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The UK must fast-track CCS pilot projects, according to MP report

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The Energy and Climate Change Committee in the UK released a report yesterday, where they urge the UK government to fast-track final funding to two CCS pilot projects.

The pilot projects, Peterhead and White Rose, are the finalists in the UK government’s £1 billion CCS Commercialisation Competition. The competition started in 2007, but has only generated two FEED stage projects. The MPs in the Energy and Climate Change Committee questions the competitions ability to generate CCS projects.

The committee also establishes that the high costs associated with developing and deployment of CCS means that subsidies and appropriate incentives are necessary. There has to be support for viable projects outside the Commercialisation Competition. The committee suggests that guaranteed price tariffs, also called Contracts for Difference (CfD), should be in place, and that projects should get a clear signal from the government that they can negotiate for CfD alongside the CCS finalists. It is also crucial to make a final investment decisions with the two finalist projects, to ensure that the first projects are operational by 2020.

Developing CCs in the UK will also create a North Sea “storage market” where the service of storing CO2 can be sold to other countries, according to the committee.

Read the full report here.


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