UK Government sets out plans for clean energy system

Dec 14 2020


The energy white paper includes £1 billion for 'state-of-the-art carbon capture storage in four industrial clusters by 2030.'

According to the plan four low carbon clusters will be set up by 2030, and at least one fully net zero cluster by 2040. This will include support for at least one power CCUS plant to be operational by 2030 and will put in place a commercial framework which will enable developers to finance the construction and operation of a power CCUS plant and stimulate a pipeline of projects in one of the four industrial clusters so as to decarbonise them.

A business model will be developed to provide revenue support and improve companies’ confidence for investing in 
carbon capture solutions, with a new commercial framework finalised by 2022.

There will also be a consultation to remove the current 300MW minimum threshold on requirements to retrofit thermal power plants with CCS, so as not to disincentivise larger plants.

The plan aims to kick-start a hydrogen economy by working with industry to aim for 5GW of production by 2030, backed up by a new £240m net zero Hydrogen Fund for low carbon hydrogen production.

There is also support for a North Sea transition away from oil and gas production, ensuring that the expertise of the oil and gas sector can be drawn on in developing carbon capture and storage and hydrogen production to provide new green jobs.

The Energy White Paper builds further on the Prime Minister’s Ten Point Plan for clean energy, transport, nature and innovative technologies. In the run up to COP26 the Government will introduce a series of sectoral strategies and an overarching Net Zero Strategy, which will set out more detail on plans to meet its net zero target and carbon budgets.

UK Government


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Issue 78 - Nov - Dec 2020

CCUS in Asia: Japan’s Tomakomai project - achievements and future outlook .. China’s policy framework to achieve ‘historic ambition’ of net-zero emissions Norway launches £2.1 billion ‘Longship’ project .. Rystad: Europe could see $35 billion in CCS.....