Economic Potential of DACCS and Global CCS Progress
TRANSPORT MODALITIES
The broadening of CO2 transport modalities in the Trans-European Energy Networks
regulation (TEN-E), which would include shipping, trains and trucks, did not progress
further in 2021 (8). As the TEN-E goes under review, CO₂ transport modalities aside
from pipelines are not favoured according to a provisional agreement and recent
trialogue discussions between the European Commission (EC), the Council of the
European Union and the European Parliament (EP). Consequently, CCS efforts looking
to be included in the EU's Projects of Common Interest - a designation which eases
permitting processes, along with providing access to funding - will not be explicit in
legislation.
REPOWEREU
The European Commission has responded to the energy crisis prompted by the Russia-
Ukraine conflict through the development of the REPowerEU Plan. Under the plan, the
Commission announced aims to end the EU's reliance on Russian energy resources
while also tackling climate change. Although carbon capture and storage is not explicitly
mentioned in the REPowerEU communication, the Commission notes its intention to
further support Europe's hydrogen economy.
In August 2022, as part of the Track 1 clustering process, the UK Government announced
the shortlist of 20 CCUS capture projects that can receive possible support from
government, once it has established that the projects represent a "value for money"
investment for the taxpayer.
POLICY
Over the last 12 months, the UK Government focused its CCS policy sights on building a
cadence around CCS funding programs and policy announcements made in 2020. The
government's 10-Point Plan for a Green Industrial Revolution committed to investing in
carbon capture usage and storage. This gave way to a number of CCS-specific policies
and funds, including the UK CCUS Innovation Programme, which aims to enhance CCS
research and innovation programs along with the CCS Infrastructure Fund, that are
intended to support the development of four CCS networks (11).
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To further highlight the breadth of public-private partnerships and funding efforts across
the UK region - including the CIF, the UK CCUS Innovation Fund and more the UK
Government released a CCUS Investor Roadmap, illustrating its CCUS delivery plan
from 2021 to 2035 (12).
Following the announcement of CIF recipients in England, where HyNet and East Coast
Cluster consortiums were selected to progress as part of Track 1 projects, the national
government increased its CCUS funding commitment and ambitions. If selected as
part of the CIF-awarded applicants, the Aberdeenshire-based Acorn project will see
the Scottish Government provide £80 million to launch the initiative a project, the
government says, that is required if Scotland is to meet its net-zero targets (13).
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UNITED KINGDOM
FUNDING PROGRAMS
Following a £1 billion announcement in 2020 to develop CCUS clusters through the
UK Government's CCS Infrastructure Fund, the first two recipients of the grant were
announced in late 2021, with an expected completion date by the mid-2020s. The
HyNet Cluster consortium operating in North West England and North West Wales, and
the East Coast Cluster along England's North Sea shore by Humber and Teesside, will
enter the Track 1 project negotiations as preferred beneficiaries of the CIF (9). Scotland's
CCS project, Acorn, has been placed on the "back-up" to the Track 1 clusters. Through
the CIF-selected projects, the UK Government aims to capture and store 20 to 30 Mtpa
CO2 by 2030 onward (10).
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GLOBAL CCS
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