ESO) is developing the Holistic Network Design (HND) Follow Up Exercise. Working closely with the Crown Estate, the ESO will make recommendations for the location of grid connections of in-scope offshore wind projects in areas such as the Celtic Sea. The recommendations will inform connection agreements, including the location of clean energy infrastructure. Any infrastructure proposed will be subject to the appropriate planning process. The Government is consulting on community benefits for network infrastructure, to ensure communities hosting transmission network infrastructure can benefit from supporting the delivery of cheaper, secure and low-carbon energy for all of Great Britain. 90. The consultation proposes to introduce voluntary guidance on the appropriate levels and forms of benefits to give communities the knowledge, power and flexibility to decide what benefits they want in consultation with the project developer. 91. The Government intends to introduce a recommended level of funding for community benefits, which we believe will increase the level of funding from that seen in existing examples of community benefits for electricity transmission network infrastructure. 92. The Government is also discussing with The Crown Estate how best to co-ordinate with their approach to supply chain development, whether that be current Contracts for Difference (CfD) Supply Chain Plan policy, or the potential introduction of CfD non-price factors, which were the subject of a recent Call for Evidence. We are keen to ensure there is as much synergy in the approach as possible. The Welsh Affairs Committee’s recent report on Floating Offshore Wind in Wales stated that the large-scale deployment in the region could create ‘thousands of high-quality, long-term jobs’.