One of the key potential benefits of carbon capture (usage) and storage (CCS/CCUS) is enabling a range of heavy industries (other than power generation) to avoid CO2 emissions. However, designing a regulatory system that will support such “industrial emitters” as they decarbonise their operations is a complex task that the UK government (HMG) has yet to complete. Potential beneficiaries and other stakeholders need to consider the issues and continue to engage with HMG on them.

Introduction

Background

UK CCUS is taking off. HMG says it is determined, over the next 10 years, to put the UK at the heart of the CCUS sector, as other governments also look to foster this technology. In a recent speech to a UN climate action roundtable, Boris Johnson said: “I want to lead on carbon capture and storage, a technology I barely believed was possible, but I am now a complete evangelist for”.

A major change from the UK’s previous efforts to commercialise CCS technology is that, rather than focusing on CCUS as a means of delivering low‑carbon, despatchable electricity generation, the government is aiming to support CCUS clusters in which a range of non-power generating “industrial emitters” also play a central part. This is because CCUS is seen as playing a key role in decarbonising certain manufacturing industries.

Download the article.