The United Kingdom’s ambition to achieve its 2030 carbon capture, usage and storage (CCUS) target is at risk, Energy Live News reported Wednesday, citing a recent report by the UK National Audit Office (NAO).
The technology is essential for the island nation to reach its net-zero goal by 2050, with plans to capture and store 20 to 30 million tons of carbon annually by 2030.
The Department for Energy Security and Net Zero (DESNZ) aims to establish CCUS in four industrial clusters, starting with two in North West England, North Wales, and the East Coast, followed by clusters in Scotland and Humberside.
However, the NAO report highlights significant delays in establishing the first two clusters, jeopardizing the 2030 target.
Relevant: UK Government Announces New CCUS Vision To Create Carbon Capture Market
DESNZ faces challenges such as launching new technology at scale and uncertainties regarding the capacity and performance of storage sites. Effective risk management between the government and private investors is critical for success.
The department is behind schedule in finalizing government support for Track-1 projects, initially expected to be operational by the mid-2020s. The final investment decision for these projects has been postponed to at least September 2024.
Funding remains a major concern. While DESNZ and His Majesty’s Treasury have pledged up to £20 billion ($25.7 billion) for early deployment, specific allocations within the program are unclear. Further funding is needed for future stages to secure investor confidence.
The NAO report concludes that DESNZ’s slow progress with Track-1 projects and lack of dedicated Greenhouse Gas Removal projects under Track-1 make it unlikely to meet the 2030 carbon capture goals. Current negotiations cover less than a quarter of the lower target for carbon capture.
Read more: Carbon Storage Levy To Be Introduced In The UK
In a comment to the report, Ruth Herbert, CEO of London-based Carbon Capture and Storage Association (CCSA), emphasized the importance of the CCUS program for the UK’s climate ambitions, noting that significant progress has been made but final investment decisions are still pending.
A DESNZ spokesperson indicated to Energy Live News that immediate actions are being taken to implement the plan for clean power by 2030 while continuing to develop advanced technologies like CCUS.
These technologies are recognized by the NAO as crucial for decarbonizing the economy and for boosting energy independence and achieving climate goals.
The initial cluster projects are approaching their first financial investment decisions this year, which are anticipated to create jobs and attract billions of public and private investment into the industrial heartlands, the spokesperson said.
