LCCC’s Growing Net Zero Support
The success of the CfD as a mechanism for driving the UK’s Net Zero ambitions means its use is expanding beyond renewable and other low carbon electricity, particularly for Carbon Capture and Storage (CCUS) and Low Carbon Hydrogen. The Regulated Asset Base (RAB) model is another economic tool being drawn on by BEIS for new nuclear. LCCC’s established expertise has allowed us to provide advisory support to BEIS as they develop such new schemes. We have also been allocated additional counterparty and settlement roles.
- CCUS for power generators - Incentivising private sector investment into mid-merit order Combined Cycle Gas Turbines (CCGTs) that can combine this conventional gas generation technology with industrial scale Carbon Capture Plants that will capture the waste CO2 normally emitted during this process.
- LCCC are the named counterparty and settlement agent.
- CCUS for emitters – Encouraging a range of energy intensive industries involved in industrial processes such as cement, steel and chemical manufacturing to deploy Carbon Capture Plants that will sequester their waste CO2 emissions.
- LCCC are the nominated counterparty and settlement agent, subject to the successful completion of administrative and legislative arrangements.
Low Carbon Hydrogen
- Hydrogen production – Initially catering for new Blue (fossil derived + carbon capture) and Green (electrolysis of water from renewable electricity) Hydrogen Production projects who intend to supply applications including transport and industry.
- LCCC are engaging in advisory work for development of the scheme with BEIS and potential counterparty for the scheme.
Nuclear Regulated Asset Base (RAB)
- Exploring the Regulated Asset Base model to attract private investing and also as a way to drive down financing costs, which are a major component of nuclear projects, and hence reduce costs paid by suppliers and ultimately consumers.
- LCCC are engaging with BEIS in advisory work for development of the scheme and are envisaged to be the settlement agent with Ofgem as the economic regulator.