UK cancels £1bn for CCS competition

Nov 26 2015

The UK Government has axed the funding for its CCS competition as part of a spending review.

In a statement released as a regulatory announcement (RNS) on the London Stock Exchange, the Government said, "Today, following the Chancellor's Autumn Statement, HM Government confirms that the £1 billion ring-fenced capital budget for the Carbon Capture and Storage (CCS) Competition is no longer available."

"This decision means that the CCS Competition cannot proceed on its current basis. We will engage closely with the bidders on the implications of this decision for them."

The Carbon Capture and Storage Association called it a dark day for CCS.

Dr Luke Warren, Chief Executive of the CCSA, commented: “Today’s announcement that the funding for CCS will be cut is devastating. Only six months ago the Government’s manifesto committed £1 billion of funding for CCS. Moving the goalposts just at the time when a four year competition is about to conclude is an appalling way to do business."

"This announcement is a real blow to confidence for companies investing in CCS. We call on the Government to come forward - as a matter of urgency – with their plans for CCS as this technology is critical for the UK’s economic, industrial and climate policies."

"Without concrete Government support for CCS the UK will lose the opportunity for cost-effective decarbonisation."

Added to this, Scottish Carbon Capture and Storage reports that DECC may be disbanded altogether, with no climate function retained.

"Well-placed sources at Westminster and in the Department of Energy and Climate Change (DECC) state that DECC will be disbanded after the COP21 Paris climate change talks are over," it said.




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