×
×
Policy & Regulation

CCS funding cut to undermine UK gas policy

The UK’s last-minute cut to CCS funding has shocked the industry, undermining the government’s carbon targets and making the move to gas in power more challenging The UK’s last-minute cut to CCS funding has shocked the industry, undermining the government’s carbon targets and making the move to gas in power more challenging.
By Annemarie Botzki 27 November 2015 Europe & Russia / Policy & Regulation 0 18472
The Peterhead power plant, where Shell had planned to retrofit CCS technology. (Shell)

The UK’s decision to scrap its £1 billion ($1.51 billion) funding competition for carbon capture and storage (CCS) has upset industry players and cast doubt over the government’s gas-focused energy policy.

The government made the surprise announcement on Wednesday, just four weeks before the two bidders in the long-running contest were due to submit their final proposals. 

“For the UK, the gas-heavy strategy favoured by the Treasury requires an explicit focus on CCS. Taking it off the table now suggests a deliberate attempt to push...