Economic Potential of DACCS and Global CCS Progress
INDUSTRIAL CLUSTERS
UK GOVERNMENT FUNDING
Track-1 Cluster Sequencing
process
Track-1 Cluster FEED
Announcement of shortlisted CO2 emitters that will
proceed to negotiations
Track-1 negotiations with
transport and storage
companies and emitters
Track-1 Cluster construction
Track-2 Second Cluster Sequencing development,
launch, negotiations and construction
Launch Phase-2
of the Cluster
Sequencing process
Design of hydrogen business
model complete
Launch £140m Industrial
Decarbonisation
& Revenue Support scheme
Publication of UK
Hydrogen Strategy
Launch £240m Net Zero
Hydrogen Fund (NZHF)
Confirmation of £1bn CCUS
infrastructure Fund (CIF)
Announce winners of £70m DACCS & other
GGRs innovation programme
Publication of T&S, ICC and power
business model updates
2021
2022
2023
GOVERNMENT
ACTIVITY
INDUSTRY
ACTIVITY
JOINT GOVERNMENT
& INDUSTRY ACTIVITY
FIGURE 14: UK GOVERNMENT CCUS DELIVERY PLAN
2024
At least one power CCUS
plant by mid 2020s
Capture 20-30 MtCO2 pa
by 2030 including 6 MtCO2
from industrial CCS
Deploy at least 5 MtCO2 of
engineered greenhouse gas
removals (GGRS) by 2030
Track-1
Commiss
ioning
At least two clusters by
the mid 2020s
GOVERNMENT
TARGET
2025
Up to 1GW of CCUS-enabled hydrogen
Deliver a fully
decarbonised
power system
by 2035
4 CCUS clusters by 2030
Up to 10GW of
hydrogen production
Legally binding
target of 78%
emissions
reductions
by 2035
2030
2035
KEY MILESTONES
THE NETHERLANDS
In 2020, the Dutch Government expanded the
Sustainable Energy Transition Subsidy Scheme (SDE+)
into the SDE++ to include support for renewable energy
projects and CO2 reduction efforts, such as CCS. In
2022, the Dutch Government announced it would more
than double the annual budget for the SDE++, increasing
it from €5 billion to €13 billion (14). The Porthos Project,
which aims to store CO2 in the North Sea sub-surface and
had previously been announced as a grant recipient, was
awarded nearly half of the 2021 budget (15). The SDE++
funding commitment will continue until 2035.
DENMARK
Through three government programs, the Danish
Government announced it would invest a total of €5
billion in support of carbon, capture and storage projects
(16). Part of the funding will be rolled out across a period
of ten years under the Energy Technology Development
and Demonstration Programme (EUDP), with Project
Greensand and Total Energies-led Bifrost having already
received funding from the Danish Government (16). The
EUDP aims to support Denmark's target of reducing
emissions by 70 per cent by 2030 Europe's most
ambitious 2030 target thus far (17).
-
In addition to funding support, the Danish Government
has entered a bi-lateral agreement with the Belgian
Government, along with Flanders, which aims to support
cross border CO2 transport between the two countries
(18). The move follows EU Innovation Funding approval
of the Kairos@C project - a cross-border CCS effort led
by BASF's Belgian operations, alongside Air Liquide (19).
The bi-lateral agreement is expected to lead the way for
transboundary CCS, both in Europe and beyond.
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GLOBAL CCS
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