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BEIS CCUS Publications 2022 (includes CCUS enabled H2 and achievements)

Alex Milward, Director Carbon Capture Utilisation & Storage at Department for Business, Energy and Industrial Strategy (BEIS)

(This copy of a BEIS circular is reproduced on the UKCCSRC web site with the permission of the author)

Alex Milward giving a keynote talk at the UKCCSRC April 2022 Conference

Reflecting on an extraordinarily busy twelve months, the BEIS CCUS Programme team have prepared a list of publications in 2022 that support the build-up to deployment. We finish the year with a solid set of policies, plans, and a ‘three-sector team’ of at least 5,000 people working on this in the UK.

Whilst we know there is much to do we feel we have moved a significant step towards the programme vision:

To enable the commercial deployment of CCUS to help decarbonise the economy, delivering a low-cost, low-carbon electricity system, maintaining our industrial competitiveness, putting us on a pathway to meeting our legally binding carbon budgets and delivering Net Zero creating a framework to reduce costs and risks of CCUS to eventually have a cost-competitive and self-sustaining CCUS market.

Listed below are our main publications on CCUS. Preparing these has taken creative, collaborative, and consistent hard work from everyone, even more so than usual in the challenging times presented to us from many dimensions of pandemics, energy crises, war, and political change.

We all know there is much to do in the years ahead, and we all want so much more than the good foundation we have achieved together. We hope all the teams working on CCUS and hydrogen deployment get some good rest and recuperation over the holiday season and come back with renewed vigour next year.

Publication list in Chronological Order

6 January 2022: Transport and Storage Business Models and Indicative Heads of Terms: January 2022 Update

Further details on the government’s current proposals on potential business models for CCUS. The indicative heads or terms set out the basis for the provision of a licence, expected to be granted by the economic regulator.
https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-business-models

17 January 2022: Carbon capture, usage and storage (CCUS): offshore decommissioning regime for CO2 transport and storage: Consultation outcome

The response to a consultation on our proposals for establishing a funded decommissioning regime for CCUS which aims to achieve this outcome and ensures the Polluter Pays Principle is met, while also encouraging investment in the sector to meet the government’s wider objectives.
https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-offshore-decommissioning-regime-for-co2-transport-and-storage

17 January 2022: Carbon capture, usage and storage (CCUS): duties and functions of an economic regulator for CO2 transport and storage: Consultation outcome

The response to a consultation on proposed duties, powers, functions and objectives of an economic regulator for carbon dioxide (CO2) transport and storage networks, to inform the continued development of carbon capture, usage and storage (CCUS) policy and legislative proposals.
https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-duties-and-functions-of-an-economic-regulator-for-co2-transport-and-storage

22 March 2022: Cluster Sequencing Phase-2: eligible projects (Power CCUS, hydrogen and ICC)

We received submissions for power, industrial carbon capture (ICC) and hydrogen to connect onto a Track-1 or reserve cluster as part of the Phase-2 cluster sequencing process. For projects to proceed to the evaluation stage of Phase-2, they were reviewed to ensure they met the eligibility criteria (outlined in Phase-2 guidance). The projects listed at the link below have met those criteria.
https://www.gov.uk/government/publications/cluster-sequencing-phase-2-eligible-projects-power-ccus-hydrogen-and-icc/cluster-sequencing-phase-2-eligible-projects-power-ccus-hydrogen-and-icc

29 March 2022: Carbon capture, usage and storage: amendments to Contracts for Difference regulations: Consultation outcome

This consultation invited views on amendments to the Contracts for Difference regulations to facilitate the award of the dispatchable power agreement (DPA) for Power CCS.
https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-amendments-to-contracts-for-difference-regulations

7 April 2022: British Energy Security Strategy

This strategy sets out how Great Britain will accelerate homegrown power for greater energy independence.
https://www.gov.uk/government/publications/british-energy-security-strategy/british-energy-security-strategy

8 April 2022: Carbon capture, usage and storage: investor roadmap

The CCUS roadmap outlines joint government and industry commitments to the deployment of CCUS in the UK and sets out the approach to delivering 4 CCUS low carbon industrial clusters, capturing 20-30MtCO2 per year across the economy by 2030 to help meet the UK’s new zero target.
https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-investor-roadmap

12 April 2022: Carbon capture, usage and storage: Dispatchable Power Agreement business model

This consultation seeks views on the full draft Dispatchable Power Agreement (DPA) for power Carbon Capture, Usage and Storage (CCUS).
https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-ccus-dispatchable-power-agreement-business-model

12 April 2022: Carbon capture, usage and storage: Industrial Carbon Capture business model

This consultation seeks views on the business model for Industrial Carbon Capture (ICC). https://www.gov.uk/government/consultations/carbon-capture-usage-and-storage-amendments-to-contracts-for-difference-regulations

12 April 2022: Carbon capture, usage and storage: business models April 2022 update

Updates on the proposed commercial framework for power, and industrial carbon capture business models:

