UK Government Establishes Carbon Capture Framework

UK Government Establishes Carbon Capture Framework - Carbon Herald
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The UK government announced on Nov. 15 the Dispatchable Power Agreement (DPA), a regulatory framework to support the development of carbon capture and storage (CCS) projects in the country. 

The DPA sets the foundations of the official business model and contract structures that will shape the CCS sector in the UK. The framework establishes parameters on carbon capture rates and testing requirements for operators and investors.

The agreement is based on the contractual structure of the Contracts for Difference that was initially put in place to support the renewable energy sector and builds on the requirements for CCS projects.

“Businesses need to know that the UK is the best place for carbon capture investment… we are giving one of our biggest signals to date and showing that the UK’s CCUS industry is open for business,” said UK’s Climate and Energy Minister Graham Stuart, adding that the UK carbon capture framework will provide the industry with “the clarity required to deploy CCUS at scale” and “move into the next phase” of development.

Relevant: UK Government Picks Just Two Carbon Capture Clusters For Funding

UK’s unstable political situation following the resignation of Boris Johnson and the short-lived government of successor Liz Truss has raised concerns in the industry over potential consequences for CCS policy. 

The UK government has been in the process of shortlisting a group of projects to receive public support, as it targets the establishment of two CCS clusters – the HyNet cluster and the East Coast Cluster – by 2025 and two more by the end of this decade. 

 Eni is involved with the in HyNet cluster, while BP leads as an operator in the East Coast Cluster. 

A selection of projects was shortlisted this summer as part of the sequencing process, and is currently undergoing due diligence.

Read more: HyNet North West CO2 Capture Project Reaches 19 Signed MoUs

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