Carbon Capture and Storage (CCS): Assessing support for UK capture projects
The UK government has thrown its weight behind CCS, aiming to capture and store 20-30 Mt of carbon emissions per year by 2030 from across the economy. However, the cost of installing and operating carbon capture equipment, together with the cost of transporting and storing that carbon once captured, is currently prohibitively expensive and therefore requires government support. With detailed draft contracts designed to support capture projects published recently, Oliver Moir, Iain McCann, Rory Botros and Kathryn Emmett discuss key issues for investors in capture projects: from pricing and deliverability, to co-dependency on the CCS network and termination rights.