Dispatchable power agreement: business model summary and consultation: April 2022 update
Dispatchable Power Agreement (DPA) gain share guidance (Annex A): April 2022 update
Draft: Dispatchable Power Agreement (DPA) front end agreement: April 2022 update
Draft: Dispatchable Power Agreement (DPA) terms and conditions: April 2022 update
Draft: Dispatchable Power Agreement (DPA) gain share schedule: April 2022 update
Industrial carbon capture business model: summary and consultation: April 2022 update
Industrial carbon capture business model: April 2022 update
Draft: Industrial carbon capture: standard terms and conditions (Annex A): April 2022 update
Draft: Industrial carbon capture front end agreement (Annex B): April 2022 update
https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-business-models

May 2022: Queen’s Speech

Government announces there will be an energy bill
https://www.gov.uk/government/speeches/queens-speech-2022

May 2022: Nomination window closed for CO2 storage licencing round

https://www.nstauthority.co.uk/licensing-consents/carbon-storage/

24 June 2022: Carbon capture, usage and storage: network code indicative heads of terms

This document and annex set out the current proposals on the matters to be addressed in the CCS Network Codes.
https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-business-models

6 July 2022: Energy Security Bill introduced in the House of Lords

The Energy Security Bill, introduced to Parliament on 6 July 2022, will deliver a cleaner, more affordable, and more secure energy system.
https://www.gov.uk/government/collections/energy-security-bill

July 2022: Industrial carbon capture business model: adaptations for the waste sector update

To be read alongside the full form Waste ICC Contract once published. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1091878/draft-waste-industrial-carbon-capture-contractual-riders-annex-a-july-2022.pdf

25 July 2022 : Future policy framework for power with carbon capture, usage and storage (CCUS): call for evidence

This call for evidence seeks views and evidence on how government can best support the continued deployment of power with CCUS projects into the 2030s beyond Track-1 of the Cluster Sequencing process.
https://www.gov.uk/government/consultations/future-policy-framework-for-power-with-carbon-capture-usage-and-storage-ccus-call-for-evidence

11 August 2022 : Business model for power bioenergy with carbon capture and storage (Power BECCS)

This consultation is seeking views on governments minded-to position for a business model to incentivise deployment of power bioenergy and carbon capture (BECCS) within the UK.
https://www.gov.uk/government/consultations/business-model-for-power-bioenergy-with-carbon-capture-and-storage-power-beccs

12 August 2022: Cluster sequencing Phase-2: shortlisted projects (power CCUS, hydrogen and ICC), August 2022

Following the selection of HyNet and East Coast Cluster as Track 1 CCUS clusters in November 2021, we have selected power CCUS, industrial carbon capture (ICC), waste and CCUS-enabled hydrogen projects to proceed to the due diligence stage of the Phase-2 Cluster Sequencing process:
https://www.gov.uk/government/publications/cluster-sequencing-phase-2-eligible-projects-power-ccus-hydrogen-and-icc/cluster-sequencing-phase-2-shortlisted-projects-power-ccus-hydrogen-and-icc-august-2022

24 August 2022 : Ccluster sequencing for carbon capture, usage and storage (CCUS) deployment: power bioenergy with CCS (BECCS)

Call for submissions from power BECCS projects wanting to take part in Track-1 of the CCUS Cluster Sequencing process:
https://www.gov.uk/government/publications/cluster-sequencing-for-carbon-capture-usage-and-storage-ccus-deployment-power-bioenergy-with-ccs-beccs

23 September 2022: The Growth Plan 2022

The Chancellor of the Exchequer delivered his Growth Plan 2022 to Parliament, making economic growth the government’s central mission. The Growth Plan sets out action to unlock private investment across the whole of the UK and cut red tape to make it quicker to deliver the UK’s critical infrastructure:
https://www.gov.uk/government/publications/the-growth-plan-2022-documents

September 2022: NSTA announcement on world’s largest CO2 storage licencing round with licences expected in early 2023
https://www.nstauthority.co.uk/news-publications/news/2022/carbon-storage-licensing-round-attracts-26-bids/

October 2022: Project BOOST concludes with recommendations to accelerate CO2 storage appraisal.

15 November 2022: Carbon capture, usage and storage (CCUS): business models

This publication sets out how the business model and associated DPA have developed since the first publication of the proposed DPA business model in December 2020:
https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-business-models

12 December 2022: CCS Network Code Head of Terms

We have published: CCS Network Code Head of Terms explanatory note; (Annex) Updated Indicative Heads of Terms and CCS Network Code Indicative Heads of Terms (HoTs) comparison with the previous version of the HoTs (published in June):
https://www.gov.uk/government/publications/carbon-capture-usage-and-storage-ccus-business-models#full-publication-update-history

13 December 2022: Hydrogen Production Business Model

The Heads of Terms for the Low Carbon Hydrogen Agreement sets out the government’s proposal for the final hydrogen production business model design. It will form the basis of the Low Carbon Hydrogen Agreement, the business model contract between the government appointed counterparty and a low carbon hydrogen producer.
https://www.gov.uk/government/publications/hydrogen-production-business-model

December 2022

Published updated ICC and Waste Business Models in April and July respectively, with updated contracts, consultation response and Grant Fund Agreement expected to be published in December crucial to enabling shortlisted Industrial CCUS projects to move to the next phase of negotiations in the Cluster Sequencing process

December 2022: Containment report due to be published (exact date tbc)

Understanding containment certainty is about developing understanding of the likelihood of high impact, but very low probability, risks associated with the storing of CO2 on the UK continental shelf. This work will inform the development of the commercial model for storing CO2.

