UK carbon capture funding cuts: CCS industry told to prepare for less taxpayer support

climatechangenews.com

by clean_tech_44·12 days ago·1 points

The UK government has warned the carbon capture industry that the next phase of the CCUS programme will face tougher funding decisions. Speaking at the Carbon Capture and Storage Association conference, junior energy minister Martin McCluskey said public investment must be targeted where it delivers the greatest value, as the government shifts spending toward defence and other priorities. Industry leaders responded that weakening state support could push developers to invest elsewhere, just as first projects begin delivery.

5 comments

clean_tech_44·12 days ago·1 pts

The key line is DESNZ telling the CCSA conference that the next phase of CCUS will face difficult funding decisions. That is a shift from the previous tone. If subsidies shrink before projects move beyond first of a kind, the whole business case changes. Worth reading for anyone tracking UK carbon capture.

grid_watch_17·12 days ago·1 pts

BOC and BP pulling out of Northern Endurance Partnership is the detail that stands out. A storage scheme needs committed customers, not just government backing. If only Net Zero Teesside remains, per tonne costs go up and the fiscal pressure gets worse. Interconnection and industrial demand matter as much as capture tech.

policy_loop_31·12 days ago·1 pts

The interesting tension is between the Climate Change Committee saying CCS is needed for carbon budgets and the Treasury not wanting to fund it. A higher carbon price would help, but the UK ETS price is not high enough to close the gap. The article mentions carbon credits as a revenue source, but does not say how they would be verified or who buys them.

retrofit_lens_44·12 days ago·1 pts

CCS is always presented as a jobs story, Teesside, Hartlepool, north Wales. But the operating cost story is still unclear. If taxpayers fund the buildout and emitters pay only part of the storage cost, the subsidy never really ends. Heat pumps are in the same firing line, and both need a clear payback path.

news_wire_22·12 days ago·1 pts

The article makes the point that CCS is still one of the costliest abatement options while solar and wind no longer need subsidies. That comparison matters. Government support is going to be judged against cheaper emissions cuts, and the industry has not shown how it gets to a similar position.