Carbon Capture and Storage and Hydrogen: Finance
The question
To ask the Secretary of State for Energy Security and Net Zero, what estimate his Department has made of the amount of private investment that will be raised for carbon capture and storage and hydrogen projects by the £3.9 billion of public funding announced in paragraph 3.52 of the Autumn Budget 2024.
Answered by Sarah Jones
On 4th October, the government reached commercial agreement with the private sector and announced up to £21.7bn of available funding over 25 years to launch the UK’s new carbon capture, usage and storage industry. We expect this funding to crowd in £8bn in private sector investment for the 25 years, and demonstrating the investability of CCUS will unlock a further pipeline of billions of pounds in private sector investment. It is estimated that industry has spent £1 billion in investment already. The government also announced over £2bn of funding over 15 years for the projects in the first Hydrogen Allocation Round (HAR1). These projects will invest over £400m of private capital during construction across the UK.
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