December 2022: EXITING THE EUROPEAN UNION, ENVIRONMENTAL PROTECTION, The Storage of Carbon Dioxide (Amendment) (EU Exit) Regulations 2022

https://www.legislation.gov.uk/uksi/2022/1190/made

The purpose of this Instrument is to amend The Storage of Carbon Dioxide (Licensing etc.) Regulations 2010 and The Storage of Carbon Dioxide (Termination of Licenses) Regulations 2011 (“Amended Regulations”), which form part of the United Kingdom’s implementation of Directive 2009/31/EC of the European Parliament and of the Council of 23 April 2009 on the geological storage of carbon dioxide (“the CCS Directive”). This instrument makes minor amendments to the Amended Regulations to address failures of retained EU law to operate effectively and other deficiencies arising due to the United Kingdom’s withdrawal from the European Union (“EU”).

A multi-billion-pound industry that can deliver effective climate action and a viable future for the UK’s oil and gas industry is being imperilled by slow decision-making within government, a parliamentary committee will hear today.

Prof Stuart Haszeldine, SCCS Director, will tell the Scottish Affairs Select Committee that carbon capture and storage (CCS) offers a lifeline to the UK oil and gas industry as it faces an unavoidable transition to a low-carbon economy, but urgent action is needed by government to seize the opportunity.

This week, the UN Intergovernmental Panel on Climate Change’s landmark report [1] warned that the world has just 12 years to enact measures that will keep global warming to a maximum of 1.5C, and all scenarios will call on carbon dioxide removal technology.

One year ago, a key industry study [2] showed that a CCS network making use of oil and gas industry expertise and infrastructure could boost the UK economy by an estimated £160 billion between now and 2060.

Evidence already submitted to the Select Committee by the SCCS research partnership stated that:

The oil and gas industry has the skills, experience, knowledge and assets to develop a profitable CCS industry in the UK.
Oil and gas infrastructure can be re-used, saving public money on decommissioning and enabling the development of a new offshore CO₂ storage industry for the UK.
Well-managed CO₂-EOR will contribute to maximising economic recovery, as well as potentially storing more CO₂ than it produces.
Urgent action is needed by the UK Government, such as joining the dots within government to ensure opportunities are not lost due to a lack of clear responsibility, and ensuring suitable pipelines are preserved for re-use.

Prof Stuart Haszeldine said: “The future of the oil and gas industry is inextricably linked to CCS. It provides a unique opportunity for the UK’s offshore industries to lead on decarbonising Europe’s economies, maintaining high-value jobs and avoiding climate chaos. The UK has been through three cycles of detailed engineering and finance appraisal to design projects which can securely store carbon. In the remainder of 2018, we can now move on to development.

“This includes projects, such as Acorn in north east Scotland, where recent studies [3] show that infrastructure and geology can support a large-scale CCS network for permanently storing carbon from Europe as well as the UK. This opens the door to clean heat and transport, and a new generation of low-carbon manufacturing and chemical industries. And work is now underway to evaluate the potential for low-carbon hydrogen production from natural gas brought ashore at the St Fergus Gas Terminal.

“The UK Government is rightly attempting to design a larger scale support system for CCS projects in different regions of the UK but that does not mean waiting. If the UK Government provides relatively low funding and matches Scottish Government finance and support, Acorn could begin operating in 2022. Importantly, this will support the UK oil and gas industry’s just transition to a low-carbon economy.”

Media contact

Indira Mann

SCCS Communications & Knowledge Exchange Executive

T: +44 (0) 131 651 4041 / +44 (0)7795 882 125

indira.mann@sccs.org.uk

[1] UN Intergovernmental Panel on Climate Change special report SR15: https://www.ipcc.ch/report/sr15/

[2] Summit Power report, Clean Air, Clean Industry, Clean Growth: How Carbon Capture Will Boost the UK Economy, October 2017: https://www.ccsassociation.org/news-and-events/reports-and-publications/clean-air-clean-industry-clean-growth/

[3] ACT Acorn project outputs reports: https://actacorn.eu/downloads

Scottish Carbon Capture & Storage (SCCS) is a research partnership of British Geological Survey, Heriot-Watt University, University of Aberdeen, the University of Edinburgh and the University of Strathclyde. Its researchers are engaged in high-level CCS research as well as joint projects with industry to support the development and commercialisation of CCS as a climate mitigation technology. www.sccs.org.uk

The UK Carbon Capture and Storage Research Community (UKCCSRC) is supported by the Engineering and Physical Sciences Research Council (EPSRC) as part of the UK Research and Innovation (UKRI) Energy Programme.