EXCLUSIVE: U.K. to Issue Update “Shortly” on Carbon Capture Contracts for Difference

By Mathew Carr

Nov. 27, 2020 — LONDON: A further update on industrial carbon capture contracts for difference is due to be issued “shortly,” according to the U.K. Department for Business, Energy and Industrial Strategy.

The update is expected to set out the U.K. government’s approach to allocated initial contracts, a BEIS official said in an emailed response to questions. Germany is considering its first auctions around 2022, according to a person close to those negotiations. That seems to fit with the U.K.’s timing below.

Britain is seeking to deploy carbon capture, storage and utilization incentives through the next decade.

Here is a snip of some of the options for factories, published in August, 2020:

For the full document, click this:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/909706/CCUS-government-response-business-models.pdf

There are many other potential business models outlined in that document, for instance for the power sector and for the transport and storage of CO2.

The U.K. government has confirmed its position to proceed with an industrial contract for difference, according to the BEIS official. It’s also confirmed it will consult on its preferred business model for hydrogen in 2021.

In its 10-point plan, it confirmed that new business models for CCUS and hydrogen will be finalised in 2022.

The government’s 10-point plan is here:
https://www.gov.uk/government/publications/the-ten-point-plan-for-a-green-industrial-revolution/title

For some Carrzee context on the new forms of market incentives in Europe, see this:
https://carrzee.org/2020/11/20/exclusive-germany-confirms-its-considering-funky-carbon-contracts-to-support-climate-transition/

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