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 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 back...