UK Government abandons CCS
Hidden away in today's Autumn Statement – the Chancellor has decided to abandon government support for Carbon Capture and Storage.
That probably means the Peterhead project is dead. Government has messed about with this project for years and is now killing it. Removing any chance of the UK developing this vital technology.
“HM Government Statement to Markets Regarding Carbon Capture and Storage Competition
25 November 2015
Today, following the Chancellor's Autumn Statement, HM Government confirms that the £1 billion ring-fenced capital budget for the Carbon Capture and Storage (CCS) Competition is no longer available.
This decision means that the CCS Competition cannot proceed on its current basis. We will engage closely with the bidders on the implications of this decision for them”
In addition the Department of Energy and Climate Change faces a 22% cut in its budget. The Treasury will also remove tax reliefs for all energy generation projects by excluding them from the venture capital schemes, to “ensure that they remain well targeted at higher risk companies”.
The Autumn Statement appears to signal that the UK government is abandoning any significant support for energy sector.
The CCSA explain why this is such a bad decision not least because CCS could create 15,000-30,000 jobs in the UK by 2030, delivering a market worth up to £35 billion. 160,000 direct jobs in energy intensive industries would be safeguarded. And finally – and this is perhaps the one argument which should make the Government sit up and listen – CCS could shave £82 off the cost of the average household energy bill per year by 2030.
- Posted in: Carbon capture