17.07.2024

CCSA welcomes low carbon priorities in King’s Speech

17 July 2024, London – The Carbon Capture & Storage Association (CCSA) welcomes important legislation in the King’s Speech that enables progress on deploying carbon capture and storage projects across the UK; helping to support a low carbon economy and fostering economic growth.

The introduction of Bills to establish GB Energy, set up the National Wealth Fund (which has already committed £1bn to accelerate the deployment of carbon capture projects), future-proof The Crown Estate, and enact reforms to planning and skills, are all important to the development of the UK Carbon Capture, Utilisation and Storage (CCUS) industry.

The development of GB Energy, one of the Labour Party’s flagship election promises, is key in supporting the development of low-carbon energy technologies, including CCUS and low carbon hydrogen.

Reforms to The Crown Estate and planning system, the creation of a new skills body – ‘Skills England’ – and the announcement of funding support for the Sustainable Aviation Fuel industry, will ensure we have the right planning framework in place for a successful CCUS industry. This will provide investors with confidence that the UK is a safe place to invest and do business.

Since being elected, important policy decisions from the new Government have bolstered investor confidence in the UK’s low-carbon energy infrastructure. With the legislative agenda for the next Parliamentary session clearly focused on energy security and growth, the Government has an exciting opportunity to decarbonise British industry through delivering low-carbon infrastructure projects, including CCUS and hydrogen production.

The CCUS industry is on the cusp of deploying these projects at scale across industrial heartlands, and accelerating the Programme could secure almost £30bn in private sector investment by 2030, deliver 70,000 new jobs and protect 77,000 more in existing carbon-intensive industries.

Key legislation:

  • Great British Energy Bill – to establish the framework for Labour’s energy and climate policies, and the creation of GB Energy.
  • National Wealth Fund Bill – to create a National Wealth Fund, unlocking £7.3bn to deliver growth and drive a greener economy, as well as mobilise additional private sector investment.
  • Sustainable Aviation Fuel (SAF) Bill – to establish a revenue support mechanism for SAF producers who are looking to invest in the UK.
  • The Crown Estate Bill – to modernise The Crown Estate by removing outdated restrictions and widening its investment and borrowing powers.
  • Planning and Infrastructure Bill – to make improvements at a local planning level and support the development of critical infrastructure.
  • Skills England Bill – to create ‘Skills England’, a new body to lead an assessment of England’s skills landscape and ensure skills can meet demand to deliver net zero and drive growth.
  • Budget Responsibility Bill – to ensure all significant tax and spending announcements are subject to independent assessment by the Office for Budget Responsibility.
  • English Devolution Bill – to enhance the powers of local leaders and devolved administrations over strategic planning and growth strategies.

The CCSA is urging the Government to maintain momentum on the CCUS Cluster Sequencing Programme to ensure the UK remains a global leader in this vital technology.

Ruth Herbert, Chief Executive of the CCSA said:

“The King’s Speech is a key indicator of the Government’s priorities, and we are pleased to see low carbon energy and the net zero economy at the heart of its legislative agenda.

“This is an ambitious program of legislation, and we look forward to working with the Government and MPs from across Parliament to ensure that these important bills are brought into law and support the UK’s journey to a clean, fit-for-the-future energy system that creates jobs and grows our economy.”

“With the Prime Minister stating that he wants to take the brakes off Britain, we need to see this ambition applied to CCUS projects, where there is up to £30bn of private investment waiting to be deployed across the UK’s industrial regions. The Government has a window of opportunity to secure Final Investment Decisions on Track-1 CCUS clusters in the North-West and North-East of England by September – infrastructure that will deliver industrial decarbonisation, clean hydrogen and flexible low carbon power.  We have a very exciting opportunity here in the UK to deliver the world’s first large scale integrated CCUS clusters. With investors watching closely, it is vital that these projects are given the go-ahead immediately”

“The industry also needs clarity on project selection for the expansion of the first two clusters and the development of Track-2 clusters in Scotland and South Humber. This will enable employers that need CCUS operational by 2030 to continue with their planned investments, securing jobs and economic growth where it is most needed.”

 

Notes to Editors

CCUS, or Carbon Capture, Utilisation and Storage, is a key low carbon solution – vital to meeting the UK’s statutory Net Zero target at least cost. CCUS enables the production of clean power, clean products (such as steel and cement) and clean hydrogen – which can then be used to decarbonise heating and transport. In addition, CCUS also enables greenhouse gas removal from the atmosphere through Direct Air Capture with Storage (DACS) or Bioenergy with CCS (BECCS).

The CCSA is the trade association accelerating the commercial deployment of CCUS, with offices in the UK and Belgium. We work with members, governments and other organisations to ensure CCUS is developed and deployed at the pace and scale necessary to meet net zero goals and deliver sustainable growth across regions and nations.

The CCSA currently has over 100 member companies who are active in exploring and developing different applications of carbon capture and removals, CO2 transportation by pipeline and ship, utilisation, geological storage, and other permanent storage solutions, end-users such as power, industry, waste, fuels, and hydrogen production sectors, plus supply chain, engineering, construction and management, legal and financial consulting sectors.

For media enquiries please contact Joe Butler-Trewin on 07908 141 067/ joe.butler-trewin@ccsassociation.org

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