The National Audit Office (NAO) has raised concerns that the UK may not meet its 2030 target for carbon capture and storage (CCUS).
The technology, critical for achieving the UK’s net zero emissions goal by 2050, aims to capture and store 20 to 30 million tonnes of carbon annually by 2030.
The Department for Energy Security and Net Zero (DESNZ)’s plan involves establishing CCUS in four industrial clusters, with two initial clusters in north-west England, north Wales and the East Coast.
The remaining clusters in Scotland and Humberside are planned for later implementation.
However, the NAO’s report highlights “slow progress” in establishing the first two clusters, posing a risk to meeting the 2030 ambitions.
The report emphasises DESNZ’s challenges, including the complexities of launching new technology at scale and uncertainties around storage sites’ capacity and performance.
The NAO notes that managing risks between the government and private investors and within project partnerships is crucial for successful deployment.
Despite efforts to fill capability and capacity gaps, DESNZ is behind schedule in agreeing government support for Track-1 projects, originally planned to be operational by the mid-2020s.
The final investment decision for these projects has been delayed to at least September 2024.
Funding remains a concern, with DESNZ and HM Treasury committing up to £20 billion for early deployment but not specifying which programme elements this covers.
Further funding is required for future stages, and a clear plan for this is needed to provide investor confidence, the NAO suggests.
The report concludes that slower progress with Track-1 projects means DESNZ will struggle to meet its 2030 carbon capture ambitions, with current negotiations covering less than a quarter of the lower target for carbon capture.
Additionally, the lack of dedicated Greenhouse Gas Removal projects under Track-1 adds to the risk of missing the 2030 goals.
In response to the NAO’s report, Ruth Herbert, Cherif Executive of the CCSA said: “We agree with the National Audit Office that it is critical that the DESNZ succeeds with the CCUS programme if the UK is to achieve its legally binding climate ambitions.
“Over the past three years, significant progress has been made on the CCUS Cluster Sequencing Programme, but final investment decisions are yet to be taken.”
A Department for Energy Security and Net Zero spokesperson told Energy Live News: “We are taking immediate action to implement our plan for clean power by 2030 while continuing to develop cutting-edge technologies like carbon capture, usage and storage, which the NAO recognises will help to decarbonise our economy.
“This technology is vital to boost our energy independence and the Climate Change Committee describe it as a necessity not an option for reaching our climate goals.
“The initial cluster projects are nearing the first financial investment decisions this year, which are expected to create jobs and bring in billions of public and private investment into our industrial heartlands.”
