Carbon Capture, Usage and Storage
The question
To ask the Secretary of State for Energy Security and Net Zero, how much funding his Department plans to provide to (a) transport and (b) storage companies to help support their carbon capture, usage and storage business models in the next 12 months.
Answered by Michael Shanks
In the 2025 spending review, the Government allocated £9.4 billion over the Spending Review period.
The bulk of public funding for Track 1 is only provided once projects are operational. Transport & Storage Companies (T&SCos) operate a Regulated Asset Base model regulated by Ofgem. This allows them to recover costs during operation by charging connected capture projects - expected from 2028 onwards.
The government has announced its support for the Acorn and Viking clusters and is providing development funding to advance their delivery, including approximately £200m for Acorn. The exact amounts for each cluster and funding schedule will be subject to negotiations, value for money and deliverability assessments.
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