Yesterday’s news regarding the withdrawal of the £1 billion capital subsidy by a government who only six months ago were firmly committed to CCS as part of their election manifesto was a shock for many people across the energy industry. It was not announced as part of the 2015 spending review, but was part of the collateral damage of budget cuts at DECC which was quietly announced to the UK Stock Exchange at 3pm through a short statement of 56 words – equivalent to just three tweets.
The UK is committed to Carbon Capture and Storage (CCS) as a key part of its carbon reduction efforts. There has been a long history of early stage CCS projects in the UK, but converting these into operational projects has proved a challenge.
Carbon Capture and Storage (CCS) is the only technology available which enables the continued use of fossil fuels for power generation whilst reducing green-house gas emissions. The UK government sees CCS as an important element of its energy policy alongside renewables and nuclear to enable the country to meet its carbon emissions reduction targets, but slow progress in the UK threatens the future of this critically important technology.