Carbon Capture, Usage, and storage (CCUS) is an emissions reduction technology to prevent large amounts of carbon dioxide (CO2) from being released into the atmosphere.

It has the potential to deliver a stronger, greener UK by levelling up our industrial heartlands, supporting clean growth and providing new economic opportunities for UK-based companies across the world.

That is why Government announced its plans to invest up to £1 billion to support the establishment of CCUS in at least two industrial clusters by mid-2020s, and four by 2030 at the latest.

Today the UK Government has taken a vital next step towards these commitments by publishing the Dispatchable Power Agreement (DPA) – the UK’s first official CCUS business models and contract for industry. This signal to industry will help to establish a thriving CCUS industry here in the UK, such as those set to be based in North West England and North Wales, and Teesside and Humber.

The contracts will define important UK business models, such as CO2 capture rates and testing requirements, so industry and investors have a solid policy framework to base their business and investment decisions upon, moving forward with confidence, knowing the UK Government is backing them step by step.

Importantly, these projects can provide non-weather dependant, low carbon and flexible generation capacity in periods when lower cost renewables or nuclear generation are insufficient to satisfy demand. This will boost the country’s energy security, bring green jobs and investment to the UK’s industrial heartlands and safeguard existing skills across carbon-intensive industry.

The first phase of the assessment has now been completed with HyNet cluster in North West England and North Wales, and the East Coast Cluster in the Teesside and Humber selected as the starting point for a new carbon capture industry, which could support up to 50,000 jobs in the UK in 2030.

Investment in CCUS creates the potential for between 8000 – 23,000 new energy jobs in connected activities related to the North Sea Transition Deal such as CO2 processing, transport and storage.

Today’s milestone update for future CCUS business contracts will provide vital clarity and crucial technical information to the three Power CCUS Projects shortlisted, as we continue to press ahead with ensuring the UK is a world leader in CCUS, with the North East and North West set to be centre stage.

This is the UK Government’s latest step in accelerating the power of CCUS, securing a greener future and the long-term competitiveness of UK industries, and in turn, transforming the UK’s industrial heartlands, revitalising and levelling up the local economy.

Climate and Energy Minister Graham Stuart said:

“Businesses need to know that the UK is the best place for carbon capture investment. Today we are giving one of our biggest signals to date, and showing that the UK's CCUS industry is open for business.

“The North West cluster will play a pivotal role in securing the long-term competitiveness of the UK’s industrial heartlands, helping to ensure the carbon dioxide emitted by heavy industry is locked away and locally-produced green energy is generated instead.

“This will bring huge economic benefits to the North West of the UK, from creating new roles to safeguarding existing jobs while also attracting investment across North Wales through to Liverpool Bay.

“Today’s visibility of the Power CCUS business model contract will provide industry and private investors with a solid business foundation that can be developed across the North West, kicking off the development of world-leading CCUS projects.”